Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} The global AUV market is characterized by the presence of several global, regional, and local vendors. The market is highly competitive with all players competing to gain the market share. Intense competition, frequent changes in government policies, and regulations are the key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. It is crucial for the vendors to provide cost-efficient and high-quality AUVs and solutions to sustain in an intensely competitive market environment.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} The global AUV market comprises many global and regional players. These players are adopting strategies such as product launches and acquisitions to improve their position in the market. The growth of market vendors is dependent on market conditions, government support, and industry development. Thus, they should focus on improving their products and expanding their regional presence. General Dynamics Corporation, Kongsberg Maritime AS, Saab AB, ECA Group, Fugro, and Lockheed Martin Corporation are the leading players and together accounted for 78.93% of the market share in 2018.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Although the leading players, as mentioned above, are dominating the market due to their vast industry experience, wide service offering, and geographic reach, other companies are actively contributing to the market. These players may strengthen their presence worldwide through new product innovations during the forecast period. Vendors with access to better technologies can develop unique and innovative products and services, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the increasing number of new product developments, business expansions, and mergers & acquisitions.
Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} The threat of New Entrants
The potential for growth in the global AUV market is high; however, the capital-intensive nature and need for a wide client base could deter the entry of new vendors in the market to a certain extent. Moreover, the market has well-established players with a wide regional presence. AUVs are developed for diver observation, underwater construction support, object location and recovery, drilling support, and subsea installations. New entrants cannot achieve economies of scale, which the leading players already possess. Therefore, new entrants present a moderate threat to the major stakeholders in the market.
Bargaining Power of Suppliers
The suppliers in the market include providers of sub-assemblies, electronic parts, and other basic components such as cameras, lights, sensor, and radars. The components they provide have to undergo a stringent regulatory review and must be suitable for military and defense, oil & gas, and scientific research applications. However, the suppliers have the edge over the buyers regarding products offered and pricing. Thus, the bargaining power of suppliers in the market is expected to be moderate during the forecast period.
Bargaining Power of Buyers
Buyers in the market can be broadly categorized as military and defense contractors, oil & gas companies, scientific research organizations, and other contractors that require AUVs for various operations. Although the number of buyers is increasing, they are reliant only on the successful and established companies that offer these solutions. However, the buyers dictate the specification and type of products required. On the basis of the required specifications, the cost of the AUVs is decided by both suppliers and buyers. Thus, depending on the requirement of AUVs, the price can vary. Therefore, the bargaining power of buyers is expected to be moderate during the review period.
Threat of Substitutes
Due to the long product lifecycle and high capital investments and maintenance costs, AUVs do not have any close substitutes. Divers are the only substitutes for shallow water operations, which poses a threat. However, unsafe working conditions in underwater environments have led to a declining number of divers. Thus, the threat of substitutes in the market is expected to be low during the assessment period.
Rivalry
There is intense competition among the existing players in the market, with vendors investing heavily in research & development to offer high quality, advanced, and cost-effective AUVs. These vehicles have become a reliable part of the military operations and oil & gas offshore and onshore operations. Various established players in the market meet the demand for AUVs in platform inspection, telecommunications support, and subsea installations, among others. These players are focused on the research of innovative products to differentiate themselves in the market. Thus, the intensity of rivalry in the market is projected to be high during the forecast period.
