Submarine Combat Systems Market Report

Market Insights

The Submarine Combat Systems market was estimated at US$ 7.5 billion in 2021 and is expected to grow at a CAGR of 14.5% during 2022-2028 to reach US$ 20 billion by 2028. The submarine combat system market is employed to detect, track, and destroy enemy submarines. Countries and governments require these systems for maintaining the naval security on their maritime borders. The COVID-19 outbreak has led to multiple challenges for the defence industry both from the supply- and demand-side. However, the manufacturing activities have now slowly gained pace and are expected to be ramped up in the coming years.

Rising terrorism occurrences along with growing sea-based skirmishes between countries is one of the key factors driving the growth of the Submarine Combat Systems market. Further, utilization of Submarine Combat Systems in protecting the maritime trade routes and exposing illegal cross-border activities such as smuggling is positively impacting the market growth. Additionally, government initiatives and investments for strengthening the defence sector are boosting the market growth. Moreover, growing adoption of advanced maritime combat systems considerably enhances the maritime mission capabilities and weapon control configurations, thus, boosting the market growth. However, factors such as short life span of these systems and high price is a major hinderance for market growth.

Retrofitting of submarines is another potential revenue generating pocket for submarine combat system manufacturers. New submarine procurement is capital-intensive and often have lengthy induction period. Mid-life combat system upgrades and retrofits are both time-effective and cost-effective way to utilize submarines for their full life cycle. The North America and Europe regions are profitable retrofit markets for submarine combat systems.

Market size assessment for various segments of the submarine combat systems market were derived through extensive secondary research from company websites, government sources, defence websites, corporate filings such as investor presentations, Bloomberg, Factiva, annual reports, International Maritime Organization (IMO) & financial statements, and trade, business, and professional associations. Verification of data with primary research and further market triangulation with the help of statistical techniques were carried out. All market shares, percentage splits, and breakdowns were finalized using these secondary research data and finally verified through primary research. We have taken all macro- and micro economic factors and parameters into consideration while estimating the market size, verified through primaries, and scrutinized to obtain the final results.

Segment Analysis

Submarine Type:

The market is split into SSK, SSN, SSBN and SSGN types. SSK submarines hold the largest share in the market. The other submarine types are limited to only a few countries that have the technologies to design them. The U.S., China, the U.K., Russia and France are operators of SSBN and SSBN submarines.

Combat Weapon Type:

The torpedoes segment held a considerable share of the market in 2021 and is expected to maintain its dominance by 2028 owing to its capability of being deployable in both above and below water levels. Further, various governments are constantly on look-out for torpedoes that provide better approach-and-attack options that enhances the probability of destroying the enemy submarines.

System Type:

The submarine combat systems market Is segmented into sensors, electronic support measures, and armaments. The armament segment is projected to grow at the fastest rate. The rising submarine orders coupled with retrofitting and replacement of obsolete armaments are projected to drive the segment growth.

Regional Analysis of Submarine Combat Systems Market:

• North America was the largest Submarine Combat Systems Market in 2021 and is forecast to grow at a decent pace during the forecast period.
• This is due to the high defence budget, technological advancements, favourable regulations and presence of key manufacturers in the region.
• However, Asia-Pacific is expected to witness the fastest demand growth by 2028 owing to the surge in investments in the defence sector, rise in terrorism activities in neighbouring countries and unstable socio-political scenarios in the region.
• Further, emerging economies in the region such as India and China are also investing heavily on these combat systems, apart from modernizing their existing military equipment.

Key Players

There is stiff competition in the Submarine Combat Systems market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their offerings on the basis of their quality and their penetration in the target and emerging markets. Also, there have been some major developments in the industry landscape in recent years, which significantly influenced the competitive dynamics. For example:

1. In June 2022, the U.S. navy announced that General Dynamics Corp. will maintain and upgrade the U.S. Navy AN/BYG-1 submarine combat system under terms of a $15.9 million order. AN/BYG-1 is a counterpart to Navy Advanced Rapid COTS Insertion (A-RCI) program that uses COTS computers in submarine sonar signal processing systems.
2. In March 2019, Naval Group and the Australia Defense sector signed a strategic submarine design agreement that includes more than 100 major and critical components that will contribute to an effective submarine design solution. The contract was signed for attack class submarines for the Australian fleet that will enhance market share over the coming years.
3. In July 2018, General Dynamics Mission Systems signed a strategic contract with the U.S. Navy worth US$ 18.3 million to upgrade the U.S. Navy AN/BYG-1 submarine combat system.
4. In January 2018, Australia’s Department of Defense signed a contract with Lockheed Martin Australia worth US$ 700 to design and develop future submarine combat systems with enhancement in operational capabilities.
5. In October 2017, U.S. Navy announced an agreement of US$ 5.1 billion with General Dynamics for integrating product and process development of submarines. This contract involved technology, design and component upgradation followed by testing of prototypes for ballistic missile submarines (SSBNs).

The following are the major players in the Submarine Combat Systems market:

• Atlas Elektronik GmbH
• BAE Systems PLC
• General Dynamics Corporation
• HAVELSAN A.-
• Kongsberg Gruppen
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Naval Group
• Raytheon Technologies Corporation
• Saab AB
• DCNS SA
• Thyssenkrupp Marine Systems
• Safran
• Thales Group

Research Methodology

This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both the qualitative and quantitative insights.

Target Audience

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for the existing and new players
• Key success factors