Torpedo Market Analysis | 2022-2028

“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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Market Dynamics

Introduction

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 Drivers

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.

Recent Developments

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 $14.5 million.
• In March 2019, General Dynamics Corp’s subsidiary, Electric Boat, received UDS$ 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.

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

“The autonomous category has emerged as the leading segment in the torpedo market”.

The market is segmented into two types of operation namely 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 Platform Type

“The naval sector has held the largest share in recent years”.

The 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

“Electric-powered torpedoes have dominated the market for naval combat operations in recent years”.

The market is divided into two categories: thermal-powered and electric-driven propulsion. 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 heavyweight category has accounted for the largest market share for torpedoes”.

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

“North America will dominate the market, with Asia Pacific experiencing the fastest growth during the forecast period”.

The market is broken down geographically into areas like North America, Europe, Asia-Pacific, and the Rest of the World (RoW). 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

The following are the key players in the Torpedo Market (arranged alphabetically)

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

The overall competitive landscape has been affected due to these mergers and acquisitions. 

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

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