18 Jun 2021
Posted in Aerospace, Defense & Security
Global submarine market to reach $31.9bn by 2031 driven by advances in technology, says GlobalData
The global submarine market is valued at $20.8bn in 2021 and will grow at a compound annual growth rate (CAGR) of 4.36% to reach $31.9bn by 2031. Growth will be driven by navies across the world enhancing their undersea warfare capabilities, as countries are increasing their capital expenditure towards naval platform acquisition to commission advanced submarines, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Global Submarine Market 2021-2031’, notes that the largest share of the market (36.1%) over the forecast period is attributed to nuclear powered attack submarines (SSN) programs from nine countries, namely the US, UK, France, India, China, Brazil, Russia, Iran, and Pakistan. Three of them (the US, Russia and India) account for 87% of investments.
Chandan Nayak, Defense Analyst at GlobalData, comments: “Acoustic vibrations are problematic for submarines, however, advances with lithium-ion (Li-ion) batteries powering electric motors have shown to generate lesser vibrations. Being lighter and with higher storage capacities than lead-acid batteries, these batteries contribute to longer manoeuvre times. Navies have increased investments into Li-ion batteries and have focused on their integration into cost-efficient diesel-electric submarines that provides for hybrid propulsion.”
Developments in AIP systems are also helping the market grow, with countries either upgrading their existing submarine fleets with AIP technology or procuring new ones with AIP systems installed. The Republic of Korea Navy are installing AIP systems on their KS–III submarines, whereas India has issued an RFI to upgrade its conventional diesel electric submarines with an AIP system.
Chandan continues: “Submarines are considered the stealthiest asset of a navy. With aging equipment, changing geopolitical equations, and advances in technology, countries have found it paramount to invest in strategic assets like submarines, and improve on present capabilities into the future.”