Submarines Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 4.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Submarines Market Analysis
The submarine market is anticipated to register a CAGR of 4% during the forecast period.
- The global submarine market witnessed unprecedented challenges due to the COVID-19 pandemic. The challenges faced by manufacturers in receiving raw materials such as high-strength alloy steel and titanium in order to develop new and advanced submarines owing to border restrictions by various countries led to delays in the production process. Moreover, a decline in the orders for new submarine acquisitions by defense forces worldwide also led to a decline in the production and supply process.
- Furthermore, layoffs by various companies owing to the pandemic led to a decrease in the workforce which further led to delays in order deliveries, thereby leading to key market players coping with heavy losses. The market showcased a strong recovery post-covid due to increased demand from the defense personnel of various countries for purchasing advanced submarine systems to carry out various tactical operations will lead to growth in the market in coming years.
- In the present scenario, governments worldwide are also planning to make investments in procuring advanced submarine systems, which can then be deployed to carry out a range of activities, from missile attacks to underwater detection to surveillance activities. Moreover, the growth of the submarine market is driven by factors such as the rise in geopolitical conflicts across the globe, increasing terrorism activities in international waters, and the demand to have a comprehensive underwater study of enemy territories to gain strategic stabilities.
- In addition, for naval intelligence, mine countermeasures (MCM) operations such as intelligence, surveillance, and reconnaissance roles, there has been significant growth in the demand for submarine systems globally. Moreover, the use of 3D printing has now made it possible to design and develop complex submarine parts as well as missile fins and guidance systems and provides additional benefits such as cost-effectiveness.
- Furthermore, emerging trends such as making use of crewless submarines to detect ships or submarines which may pose a threat to other friendly submarines or to key national infrastructure such as deep-sea cables and pipelines will lead to the market witnessing significant growth during the forecast period.
Submarines Market Trends
Nuclear-Powered Submarines (SSN) Segment Is Anticipated to Grow with the Highest CAGR During the Forecast Period
- The nuclear-powered submarines (SSN) segment is anticipated to grow with the highest CAGR during the forecast period. A nuclear submarine is a submarine that is powered by a nuclear reactor but is not necessarily nuclear-armed. Nuclear submarines have considerable performance advantages over "conventional" (typically diesel-electric) submarines. Nuclear propulsion, being completely independent of air, frees the submarine from the need to surface frequently, as is necessary for conventional submarines.
- The large amount of power generated by a nuclear reactor allows nuclear submarines to operate at high speed for long periods, and the long interval between refuelings grants a range virtually unlimited, making the only limits on voyage times being imposed by such factors as the need to restock food or other consumables. However, due to the high cost of nuclear technology, only a few countries across the globe have the means of acquiring such a vessel.
- Nevertheless, several acquisition programs for nuclear-powered submarines are currently underway. For instance, in March 2023, the United States, Australia, and the United Kingdom announced a framework enabling Australia to acquire nuclear-powered submarines, thereby making Australia the seventh country in the world to possess this technology. Under the contract, Australia is to procure three US Virginia-class nuclear-powered submarines by the early 2030s and has the option to buy two additional vessels if required.
- Thus, an increase in partnerships between countries for the development and acquisition of new advanced-class nuclear-powered submarines coupled with increasing investments by various countries in modernizing their defense capabilities will have a positive outlook and will lead to the market witnessing growth during the forecast period.
North America Will Showcase Remarkable Growth During The Forecast Period
- North America is projected to show the highest growth during the forecast period. Growing defense capabilities and the increase in the military budget, coupled with the presence of various key players who are investing in R&D towards the development of new and advanced submarines, will lead to growth in the market in the region. As of March 2023, the FY23 presidential budget request of the United States was USD 842 billion. Moreover, according to the US Department of Defense (DoD), the military budget increased to USD 797 billion in FY23 from USD 728 billion in FY22.
- Currently, the US submarine force consists of four operational classes, namely, Ohio, Los Angeles, Seawolf, and Virginia, all of which are nuclear-powered. The US is also witnessing growth in terms of the development of advanced submarines. In its current modernization drive, the US Navy plans to add two to three Virginia-class attack submarines annually until 2043. Moreover, the US Navy also plans to procure 36 total Virginia-class vessels through FY2026.
- There are various new emerging technologies for submarines in the coming years. Advancements in the submarine operational life cycle, as well as new underwater detection capabilities, are the focus areas for manufacturers. For instance, in January 2023, the US Navy announced that they are accelerating the development and construction of its new Columbia class SSBNs to attain the goal of engineering the world's most lethal, high-tech, and advanced SSBN. These submarines will enter service by 2031 and serve well into the 2080s and beyond.
