Market Trends of Submarine Industry
Nuclear-Powered Submarines (SSN) Segment Is Anticipated to Grow with the Highest CAGR During the Forecast Period
- The nuclear-powered submarines (SSN) segment is anticipated to grow with the highest CAGR during the forecast period. A nuclear submarine is a submarine that is powered by a nuclear reactor but is not necessarily nuclear-armed. Nuclear submarines have considerable performance advantages over "conventional" (typically diesel-electric) submarines. Nuclear propulsion, being completely independent of air, frees the submarine from the need to surface frequently, as is necessary for conventional submarines.
- The large amount of power generated by a nuclear reactor allows nuclear submarines to operate at high speed for long periods, and the long interval between refuelings grants a range virtually unlimited, making the only limits on voyage times being imposed by such factors as the need to restock food or other consumables. However, due to the high cost of nuclear technology, only a few countries across the globe have the means of acquiring such a vessel.
- Nevertheless, several acquisition programs for nuclear-powered submarines are currently underway. For instance, in March 2023, the United States, Australia, and the United Kingdom announced a framework enabling Australia to acquire nuclear-powered submarines, thereby making Australia the seventh country in the world to possess this technology. Under the contract, Australia is to procure three US Virginia-class nuclear-powered submarines by the early 2030s and has the option to buy two additional vessels if required.
- Thus, an increase in partnerships between countries for the development and acquisition of new advanced-class nuclear-powered submarines coupled with increasing investments by various countries in modernizing their defense capabilities will have a positive outlook and will lead to the market witnessing growth during the forecast period.
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North America Will Showcase Remarkable Growth During The Forecast Period
- North America is projected to show the highest growth during the forecast period. Growing defense capabilities and the increase in the military budget, coupled with the presence of various key players who are investing in R&D towards the development of new and advanced submarines, will lead to growth in the market in the region. As of March 2023, the FY23 presidential budget request of the United States was USD 842 billion. Moreover, according to the US Department of Defense (DoD), the military budget increased to USD 797 billion in FY23 from USD 728 billion in FY22.
- Currently, the US submarine force consists of four operational classes, namely, Ohio, Los Angeles, Seawolf, and Virginia, all of which are nuclear-powered. The US is also witnessing growth in terms of the development of advanced submarines. In its current modernization drive, the US Navy plans to add two to three Virginia-class attack submarines annually until 2043. Moreover, the US Navy also plans to procure 36 total Virginia-class vessels through FY2026.
- There are various new emerging technologies for submarines in the coming years. Advancements in the submarine operational life cycle, as well as new underwater detection capabilities, are the focus areas for manufacturers. For instance, in January 2023, the US Navy announced that they are accelerating the development and construction of its new Columbia class SSBNs to attain the goal of engineering the world's most lethal, high-tech, and advanced SSBN. These submarines will enter service by 2031 and serve well into the 2080s and beyond.
- The new submarines are being designed for 42 years of service life, thus engineering a reactor core that would last for the 'life-of-ship,' thus ruling out the requirement of mid-life refueling. Moreover, such developments would enable the US Navy to build just 12 SSBNs and still be able to have the same sea presence/ops availability as the current fleet of 14 ballistic missile Ohio class submarines.
- On the other hand, the emergence of new detection technologies that make increased use of lower frequency active sonar and no acoustic methods of detecting submarine wakes at short ranges are under research and development and are expected to be installed in a future class of submarines.
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