Industry Analysis & Industry Trends
Over the past five years, the Global Military Shipbuilding and Submarines industry was greatly impacted by declining defense spending in the United States and Europe. The global economic slowdown stunted industry growth as western governments attempted to deal with widening budget deficits by cutting defense spending, which led to less funding for industry programs. However, despite western military budget cuts, demand remained fairly robust, with industry revenue only expected to increase marginally over the five years to 2016. Over the next five years, continued economic growth and geopolitical tensions in Asia are anticipated to encourage more countries in the region to spend on industry products, bumping revenue higher.
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Industry players typically carry out multiple tasks depending on their size and specialty. Overall, the primary functions of operators are shipbuilding and design of vessels as well as conversions, modernization, repair and maintenance of those vessels.
Projects related to surface vessels account for an estimated 67.7% of industry revenue. Examples of surface vessels include destroyers, frigates, cruisers, corvettes, aircraft carriers, auxiliary ships and landing ships. Frigates, destroyers and cruisers make up the backbone of most large navies. These ships serve a number of roles, including escort, attack (both other ships and land-based targets) and anti-submarine/aircraft missions. Corvettes are smaller, typically lightly armed, warships. The.. read more