The growth is particularly taking place in the Middle East, the Asia-Pacific region and Russia, it said in a new report, Global Military Naval Vessels and SIS Market Assessment.
According to the study, the military naval vessels market earned revenues of $32 billion in 2013 and is expected to reach $39.99 billion in 2022. Revenues of the support-in-service (SIS) market have reached $15.29 billion this year and will grow to $21.24 billion in 2022.
In terms of vessel types generating the revenues, first are frigates, followed by submarines and destroyers.
"With surface military vessels being vulnerable to air as well as land-based missiles, the deployment of submerged platforms such as submarines, unmanned underwater vehicles, or hybrid vessels that combine the features of both surface and submerged vessels will go up in the medium and long terms," projected Frost & Sullivan Aerospace, Defense & Security Industry Analyst Dominik Kimla.
Shipyards in South Korea -- and to some extent, Japan -- are increasing their market position in the naval domain, and Chinese shipyards are widening their presence by offering relatively advanced, low-cost solutions as well as competitive financial packages to fund military vessels deals.
"Moreover, emerging naval markets are more demanding in terms of technology sharing among the suppliers of naval vessels, reducing market opportunities for foreign providers," the assessment said. "This clear trend towards building indigenous naval capabilities across regions will broaden the role of local companies ... in the maritime domain."