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The naval vessels MRO market size is forecast to increase by USD 6.88 billion at a CAGR of 6.89% between 2023 and 2028. The naval vessels Maintenance, Repair, and Overhaul (MRO) market is driven by the aging naval fleets of major naval forces, necessitating modernization and upgradation programs. External influences, such as military readiness and defense spending, significantly impact the market's growth. The economic crisis and budgetary constraints in various countries have led to a focus on expediting the execution of MRO services for naval ships, submarines, frigates, and corvettes. The Black Sea region, in particular, has seen increased demand due to geopolitical tensions. Despite this, the market faces challenges, including insufficient capacity to meet the growing demand for MRO services and the high costs associated with these services. Defense spending and GDP are key factors influencing market growth, with countries allocating larger portions of their budgets to naval modernization and upgradation. Rivals in the market strive to meet the demands of naval fleets while navigating these challenges.
The naval vessel MRO (Maintenance, Repair, and Overhaul) market is driven by the expansion of navy fleets and military budgets worldwide. With increasing tensions and maritime disputes, governments continue to invest in their naval capabilities. Shipyards play a crucial role in the production and MRO of naval vessels, incorporating advanced technologies such as MBDA UK's Sea Ceptor missile system on the UK Navy's Type 45 destroyers, or the Sea Viper and CAMM systems on the Horizon class and Naviris Naval Group's OCCAR-supported Hobart class destroyers, ANZAC class frigates, and Collins class submarines. Naval vessel MRO involves cutting-edge technologies and complex systems, necessitating specialized expertise.
Further, outsourcing MRO tasks has become a popular trend due to budgetary restrictions. Naval Group, for instance, offers comprehensive MRO services for various naval vessels. The integration of advanced technologies and the outsourcing trend are expected to shape the future of the naval vessel MRO market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The dry dock MRO segment is estimated to witness significant growth during the forecast period. Naval Vessels Maintenance, Repair, and Overhaul (MRO) market encompasses essential dry dock activities for the successful operation, safety, and longevity of naval vessels, such as aircraft carriers, destroyers, and submarines, including the Hobart Class Destroyers, ANZAC Class Frigates, and Collins Class submarines. Dry docking enables extensive inspections, repairs, and upgrades, addressing hull maintenance, hull painting, propeller and rudder repair, equipment replacement, system modifications, and more. These activities are crucial for maintaining seaworthiness and addressing complexity of operations, budgetary restrictions, supply chain disruptions, and technological obsolescence. Naviris, a subsidiary of Naval Group, and the Organisation Conjointe de Cooperation en matière d'Armement (OCCAR) play significant roles in managing these MRO tasks. Dry dock periods offer opportunities to implement cutting-edge MRO technologies, improve operational performance, and meet regulatory requirements.
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The dry dock MRO segment accounted for USD 5.20 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The Naval Vessels Maintenance, Repair, and Overhaul (MRO) market in North America is dominated by the US Navy, Royal Canadian Navy, and Mexican Navy, with the US Navy holding a significant share due to its substantial defense budget of approximately USD 877 billion in 2022, representing around 39% of the global defense budget. This substantial budget enables the US Navy to maintain a large naval fleet, including 11 nuclear-powered aircraft carriers, most of which were commissioned between 1975 and 2009. Naviris, a joint venture between Naval Group and OCCAR, plays a crucial role in providing MRO services for various naval vessels in North America.
Further, the complexity of operations, budgetary restrictions, supply chain disruptions, and technological obsolescence necessitate the outsourcing of MRO tasks to specialized companies like Naviris. Cutting-edge MRO technologies are essential to ensure the readiness and efficiency of naval vessels, mitigating the challenges posed by the aforementioned factors.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The aging fleet and modernization programs of leading naval forces is the key driver of the market. The global naval vessel market is witnessing significant growth due to the aging military fleets requiring repair, maintenance, upgrades, and in some cases, replacement. According to various reports, such as the US Navy's 2020 annual report from the Board of Inspection and Survey, approximately 75% of cruisers in the US Navy have surpassed the 35-year active service life mark, with some ships being over 50 years old. This aging fleet size has resulted in a decline in the inspection scores of the main propulsion plants and electrical systems by about 20% each between 2014 and 2019. This trend is not unique to the US Navy, as other naval forces worldwide face similar challenges.
