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The submarine market size is forecast to increase by USD 8.99 billion at a CAGR of 5.45% between 2022 and 2027. The market's expansion is propelled by several pivotal factors, including the initiation of fleet replacement initiatives, advancements in undersea warfare, and the intensifying arms race among nations. These elements catalyze the demand for defense and military equipment, thereby shaping market dynamics and fostering innovation within the defense industry. Fleet replacement programs emerge as a significant driver for market growth throughout the forecast period.
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The market is witnessing significant developments driven by factors such as new submarine acquisitions and advancements in advanced submarine systems. As defense forces upgrade their capabilities, there's a growing demand for high-strength alloy steel and titanium for building complex submarine parts. However, geopolitical conflicts and missile attacks underscore the need for comprehensive underwater/ groundwater bodies detection and surveillance activities. To counter threats, navies are investing in mine countermeasures operations and reconnaissance roles while embracing 3D printing for cost-effective production of submarine components like missile fins and guidance systems. Additionally, the emergence of crewless submarines and advancements in nuclear technology are reshaping strategic stabilities and acquisition programs, especially with the introduction of Virginia-class nuclear-powered submarines.
Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
In the ever-evolving landscape of submarine technology, the availability of essential raw materials like high-strength alloy steel and titanium plays a crucial role. However, economic downturns may lead to layoffs and disruptions in order deliveries, impacting the international shipping industry. Geopolitical tensions and maritime disputes heighten the demand for advanced submarine systems to bolster underwater detection capabilities and deter missile attacks. Seafaring nations invest in their submarine fleets to assert control over maritime boundaries and offshore resources, while technological advancements drive innovation in naval military systems. The concept of the Nuclear triad ensures a formidable defense posture, emphasizing the significance of submarines in covert operations and deterring surprise attacks. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Key Market Driver
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Triton Submarines LLC - The company offers submarines such as professional submersibles, commercial submersibles, and leisure submersibles.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio's market research and growth report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market operates within a complex ecosystem, influenced by factors such as refuelings, which impact voyage times and operational readiness. Fluctuations in military budgets affect the procurement of advanced attack submarines and submarine technology. The maritime sector, represented by entities like the International Chamber of Shipping, plays a vital role in regulating activities along the ocean coast and managing groundwater bodies. In the defense sector, both the naval military segment and commercial segment utilize submarines for diverse purposes, from military operations to cargo transports and marine environmental monitoring. Advancements in nuclear energy and additive manufacturing techniques bolster the capabilities of Nuclear Powered Submarines and Diesel Electric Submarines, ensuring a strong deterrent presence in offshore territories. As nations focus on strengthening submarine capabilities, investments in UUVs (Unmanned Underwater Vehicles) and Marine Environmental Monitoring technologies play a crucial role in maintaining security and safeguarding maritime interests.
The market share growth by the SSN segment will be significant during the forecast period. A nuclear attack submarine, also known as an SSN, operates on a nuclear propulsion system that works independently of air. This helps to minimize the need for the vessel to reach the surface often.
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The SSN segment was valued at USD 10.26 billion in 2017 and continued to grow until 2021. SSNs are used to launch attacks on other submarines and surface combatants as well as for striking terrestrial targets. They are used to perform multiple other functions such as intelligence gathering as well as insertion and extraction of special forces. For instance, the first nuclear-powered attack submarine was the US Navy's USS Nautilus. Currently, six nations operate nuclear submarines, including the US, Russia, India, France, China, and the UK. Some popular SSNs include Barracuda-class (French Navy), Akula-class (Indian Navy), Los Angeles-class, and Virginia-class (US Navy).
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APAC is estimated to contribute 39% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. It is the fastest-growing region in the global market, with China, Japan, Korea, and India as the leading revenue-generating countries. The market in the region is driven by factors including maritime border disputes and the need to attain Naval forces supremacy. Additionally, due to the growing pressure along the South China Sea and the British-Indian Ocean Territory, the governments of Japan, Australia, China, and India are focusing on increasing the fleet of silent patrolling submarines.
The market plays a vital role in global security, with nations investing heavily in defense to bolster their naval forces capabilities. Ballistic missile submarines are key components, equipped with missiles capable of deterring threats and maintaining strategic superiority. Advanced sonar systems and torpedoes enhance their capabilities, ensuring effective defense against adversaries. Construction of this requires state-of-the-art equipment and technology, driving the market's growth. Effective marketing strategies are employed to showcase features and capabilities, attracting competitors from around the world. As activities in submarine naval warfare rise, there's a surge in demand for submarines equipped with advanced technologies and an extended range. Overall, the market's significance continues to grow in response to evolving security challenges and geopolitical.
The defence sector witnesses profound impacts from various elements, including naval intelligence, mine countermeasures (MCM) operations, and the deployment of friendly submarines. Advancements in technologies like the detection of oil resources influence market dynamics alongside innovations such as nuclear-powered submarines (SSN) and conventional submarines. The significance of cost-effectiveness is paramount as defense entities strive to balance budgets while enhancing capabilities. High speed and the ability to maneuver in diverse topography characterize modern submarines, alongside their role in safeguarding deep-sea cables vital for communication. Notably, companies like Electric Boat play pivotal roles in driving innovation and meeting the evolving demands of the defense sector.
This market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.45% |
Market growth 2023-2027 |
USD 8.99 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.95 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, South Korea, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anschutz, ASC Pty Ltd., BAE Systems Plc, Daewoo Shipbuilding and Marine Engineering Co. Ltd., Fincantieri Spa, General Dynamics Corp., Hyundai Heavy Industries Co. Ltd., Kawasaki Heavy Industries Ltd., Lockheed Martin Corp., Mazagon Dock Shipbuilders Ltd., Mitsubishi Heavy Industries Ltd., NauticExpo, Naval Group, Navantia SA, Saab AB, Submarine Manufacturing and Products Ltd., The Boeing Co., thyssenkrupp AG, Triton Submarines LLC, and United Shipbuilding Corp. |
Market dynamics |
Parent market analysis, Market Growth and Trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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