OFFSHORE PATROL VESSELS MARKET ANALYSIS

Global Offshore Patrol Vessels Market was valued at US$ 15.53 Billion in 2022, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030.

An offshore patrol vessel is a vessel generally designed for coastal monitoring or defense duties. These types of vessels are available in various designs and shapes. They are mainly operated by the navy, police force, coast guard, or other organizations that are actively working in marine environments. These vessels are mainly used in various border protection activities such as anti-piracy, anti-smuggling, fisheries patrolling, rescue operations, surveillance, and immigration law enforcement. Offshore patrol vessel (OPV) refers to a small surface, a highly versatile ship specially designed for executing various exclusive economic zone (EEZ) management operations, protecting shipping lanes, and ensuring coastal security. It can be remotely operated by the navy, marine police, coast guard, and customs for defense at coastal regions.

It is further utilized by several law enforcement agencies to ensure optimal maritime security and border control. OPV is high-performance, reliable, durable, and persistent and offers customizability, excellent stability, and exceptional seakeeping attributes to facilitate varying tasks in different seagoing environments.

The increase in oil and gas exploration operations is the key market driver enhancing the market growth. Additionally, the expanding demand for PSVs worldwide is accelerating offshore Patrol vessels market expansion. Various technological developments in the construction of offshore supply vessels and incorporation of Dynamic Positioning (DP) systems in marine vessels are also contributing to the offshore patrol vessels market expansion.

Global Offshore Patrol Vessels Market - Regional Insights

The global market is classified into North America, Europe, Asia Pacific, and the rest of the world.

 On the basis of region, the offshore patrol vessels market is segmented into North America, Europe, Asia Pacific, and Latin America, and Middle East & Africa.

Asia Pacific region accounted for the largest share with around 43.8% in 2022. Asia-pacific region is expected to generate the highest demand during the forecast period

The ongoing maritime disputes among various countries in the Asia Pacific region are driving investments toward fleet modernization and procurement of new maritime patrol vessels. For instance, in March 2023, the Indiana Ministry of Defense awarded a US$ 2.8 billion contract with Indian shipyards for the acquisition of 11 next-generation offshore patrol vessels & six next-generation missile vessels for the Indian Navy. The growing territorial tensions and subsequent fleet modernization plans of countries are anticipated to generate the demand for maritime patrol vessels from the Asia-Pacific region during the forecast period.

Figure 1. Global Offshore Patrol Vessels Market Share (%), By Region, 2022

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Global Offshore Patrol Vessels Market - Impact of Coronavirus (COVID-19) Pandemic

The global offshore patrol vessels market for offshore patrol vessels has been greatly impacted by the COVID-19 outbreak. Governments of several nations implemented lockdowns as a preventative measure throughout the globe. Due to this, various industries such as manufacturing, oil & gas, and others, were temporarily suspended. During the pandemic, offshore patrol vessel manufacturers encountered technological and financial challenges. Production of patrol vessels was also impacted due to a lack of manpower. Thus, during the pandemic, the global market for offshore patrol vessels had limited growth.

Also, the COVID-19 outbreak and the ensuing lockdowns had impacted the defense equipment manufacturing industry in various countries. The negative impact of the pandemic can be seen across the global defense supply chains, as various programs rely on an exclusive global network of vessel parts suppliers. The pandemic has caused multiple delays in the development activities of offshore vessels, despite the fact that governments and defense companies have emphasized minimizing disruptions. Naval offshore patrol vessel construction takes longer than other types of shipbuilding, therefore, delays are projected to cost shipbuilders more money. For instance, in 2020, the construction of new naval offshore patrol vessels by Canada's Halifax and Vancouver shipyards was delayed due to supply chain disruptions caused by the lockdowns to stop the spread of the virus at their shipyards. Hence, the reduction in production rates due to the pandemic is expected to hinder the market's growth during the initial few years of the forecast period.

Global Offshore Patrol Vessels Market – Drivers

Increasing Demand for Coastal Security

Offshore patrol vessels are used by navies and coast guards for various applications such as search and rescue, counter-narcotics and drug smuggling, and humanitarian operations. Moreover, offshore patrol vessels are used for patrol and surveillance of offshore assets such as oil platforms and for convoy protection and anti-mine missions.

Patrol vessels are used mainly for detecting drug trafficking, smuggling, and monitoring and controlling marine pollution. For instance, the U.S. Customs and Border Protection (CBP) inspect criminal networks and offers domain awareness in the air and maritime environments and responds to emergencies. For instance, on March 1, 2023, the U.S. CBP and Air and Marine Operations (AMO) agents seized 2,351 pounds of cocaine from a vessel attempting to reach the coast in Southern Puerto Rico. Therefore, increasing focus on coastal security leads to high demand for offshore patrol vessels, which is expected to boost market growth over the forecast period.

Global Offshore Patrol Vessels Market – Opportunities

Increasing investments and activities in offshore oil and gas exploration        

Increasing investments and exploration activities in offshore oil and gas sector is expected to increase demand for offshore patrol vessels. According to the Bureau of Ocean Energy Management, Offshore Federal production in FY 2020 reached approximately 641 Mn barrels of oil and 882 billion cubic feet of gas, almost all of which was produced in the Gulf of Mexico. This accounts for about 15% of all domestic oil production and 2% of domestic natural gas production. Saudi Arabia, Brazil, Mexico, Norway, and the U.S. are the major offshore oil-producing countries. Although the oil and gas industry witnessed a downturn since 2014, the investment in oil and gas industry increased in 2022 and is expected to rise further over the forecast period. According to Rystad Energy, independent energy research and business intelligence company headquartered in Oslo, on February 02, 2023, the global market for oil and gas contractors is anticipated to rise to a peak of US$ 1 trillion by 2025. Increasing investments in the offshore oil and gas sector are expected to significantly fuel exploration, development, and production activities in the offshore sector. This, in turn, is expected to increase demand for offshore patrol vessels for monitoring offshore activities.

