Asia-Pacific Naval Vessels Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 41.47 Billion |
| Market Size (2029) | USD 83.32 Billion |
| CAGR (2024 - 2029) | 14.97 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Naval Vessels Market Analysis
The Asia-Pacific Naval Vessels Market size is estimated at USD 41.47 billion in 2024, and is expected to reach USD 83.32 billion by 2029, growing at a CAGR of 14.97% during the forecast period (2024-2029).
The increasing terrorism, maritime border security tensions between Asia-Pacific countries, piracy, and trafficking in the Indian Ocean, South China Sea, Arabian Sea, and South Pacific Ocean are prompting countries to deploy more naval vessels and coast guard patrol boats in the region. Increased defense spending and budget allocation for naval forces are supporting the growth of the naval vessels market in this region as countries look to modernize their naval vessel fleets.
Countries such as Japan and China are heavily integrating advanced technologies such as robotics and automation to develop a more cohesive naval force that can work simultaneously with the army and air force, thus enhancing situational awareness and battle management. This factor will likely further propel the growth of the naval vessels market in the Asia-Pacific region.
However, stringent rules and regulations to reduce emissions and pollution in the ocean are a challenge for naval vessel manufacturers.
Asia-Pacific Naval Vessels Market Trends
Destroyers to Exhibit the Highest Growth Rate During the Forecast Period
Escalating tensions in the South China Sea have resulted in several countries in Asia-Pacific strengthening their naval capabilities. This has also resulted in countries increasing their annual defense budget in the construction of destroyers. Many small nations with limited capabilities in naval shipbuilding are purchasing destroyers from other markets, such as Europe, the United States, China, Japan, and South Korea.
For instance, the Philippine Navy announced its plans to buy 25-30 warships, including destroyers, to modernize and increase its existing fleet by 2030. Also, in December 2022, the second of the Project 15B stealth-guided missile destroyers built by Mazagon Dock Shipbuilders Limited (MDSL) was inducted into the Indian Navy. The destroyers are being built under Project 15-B, and the Indian government has signed a deal to acquire an advanced sensor and weapon systems package for under-construction warships for nearly USD 800 million. The replacement programs in various countries to replace the current aging fleet of destroyers with modern detection and weapon systems are also propelling the demand for destroyers.
According to the Defense Buildup Program, the Japan Maritime Self-Defense Force (JMSDF) will likely increase the number of Aegis destroyers (DDG) from the current fleet of eight to ten. The Japanese government has also decided to purchase 500 Tomahawk cruise missiles, which will likely be installed on JMSDF Aegis destroyers.
India to Exhibit the Highest Growth Rate During the Forecast Period
Amidst tensions and disputes with China, India has significantly stepped up its naval capabilities through huge investments and advancements in engineering and technology. In the 2023 budget announcement, an allocation of USD 6.35 billion was set aside as the capital outlay for the Indian Navy as against USD 5.72 billion given to the force in 2022-23. As of November 2022, the Indian Navy had 45 vessels of various types under construction, including destroyers, frigates, corvettes, conventional-powered and nuclear-powered submarines, and various other ships, and plans to build a strong navy of 200 vessels by 2050.
On this note, in August 2023, the government cleared a USD 2.4 billion deal to manufacture fleet support vessels (FSVs), which the Indian Navy urgently requires. Under the Make in India initiative, the country is rapidly increasing its indigenously produced warships and initiated Project 75 Alpha. Under this project, six submarines will be designed by the Navy's in-house Directorate of Naval Design and built by the Shipbuilding Centre at Visakhapatnam. The construction is expected to commence on 2023-24, while the first submarine is expected to enter service in 2032. These developments will likely lead to the significant growth of the naval vessels market in India.
Asia-Pacific Naval Vessels Industry Overview
The Asia-Pacific Naval Vessels Market is semi-consolidated and is heavily dominated by prominent players such as Cochin Shipyard Limited, HD Hyundai, LARSEN & TOUBRO LIMITED. Mitsubishi Heavy Industries Limited and Kawasaki Heavy Industries, Ltd. These corporations own a large number of shipbuilding docks for naval vessel developments while collaborating with privately owned companies for technological and project management assistance.
The key players in the region generate revenue by completing orders largely from national governments. European naval shipbuilders also have a presence in the region in the form of joint ventures and collaboration. Other key players in the region include Singapore Technologies Engineering Limited, ASC Pty Ltd., etc., and PT PAL Indonesia, among others.
