Market Trends of Anti-Submarine Warfare Industry
Submarines to WItness Highest Growth During the Forecast Period
The submarines segment is expected to grow at a high CAGR owing to their ability to change depth and their quietness, which aids detection. Military powerhouses, such as the United States, the United Kingdom, China, and India, are focused on augmenting their naval firepower, and several fleet modernization and procurement contracts are underway to address the evolving threats to their national security. For instance, in December 2022, the US Navy awarded a USD 5.1 billion contract to General Dynamics to conduct advanced construction of critical components for the US Navy's future Columbia-class submarines.
The US Navy has also been actively implementing force structure expansion plans, aiming to reach its 355-ship goal by FY 2034 through a mix of service life extensions and new construction. In this regard, in 2021, the US Navy received a Los Angeles-class attack submarine. Recently, in March 2023, Australia announced its plan to build a nuclear-powered submarine with the help of the US and UK and signed an agreement called the Aukus. The entire program is projected to cost between USD 268-368 billion. Similar induction programs are envisioned to drive the submarine segment during the forecast period.
Asia-Pacific to Witness Highest Growth During the Forecast Period
The strengthening of the strategic military alliances between the United States and several Asia-Pacific sovereign nations and subsequent reinforcement of military deployment and intervention has resulted in a complex scenario, urging rapid modernization of defense capabilities of regional countries, such as China, to safeguard their vested interests.
China has invested its vast technological prowess toward the indigenous development of several weapon systems to foster its military prowess over all three platforms- land, air, and water. China is also developing large, smart, and relatively low-cost crewless submarines with long endurance capacity to perform a wide range of missions, from reconnaissance to mine placement to even suicide attacks against enemy vessels. In August 2023, China conducted anti-submarine exercises in the South China Sea as part of efforts to hone its capabilities amid rising maritime tensions with its neighbors and their allies.
On the contrary, the increasing interest of the Chinese People's Liberation Army Navy (PLAN) in the Indian Ocean region has led the Indian Navy to rapidly invest in anti-submarine ships, such as the Kamorta-class corvette, long-range maritime reconnaissance aircraft such as Boeing P-8 Poseidon and ships such as the Saryu-class patrol vessel, among others. Australia also envisions boosting its submarine fleet with the induction of six Barracuda class submarines based on the Scorpene-class. Several other programs are underway in the region, bolstering the growth prospects of the market in focus during the forecast period.
