Market Trends of Submarine Propulsion Systems Industry
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.