Asia-Pacific Naval Vessels Market Leaders
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Cochin Shipyard Limited
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HD Hyundai
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LARSEN & TOUBRO LIMITED
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Mitsubishi Heavy Industries Limited
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Kawasaki Heavy Industries, Ltd.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Naval Vessels Market News
- April 2023: Hyundai Heavy Industries launched its Chungnam frigate (FFX) at its shipyard in Ulsan, South Korea. The Chungnam is the first of six vessels that comprise the Ulsan-class FFX Batch III, which will be inducted into the Republic of Korea (ROK) Navy.
- September 2022: India’s first indigenously built aircraft carrier, INS Vikrant, was commissioned into service under the Make in India initiative.
APAC Naval Vessels Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Vessel Type
- 5.1.1 Submarines
- 5.1.2 Frigates
- 5.1.3 Corvettes
- 5.1.4 Aircraft Carrier
- 5.1.5 Destroyers
- 5.1.6 Other Vessel Types
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5.2 Geography
- 5.2.1 Asia-Pacific
- 5.2.1.1 China
- 5.2.1.2 India
- 5.2.1.3 Japan
- 5.2.1.4 South Korea
- 5.2.1.5 Australia
- 5.2.1.6 Singapore
- 5.2.1.7 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 China State Shipbuilding Corporation
- 6.1.2 Garden Reach Shipbuilders and Engineers Limited
- 6.1.3 LARSEN & TOUBRO LIMITED
- 6.1.4 Mazagon Dock Shipbuilders Limited
- 6.1.5 Cochin Shipyard Limited
- 6.1.6 PT PAL Indonesia
- 6.1.7 Boustead Heavy Industries Corporation Berhad
- 6.1.8 Singapore Technologies Engineering Limited
- 6.1.9 Bangkok Dock Company Limited
- 6.1.10 HD Hyundai
- 6.1.11 Mitsubishi Heavy Industries Limited
- 6.1.12 Kawasaki Heavy Industries, Ltd.
- 6.1.13 ASC Pty Ltd.
- 6.1.14 FINCANTIERI S.p.A.
- 6.1.15 thyssenkrupp AG
- 6.1.16 Navantia S.A. SM.E
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia-Pacific Naval Vessels Industry Segmentation
A naval vessel or ship is a military vessel used by a navy. Generally, naval vessels are damage-resilient and armed with weapon systems.
Vessel types and geography segment the naval vessels market. The vessel types include destroyers, cruisers, frigates, submarines, corvettes, aircraft carriers, and other vessel types (including amphibious warfare ships, littoral combat ships, cruisers, mine countermeasure ships, and patrol ships). The report provides market size and forecasts for all major countries in Asia-Pacific, including China, India, Japan, South Korea, Australia, Singapore, and the Rest of Asia-Pacific.
The market size and forecast for all the above segments are provided by value (USD).
| Vessel Type | Submarines | |
| Frigates | ||
| Corvettes | ||
| Aircraft Carrier | ||
| Destroyers | ||
| Other Vessel Types | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Australia | ||
| Singapore | ||
| Rest of Asia-Pacific |
APAC Naval Vessels Market Research FAQs
How big is the Asia-Pacific Naval Vessels Market?
The Asia-Pacific Naval Vessels Market size is expected to reach USD 41.47 billion in 2024 and grow at a CAGR of 14.97% to reach USD 83.32 billion by 2029.
What is the current Asia-Pacific Naval Vessels Market size?
In 2024, the Asia-Pacific Naval Vessels Market size is expected to reach USD 41.47 billion.
Who are the key players in Asia-Pacific Naval Vessels Market?
Cochin Shipyard Limited, HD Hyundai, LARSEN & TOUBRO LIMITED, Mitsubishi Heavy Industries Limited and Kawasaki Heavy Industries, Ltd. are the major companies operating in the Asia-Pacific Naval Vessels Market.
What years does this Asia-Pacific Naval Vessels Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Naval Vessels Market size was estimated at USD 35.26 billion. The report covers the Asia-Pacific Naval Vessels Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Naval Vessels Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Naval Vessels Industry Report
Statistics for the 2024 Asia-Pacific Naval Vessels market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Naval Vessels analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
