Offshore Patrol Vessels Market Is Estimated To Witness High Growth Owing To Increasing Maritime Security Concerns
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 naval ships designed for surveillance, reconnaissance and coastal patrols to protect national waters. They are often equipped with helipad, sonar and radar systems, communication facilities along with weapons like cannon or machine guns for defense. Key end-users are navies and coast guards of various countries who use these vessels for maritime security, anti-piracy operations, fishery patrols, counter-terrorism and search & rescue missions.
Market Dynamics:
The offshore patrol vessels market is expected to witness significant growth over the forecast period owing to rising concerns for maritime security and sovereignty around territorial waters. According to International Maritime Bureau, piracy attacks rose in 2021 with 135 incidents reported compared to 132 in 2020. Additionally, illegal fishing and human trafficking through sea routes have also increased security threats at seas requiring enhanced surveillance capabilities. Furthermore, growing territorial disputes in South China Sea and need for coastal monitoring have fueled demand for patrol vessels among various navies and coast guards in Asia Pacific. However, high procurement and maintenance costs associated with offshore patrol vessels may restrain market growth over the short term.
SWOT Analysis
Strength: Offshore patrol vessels have high operational capability with enhanced mobility, endurance, modern electronics and weapon systems. They have versatility allowing for multifunctional roles including maritime security, law enforcement, fisheries patrol, anti-smuggling and counter-terrorism operations. They offer better habitability standards compared to other patrol vessels.
Weakness: Initial acquisition and maintenance costs of offshore patrol vessels are high due to use of advanced technologies. They require well trained crew and regular upgradation of systems to maintain capabilities.
Opportunity: Growing maritime security threats like piracy, drug and human trafficking are prompting coastal nations to boost surveillance capabilities. Rising offshore activities in oil & gas and maritime domains are necessitating enhanced monitoring of Exclusive Economic Zones.
Threats: Budgetary constraints can limit defense modernization plans of some nations. Emerging technologies like unmanned systems pose threat of disruptions. Ongoing geopolitical tensions and territorial disputes also affect defense planning.
Key Takeaways
The global Offshore Patrol Vessels Market Size is expected to witness high growth, exhibiting a CAGR of 4.1% over the forecast period, due to increasing emphasis on maritime security and surveillance capabilities by coastal nations. Countries are expanding their coast guard and navy fleets with new build and upgraded offshore patrol vessels.
Regional analysis: Europe dominates the global offshore patrol vessels market currently, accounting for around 30% share. This is attributed to ongoing fleet renewal and expansion activities being undertaken by countries like UK, France, Italy and Norway. Asia Pacific region is expected to witness fastest growth aided by modernization of China, Japan, India, Australia and southeast Asian countries’ naval fleets.
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. LÃ1⁄4rssen 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.