How Has the Submarines Market Size Evolved in Recent Years?
The submarines market has seen considerable growth due to a variety of factors.
• The market size for submarines has seen consistent growth in the past few years. The market is projected to expand from $19.86 billion in 2024 to $20.84 billion in 2025, with a compound annual growth rate (CAGR) of 4.9%.
Factors contributing to this growth during the historic period include geopolitical instability and security worries, fleet modernization and recapitalization, strategic deterrence and posturing, maritime security and anti-piracy measures, and undersea surveillance and intelligence collection.
What Are The Predictions for The Submarines Market in the Coming Years?
The submarines market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, a consistent growth is projected for the submarines market size, potentially reaching a valuation of $24.44 billion in 2029 with a 4.1% compound annual growth rate (CAGR). Modernization programs of naval forces, the emergence of novel maritime threats, endeavors and presence in arctic exploration, an escalated focus on underwater unmanned systems, and cooperative naval defense strategies are all contributing factors to this growth in the forecast period. Additionally, significant trends within this timeframe will comprise advancements in submarine-launched ballistic missile (SLBM) capabilities, a heightened focus on environmental adaptability, improved modular payload systems, collaboration on submarine technology development, as well as the application of 3D printing and innovative materials.
Which Drivers Are Accelerating Growth In The Submarines Market?
The submarine market is anticipated to expand during the forecast period due to escalating investments in submarines. Submarines, which have the capability to travel both above and beneath sea levels, are receiving an influx of funds from global governments. This is undertaken to enhance local shipyard capabilities and to address gaps in the Navy's undersea warfare unit. For instance, the UK's Ministry of Defence reported in February 2024 that over $1.2 billion (more than £1.0 billion), denoting a 23% surge from 2022/23, was spent on shipbuilding and repairing. Consequently, the submarine market is amplifying due to these swelling investments in submarines.
What Are The Core Segments Of The Global Submarines Market?
The submarines market covered in this report is segmented –
1) By Type: Nuclear Powered Submarine, Diesel Electric Submarine, Ballistic Missile Submarine
2) By Platform: Commercial, Military
3) By Application: Surveillance, Combat, Marine Environmental Monitoring, Others
Subsegments:
1) By Nuclear Powered Submarine: Fleet Ballistic Missile Submarines (SSBN), Attack Submarines (SSN)
2) By Diesel Electric Submarine: Conventional Submarines, AIP (Air-Independent Propulsion) Submarines
3) By Ballistic Missile Submarine: Strategic Submarines, Tactical Submarines
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Which Emerging Market Trends Are Altering The Submarines Industry?
The submarines market is seeing substantial innovation from key players, such as the development of the Virginia-class attack submarine, aimed at bolstering the US Navy's modernization efforts for their submarine force. Virginia-class submarines are globally recognised as the most advanced, with capabilities to operate in all oceanic conditions and perform a broad spectrum of operations, which includes surveillance, intelligence gathering, anti-submarine warfare, and anti-ship warfare. For example, Huntington Ingalls Industries (HII), an American shipbuilding firm, unveiled the 23rd Virginia-class attack submarine for the US Navy, the future USS New Jersey (SSN 796) in April 2022. This submarine is not only capable of operating in every ocean environment and undertaking various missions such as surveillance and intelligence gathering, but also comes equipped with improved amenities like expanded berthing spaces and communal areas for the comfortable accommodation of both male and female crew members.
Who Are the Key Players In The Submarines Market?
Major companies operating in the submarines market include:
• 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
• 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.
• Howaldtswerke-Deutsche Werft GmbH
• TKMS Blohm + Voss
What Are The Regional Insights Into The Submarines Market?
North America was the largest region in the submarines market in 2024. 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.
