Submarine Propulsion Systems Market Size
| Study Period | 2019-2029 |
| Market Size (2024) | USD 8.03 Billion |
| Market Size (2029) | USD 9.55 Billion |
| CAGR (2024 - 2029) | 3.53 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Submarine Propulsion Systems Market Analysis
The Submarine Propulsion Systems Market size is estimated at USD 8.03 billion in 2024, and is expected to reach USD 9.55 billion by 2029, growing at a CAGR of 3.53% during the forecast period (2024-2029).
Evolving geopolitical scenarios and maritime disputes are anticipated to drive investments in submarines. Furthermore, growing emphasis on establishing the nuclear triad and enhancing deterrence capabilities is expected to propel demand for new propulsion systems. The modernization plans to enhance the operability of submarines and extend their life by replacing old propulsion systems with advanced propulsions are expected to bolster the growth of new propulsion systems during the forecast period.
This increase in the market value of submarine propulsion systems may be ascribed to governments' increased investments to enhance their underwater defense and make it as safe and secure as feasible. The requirement for longer submerged periods, more value potency, increased R&D expenditure, and technical developments in submarine systems will provide sufficient prospects for market growth. On the other hand, the high costs associated with air-independent propulsion systems for submarines equipped with modern technologies will offer a substantial obstacle to market growth in the long term, and emerging new technologies may also impede the submarine propulsion systems market.
Submarine Propulsion Systems Market Trends
The Military Segment is Projected to Dominate the Market During the Forecast Period
The growing political tension, as well as the territorial issues across the sea borders of the countries, is bolstering the investments into the modernization of the naval fleet with the procurement of naval vessels like patrol vessels, frigates, and submarines. The increasing demand for underwater warfare and surveillance has led to subsequent procurements of submarines. Also, the aging fleet of older generation submarines has led to modernization programs to replace them with new generation submarines with better combat systems technology as well as stealth capabilities. For instance, the Indian Navy plans to retrofit its Kalvari class non-nuclear attack submarines with the indigenous DRDO-developed Air Independent Propulsion (AIP) technology during their first upgrade, expected around 2023. The AIP upgrade allows the submarines to be submerged for longer periods and makes the platform stealthier by making it quieter than conventional submarines.
Global navies are also considering leasing used submarines from foreign countries until they develop their own submarine-building capabilities. Countries like Australia, India, and Japan are looking to lease used submarines from foreign countries. Such procurements are anticipated to propel the demand for new submarine propulsion systems during the forecast period. Currently, the plan of the countries to replace the existing submarine propulsion systems with AIP systems is anticipated to drive the growth of the market further.
Asia-Pacific to Witness Rapid Growth During the Forecast Period
The naval forces of Asia-Pacific countries are rapidly expanding their fleet and carrying out modernization programs to strengthen their naval capabilities. The ongoing territorial issues in the South China Sea and the Indian Ocean between various countries in the region and growing military spending are the major drivers of investments in naval capabilities. China’s navy is undergoing a huge naval fleet expansion, which is projected to help China surpass Russia as the largest navy in the world in terms of frigates and submarines by 2022.
Moreover, the countries in this region are striving to propel their indigenous manufacturing capabilities. For instance, India has been focusing on bolstering its maritime capability with a focus on the Indian Ocean as China has been increasing its presence in the region. In May 2023, the Indian Navy's sixth and final Kalvari class submarine, Vaghsheer, began its sea trials and is expected to be commissioned into the force by early next year. Also, the Defence Research and Development Organisation (DRDO) is currently developing a fuel cell-based Air Independent Propulsion (AIP) system for Indian Naval submarines. Such developments are anticipated to bolster the growth prospects of the regional market at a much higher pace than at the global level.
Submarine Propulsion Systems Industry Overview
The submarine propulsion systems market is semi-consolidated, with some of the prominent players in the submarine propulsion systems market being Naval Group, Rolls Royce PLC, Thyssenkrupp AG, Siemens AG, and General Dynamics Corporation. There are many regional players in the market that support the local government submarine construction programs. Long-term contracts are signed between the propulsion system manufacturers, submarine construction companies, and governments. Rolls-Royce is one of the major manufacturers that designs, manufactures, and provides support for nuclear submarine propulsion systems. The company has previously supported the UK Royal Navy in the construction of nuclear submarines. The development of new propulsion systems to enhance the operability of the submarine with additional features like stealth will help the companies receive new contracts and increase their footprint around the world.
Submarine Propulsion Systems Market Leaders
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Rolls Royce plc
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Naval Group
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Siemens AG
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General Dynamics Corporation
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Thyssenkrupp AG
*Disclaimer: Major Players sorted in no particular order
Submarine Propulsion Systems Market News
Oct 2023: BAE Systems PLC was awarded a USD 4.82 million contract to build a new generation of submarines as a part of the AUKUS pact between the US, UK, and Australia.
Jun 2023: Larsen & Toubro (L&T) and Defence Research and Development Organisation (DRDO) signed a contract for the realization of two Air Independent Propulsion (AIP) System Modules for the Kalvari Class of submarines of the Indian Navy.
Submarine Propulsion Systems 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 Propulsion Systems
5.1.2 Diesel-electric Propulsion Systems
5.1.3 Air Independent Propulsion Systems
5.2 Application
5.2.1 Commercial
5.2.2 Defense
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 France
5.3.2.3 Germany
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 South Africa
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Rolls-Royce plc
6.2.2 Saab AB
6.2.3 BWX Technolgies, Inc.
6.2.4 General Dynamics Corporation
6.2.5 ECA Group
6.2.6 Thyssenkrupp AG
6.2.7 Siemens AG
6.2.8 Ultra Electronics Holdings plc
6.2.9 Naval Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Submarine Propulsion Systems Industry Segmentation
Submarine propulsion systems generate enough power to enable multi-axis movement of the submarine in the water depending on the source of energy and the method of energy extraction.
The Submarine Propulsion Systems Market has been segmented by Type (Nuclear Propulsion Systems, Diesel-electric Propulsion Systems, and Air Independent Propulsion Systems) and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market size in value terms in USD for all the abovementioned segments.
| Type | |
| Nuclear Propulsion Systems | |
| Diesel-electric Propulsion Systems | |
| Air Independent Propulsion Systems |
| Application | |
| Commercial | |
| Defense |
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Submarine Propulsion Systems Market Research FAQs
How big is the Submarine Propulsion Systems Market?
The Submarine Propulsion Systems Market size is expected to reach USD 8.03 billion in 2024 and grow at a CAGR of 3.53% to reach USD 9.55 billion by 2029.
What is the current Submarine Propulsion Systems Market size?
In 2024, the Submarine Propulsion Systems Market size is expected to reach USD 8.03 billion.
Who are the key players in Submarine Propulsion Systems Market?
Rolls Royce plc, Naval Group, Siemens AG, General Dynamics Corporation and Thyssenkrupp AG are the major companies operating in the Submarine Propulsion Systems Market.
Which is the fastest growing region in Submarine Propulsion Systems Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Submarine Propulsion Systems Market?
In 2024, the North America accounts for the largest market share in Submarine Propulsion Systems Market.
What years does this Submarine Propulsion Systems Market cover, and what was the market size in 2023?
In 2023, the Submarine Propulsion Systems Market size was estimated at USD 7.75 billion. The report covers the Submarine Propulsion Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Submarine Propulsion Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Submarine Propulsion Systems Industry Report
Statistics for the 2024 Submarine Propulsion Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Submarine Propulsion Systems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