Global Offshore Patrol Vessels Market – Trends

Adoption of advanced technologies in shipbuilding

The shipbuilding industry is growing significantly due to the introduction of advanced technologies that assist in solving rising fuel costs and environmental pollution issues. Therefore, market players are focusing on upgrading their existing patrol vessels by improving fuel efficiency in order to reduce pollution. Offshore patrol vessels are mainly used by navies and coastguards for a wide variety of patrol, protection, and patrolling tasks across the world. Various technologies are incorporated in offshore patrol vessels in order to offer multiple capabilities that will assist in the protection of sea borders, exclusive economic zone (EEZs), and offshore installations. Therefore, vendors are offering various technology upgrades in offshore patrol vessels that include HVAC&R (Heating, Ventilation, Air-conditioning, & Refrigeration) technology, 3D printing technology, integrated electric propulsion, and other advanced marine technologies. Thus, advancements in technologies for the production of patrol vessels are the latest trends in the offshore patrol vessels market, globally.

Global Offshore Patrol Vessels Market – Restraints

High Cost of Manufacturing and Maintenance of Offshore Patrol Vessels

The shipbuilding industry is undergoing rapid transformation due to the introduction of advanced technologies that are integrated into offshore patrol vessels. Offshore patrol vessels are in huge demand due to their effective monitoring and operational activities at the coastline. However, the high cost of components and technologies that are used in offshore patrol vessels are limiting the market growth. Various additional costs are involved in the production of offshore patrol vessels such as fluctuating labor costs, maintenance costs, and the cost of components used in manufacturing the vessels

For instance, patrol vessels that are less than 50 mm in size cost around US$ 30-40 million while the cost of patrol vessels of 90 mm in size is around US$ 100 million. Therefore, the high cost of manufacturing offshore patrol vessels is one of the restraining factors that could hamper the global offshore patrol vessels market growth over the forecast period. In a huge boost to achieve ‘Aatmanirbharta’ in defence, Ministry of Defence, on March 30, 2023, signed contracts with Indian shipyards for acquisition of 11 Next Generation Offshore Patrol Vessels and six Next Generation Missile Vessels at an overall cost of approx. Rs 19,600 crore.

 Figure 2. Global Offshore Patrol Vessels Market Share (%), By Segment, 2022

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Global Offshore Patrol Vessels Market - Segmentation

Global Offshore Patrol Vessels Market report is segmented into Vessel Type, Application, Size, and region

Based on Vessel Type, the market is segmented into Advanced Vessels, Basic Vessels

Based on Application, the market is segmented into Monitoring, Exclusive Economic Zone (EEZ) Protection, Anti-Air Warfare (AAW), Anti-Surface Warfare (ASuW), Electronic Warfare (EW) operations, Humanitarian Tasks

Based on Size, the market is segmented into <50 Meters, 50 to 90 Meters, >90 Meters

Advanced vessels segment accounted for the largest share with around 40.0% in 2022. Advance vessels are equipped with echo sounders, cameras, LiDAR, sensors, visual systems, sonars, and marine radars. Several benefits associated with advanced offshore patrol vessels include a wide range of engines, low load performance with high reliability, high maintainability, long service intervals, and low fuel consumption leading to their high demand.

Global Offshore Patrol Vessels Market: Key Developments

In June 2022, Israel Shipyards Ltd., a ship-building company, launched a fast patrol craft (SHALDAG MK V) for the Philippine Navy. The patrol vessels will be equipped with Rafael’s Spike NLOS missiles and naval guns.

In July 2022, Mitsubishi Heavy Industries, Ltd., a manufacturer of heavy machinery, launched a 6000-tonne Shunkou-class patrol vessel (Asanagi) for the Japanese coast guard. The patrol vessel will be equipped with an electrical system, weapons, hull, and engine.

In March 2023, the Belgian Navy is procuring its third coastal naval vessel from the French naval architecture firm MAURIC and built by the French shipyard SOCARENAM.

In February 2023, France's Ocea S.A, (designs and manufactures maritime vessels) received a contract worth US$ 19 million from Nigeria for the procurement of three 32-meter OCEA fast patrol boats, six Special Forces boats, and six RHIBs (rigid hull inflatable boats).

Global Offshore Patrol Vessels Market: Key Companies Insights

Key players operating in the Global Offshore Patrol Vessels Market are Austal, BAE Systems, Damen Shipyards Group, Dearsan, Fr. Fassmer GmbH & Co. KG, Fincantieri S.p.A, Fr. Lürssen Werft GmbH & Co. KG, Hamilton Jet, Israel Shipyards Ltd, Eastern Shipbuilding Group Inc., Stanley Boats, Marine Alutech OY AB, J.D. Irving Group of Companies, Japan Marine United Corporation, Kangnam Corporation, Kawasaki Heavy Industries, Ltd., L&T Shipbuilding, Mitsubishi Heavy Industries, Ltd., Navantia, Socarenam, STX Offshore & Shipbuilding Co., Ltd, Garden Reach Shipbuilders & Engineers Ltd

*Definition: An offshore patrol vessel (OPV) is a small surface ship designed for coastal defense. These warships are well equipped to tackle a range of roles such as maritime security, border control, anti-smuggling, counter-terrorism, disaster relief, and more.