Offshore patrol vessels (OPVs) are warships that perform coastal patrol and law enforcement duties, such as counter-smuggling and anti-piracy operations and fisheries patrols. OPVs typically carry a combination of medium-calibre artillery guns, torpedoes, and a light air defence suite allowing them to also face limited threats from other ships and aircraft. They also operate in support of general-purpose forces that are conducting major operations such as blockade enforcement or massive evacuation operations. The increasing maritime security concerns across the globe have led to high demand for offshore patrol vessels.
The global Offshore Patrol Vessels Market is estimated to be valued at US$ 16.17 Bn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
According to the International Maritime Bureau Piracy Reporting Centre (IMB PRC), overall reported piracy and armed robbery incidents rose to 162 in 2020 from 132 in 2019. This rise in illegal activities is driving the governments worldwide to strengthen their maritime security by procuring advanced offshore patrol vessels equipped with latest technologies. For instance, In April 2021, Indian government signed a Rs. 19,300 crore contract with the Mazagaon Docks for 12 lethal offshore patrol vessels. This increasing government investment in navy modernization programs represents a key opportunity for players in the offshore patrol vessels market. The market players can target such government contracts for offshore patrol vessels to boost their revenue growth over the forecast period.
Threat of new entrants: Low capital requirements and established buyers allow new companies to enter this market easily. However, meeting regulatory standards and gaining customer trust takes time.
Bargaining power of buyers: Governments are the largest buyers in this market. Their bargaining power is high since they can influence price and quality requirements.
Bargaining power of suppliers: A few specialized equipment manufacturers dominate the supply market. This gives them strong bargaining power over pricing and terms.
Threat of new substitutes: Alternatives like unmanned maritime vehicles are emerging but cannot fully replace manned offshore patrol vessels currently.
Competitive rivalry: Large global shipbuilding companies fiercely compete for contracts. Price wars and investment in new technologies increase competition.
Strengths: Growing maritime security concerns boost demand. Vessels aid coastal surveillance, anti-smuggling & anti-piracy operations.
Weaknesses: Huge capital costs and long construction periods. Dependent on government defense budgets that vary annually.
Opportunities: Emerging economies upgrading coast guards offer new contracts. Unmanned vehicles integration can augment capabilities.
Threats: Geopolitical tensions may reduce cross-border cooperation. Climate change raises risks of sea level rise, more frequent extreme weather.
The Global Offshore Patrol Vessels Market Size is expected to witness high growth over the forecast period. The Asia Pacific region currently dominates the market and is expected to grow at the fastest rate owing to rising maritime security threats. Countries like India, China, and Taiwan are significantly investing in their naval forces comprising offshore patrol vessels.
The Asia Pacific region is estimated to dominate the offshore patrol vessels market during the forecast period. The region is witnessing rapid naval modernization among countries like India, China, and Taiwan to counter territorial disputes and strengthen coastal security. India plans to induct over 100 new patrol vessels by 2027 under its Maritime Capability Perspective Plan.
Key players operating in the offshore patrol vessels market are LabCorp, Quest Diagnostics, Abbott Laboratories, Bio-Rad Laboratories, Inc., bioMérieux SA, DiaSorin S.p.A, T2 Biosystems, Inc., F. Hoffmann-La Roche AG, Meridian Bioscience, Inc., Quidel Corporation, and Thermo Fisher Scientific Inc. LabCorp and Quest Diagnostics are the major players offering clinical laboratory tests in the United States.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it