Submarine Market Expected to Reach $33.9 Billion by 2031

According to a new report published by Allied Market Research, titled, “Submarine Market," The submarine market was valued at $23.3 billion in 2021, and is estimated to reach $33.9 billion by 2031, growing at a CAGR of 4% from 2022 to 2031.

A submarine is a watercraft that is capable of operating independently underwater. Submarines are the centerpieces of naval fleets due to their ability to complement other strategic resources and multi-operational capabilities. To meet different demands, there are submarines with different capabilities such as nuclear powered submarines, ballistic missile submarines, and others. The global market witnesses significant demand from the military segment. In addition, the demand for submarine is gradually growing from the commercial sector, which, in turn, is anticipated to fuel the growth of the global submarine market.

Moreover, with the advancement in technology followed by the continuous developments towards military expenditure, the demand for superior quality submarine has increased which has created ample opportunities for the growth of the market across the globe. Moreover, the countries are improving their navy capabilities with nuclear power through which numerous competitors & powerful countries are avoiding attacks thereby increasing the demand for SSBNs submarines. For instance, in December 2021, the Indian government launched the third Arihant-class nuclear-powered missile submarine in Visakhapatnam, India.

This was developed by Defence Research and Development Organisation (DRDO), the Department of Atomic Energy (DAE), select Indian Navy (IN) personnel and Russian scientists and technicians, the S4 boat and the follow-on, under-fabrication S4 like the previous two SSBNs, comprise a critical part of India’s three-tier credible nuclear deterrent. India plans on eventually fielding at least four such SSBNs, with an option to build two more, to add maritime strike capability to its existing land and aerial-based capacity in delivering strategic weapons.

In addition, U.S. is renowned for having one of the biggest submarine hubs all over the world. The U.S. government is investing heavily in the development of submarines which strengthen the naval capabilities, increase the demand for submarines, and offers opportunities for market players to develop new products for upcoming submarines. Moreover, the presence of market players in the North American region is anticipated to increase the production of submarines, which is expected to drive the growth of the submarine market in the region during the forecast period.

Moreover, the market has been supported by numerous driving factors such as increasing spending on research and development, rise in geopolitical issues between countries and developing countries are adopting submarines for improving navy capabilities which proves to be factor supplementing the growth of the market across the globe.

However, the market is affected by numerous factors such as high cost of maintenance & repair and limited countries having SSBN and SSN submarine capabilities which creates a barrier for the growth of the market across the globe. Moreover, the market is supplemented by numerous opportunities such as implementation of AIP & MAD for operations by governments and adoption of additive manufacturing technologies which creates ample opportunities for the growth of the market across the globe.