Market Research Report
Military Frigates Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||707242|
|Published||Content info||110 Pages
Delivery time: 2-3 business days
|Military Frigates Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: May 1, 2019||Content info: 110 Pages||
The military frigates market is anticipated to grow at a CAGR of above 3.5% during the forecast period.
Development of New Frigates is Expected to Drive the Growth of the Military Frigates Market
Development of new frigates is one of the key drivers in the military frigates market. With main concentration on high lethal and low detection capabilities of the frigates, development of frigates is picking up pace over the past few years. The US is one of the foremost countries that is into development of new frigates. Its new program of Guided Missile Frigate FFG(X) is in progress and includes construction of about 20 FFG(X) next-generation frigates by 2030. The US Navy selected five shipbuilders: Austal USA, Fincantieri S.p.A., General Dynamics, Huntington Ingalls Industries, and Lockheed Martin and is currently evaluating their designs. It intends to award the contract for the first frigate by 2020. Similarly, the United Kingdom is currently evaluating BAE Systems, Babcock and Atlas Elektronik UK for design, development and manufacturing of its new Type 31e frigate that is intended to enter service in the 2020s along with the more capable Type 26 frigate. Such new programs will propel the growth of the military frigates market during the forecast period.
Asia Pacific Region to Experience the Highest Growth During the Forecast Period
Asia Pacific region is anticipated to have the highest growth during the forecast period. The escalated tensions between the countries of the region and tensions between China and India have led the countries to increase their military spending of the region and is one of the major factor boosting the growth the market during the forecast period. The countries like South Korea, Australia, India, China, and Indonesia are investing in development, building, and procurement of new frigates in this region. In late 2018, India's Goa Shipyard Limited (GSL) signed a USD 500 million deal with Rosoboronexport of Russia to indigenously manufacture two stealth frigates with technology transfer. Similarly, under Australia's SEA 5000 Phase 1 project (Future Frigate Project), the country signed a deal with BAE Systems worth USD 26 billion to take the delivery of nine high-end anti-submarine warfare frigates by the end of next decade. Also, the presence of shipbuilding companies like Austal, China State Shipbuilding Corporation, and Hyundai Heavy Industries (HHI) is also supporting this growth.
The military frigates market is highly fragmented with many companies taking a minor share of the market. Some of the prominent players in the market are Lockheed Martin Corporation, Austal, United Shipbuilding Corporation, Fincantieri S.p.A., and Naval Group. The major issue faced by the companies is limited geographic presence. For instance, BAE Systems supports the frigate programs of the United Kingdom and Australia, Austal supports frigates in Australia and the United States, United Shipbuilding Corporation majorly supports the programs of Russia. Due to such limited geographic presence, the market is highly fragmented with many companies taking a part of the share. The collaborations and partnerships between the players to support the frigate development programs of the naval forces will help intake a strong and leading position in the market.