by The Offshore Patrol Vessels Market is estimated to be valued at US$ 15.53 Billion in 2022 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Offshore patrol vessels (OPVs) refer to medium-sized government law enforcement or military ships designed for coastal defense and security. OPVs are typically equipped with less armaments and equipment than larger warships. They carry out maritime security operations such as surveillance, interdiction, boarding, and inspection on the high seas. Major applications of OPVs include coastal patrol, anti-smuggling operations, fishery protection duties and search & rescue.
Market Dynamics:
The offshore patrol vessels market is driven by increasing maritime security concerns worldwide and substantial investments in coast guard forces by various nations. For instance, according to the US Coast Guard, maritime security expenditures are expected to grow at an annual rate of 4-6% over the next few years, with the budget amounting to over US$ 10 billion by 2030. Additionally, rising geopolitical tensions coupled with growing incidence of piracy, illegal fishing and human trafficking is prompting several countries to modernize and expand their coast guard and maritime security capabilities. For example, in 2021, India approved a plan to induct over 50 new offshore patrol vessels by 2027 at an estimated cost of over US$ 5 billion. Similarly, China plans to induct around 100 new patrol vessels and corvettes for its coast guard by 2025. Meanwhile, increasing indigenization of OPV production particularly in Asia Pacific countries is supporting the market growth.
Segment Analysis
The Offshore Patrol Vessels Market is segmented into type, application, ship size, and end use. By type, the diesel-powered vessels segment dominates the market as these vessels have greater endurance capacity and cost-effectiveness compared to gas turbine-powered vessels. By application, the military vessels segment dominates as offshore patrol vessels are primarily used for border security, law enforcement, and EEZ surveillance by naval forces. By ship size, the >80m segment leads due to the increasing procurement of large vessels with advanced capabilities by naval forces worldwide. By end use, the navies segment accounts for a major share as they are the major procurers of offshore patrol vessels for territorial monitoring and maritime security activities.
PEST Analysis
Political: Increased maritime security concerns and rising territorial disputes have propelled many countries to modernize their naval fleets, boosting demand. Economic: Growth in maritime trade and offshore activities is raising the need for coastal surveillance and protection of resources, driving investments in new vessels. Social: Illicit activities at sea involving smuggling, terrorism, and illegal immigration compel nations to bolster maritime security capabilities. Technological: Advancements in vessel construction, marine engineering, sensors, and weaponry allow modern OPVs to undertake complex missions more efficiently.
Key Takeaways
The global offshore patrol vessels market is expected to witness high growth, exhibiting a CAGR of 4.1% over the forecast period. This can be attributed to increasing investments by Asian and Middle Eastern countries to strengthen maritime security capabilities.
The Asia Pacific region is expected to witness the fastest growth in demand for offshore patrol vessels owing to modernization initiatives by the navies of China, India, South Korea, Australia, and Southeast Asian nations. China’s increasing assertiveness in the South China Sea has prompted other regional players to expand their maritime forces.
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. These players are focusing on contracts from Asian and Middle Eastern navies to gain shares.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
