The Offshore Patrol Vessels Market is estimated to be valued at US$ 16.17 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Offshore patrol vessels are multi-mission naval ships designed to patrol coastal waters. These vessels are versatile, high-performing and equipped with advanced weaponry for efficient maritime operation and security. Advantages of offshore patrol vessels include enhanced endurance, sea-keeping capabilities and ability to operate in all weather conditions. They can efficiently perform duties related to security, search and rescue, pollution control, fishery protection and anti-smuggling operations.
Market key trends:
With growing global maritime security threats such as illegal fishing, transnational organized crime, piracy and terrorism, the demand for offshore patrol vessels is increasing significantly. According to Stockholm International Peace Research Institute, global military expenditure rose to $2.1 trillion in 2021, registering an increase of 0.7% from 2020 levels. Additionally, increasing acquisitions of offshore patrol vessels by navies of developing nations to augment their maritime monitoring capabilities is expected to drive the offshore patrol vessels market over the forecast period. For instance, in 2022 Indian government approved acquisition of six new offshore patrol vessels at an estimated cost of $2.2 billion to enhance surveillance along its coastline.
Porter’s Analysis
Threat of new entrants: Low capital requirement and technology allows new players to enter the market easily. However, established players and brand loyalty creates barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and different players. Switching costs are low.
Bargaining power of suppliers: Few component suppliers exist creating high bargaining power. Increased customization demands further enhances power.
Threat of new substitutes: Substitutes like coast guards pose minimal threat due to difference in functionality.
Competitive rivalry: Intense competition due to presence of global and regional shipbuilding companies.
SWOT Analysis
Strength: Diversified functionalities, adaptable designs, high demand from navies and coast guards.
Weakness: Huge capital investments, long production cycles, dependency on defense budgets.
Opportunity: Growing maritime disputes, increase in sea trade routes, replacement of aging fleets.
Threats: Economic slowdowns, regulations on emissions, higher material costs.
Key Takeaways
The global Offshore Patrol Vessels Market Size is expected to witness high growth at a CAGR of 4.1% over the forecast period owing to increasing investments in coastal and maritime security by governments. Regionally, Asia Pacific dominates more than 30% share led by countries like India, Japan and China on account of territorial conflicts and increasing smuggling activities.
Europe holds the second largest share with countries including Italy, UK and Norway accounting for replacement of aging vessels. North America is anticipated to grow at a steady pace driven by the US coast guards patrol modernization programs.
Key players operating in the offshore patrol vessels market are Austal, BAE Systems, Damen Shipyards Group, Dearsan, Fr. Fassmer GmbH & Co. KG, Fincantieri S.p.A, Fr. Lürssen Werft GmbH & Co. KG, Hamilton Jet, Israel Shipyards Ltd, Eastern Shipbuilding Group Inc., Stanley Boats, Marine Alutech OY AB, J.D. Irving Group of Companies, Japan Marine United Corporation, Kangnam Corporation, Kawasaki Heavy Industries, Ltd., L&T Shipbuilding, Mitsubishi Heavy Industries, Ltd., Navantia, Socarenam, STX Offshore & Shipbuilding Co., Ltd, Garden Reach Shipbuilders & Engineers Ltd.
