The naval actuator and valves market is anticipated to grow at a CAGR of more than 4% during the forecast period.
- The emergence of new technologies, such as high-performance radar and long-distance targeting systems, on the naval warfare front, has driven nations to modernize and upgrade their naval capabilities. As actuators and valves form a critical part of all naval vessel subsystems, the induction of new naval vessels would create a parallel demand for actuators and valves to ensure systems performance as per the specifications.
- The increasing popularity of advanced integrated combat systems or the use in naval forces is expected to provide new opportunities for the market and is anticipated to have a positive effect on the market in focus in the upcoming period.
Key Market Trends
Increasing Naval Fleet of the Armed Forces
Due to the profound changes in the international strategic landscape, the configuration of the international security system has been undermined by the growing hegemonism, unilateralism, and power politics that has fueled several ongoing global conflicts. Military powerhouses, such as the US, UK, China, and India, have been focused on augmenting their naval firepower and several fleet modernization and procurement contracts are underway to address the evolving threats to their national security. In March 2019, the US expedited its plans to achieve a proposed 355-ship fleet. The new plans outlined a rough annual expenditure of USD 40 billion for fleet maintenance. According to its 30-year shipbuilding plan, the US envisions to procure 55 new ships to achieve an effective fleet-size of 314 ships by 2024. In the Asia-Pacific region, prominent countries such as China and India are also enhancing their naval fleet size and capabilities to achieve technological superiority over their rival countries. On this note, in July 2018, the Indian Defence Ministry issued in-principle approval for construction of four amphibious assault ships, also called the Landing Platform Docks (LPD), through private contractors at a cost of over USD 2.9 billion. Similarly, Japan aims to induct eight Aegis-class destroyers by 2021, including two brand new Maya-class destroyers. By the mid-2020s, China aims to induct the Type 093B SHANG-class guided-missile nuclear attack submarine. During the 2017-2018, China launched the first of its four RENHAI-class guided-missile cruisers. Such induction programs are envisioned to drive the demand for actuators and valves in the design and construction of new naval vessels for the defense platforms.
North America to Dominate the Market During the Forecast Period
The FY2020 budget request of the Pentagon includes provisions for USD 205.6 billion to be allocated to the US Navy. In comparison with the naval budget allocation in FY 2019, the fund allocation witnessed a growth of 5.08%. The market is driven by the procurement of advanced weaponry by the US Navy to achieve military dominance in the region, besides ensuring internal peace and security. The US has invested its vast technological prowess toward the indigenous development of several weapon systems to foster its military prowess over all dominion – land, air, and water. During 2014 and 2018, the US enhanced its share of total arms exports to account for 36% of the global arms sales. The country caters to the demand of its military partners for advanced weaponry, such as guided rockets, ballistic missiles, armed UAVs, submarines, and surface warships. In its FY2020 budget, the US Navy estimates the combined procurement cost of the three DDG-51 guided-missile destroyers at USD 5,463 million. In April 2018, the Navy announced that it wants to extend the service lives of all DDG-51s to 45 years. In March 2019, the US Navy unveiled its 355-ship fleet plan. Besides new procurement, platform modernization is also at the foray of the US Navy’s plans to achieve the designated fleet size by 2034. In October 2019, the US Navy awarded an IDIQ contract, for a period of 5 years, to Serco for delivering system engineering technical services for the Submarine High Data Rate (SubHDR) program. The program entails Serco to provide repair and overhauls to the SubHDR Antenna Pedestal Group (APG), including evaluation and repair services to related sub-components. Such induction and MRO programs are envisioned to drive the demand for actuators and valves in the region to facilitate and enable seamless integration with other control systems installed in the fleet of naval vessels.
The emerging security environment, fueled by the growing geopolitical unrest in several countries, is resulting in the growing demand for advanced naval systems. To gain long-term contracts and expand global presence, players are investing significantly toward the procurement of new naval assets. Furthermore, continuous R&D has been fostering the advancements of accuracy and efficiency of subsystems and other technologies integrated onboard the naval vessels. For instance, in May 2018, Bosch Rexroth AG launched a new subsea hybrid valve actuator that is compatible with Industry 4.0 technology and features a mechanical override that allows valves to be manually opened and closed. The valve is claimed to have an operational life cycle of around 25 years with minimum maintenance.
The naval actuators and valves market is fragmented, with many global players present in the market. Some of the prominent players in the market studied include MOOG Inc., Honeywell International Inc., Rotork plc, Emerson Electric Co., and Curtiss-Wright Corporation, among others.
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