Global Submarine Market Opportunities and Forecast 2023-2030

Covid-19 Impact on Submarine Market:

As the COVID-19 pandemic continuing its effect around the world, many defense and aerospace companies are facing its impact during this time around the world. For instance, commercial aviation companies in the U.S., France, Germany, and Canada are facing disruption in the production process and reduced demand as workforces staying at home, passengers stop traveling, and delay in delivery of new aircraft. Analysts expecting a drop from 3,000 to 4,000 aircraft during the pandemic period. On the defense side, contractors operating in the sector are in a better position, hence the impact of the pandemic is likely low in the short to mid-term. However, low demand due to budget constraints affecting the production as in aircraft manufacturing.

Market Overview

The size of the global submarine market reduced drastically toward the end of the Cold War in 1991. However, since then, BRIC countries and other developing countries in Asia-Pacific are investing in the market to strengthen their naval capabilities.

Factors such as growing demand for UUVs, rising investments for submarines, use of nuclear energy, and regional disputes between countries have fueled the need for nuclear submarines. 3D printing or additive manufacturing helps the manufacturers create and design things in an innovative way that surpass conventional methods such as computerized numerical control (CNC) cutting, mold manufacturing, and canvas printing. This is expected to create growth opportunities for players operating in the global market.

The submarine market is expected to register a significant CAGR during the forecast period. The growing emphasis of many countries toward modernizing their naval defense units, like submarines, surface-mine countermeasures, unmanned underwater vehicles, and other combat and tactical UUVs, is expected to drive the submarine market in the coming years. The increasing maritime threats, like sea-based terrorism and other illegal activities, pose a challenge to the militaries. In order to counter these challenges, submarines are used for surveillance and under-sea attack purposes.

The growing emphasis on the indigenous production of advanced submarines by various countries is opening new avenues for the market.

Segment Overview

Currently, the SSN segment has the highest market share out of all the segments. The militaries of several countries opt for these submarines owing to their advantages, such as being faster, more efficient, and having longer endurance capabilities. In addition, SSN submarines do not have to dive to surface periodically for air, which preserves their stealth attribute. Owing to these advantages and their better warfare capabilities, the SSN segment is projected to register the highest CAGR during the forecast period.

Regional Overview

In 2018, North America dominated the submarine market, due to the factors, such as the high military spending of the United States and the aggressive procurement of submarines, coupled with the increased focus on unmanned underwater vehicles. Additionally, the revenues from North America are projected to register the highest CAGR during the forecast period. The development of advanced submarines and the focus of the United States on procuring next-generation submarines are the main reasons for the high anticipated growth of the market in the region. Moreover, increasing focus on the Virginia-class submarines that are being built by the United States may contribute to the strong growth of the market in the region, in the coming years.

Competitor overview

Huntington Ingalls Industries, BAE Systems PLC, Daewoo Shipbuilding & Marine Engineering, General Dynamics Corporation, and Hyundai Heavy Industries are some of the prominent players in the market. Major players in the market are trying to make use of the technological advancements to develop and launch new generation submarines, thereby, attracting a larger range of customers. Countries in Asia-Pacific are investing huge amounts for procuring new submarines. Players can shift their focus on these countries from countries, like the United States, which have already made long-term contracts with the existing players. Acquisitions of other players can help the existing players gain a huge market share. In January 2019, Hyundai Heavy Industries Group signed a deal to consolidate two of South Korea's biggest shipbuilders, thereby, helping Hyundai Heavy Industries Group to increase its market revenues.

Key Players

1. Navantia
2. Naval Group
3. FINCANTIERI SpA
4. Huntington Ingalls Industries
5. Hyundai Heavy Industries
6. General Dynamics Electric Boat
7. BAE Systems PLC
8. Daewoo Shipbuilding & Marine Engineering
9. Saab AB
10. ThyssenKrupp Marine Systems
11. United Shipbuilding Corporation
12. ASC PTY LTD

Market Segmentation

By Type

• SSBN submarine
• SSN submarine
• SSK submarine

By Geography

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Brazil
  • Saudi Arabia
  • UAE
  • Rest of LAMEA