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MARITIME DEFENCE AND SECURITY:
GLOBAL AND ASIA PACIFIC OUTLOOK

With continued threats from illegal immigration, smuggling, cargo thefts, human trafficking, piracy drives, and rising global tensions, maritime security is of utmost importance, fueling growth for the global security and defence market. Overall defence spending between 2016 to 2020 is set to rise to US$250 billion2, with priorities shifting towards air and naval capabilities.

Asia Pacific sees more than 50% of global container traffic passing through its waters, underscoring its vital role in global trade. Naval budgets are projected to rise by 60% to US$107 billion through to 20201, driven by its reliance on maritime commerce and an increasingly complex security landscape.

GLOBAL SUBMARINE MARKET3: 2016 TO 2026

Asia Pacific commands 32% of the global submarine market, the second highest after North America at 37% and ahead of Europe at 24%. The market is expected to grow at a 4.74% CAGR* to reach US$36.3 billion in 2026.

Submarine Market

GLOBAL NAVAL VESSELS AND SURFACE COMBATANTS MARKET3: 2017 TO 2027

Valued at US$36.4 billion in 2017, the market is poised to grow at a CAGR of 2.97% to US$48.8 billion in 2027, driven by demand from emerging Asia Pacific economies like China and India. Corvettes are set to account for the largest share of spending at 25.7%, in relation to other market segments of destroyers, frigates, aircraft carriers and amphibious ships.

Cummulative spending over the forecast period totals US$446.7 billion, with Asia Pacific comprising the second-largest market at US$123.5 billion.

Market Share

*CAGR: Compound Annual Growth Rate
Source Data: 1. Deloitte 2. IHS Jane Blog 3. Strategic Defence Intelligence

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