Torpedo Market Growth Analysis

Market Insights

The Torpedo Market was estimated at US$ 1.1 Billion in 2021 and is expected to grow at a CAGR of 4.7% during 2022-2028 to reach US$ 1.9 Billion in 2028.

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What is a Torpedo?

An explosive warhead is attached to a self-propelled weapon called a torpedo, intended to explode as it meets the target or closes by. Heavyweight and lightweight torpedoes are the two market segments for torpedoes, respectively, depending on weight. The sector of lightweight torpedoes includes those that weigh less than 500 kg, whereas the segment of heavyweight torpedoes includes those that weigh more than 500 kg.

Market Dynamics

Major economies are involved in trade and cold wars for their interest and disinterest, positively impacting market growth. For instance, the US was in a trade war with China, which shattered in 1949 as part of the Chinese mainland, the delivery of technology that would allow Taiwan to produce its advanced weapons.

The defense industry's growth directly impacts the Torpedo market's growth. The high demand from the navy is closely attributed to the growth. The increasing number of territorial conflicts worldwide will show positive market growth during the assessment period.

The globe is seeing a lot of navy modernization efforts since maritime security is one of the most important defense units. Various ships, aircraft, wire-guided torpedoes, and wake-homing torpedoes are all part of China's navy modernization effort, including improvements in maintenance & logistics, personnel education, and training. China's navy modernization efforts are intended to improve capabilities for handling any unfortunate series of events or for gaining more control over China's near-seas region, protecting China's commercial sea lines of communication (SLOCs), particularly those connecting China to the Persian Gulf, posing a threat to the U.S.'s influence in the Western Pacific, and reaffirming China's status as a major world power. Consequently, this will fuel the expansion of the worldwide torpedo market throughout the anticipated time.

Several investments in the defense industry have been directed at Torpedo in recent years, which would boost the overall market. Some of them are:

• Overall funding for the US Department of the Navy was sought at USD$211.7 billion, which is a 1.8% increase above the FY21 proposal. However, the Navy's share of that is just USD$163.9 billion, or 0.6%, higher than in FY21.
• India is now continuing to invest in its naval forces. Last month, the Union Minister of State for Defence announced that expected orders for surface ships and submarines with torpedos from 2020 to 2030 by the Indian Navy would be worth $51 billion.
• According to the Department for Promotion of Industry and Internal Trade (DPIIT), from April 2020 – June 2021, the Foreign Direct Investment (FDI) equity flow in the Indian Defense sector was valued at $10.15 million.

Covid-19 Impact

Nearly all industrial sectors have been proven to be negatively impacted by COVID-19. COVID-19's impacts on the defense sector were minimal compared to other market industries. However, there was even a little decline in growth rate because of the temporary shutdown or halt in industrial facilities brought on by the lockdown effect. Due to significant financial losses brought on by the epidemic, the world is currently experiencing an economic crisis, which has restricted investment in the defense industry. The government has backed investments in defense equipment to protect the military and the populace. This aspect has accelerated the expansion of the torpedo market size, and it is anticipated that this growth will continue significantly to meet the stated CAGR.

Segments Analysis

By Operation Type

There are two types of operations in the torpedo market: autonomous and guided. Due to numerous qualities like rapid speed and high capacity, which are useful in warfare, the autonomous category has accounted for the biggest torpedo market share between the two. Therefore, the autonomous category is expected to see the highest growth rate throughout the projection period.

By Launch Type

The torpedo market is segmented into aerial and naval platforms. Aerial platforms include helicopters and airplanes, while naval platforms include ships and submarines capable of torpedoes with significant weight. Consequently, the naval sector has seen the highest share in recent years.

By Propulsion Type

Thermal-powered and electric-driven propulsion is the two categories under which the torpedo market is divided. Due to the increased lethality and effectiveness of electric-powered torpedoes in naval combat operations, the market for these has dominated in recent years.

By Category Type

The torpedo market is further divided into heavyweight and lightweight torpedoes. Lethal warheads can be added to the highly weighted torpedoes, increasing damage. As a result, in recent years, the heavily weighted category has represented the biggest market share for torpedoes.

Regional Analysis

In terms of regions, North America is likely to maintain its supremacy in the Torpedo market throughout the forecast period. During the anticipated term, it is anticipated to have the quickest growth. Regions like the US are speeding the growth of the torpedo market in the North American area due to the rise in investment in missile and rocket systems to develop the naval warfare system. Due to the need for military equipment for diverse military activities in navy and air force missions, the remaining regions, including Europe and the Asia Pacific, continue to develop steadily.

Concurrently, Asia Pacific is expected to witness the fastest growth in the global Torpedo market during the forecast period.  The key factor responsible for the swift growth is the increased demand for torpedos by the navy. The increased defense and individual spending on security in countries such as China and India inject huge growth prospectus for the Torpedo market in the Asia Pacific region.

Key Players

There is stiff competition in the Torpedo market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate Torpedo based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

• In October 2021, the Indian Defence Ministry signed a contract (worth INR 423 crore (USD 56.38 million)) with the US government to procure MK 54 torpedo and expendables such as chaff and flares for P-8I anti-submarine warfare aircraft of the Indian Navy.
• In October 2021, Thales Australia won a contract from the Australian Department of Defence to provide the Royal Australian Navy’s (RAN) MU90 lightweight torpedo that is worth of around $14.5 million.
• General Dynamics Corp’s subsidiary, Electric Boat, March 2019, received UDS$ 2 billion in contract modification by the U.S. Navy for long-term supply for the main propulsion unit and ship service turbine-generator efforts. Electrical and mechanical components of the system.

The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the torpedo market:

• BAE Systems PLC
• Raytheon Technologies Corporation
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• JSC Tactical Missiles Corporation
• Saab AB
• Leonardo SpA
• Bharat Dynamics Limited
• ASELSAN AS
• Naval Group
• Mitsubishi Heavy Industries Ltd
• ThyssenKrupp AG

Research Methodology

This report offers high-quality insights and is the outcome of a 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 books, press releases, journals, investor presentations, 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 industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. 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.

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