Submarines Global Market Report 2024

The submarines market size has grown strongly in recent years. It will grow from $19.35 billion in 2023 to $20.36 billion in 2024 at a compound annual growth rate (CAGR) of 5.2%. The historical period's growth can be ascribed to factors such as geopolitical tensions and security concerns, efforts in modernization and fleet recapitalization, strategic posturing and deterrence, operations related to maritime security and anti-piracy measures, as well as undersea surveillance and intelligence gathering.

The submarines market size is expected to see steady growth in the next few years. It will grow to $24.11 billion in 2028 at a compound annual growth rate (CAGR) of 4.3%. The anticipated growth in the forecast period can be linked to the expansion of naval force modernization programs, the emergence of novel maritime threats, increased activity in Arctic exploration and presence, a heightened focus on underwater unmanned systems, and collaborative initiatives in naval defense. Key trends expected in the forecast period include the advancement of submarine-launched ballistic missile (SLBM) capabilities, a greater emphasis on environmental adaptation, improved modular payload systems, collaborative efforts in submarine technology development, and the application of 3D printing and advanced materials.

The anticipated surge in submarine investments is poised to drive the submarine market's expansion during the forecast period. Submarines, capable of maneuvering both above and below sea level, are being increasingly prioritized by governments globally. This strategic focus aims to enhance local shipyard capacities and address gaps in the Navy's underwater warfare capabilities. Notably, the United Kingdom government, in September 2021, announced a substantial £170 million investment in the next generation of Royal Navy submarines. Contracts worth £85 million each were awarded to BAE Systems and Rolls-Royce to undertake design and concept work for the future class of Royal Navy submarines. Consequently, the escalating investments in submarines emerge as a key factor propelling the growth of the submarine market.

The submarine market is expected to witness growth driven by the rising threat of terrorist attacks. Terrorism, characterized by violent acts or threats intended to instill fear for political, religious, or ideological goals, necessitates robust preventive and responsive measures. Submarines, equipped with stealth, mobility, and surveillance capabilities, play a crucial role in countering terrorist threats and facilitating special operations. Notably, in March 2023, ReliefWeb reported an increase in the lethality of terrorist attacks, with an average of 1.7 fatalities per attack in 2022 compared to 1.3 in 2021. Furthermore, 88 percent of attacks and 98 percent of terrorist-related deaths occurred in 2022. Consequently, the mounting incidence of terrorist attacks is anticipated to drive the growth of the submarines market.

The formidable obstacle to the submarine market's growth is the high cost associated with these vessels. The cost of submarines is contingent on factors such as size, design, and capabilities. As reported by the Congressional Research Service in August 2022, the procurement cost for the 37th and 38th Virginia-class submarines is estimated at a substantial $7,250.6 million. Consequently, the exorbitant costs associated with submarines serve as a hindrance to the overall growth of the submarine market throughout the forecast period.

Leading companies in the submarine market are actively engaged in developing cutting-edge submarines, such as the Virginia-class attack submarine, as part of the US Navy's submarine force modernization initiative. The Virginia-class submarines stand out as the most technologically advanced globally, designed for versatile operation across all ocean environments and capable of executing diverse missions, including surveillance, intelligence gathering, anti-submarine warfare, and anti-ship warfare. A notable example is Huntington Ingalls Industries (HII), a US-based shipbuilding company, which, in April 2022, successfully launched the US Navy's 23rd Virginia-class attack submarine, the future USS New Jersey (SSN 796). This submarine is equipped with enhanced features, including larger berthing spaces and more common areas, catering to both male and female crew members.

Major players in the submarines market are strategically opting for partnerships to deliver essential capabilities and services, addressing the intricate requirements of contemporary submarine warfare. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. A case in point is the collaboration between ThyssenKrupp Marine Systems, a Germany-based shipbuilding company, and Mazagon Dock Shipbuilders Limited (MDL), an India-based shipbuilding company, announced in June 2023. This partnership aims to assist India in constructing submarines with advanced technology, fostering India's submarine capability development, and providing TKMS with access to a new market while facilitating technology transfer to India.

In May 2022, BW Digital Pte. Ltd., a maritime company based in Singapore, completed the acquisition of Hawaiki Submarine Cable Limited for an undisclosed amount. This strategic move by BW Digital Pte. Ltd. aims to diversify its portfolio of digital infrastructure assets, reinforce its presence in the Asia-Pacific region, and support the company's broader growth objectives. Hawaiki Submarine Cable Limited, based in New Zealand, operates a submarine cable system.


Major companies operating in the submarines market report are SAIC Motor Corporation Limited, Lockheed Martin Corporation, Hyundai Heavy Industries Co. Ltd., General Dynamics Corporation, Mitsubishi Heavy Industries Ltd., Northrop Grumman Corporation, BAE Systems PLC, Larsen & Toubro Limited, Kawasaki Heavy Industries Ltd., Huntington Ingalls Industries Inc., Fincantieri, ThyssenKrupp Marine Systems GmbH, Santos Dumont S.A., China Shipbuilding Industry Corporation, Babcock International Group, United Shipbuilding Corporation, Saab AB, Kongsberg Gruppen ASA, Damen Shipyards Group, Naval Group, Rubin Design Bureau, Navantia S.A., Mazagon Dock Shipbuilders Limited, Daewoo Shipbuilding & Marine Engineering Co. Ltd., Naviris, OSK-ShipTech A/S, Leonardo - Fincantieri S.p.A., Australian Submarine Corporation Pty Ltd., Howaldtswerke-Deutsche Werft GmbH, TKMS Blohm + Voss. North America was the largest region in the submarines market in 2023. North America is expected to be the fastest-growing region in the global submarines market during the forecast period. The regions covered in the submarines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Submarines come in various types, including nuclear-powered submarines, diesel-electric submarines, and ballistic missile submarines. Ballistic missile submarines are specifically employed for deploying submarine-launched ballistic missiles (SLBMs) equipped with nuclear warheads. The diverse applications of submarines encompass commercial uses for surveillance, combat, marine environmental monitoring, and other functions.

The submarine market research report is one of a series of new reports that provides submarine market statistics, including submarine industry global market size, regional shares, competitors with a submarine market share, detailed submarine market segments, market trends, and opportunities, and any further data you may need to thrive in the submarine industry. This submarine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the submarines market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The submarine market consists of sales of submarines for both civilian as well as defense purposes. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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