A Submarine is a watercraft, which is capable of operating underwater independently. Submarines are considered the centerpieces of a naval fleet since they can to do multi-operational capabilities and complement other strategic resources. To meet different needs, there are sub-marines with different capabilities such as ballistic missiles submarines, nuclear-powered submarines, and others. The submarine market witnesses demand from the military segment. There is an increase in maritime threats such as sea-based terrorism, growing maritime disputes between various countries, and other illegal activities that have led to an increase in investments to strengthen naval capabilities. In addition, the countries are replacing their submarine fleet with the new generation submarine or adding military equipment of advanced military equipment to the existing submarine fleet, as a part of modernization. Such initiatives by the armed forces are expected to drive the growth of the submarine market in the forthcoming years.
Major factors driving the growth of the market
The evolution of technologies such as sophisticated detection technology has gradually improved the performance of submarines. Also, numerous naval forces across the globe upgraded their existing system to maintain their standing with the dynamic environment warfare. In addition, growing geopolitical issues are developing a strong need for the enhancement of underwater combat capabilities, which in turn is anticipated to fuel the demand and increase the global submarine market size. Nevertheless, the high cost required for the manufacturing of submarines is expected to downstep the market growth in the forthcoming years.
Trends influencing the growth of the market
The nuclear-powered submarine (SNN) segment is anticipated to register the highest growth rate in the forthcoming year as the armed forces of numerous countries choose these submarines owing to their advantage such as being efficient, faster, and having longer endurance capabilities. Moreover, SNNs need not come up to air often, which preserves their stealth attribute. Compared to diesel-electric submarines, these submarines have low maintenance costs and longer endurance. Presently, in six countries there are nuclear submarines in service, which include The United Kingdom, France, India, The United States, Russia, and China. In addition, there are a few more countries, which are planning to introduce a new SNN submarines into service in the forthcoming years. For example, Australia announced that it plans to acquire at least eight conventionally armed SNN (Nuclear-Powered submarines) for the Royal Australian army under the initiative AKKUS. Such initiatives by the navies of numerous countries are anticipated to fuel the growth of this market in the forthcoming years. Advancements in technology will also improvise the market growth. In order, to strengthen the military system of the country, technological advancement is very important. The fusion of technology will boost the application of submarines in the military naval segment. In addition, demand from the commercial segment, including cargo transport is expected to boost the demand for submarines. Moreover, factors like the rise in demand for UUVs (Unmanned underwater vehicles), increase in nuclear energy use, and a surge in regional disputes, increase the growth of the global submarine market. Moreover, the additive manufacturing techniques or addition of 3D printing creates the chance for market players, which in turn fuels the demand for the submarine.
ThyssenKrupp Marine Systems was awarded a contract worth EUR 3 Billion given by the Israeli Defense Ministry to procure three darker class diesel submarines for the Israeli navy. The new submarines are anticipated to replace three old Dolphin-class submarines and it is expected that the first delivery will happen in the year 2031. The US navy received the 20th virgina class submarine from the general dynamics electric board in February 2022. This submarine is the second block IV configured submarine delivered to the US navy. In February 2022, the naval group with the PT PAL Indonesia signed a Memorandum of Understanding (MoU) to carry on the research and development of submarines. Which in turn will boost the maritime defense in Indonesia.