| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 9.91 Billion |
| Market Size (2030) | USD 14.29 Billion |
| CAGR (2025 - 2030) | 7.59 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Submarine Market Analysis
The Submarine Market size is estimated at USD 9.91 billion in 2025, and is expected to reach USD 14.29 billion by 2030, at a CAGR of 7.59% during the forecast period (2025-2030).
Amidst rising global tensions, governments worldwide are increasingly eyeing advanced submarine systems. These systems, capable of executing various tasks from missile strikes to surveillance, are becoming a strategic imperative. Escalating geopolitical conflicts, a spike in terrorism on international waters, and the strategic necessity of comprehensive underwater reconnaissance in rival territories underpin the surge in the submarine market.
The global demand for submarine systems is surging, especially in roles like naval intelligence and mine countermeasures (MCM) operations. Advancements in 3D printing have revolutionized the sector, enabling the design of intricate submarine components, missile fins, and guidance systems while offering cost efficiencies.
A notable trend is the adoption of crewless submarines for enhanced threat detection. These crewless vessels are deployed to identify potentially hostile ships or submarines, safeguarding friendly vessels and critical national assets like deep-sea cables and pipelines. Additionally, nations are increasingly aware of the environmental repercussions as they bolster their defense capabilities. The defense sector's reliance on fossil fuels and energy-intensive manufacturing challenges global sustainability goals. With a growing international focus on environmental issues, stakeholders are urged to champion cleaner technologies and eco-friendly practices to curtail adverse ecological impacts.
Submarine Market Trends
Nuclear-powered Submarines (SSN) are Anticipated to Record the Highest CAGR During the Forecast Period
A nuclear submarine does not necessarily carry nuclear armaments. These submarines offer significant performance advantages over their "conventional" (typically diesel-electric) counterparts. Their nuclear propulsion, independent of air, eliminates the frequent surfacing needed by conventional submarines.
The substantial power output of nuclear reactors enables these submarines to sustain high speeds for extended periods. With infrequent refueling needs, their range is virtually unlimited, with voyage times primarily limited by factors like food and consumable restocking. However, the high cost of nuclear technology restricts ownership to only a handful of nations worldwide.
Despite this, multiple countries are actively pursuing acquisition programs for nuclear-powered submarines. Notably, in March 2023, the US, Australia, and the UK unveiled a framework allowing Australia to procure nuclear-powered submarines, elevating Australia to the seventh nation with this technology. As per the agreement, Australia is set to receive three US Virginia-class nuclear-powered submarines by the early 2030s, with an option for two more.
As countries increasingly collaborate on advanced nuclear submarine projects and ramp up investments in defense modernization, the market is poised for growth in the coming years.
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North America will Witness Remarkable Growth During the Forecast Period
North America is poised to witness substantial growth over the forecast period, driven by increasing defense capabilities and military budget. This, combined with significant R&D investments from key players, is fueling the development of new, cutting-edge submarines in the region. The US Department of Defense (DoD) reported a notable uptick in military spending, which increased from USD 728 billion in FY22 to USD 797 billion in FY23.
The US operates four nuclear-powered submarine classes: Ohio, Los Angeles, Seawolf, and Virginia. Notably, the US Navy's modernization strategy includes an ambitious plan to introduce two to three Virginia-class attack submarines annually until 2043. Additionally, the Navy aims to procure 36 Virginia-class vessels by the end of FY 2026.
There are several emerging technologies in the market. Manufacturers are honing in on advancements in submarine operational life cycles and underwater detection capabilities. For instance, the US Navy's January 2023 announcement highlighted an accelerated timeline for its Columbia-class SSBNs. These submarines, touted as the world's most advanced, are set to be operational by 2031, with a service life extending well into the 2080s.
The new submarines are engineered for 42-year service life, featuring a 'life-of-ship' reactor core design that eliminates the need for mid-life refueling. Notably, these advancements mean the US Navy could operate with just 12 SSBNs while maintaining the sea presence equivalent to its current fleet of 14 Ohio-class ballistic missile submarines.
The market is also exploring novel detection technologies. These include heightened use of lower-frequency active sonar and non-acoustic methods for detecting submarine wakes at short ranges, which are slated for integration into future submarine classes.
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Submarine Industry Overview
The submarine market is highly consolidated, with few players holding significant shares. Some prominent market players include Naval Group, General Dynamics Corporation, BAE Systems PLC, Saab AB, and ThyssenKrupp AG. The market is consolidated owing to the presence of several submarine manufacturers.
Companies are intensifying their growth strategies by developing and launching submarines with advanced features and securing product approvals and patents. Bolstering their product portfolios with cutting-edge submarine systems, ramping up R&D investments, and making strategic acquisitions are pivotal moves that will likely cement their market dominance in the coming years.
Submarine Market Leaders
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Naval Group
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BAE Systems plc
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thyssenkrupp AG
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Saab AB
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General Dynamics Corporation
- *Disclaimer: Major Players sorted in no particular order
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Submarine Market News
March 2024: Australia pledged AUD 4.6 billion (USD 3 billion) to assist Britain in constructing nuclear-powered submarines, a vital component of the AUKUS agreement with the UK and the US. Under this, Australia is set to procure up to five nuclear submarines from the US by the early 2030s, followed by a collaborative effort with Britain to develop and operate a new SSN-AUKUS class.
March 2024: Indonesia awarded the Naval Group and PT PAL the contract to enhance the Indonesian Navy's capabilities. As part of this collaboration, PT PAL will construct two Scorpène submarines in Indonesia, leveraging technology transferred from the Naval Group.
Submarine Industry Segmentation
A submarine is a vessel designed for autonomous operation underwater, distinguishing it from submersibles with more restricted underwater capabilities. Submarines also encompass remotely operated vehicles and vessels of medium or smaller sizes.
The submarine market is segmented by type and geography. By type, the market is classified into nuclear-powered submarines (SSNs), ballistic missile submarines (SSBNs), guided-missile nuclear submarines (SSGNs), and diesel-electric submarines (SSKs). The report also covers the market sizes and forecasts in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Type | Nuclear-Powered Submarines (SSNs) | ||
| Ballistic Missile Submarines (SSBNs) | |||
| Guided-Missile Nuclear Submarines (SSGNs) | |||
| Diesel-Electric Submarines (SSKs) | |||
| Geography | North America | United States | |
| Canada | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Rest of Latin America | |||
| Middle East and Africa | Saudi Arabia | ||
| United Arab Emirates | |||
| Rest of Middle East and Africa | |||
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Submarines Market Research FAQs
How big is the Submarine Market?
The Submarine Market size is expected to reach USD 9.91 billion in 2025 and grow at a CAGR of 7.59% to reach USD 14.29 billion by 2030.
What is the current Submarine Market size?
In 2025, the Submarine Market size is expected to reach USD 9.91 billion.
Who are the key players in Submarine Market?
Naval Group, BAE Systems plc, thyssenkrupp AG, Saab AB and General Dynamics Corporation are the major companies operating in the Submarine Market.
Which is the fastest growing region in Submarine Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Submarine Market?
In 2025, the North America accounts for the largest market share in Submarine Market.
What years does this Submarine Market cover, and what was the market size in 2024?
In 2024, the Submarine Market size was estimated at USD 9.16 billion. The report covers the Submarine Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Submarine Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Submarines Industry Report
Statistics for the 2025 Submarine market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Submarine analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
