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Euronaval, largest platform for naval and maritime security

Issue No. 20 | October 16-31, 2014By R. ChandrakanthPhoto(s): By Euronaval

Over the course of its 24 editions, Euronaval has become the largest platform for international exchange on naval and maritime issues (besides yachting). Euronaval which set sail in 1968, owes its leader status to the excellence of French naval industries, the world’s sixth manufacturer and second in Europe.

This five-day international exhibition to be held from October 27 to 31 is organised under the joint patronage of the French Ministry of Defence and Secretariat of State for the Sea.

The Chairman of Euronaval, Patrick Boissier, states that global maritimisation is causing the demand for maritime transport to soar. ‘Blue growth’ relies on the development of mineral, food and energy resources and contains the hope for a better future. But the sea is a complicated and sometimes dangerous place. This is why state concerns focus on rendering it safe and peaceful. The fight against terrorism and piracy, surveillance of exclusive economic zones, protection of resources, security of economic activities, safety of human lives at sea, defending national interests and national sovereignty claims are critical issues that encourage all coastal countries to equip themselves with powerful, reactive and multi-purpose navies.

With an annual turnover of more than 40 billion euros, military shipbuilding is one of the driving sectors in the global economy. Every two years at Euronaval, shipyards, contractors, equipment providers, industrial businesses and naval defence service companies come together. Beyond its status as an exceptional exhibition of innovative material and high performance services, Euronaval brings together political decision-makers, military chiefs and industrialists from around the world to exchange ideas and prepare for the navies of the future.

Euronaval is the centre stage for negotiating or concluding of a large number of contracts to the benefit of shipbuilding businesses. Euronaval is where the future of maritime security and safety is determined, the future of peace, he states.

In Septembrer 2013, AMI International released a World Naval Market Forecast, demonstrating astrong growth in total new naval construction through 2032.

  • 522 new construction programmes totalling more than 3,800 new ships, submarines and craft.
  • These same hulls and related equipment expenditures are expected to reach $838 billion over the next 20 years, up about 12 per cent from AMI’s 2011 20-year world naval market numbers.
  • Volume growth is even more striking, with the number of new hulls forecasted to be built over the next two decades up some 22 per cent compared to 2011 forecasts.
  • This robust growth highlights the increasing significance of naval and maritime security capabilities in overall defence spending.

Asia-Pacific overtakes US market

The Asia-Pacific naval market continues to show strong growth. The Asia-Pacific region has passed the US to become the world’s largest naval market by volume comprising 1,066 vessels or approximately 28 per cent of the market over the next 20 years. This includes over 650 major and minor surface combatants and 116 submarines worth over $167 billion in the next two decades.

In the Middle East & North Africa (MENA), over 640 vessels totalling $54.7 billion are to be acquired. A majority will be for patrol vessels with major surface combatants, mine warfare vessels and submarines.

Naval shipbuilding programmes in Latin America appear to be stable through 2032. A growing number of countries in the region are seeking partners on design/build projects and making near-term investments, with 60 per cent of the region’s forecasted new build hulls expected to be commissioned over the next five years.

Many NATO countries (excluding the US) continue to restructure their sea services and realign new ship programmes to optimise fleet structures in a resource constrained environment. Future procurements remain relatively flat with 524 ships and submarines forecasted to be built through 2032 totalling $179 billion.

The US market continues to show weakness due to ongoing fiscal issues. Despite slowdowns, the US remains the world’s largest naval market by value with over $291 billion expected to be spent on nearly 1,042 new ships, submarines and craft through 2032.

GICAN has estimated:

  • Worldwide order book for vessels: $150 billion for military orders, plus $300 billion for civilian orders.
  • Europe order book (excluding Russia): $36 billion for military orders (24 per cent of world orders), plus $36 billion for civilian orders (12 per cent of world orders), i.e. $72 billion in total (16 per cent of world orders).
  • France order book: $10 billion for military orders (6.7 per cent of world orders and 28 per cent of Europe’s) plus $5 billion for civilian orders (1.7 per cent of world orders and 14 per cent of Europe’s), i.e. $15 billion in total (3.3 per cent of world orders and 20.8 per cent of Europe’s).
  • Estimates of activity values for new defence constructions, the principal countries can be classified as follows:
  • • USA, with an annual sales figure of approximately $10 billion.
    • China, approximately $4 billion.
    • France, Russia and the United Kingdom, around $2.5 billion to $3 billion.
    • Germany, Japan, approximately $1.5 billion.

Be it for defence missions or economic development, the sea is seen now by all the stakeholders, customers and suppliers in the world as an area of increasing strategic importance. In terms of the market, Euronaval witnesses the fast-growing naval equipment demand since nations have realised the importance of what is called the ‘fait maritime’ (strategic and economical importance of seas and oceans).

Such awareness is accompanied by the necessity to dispose of the means to protect maritime borders and oil, mining and halieutic resources within the countries exclusive economic zones (EEZ). These new demands guarantee the high potential of development in the naval sector on an international scale for the years to come, and comfort Euronaval has a key place for world naval industry.

Euronaval’s DNA

The Euronaval’s raison d’être is to simplify decision making for buying countries by offering a wide range of innovative solutions that can be applied to all contemporary naval issues. Sponsored by the French Government, Euronaval is the only professional international show exclusively dedicated to naval defence and maritime safety/security (MSS), covering surface vessels, submarines and naval aviation.

Since 1968, the exhibition takes place every second year in the French capital during five days and covers all the necessary means to carry out coastal and offshore missions: protection of naval sovereignty, law enforcement and peacekeeping at sea, protection of assets and natural resources, control of migration flows.

The 24th edition has 352 exhibitors from 28 countries. There are 10 nation pavillions – Australia, Brazil, Chile, Germany, India, Italia, Russia, Netherlands, United Kingdom and USA. In terms of exhibitors, Euronaval will welcome India and Australia, two new nation pavillions with professed ambitions in the naval sector. And Belgium, the United Arab Emirates and Turkey will also be present at the exhibition for the first time.

Over 55 per cent of the exhibitors are foreign companies. Over 90 official delegations from 65 countries have confirmed participation. The expected trade visitors has been put at 30,000.

Trends and innovations

At Euronaval 2014, some of the most significant technical developments will be related to stealth and discretion issues and new technologies for reducing radar and acoustic signatures. The B2B events to develop new technical or commercial partnerships will be organised this year by the CCI Paris-Ile de France and the Entreprise Europe network.

Jean-Marie Carnet, the CEO of Euronaval, said: “Marine space is becoming increasingly strategic with 80 per cent of the volume of the world’s trade travels by sea. With the inevitable depletion of land resources, states are now looking to the sea for energy, food and raw materials to provide for the nine billion inhabitants projected for 2050. All these objective data are the source of major schemes around marine spaces currently led by states, prompting them to become appropriately equipped to defend the interests of their respective populations. An increasing demand for equipment ensures global activity that is well-supported on an international level. The six major sectors of activities covered at Euronaval 2014 will answer these demands.”