The global naval vessel MRO market is expected to rise at a significant rate in the coming years. This growth is attributed to the rising naval bases and growing number of fleets in navy in several countries. The amount of funding extended to naval forces has increased that have helped in extending the service life of deployed assists further augmented demand in this market. Upgradation of naval holdings at regular intervals helps in reducing costs associated with the procurement of new assets. As a result, several countries in partnership with private entities have concluded to modernize their individual assets. For example, the US Navy finished its destroyer upgradation initiative by offering a contract to General Dynamics Bath Iron Works in 2016. The total cost of the contract was worth USD 126 million. Now, this company is accountable of design, logistics, engineering, and material kitting-related activities. It will be involved with the Arleigh Burke-class destroyers of the US Navy. Initiatives like these and increasing efforts by various governments to increase life of their naval vessels are expected to provide a fillip in the global naval vessel MRO market.
How private companies are assisting in the growth of naval vessel MRO?
Apart from various government organizations, several private companies are also making lucrative offers that will drive the demand in this market. The key players in the market compete against each other on the basis of quality, cost, reliability, and aftermarket services. With the increasing efficiency of underwater warfare, government agencies such as the UK MoD and the US DoD are acting as certification bodies to motivate the development of undersea vehicles and their electronic components. Rapid change weapons used and increasing participation of naval forces is likely to increase the competition among the players operating in this market.
Furthermore, players in the market are investing heavily with an aim to create cost efficient, advanced, and effective sensors for the naval platforms. This will not only benefit the players in expanding their business but it will help in getting a stronger hold in the market. Apart from these, players are implementing different strategies such as mergers and acquisition, expansion, innovation, and partnership. While tracking the number of players, currently, General Dynamics, BAE Systems, Lockheed Martin, Northrop Grunman, Harris Corporation, and Huntington Ingalls Industries (HII) are some of the leading players operating in the market.
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How is outsourcing playing a crucial role in expansion of the global naval vessel MRO market?
The demand for MRO services has increased at a stupendous rate as it helps in enhance the working of naval equipment. Seeing this growth, various government entities have started outsourcing the MRO services. Outsourcing MRO services helped helps government to collaborate with different companies thus benefits the growth of this market. Most importantly it helps in improving efficiency of operation at reduce cost. Adoption of MRO services provides a cheaper alternative than acquisition of new fleets; therefore, it is being integrated at a large scale by various naval forces across globe.