The European and US markets continue to show weakness due to ongoing fiscal issues. Despite slowdowns, the US remains the world’s largest naval market with over USD 286 Billion expected to be spend on nearly 500 new ships, subs and craft over the period.


Turkey is the bright spot in an otherwise soft NATO Europe, with almost 100 new hulls worth an estimated USD 13B to be procured though 2030.

In contrast to Europe, the Asia-Pacific naval market continues to show strong growth. As predicted at this year’s IMDEX 2011 naval show, the Asia-Pacific region has overtaken Europe to become the world’s second largest naval market. This includes more than 800 new ships and submarines worth over 180B USD in the next two decades.

India and China lead the A-P region in projected naval spending. Each country is expected to procure more than 100 new ships and submarines over the next 2 decades. Other “Top 5” naval buyers in the A-P region include South Korea, Japan and Australia.





AMI VP for Advisory Services Bob Nugent notes: “the A-P naval market continues to show a pattern of steady growth across a wide variety of naval capabilities. And spending remains evenly distributed across the region. India and China are modernizing their navies at deliberate pace, acquiring a balanced portfolio of new ship and submarine programs. Taken together the two countries represent about the 30% of the region’s future naval market by number of hulls, and about 45% by market value.”

New aircraft carrier construction programs in India and China are at the top of the region’s naval spending list. But submarine procurement in the region also looks to remain brisk, with more than 100 new hulls forecasted for the region through 2031. This represents more than 40% of the 270 new submarines AMI forecasts will be procured worldwide over the next two decades.

Naval market demand remains strong in Southeast Asia as well, with the top six markets in the region set to spend more than 25B USD on new naval ships to 2031. New naval procurements in the region are led by Indonesia, Malaysia, and Thailand. Frigate, corvette and offshore patrol vessel programs are the core of future new naval projects in SE Asia, as well as submarines and amphibious ships.