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Navies around the world announce billion-dollar investments in frigates and ships – understand how global tensions and conflicts are driving the naval industry.
The global climate of tensions, marked by the wars in Ukraine and the Middle East, is driving defense acquisitions and investments, especially in the naval industry. The Navy, a growing military sector, is expected to grow by 4% annually from 2024 to 2034, with the construction of frigates and ships. Armed forces around the world plan to begin investing US$44,4 billion this year, the equivalent of R$270 billion, if converted to the current exchange rate.
Understand the main objectives of the Brazilian Navy and others in investments in the naval industry
A report published by the British analyst Global Data, called “Naval and Combatant Ship Segments, Programs, Competitive Scenarios and Forecast to 2034”, includes detailed estimates. This document also addresses the situation of 18 world-renowned shipbuilders, such as the European Navantia, Naval Group, Fincantieri and Damião.
The report focuses on 5 main segments, namely frigate construction, destroyers, auxiliary vessels, light combat vessels and amphibious vessels. Frigates in particular are projected to command the highest investment values, with them expected to cover more than half of the market. This focus reflects the growing importance of the Navy and the Armed Forces in military defense global.
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The editor of the report on the shipping industry estimates that maritime threats and territorial disputes will drive investment in the construction of frigates and warships in the coming years. Fleet modernization will drive increased defense spending, fueling global demand.
Currently, many countries around the world, including the Navies of Russia, China, India, the United Kingdom, Italy, France and Canada, have begun naval modernization programs to replace aging ships in active service.
Modernization of naval fleets and construction of frigates in the naval industry
These programs are essential for the military as many of these aging fleets are in need of replacements. The report estimates that the Asia-Pacific region will dominate the global warship and surface combatant market during the forecast period, with a market share of 34%. Europe and North America follow in the lead.
The document also covers industry analysis, including key drivers of the shipping industry, trends, emerging technologies, and challenges faced by industry participants. It provides information on key factors and government programs that are expected to influence the demand for warships and frigates during the forecast period, according to the document’s authors.
What is the most powerful Navy in the world?
Global Firepower, a ranking that analyzes the military power of nations, evaluates the navies of 145 countries, classifying them by the number of underwater and surface naval units. The ranking takes into account warships, such as submarines, aircraft carriers, amphibious vessels, corvettes and frigates that make up the arsenal of each navy, without taking into account projects under development or planned for 2024.
Russia, China and North Korea topped the rankings. With an arsenal of 781 ships, Vladimir Putin's Navy is the largest naval force in the world. The Russian arsenal includes an aircraft carrier, 12 frigates, 14 destroyers, 47 naval minesweepers, 65 submarines, 83 corvettes and 122 patrol vessels. In second and third place, China and North Korea have 730 and 505 vessels, respectively.
The greatest power in the world, the EUA, ranked fourth in the ranking, with 472 ships. The country has units such as 11 aircraft carriers, nine helicopters, 75 destroyers, 23 corvettes, 64 submarines, five patrol vessels and eight naval mines. The Brazilian Navy is in 23rd place, being the 4th largest naval force in Latin America, after Colombia (237 ships), Mexico (194) and Bolivia (173 ships).
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