Sea based Defense Equipment Market Report 2025

This Sea based Defense Equipment market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The sea based defense equipment market size has grown strongly in recent years. It will grow from $38.41 billion in 2024 to $41.89 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to geopolitical tensions, modernization and upgrades, piracy and maritime security, technological advancements.

The sea based defense equipment market size is expected to see strong growth in the next few years. It will grow to $55.26 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to emerging threats, geopolitical shifts, asymmetric warfare, maritime trade growth, environmental concerns. Major trends in the forecast period include electrification and lightweighting, advanced materials, additive manufacturing, digitalization and connectivity, collaboration and partnerships.

The growing defense expenditure is indeed a significant driver of the sea-based defense equipment market. As countries allocate more resources to defense, particularly in areas such as naval and maritime security, the demand for advanced sea-based defense systems, including naval vessels, submarines, and maritime surveillance equipment, increases. This is particularly important given the rising geopolitical tensions and the need for nations to protect their territorial waters, ensure safe trade routes, and address emerging maritime threats. The substantial rise in defense spending, as highlighted by the UK’s increased budget, is a clear indicator of the growing importance of maritime defense. Consequently, the demand for sea-based defense equipment is expected to continue growing in response to these investments in national security.

The rising threat of terrorism is a key driver for the sea-based defense equipment market's future growth. Terrorism involves the unlawful use of physical force or other forms of violence to coerce, intimidate, or ransom individuals or property. Sea-based defense equipment plays a critical role in maritime security operations, aimed at detecting, deterring, intercepting, and countering terrorist attacks, criminal activities, or hostile acts in the maritime domain. For example, a report from ReliefWeb in March 2023 indicates that the average number of casualties in terrorist incidents increased to 1.7 in 2022, up from 1.3 in 2021, signifying a growing level of lethality in such attacks. Consequently, the escalating terrorism threat is a significant factor driving the growth of the sea-based defense equipment market.

Leading companies in the global sea-based defense equipment market are focusing on developing cutting-edge technologies like autonomous navigation and operation, which allow vessels to perform tasks and navigate without human intervention. This technology uses sensors, AI algorithms, and control systems to process environmental data and make real-time decisions. For example, in January 2024, Austal USA, a US-based manufacturer, unveiled the Vanguard unmanned surface vessel (OUSV3) at its shipyard. Designed from the ground up for autonomous operations, this vessel marks a significant leap in the Navy’s unmanned maritime systems capabilities. It will be employed for various tasks, including surveillance and reconnaissance, and is intended to work alongside other vessels in the Navy's USV Division 1 (IFOAM) (OIE). The vessel is part of the Overlord program, which seeks to improve the Navy’s experimental and operational understanding of unmanned systems.

Major companies within the sea-based defense equipment industry are actively pursuing strategic collaborations and partnerships to collectively enhance their capabilities and address security challenges related to maritime and naval defense. These strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and successes. For instance, in February 2023, Lockheed Martin Corporation, a US-based aerospace corporation, entered into a partnership with the U.S. Navy, the maritime service branch of the United States Armed Forces. The collaboration is aimed at integrating hypersonic strike capabilities onto surface ships. The U.S. Navy awarded Lockheed Martin a contract exceeding $2 billion to develop a sea-based hypersonic weapon system. In accordance with this agreement, Lockheed Martin, serving as the prime contractor, will provide the naval platform with launcher systems, weapon control, All Up Rounds (AURs) - integrated missile components, and platform integration support. This collaboration highlights the commitment of industry leaders to bolster naval capabilities.

Major companies operating in the sea based defense equipment market include General Dynamics Corporation, Huntington Ingalls Industries Inc., Naval Group, Bae Systems PLC, Fincantieri SpA, Northrop Grumman Corp, Leonardo SpA, Raytheon Co, Lockheed Martin Corporation, Mitsubishi Heavy Industries ltd., Bakewell-White Yacht Design Ltd., BMT Group Ltd., BMTI Composite Materials and Parts for Submarines, Radio Communication Antenna Systems, Boeing Defense, Space & Security, Bohai Shipbuilding Heavy Industry Co Ltd., Bolidt synthetic systems, Booz Allen Hamilton Holding Corp, Baltic Yachts Oy Ab Ltd., Data Modul AG, Decksmaschinen und Automation Vertriebs GmbH., Deep Trekker Inc., Defence Research and Development Organisation, Dell Technologies Inc., DeRegt Marine cables, Diagnostic Retrieval Systems Inc., ECA Group Ltd., Elbit Systems Intelligence and Electro-optics - Elop Ltd., Fincantieri S.p.A., FLIR Systems Inc., Fluidmecanica SA Inc., Kongsberg Defence & Aerospace.

Sea-based defense equipment encompasses the support and auxiliary gear utilized in maritime defense operations, with a particular focus on applications such as submarines. This sea-based defense equipment represents the integral naval component that plays a pivotal role in delivering essential regional and homeland defense capabilities.

The primary categories of sea-based defense equipment consist of battle force ships and submarines, including nuclear submarines. Battle force ships are officially designated United States Ship (USS) warships capable of active involvement in combat operations, or United States Naval Ships directly aiding Navy warfare or support missions, and they must be formally recorded in the Naval Vessel Register. These operations encompass a spectrum of functions, including autonomous sea-based defense equipment, manual operations, and various applications like search and rescue, combat missions, mine countermeasures (MCM) operations, coastal surveillance, and more.

The sea-based defense equipment market research report is one of a series of new reports that provides sea-based defense equipment market statistics, including sea-based defense equipment industry global market size, regional shares, competitors with a sea-based defense equipment market share, detailed sea-based defense equipment market segments, market trends and opportunities, and any further data you may need to thrive in the sea-based defense equipment industry. This sea-based defense equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Asia-Pacific was the largest region in the sea-based defense equipment market in 2024. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in the sea-based defense equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, Africa. The countries covered in the sea based defense equipment market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The sea-based defense equipment market consists of sales of sea-based defense equipment including naval vessels, crafts, radar, satellites, and sonars. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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