- The new submarines are being designed for 42 years of service life, thus engineering a reactor core that would last for the 'life-of-ship,' thus ruling out the requirement of mid-life refueling. Moreover, such developments would enable the US Navy to build just 12 SSBNs and still be able to have the same sea presence/ops availability as the current fleet of 14 ballistic missile Ohio class submarines.
- On the other hand, the emergence of new detection technologies that make increased use of lower frequency active sonar and no acoustic methods of detecting submarine wakes at short ranges are under research and development and are expected to be installed in a future class of submarines.
Submarines Industry Overview
The submarine market is highly consolidated in nature, with few players holding significant shares in the market. Some prominent market players in the market are Naval Group, General Dynamics Corporation, BAE Systems plc, Saab AB, and thyssenkrupp AG, amongst others. The market is consolidated owing to the presence of several submarine manufacturers.
Various companies are now focused on growth strategies, which include the development and launch of new submarines with advanced features and capabilities, product approvals, and patents. Moreover, an expanded product portfolio of advanced submarine systems as well as increased investments in R&D and strategic acquisitions would be the key factors that would lead to these players dominating the market during the forecast period.
Submarines Market Leaders
Naval Group
BAE Systems plc
thyssenkrupp AG
Saab AB
General Dynamics Corporation
*Disclaimer: Major Players sorted in no particular order
Submarines Market News
- December 2022: Indian shipbuilder Mazagon Dock Limited (MDL) announced that they delivered "Vagir," the fifth Scorpene-type submarine (Kalvari-class), to the Indian Navy.
- December 2022: President Vladimir Putin oversaw the commissioning of several new warships and a nuclear-powered submarine. New submarines are being commissioned to strengthen the Russian Navy. Among the newly commissioned vessels were a corvette, a minesweeper, and the Generalissimus Suvorov nuclear-powered submarine that can launch ballistic missiles.
- December 2022: the UK Royal Navy ordered its first crewless submarine to shape the future of underwater warfare. The new crewless submarine known as the Cetus will move stealthily through the oceans, monitoring hostile activity and listening out for ships or submarines that may threaten the fleet or key national infrastructure such as deep-sea cables and pipelines.
Submarines Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Nuclear-Powered Submarines (SSNs)
5.1.2 Ballistic Missile Submarines (SSBNs)
5.1.3 Guided-Missile Nuclear Submarines (SSGNs)
5.1.4 Diesel-Electric Submarines (SSKs)
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 United Kingdom
5.2.2.3 France
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 Australia
5.2.3.5 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Rest of Latin America
5.2.5 Middle East and Africa
5.2.5.1 South Africa
5.2.5.2 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Navantia S.A. SM.E
6.2.2 Naval Group
6.2.3 FINCANTIERI S.p.A.
6.2.4 Huntington Ingalls Industries, Inc.
6.2.5 HD Hyundai Heavy Industries
6.2.6 General Dynamics Corporation
6.2.7 BAE Systems plc
6.2.8 Daewoo Shipbuilding & Marine Engineering Co., Ltd.
6.2.9 Saab AB
6.2.10 thyssenkrupp AG
6.2.11 United Shipbuilding Corporation
6.2.12 Mitsubishi Heavy Industries, Ltd.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Submarines Industry Segmentation
A submarine is a vessel that is capable of independent operation underwater. It differs from a submersible vessel, which has limited underwater capability. The term is also sometimes used historically or colloquially to refer to a remotely operated vehicle, as well as medium-sized or smaller vessels.
The submarine market is segmented by type and geography. By type, the market has been segmented by nuclear-powered submarines (SSNs), ballistic missile submarines (SSBNs), guided-missile nuclear submarines (SSGNs), and diesel-electric submarines (SSKs). By geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
The market sizing and forecasts have been provided in value (USD million) for all the above segments.
| Type | |
| Nuclear-Powered Submarines (SSNs) | |
| Ballistic Missile Submarines (SSBNs) | |
| Guided-Missile Nuclear Submarines (SSGNs) | |
| Diesel-Electric Submarines (SSKs) |
| Geography | |||||||
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Submarines Market Research FAQs
What is the current Submarine Market size?
The Submarine Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
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 (2024-2029).
Which region has the biggest share in Submarine Market?
In 2024, the North America accounts for the largest market share in Submarine Market.
What years does this Submarine Market cover?
The report covers the Submarine Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Submarine Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Submarines Industry Report
Statistics for the 2024 Submarines market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Submarines analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
