Japan, South Korea and China are emerging as new manufacturing hubs for military naval vessels, a new report from Frost & Sullivan revealed.
The analyst said Thursday that shipbuilding would remain a domain of Western Europe, the United States and Russia but that Asia-Pacific countries are tightening their hold on the market as they slowly start to leverage their capabilities as original equipment manufacturers.
Frost & Sullivan expects total global expenditure for new platforms, led by North America, to hit $376 billion by 2023, with a year-over-year growth of 1 percent from 2014.
The report said demand will be spurred by rising security threats in the Middle East, Russia, and Asia-Pacific, and it forecast a spike in orders for frigates because of their multirole versatility.
“Military vessels based on the multimission modular vessel design will be more common and affordable for end users,” said Dominik Kimla, aerospace and defence industry analyst at Frost & Sullivan.
“Additionally, Frost & Sullivan expects more standardisation among various MMMV designs across naval companies. This will translate to long-term cost efficiency on the procurement and support-in-service of MMMV vessels.”