Naval Vessels MRO Market Size to grow by USD 6884.75 million between 2024-2028
According to a research report “ Naval Vessels MRO Market” by Type (Dry dock MRO, Component MRO, Engine MRO, Modification) Vessel Orientation (Aircraft carriers, Submarines, Destroyers, Frigates, Amphibious vessels and others) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 6884.75 million, at a CAGR of 6.89% during the forecast period. The global naval fleet is experiencing a significant aging process, with approximately 75% of the US Navy's cruisers having surpassed the 35-year active service life mark. Moreover, some vessels in the US Navy fleet are over 50 years old. According to the 2020 Navy Board of Inspection and Survey annual report, there were notable declines in INSURV inspection scores for the main propulsion plant and the ship's electrical system, amounting to approximately 20% each from 2014 to 2019. This increasing aging fleet size necessitates a heightened demand for naval vessels repair, maintenance, upgrades, and potential replacements within the US market..
Browse market data tables, figures, and in-depth TOC on “Naval Vessels MRO Market” by Type (Dry dock MRO, Component MRO, Engine MRO, Modification) Vessel Orientation (Aircraft carriers, Submarines, Destroyers, Frigates, Amphibious vessels and others) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Type, the Dry dock MRO segment is projected to dominate the market size in 2024
Dry dock Maintenance, Repair, and Overhaul (MRO) activities are crucial for naval vessels, ensuring their operational readiness, safety, and prolonged service life. These activities enable extensive inspections, repairs, and upgrades, which are challenging to execute while the vessels are in the water. The primary goal of dry dock MRO is to preserve the seaworthiness of naval assets, including aircraft carriers, destroyers, and submarines. This involves various tasks such as hull maintenance, hull painting, propeller and rudder repair, equipment replacement, system modifications, and regulatory compliance. Dry dock periods offer opportunities to incorporate technological advancements, enhance operational efficiency, and adhere to regulatory requirements.
By Vessel Orientation, Aircraft carriers segment is expected to hold the largest market size for the year 2024
The global Naval Vessels Maintenance, Repair, and Overhaul (MRO) market is significantly influenced by the Aircraft Carriers segment. With approximately 47 active aircraft carriers in operation as of October 2023, operated by around 14 navies worldwide, this segment holds a commanding position. Notably, the US Navy alone operates 11 large nuclear-powered carriers, each capable of accommodating approximately 80 fighter jets. The combined deck space of these carriers surpasses that of all other aircraft carriers globally. An aircraft carrier represents the most valuable asset in a naval fleet, with the USS Gerald R. Ford, the priciest aircraft carrier in history, boasting a unit cost of approximately USD13 billion.
North America is forecasted to hold the largest market size by region in 2024
The North American region holds a significant position in the global naval vessels Maintenance, Repair, and Overhaul (MRO) market, with the US Navy, Royal Canadian Navy, and Mexican Navy being the primary naval forces in the region. The US Navy, with its vast fleet of 11 nuclear-powered aircraft carriers, commissioned between 1975 and 2009, dominates the market. The US, with a defense budget of approximately 39% of the global total in 2022, amounting to USD877 billion, significantly contributes to the market's growth. This substantial investment in defense ensures a consistent demand for MRO services in North America.
The Naval Vessels MRO Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Naval Vessels MRO (Maintenance, Repair, and Overhaul) market is experiencing significant growth due to the increasing focus on maintaining and upgrading naval fleets amidst budgetary restrictions. Governments are turning to outsourcing MRO tasks to private companies to reduce costs and leverage cutting-edge MRO technologies. Naval Group and Naviris, in partnership with OCCAR (Organisation Conjointe de Cooperation en matière d'Armement), are leading the way in MRO services for major naval programs such as the Collins Class submarines and ANZAC Class Frigates. Advanced technologies like CAMM (Common Anti-air Modular Missile) and its variants Sea Viper and Sea Ceptor are being integrated into naval vessels like the Type 45 destroyers, Horizon class, and UK Navy's destroyers. MBDA UK is a key player in providing missile systems for naval vessels, including the Sea Viper and Sea Ceptor. Shipyards are also investing in advanced technologies to streamline MRO processes and reduce downtime. Maritime disputes and the need for modernized naval fleets are further driving the demand for MRO services. Overall, the Naval Vessels MRO market is expected to continue growing as governments prioritize the modernization and maintenance of their naval fleets.
Market Research Overview
The Naval Vessels Maintenance, Repair, and Overhaul (MRO) market encompasses various components and vessels types in the naval forces' arsenals. Key components include rudders, propellers, hull, and electronics systems such as sensors and weapons combat systems. Naval vessels undergo MRO in dry docks, engine rooms, and modification facilities to maintain military readiness. Destroyers, aircraft carriers, corvettes, frigates, and submarines are primary vessel types undergoing MRO. Modernization efforts, upgradation, and overhaul are crucial for naval fleets to counter external influence and maintain a strong military presence in the international strategic environment. The global economic crisis and budgetary constraints have led to outsourcing MRO tasks to private entities and international collaborations. For instance, OCCAR, Naval Group, and Naviris have partnered to provide MRO services for the Horizon class, CAMM, Sea Viper, and Sea Ceptor systems. The Collins Class submarines, ANZAC Class Frigates, and Hobart Class Destroyers undergo MRO to maintain operational readiness and counteract ageing fleets, technological obsolescence, and lack of skills. The USUSD75 billion naval vessel modernization program includes modernization and upgrades, corrective maintenance, and preventive maintenance. Naval MRO faces challenges such as piracy, terrorism, trade restrictions, supply chain disruptions, and the complexity of operations. Power politics, unilateralism, and hegemonism influence naval presence and military activities in regions like the Black Sea. The international security system requires continuous adaptation to global crises and regional naval forces' modernization efforts. MRO technologies, including cutting-edge propulsion systems, play a crucial role in maintaining naval vessels' capabilities. Governments invest in naval vessel modernization and upgrades to counter military activities, maritime disputes, and security threats.
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