Artificial Intelligence
Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2031)
New York, Jan. 25, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Naval Vessel Maintenance, Repair, and Overhaul (MRO) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2031)” – https://www.reportlinker.com/p06221867/?utm_source=GNW
The market for naval vessel maintenance, repair, and overhaul (MRO) was slightly affected due to the COVID-19 pandemic, resulting from a lockdown implemented as a precaution against the spread of the virus. However, due to the pandemic, the military budgets are expected to decrease in the coming years, which may hamper the fleet modernization plans of the navies globally. Several shipyards performing MRO activities have also faced delays in project executions due to the COVID-19 pandemic.
The pandemic has led to the integration of advanced technologies to perform checks, inspections, and repairs of the existing fleet of naval vessels. Such technological advancements are expected to propel the growth of the market during the forecast period.
The increasing need to maintain, repair, and overhaul the existing fleet of naval vessels worldwide, owing to the increasing maritime disputes, may lead to growth in the naval vessel maintenance, repair, and overhaul (MRO) market.
Insufficient funds allocated by the governments for mid-life extension and maintenance of naval vessels can restrain the growth of the market.
Key Market Trends
The Destroyers Accounted for a Major Share by Revenue in 2021
Destroyers are fast, maneuverable, long-endurance warships that escort support and larger vessels in a fleet and defend them against the attacks of smaller powerful short-range surface combatants. The current global fleet of destroyers is around 250. Countries such as the United States, China, and Japan account for the highest share of the existing fleet of destroyers in the world. Due to their rather expensive procurement and operating costs, only a select few navies operate destroyers globally. With the global fleet age of destroyers increasing, countries around the world are investing in the modernization of their fleet with advanced equipment and in-service maintenance and overhaul plans. Also, the growing requirement of equipping the newer destroyers with the latest weapon systems is driving the need for destroyer modernization programs. For instance, in July 2021, MBDA UK was awarded an 11-year contract to integrate the Common Anti-Air Modular Missile, often referred to as Sea Ceptor, into the UK Navy’s Type 45 destroyers’ Sea Viper weapon systems. The work will also include the upgrade of the Sea Viper command and control (C2) system. Fitting CAMM onto the Type 45s will give the destroyers a 50% increase in the number of its air defense missiles. The first Type 45 destroyer is expected to be overhauled by summer 2026. Also, as of 2021, the navies of France and Italy were planning to conduct a mid-life upgrade of the Horizon class of air warfare destroyers that have been in service for more than ten years. In 2020, Naviris provided a contract to Naval Group, which was contracted through OCCAR (Organization for Joint Armament Co-operation) to conduct a feasibility study for the upgrade. Countries are also investing in sustaining the existing destroyer fleets by upgrading decades-old ships with newer systems and extending their service life. In 2021, the United States started upgrading the sensors, electronics, and weapons aboard the existing fleet of DDG-51 Arleigh Burke-class Flight IIA destroyers. Such developments are expected to drive the growth of the segment during the forecast period.
The Asia-Pacific Region Held the Highest Market Share in 2021
The Asia-Pacific region currently dominates the market, and it is expected to continue its dominance during the forecast period. Countries like China, India, and Japan are increasing their investment in strengthening their naval capabilities due to the ongoing geopolitical tensions in the region. China is one of the largest navies in the world, with 335 naval vessels (2019), about 55% larger than in 2005, where the majority of the fleet is more than 13 years. Similarly, other countries (like India and Japan) are also operating a fleet of aging naval vessels. Due to this, the countries are modernizing their fleets of naval vessels through the integration of advanced technologies (modifications) into the vessels. In this regard, the Australian government announced an investment of USD 75 billion over the next decade to enhance its naval capabilities. Out of the total investment, approximately 1/3rd of the investment is expected toward the improvement and sustainment of its naval vessels. Under this investment, the country plans to upgrade its Hobart Class Destroyers, ANZAC Class Frigates, and the country navy’s Amphibious ships and invest in the upgrade and life extension of the Collins Class submarines that are currently in service (average age more than 20 years). Similar investments in the modernization of naval vessels are anticipated to accelerate the demand for naval vessel MRO in the region in the coming years.
Competitive Landscape
The market for naval vessel MRO is fragmented with the presence of many international and domestic players that support navies around the world. Some of the prominent players in the naval vessel MRO market are General Dynamics Corporation, ThyssenKrupp AG, Naval Group, BAE Systems PLC, and Huntington Ingalls Industries. The companies are expanding their presence in the market by incorporating new technologies to decrease maintenance costs and receive new long-term contracts from navies around the world. In this regard, Indra, in collaboration with the Spanish Navy, tested new artificial intelligence systems that can predict malfunctions and improve the maintenance for its fleet of F100 frigates and Offshore Patrol Vessels BAM. Such new solutions are expected to help the companies predict and offer efficient MRO services to their customers, thereby increasing their shares in the market. Middle eastern countries are tying up with small players present in Europe and Asia-Pacific to form joint ventures and partnerships to gain access to markets, while also helping them in establishing their business unit and MRO facility. Some of these partnerships are also mandated by the government offset clauses which are being led by UAE, KSA in Middle East, and India, Thailand, Indonesia, Vietnam in Asia-Pacific.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06221867/?utm_source=GNW
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