Consequently, governments are investing in naval vessel Modernization, Repair, and Overhaul (MRO) to maintain their navy fleets' operational readiness. Advanced technologies, such as those provided by companies like MBDA UK and their systems, including Sea Ceptor, Sea Viper, and Common Anti-air Modular Missile (CAMM), are being integrated into naval vessels to enhance their capabilities and extend their service life. Shipyards are at the forefront of these efforts, collaborating with governments and technology providers to ensure the naval fleets remain effective in addressing maritime disputes and maintaining peace and stability in the world's oceans.
Increasing focus on expediting execution of MRO services is the upcoming trend in the market. The global naval vessels Maintenance, Repair, and Overhaul (MRO) market encounters challenges such as delays in the delivery of components, sensors, and weapons, as well as the scarcity of drydocks and a sufficient workforce. These issues often lead to increased costs and time overruns, potentially hindering market expansion. To mitigate these hurdles, naval forces are focusing on ensuring that shipyards and drydocks are well-prepared with the necessary parts and equipment, as well as developing a skilled labor force to provide MRO services. By sharing long-term maintenance schedules for entire navy fleets in advance, shipyards and drydocks can effectively stockpile parts and equipment and train and hire workers accordingly, enabling them to render efficient and timely MRO services.
For instance, the UK Navy, in collaboration with MBDA UK, has implemented advanced technologies such as Sea Ceptor, Sea Viper, and Common Anti-air Modular Missile (CAMM) on its Type 45 destroyers, including the Horizon class, to enhance their capabilities and reduce the need for frequent repairs and maintenance.
Insufficient capacity to fulfill demand for MRO services is a key challenge affecting the market growth. The global naval vessels Maintenance, Repair, and Overhaul (MRO) market is experiencing significant demand due to the increasing military budgets allocated towards expanding and modernizing navy fleets. Military shipyards are under immense pressure to meet the demands of governments for the upkeep of their naval assets, including destroyers and advanced technologies such as MBDA UK's Sea Ceptor, Sea Viper, and Common Anti-air Modular Missile (CAMM) systems. However, the capacity of existing shipyards is insufficient to meet the growing demand. For instance, the US Navy, which operates four naval shipyards, once had 13. These shipyards are operating at high capacity utilization ratios, with the Puget Sound Naval Shipyard reaching 154% in FY2029.
This high utilization ratio hampers the ability of shipyards to carry out restoration, modernization, and maintenance effectively, making it challenging to handle MRO services for complex naval vessels such as aircraft carriers and submarines.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Austal Ltd.: The company offers naval vessels MRO such as fast, cost-effective general refit and repair solutions for high speed aluminium vessels worldwide.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The naval vessels MRO (Maintenance, Repair, and Overhaul) market is driven by the need to maintain and upgrade naval fleets to ensure military readiness in the face of various security threats and geopolitical tensions. Military budgets continue to prioritize naval forces, with significant investments in shipyards for the construction of advanced technologies such as destroyers, frigates, and submarines. Naval vessels require regular MRO to maintain operational readiness, with a focus on preventive maintenance, corrective maintenance, overhaul and refurbishment, modernization and upgrades, and the replacement of aging components. Complexity of operations, supply chain disruptions, technological obsolescence, and trade restrictions are some of the challenges faced in the naval vessel MRO market. Naval groups and navies, such as the UK Navy with its Type 45 destroyers and Sea Ceptor missile systems, and the French Naval Group, are investing in cutting-edge MRO technologies to address these challenges.
Further, outsourcing MRO tasks is becoming increasingly common due to budgetary restrictions and the need for specialized skills. The naval vessel MRO market includes various vessel types, with a significant focus on the destroyer segment due to their advanced capabilities and role in naval fleets. MRO for propulsion systems, electronics systems, weapons combat systems, and sensors is a key area of focus. Naval MRO is influenced by various factors, including maritime disputes, international security system, power politics, global crises, and regional naval forces. The market is expected to grow due to modernization efforts, military readiness, and the need to counter security threats such as terrorism and piracy.
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Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.89% |
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Market Growth 2024-2028 |
USD 6.88 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.22 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, India, Russia, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abu Dhabi Ship Building PJSC, Austal Ltd., Babcock International Group Plc, BAE Systems Plc, Fincantieri Spa, General Dynamics Corp., Hanwha Corp., Huntington Ingalls Industries Inc., Kongsberg Gruppen ASA, Larsen and Toubro Ltd., Lockheed Martin Corp., Naval Group, Northrop Grumman Corp., Raytheon Technologies Corp., Rhoads Industries, Rolls Royce Holdings Plc, Saab AB, Teledyne Technologies Inc., Thales Group, and thyssenkrupp AG |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vessel Orientation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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