Submarine market is anticipated to grow at a moderate CAGR of 3.8% during the forecast period (2024-2031). Submarines are naval vessels that can propel themselves both beneath and on the water's surface. The vessels are used by armed forces, scientists, and private companies for combat, exploration, marine patrolling, oil field maintenance, and tourism. The market growth is attributed to rising geopolitical tensions, increasing maritime incidents, growing investment in submarine R&D technology, and extension in the application of submersible vehicles.

Market Dynamics  

Rising Geopolitical Tension 

The growth in the submarine market is instigated by rising global geopolitical tension and relative marine attacks on several marine bodies following a state of war between different countries. Also, various terrorist groups and armed forces have launched marine attacks, disrupting international waters and hindering maritime trade. For instance, in February 2024, Yemen's Houthi militants took responsibility for their assault on the UK's Rubymar cargo ship in the Gulf of Aden, which was on the verge of sinking, upping the stakes in their drive to disrupt global trade in sympathy with Palestinians in the Gaza conflict. Since November, the Iran-aligned Houthis have launched many drones and missile strikes in the Red Sea and Bab al-Mandab Strait. The US and British military have reacted with repeated strikes on Houthi installations. 

Expansion in Submarine Application

Recently, the submarine market has recorded rising demand for private submarines which can be correlated to growth in the underwater marine tourism, and exploration industry. Several projects have been launched globally to explore unexplored marine life and historic incidents. For instance, The Gujarat state government, in India is preparing to launch the country's first underwater tourism. This innovative venture, facilitated by a MoU (Memorandum of Understanding) between the Gujarat Government and Mazgaon Dockyard Limited (MDL), aims to provide tourists with opportunities to explore the beautiful underwater world, showcasing the diverse marine wonders surrounding Bet Dwarka, a small island off the coast of Dwarka and the city associated with Lord Krishna.

Segmental Outlook 

Our in-depth analysis of the global submarine market includes the following segments by type, propulsion, and application.

• Based on type, the market is sub-segmented into ballistic missile submarines (SSBNs), nuclear-powered attack submarines (SSNs), and diesel-electric attack submarines (SSKs).

• Based on propulsion, the market is sub-segmented into nuclear, and on-nuclear.

• Based on application, the market is sub-segmented into military surveillance and combat marine weather monitoring and scientific research, and others.

Ballistic Missile Submarine is the Most Prominent Submarine Type

Based on type, ballistic missile submarines (SSBNs) are prominent types of submarines having more than 30 years of operational lifespan and are capable of staying underwater for longer periods as compared to diesel-electric submarines, which have an operational lifespan of 25 to 30 years. Also, its cost-effectiveness in comparison to nuclear-powered attack submarines makes it the preferred type for governments globally.

Nuclear Will Emerge as a Bigger Propulsion Sub-Segment

The substantial amount of power generated by a nuclear reactor allows nuclear submarines to operate at high speeds for long periods, and the long intervals between refueling provide a nearly limitless range, with the only constraint on voyage times being the need to restock food or other consumables. However, many countries have created joint ventures to support the development of such high-cost vessels, making it the most demanded marine vessel globally.

Military Combat and Surveillance Dominate the Sub-Segment

The development and deployment of submarines are mainly aimed towards homeland security, marine surveillance, and combat purposes. However, rising geopolitical tensions, growing R&D spending, and huge investments in naval budgets have stimulated the growth of the sub-segment with several armed forces heavily investing in the development of military combat and surveillance submarines to strengthen their geopolitical stand. For instance, Germany and India are in discussion for the development and transfer of nuclear submarine technology.

Regional Outlook 

The global submarine market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).  

North America Holds Highest Share in Global Submarine Market 

The regional dominance is driven by several factors, including expanding demand for nuclear submarines, research and development capabilities, increased adoption of private submarines for alternate applications, major manufacturer presence in the region, the geopolitical position of North America, and rising investment in naval budgets. For instance, in October 2023, The United States issued a supplementary budget request that included $3.4 billion to sustain the submarine industrial base as part of a wider $50 billion package. The submarine section of the supplementary addresses upgrades to the industrial base, which has lagged behind the Navy's expectations of delivering two Virginia-class submarines each year, in addition to the building of the Columbia-class nuclear ballistic missile submarine.

Global Submarine Market Growth by Region 2024-2031 

Asia-Pacific is the Fastest Growing Submarine market 

• Asia-Pacific regional growth is driven by rising investments in submarine development by countries such as China, South Korea, Japan, and India.

• The Asia-Pacific region is also exposed to rising war tension in West Asia between Israel, Palestine, and Iran. Moreover, the deployment of submarines in the Israel-Iran war has stimulated the development of submarines among Asian countries.

Market Players Outlook 

*Note: Major Players Sorted in No Particular Order. 

The major companies serving the global submarine market include Lockheed Martin Corp, RTX Corp (Raytheon), Rafael Advanced Defense Systems Ltd., BAE Systems plc, and Northrop Grumman Corp. among others. The market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion among others. For instance, In June 2023, ThyssenKrupp Marine Systems, a shipbuilding business based in Germany, formed a partnership with Mazagon Dock Shipbuilders Limited (MDL), situated in India. The collaboration is intended to assist India in developing superior submarine technology for its use. It will also help India in the development of its submarine capacity while providing TKMS with access to a new market and the possibility to transfer technology to India.

The Report Covers 

• Market value data analysis of 2023 and forecast to 2031. 
• Annualized market revenues ($ million) for each market segment. 
• Country-wise analysis of major geographical regions. 
• Key companies operating in the global submarine market. Based on the availability of data, information related to new Type launches, and relevant news is also available in the report. 
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future. 
• Analysis of market-entry and market expansion strategies. 
• Competitive strategies by identifying ‘who-stands-where’ in the market.