The military shipbuilding market, currently valued at $38.9 billion, has been forecast to increase at a compound annual growth rate (CAGR) of 2.93% through to 2015.
Despite the massive effect of the global downturn on builders of commercial aircraft and ships, companies primarily involved in the building of their military equivalents fared considerably better. The national security considerations of governments and long-term planning undertaken for military expenditure have ensured that revenue for the global military shipbuilding industry has been relatively stable.
Key factors contributing to growth within the shipbuilding market include the increasing share of the defence budget now allocated to the sector, as well as the increase in collaborations between countries.
Such collaborations between countries will help to reduce the cost associated with development programs and enable partnering countries to gain market share, as in the case of the joint partnership between France and Italy for the FREMM European multi-mission frigate program where the prime contractors are Armaris and Orizzonte Sistemi Navali.
Furthermore, the increase in defence spending is one of the major factors driving the growth of the Global Military Shipbuilding and Submarines market. Governments in countries such as China, India, Brazil, Saudi Arabia, Russia, the United Arab Emirates, South Korea, and Spain are expected to increase their defence budget to double digits by 2015.
Key players currently dominating the military shipbuilding market include BAE Systems plc., DCNS S.A., General Dynamics Corp., and Northrop Grumman Corp.
For more information on the military shipbuilding market, see the latest research: Military Shipbuilding Market
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