HD Hyundai announced Wednesday the establishment of its naval technology research institute, aiming to tap into the future naval vessel market.

The opening ceremony, held on the same day, was attended by about 50 participants, including HD Hyundai Vice Chairman Chung Ki-sun and HD Korea Shipbuilding & Offshore Engineering CEO Kim Sung-jun.

The new research lab is a reorganized entity from the naval technology center of HD Hyundai Heavy Industries' special ships business unit and will operate under the future technology research institute of HD Korea Shipbuilding & Offshore Engineering.

The future technology research institute secures core future technologies and provides applied technologies tailored to the group's key business areas.

HD Hyundai stated that the new institute will help establish a technology integration system that can swiftly adapt to the rapidly evolving naval market.

The company will use the institute as a hub to advance the electrification of naval vessels, develop unmanned vessels, and enhance export competitiveness in the naval sector.

By quickly adopting electrification, digital and artificial intelligence technologies from the future technology research institute, the company will develop next-generation naval vessels for the navy and export models, aiming to lead in future naval vessel technologies and target the global market.

The British military journal Janes forecasts the order of 1,100 new naval vessels over the next decade, totaling around 113 trillion won ($81.8 billion).

"Amid the shift in the special ship market towards incorporating advanced digital technology, our naval technology research institute will act as the center of the world's best naval technology and contribute to making Korea one of the top four global defense powerhouses," said Chung.