Submarine Market Valued at Nearly $23 Billion
Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker’s Submarine Industry Review in a nutshell
- Globally, nations replacing aging submarines
- UK government approves construction of new fleet
- Upgrades part of NATO commitment
How is the Submarine market ?
The submarine market will be valued at $22.8 billion this year. By 2026 the market will reach $36.3 billion, according to Strategic Defence Intelligence. This represents a compound annual growth rate of (CAGR) of 4.74%.
Spending will increase $2.8 billion this year, and is forecasted to reach $3.3 billion in 2026. This represents a CAGR of 1.7%.
Factors such as the replacement of aging submarines, using marine vehicles for surveillance and border disputes are contributing to the spending increase.
The largest markets are North America, Asia-Pacific and Europe.
The project will cost $1.7 billion.
Parliament approved upgrading the nation’s nuclear weapons system in July. As the UK prepares to leave the European Union, an upgraded military is seen as key to defense.
“Britain’s ballistic missile submarines are the ultimate guarantee of our nation’s safety – we use them every day to deter the most extreme threats,” Defense Secretary Michael Fallon told the media. “We cannot know what new dangers we might face in the 2030s, 2040s and 2050s so we are acting now to replace them.”
The new Successor submarines will have a 30-year lifespan.
The UK has a current fleet of four Vanguard submarines. The four submarines have alternating positions: One is deployed, one undergoes maintenance and two are used for training maneuvers or are in port. They were build in 1992 with a 25-year service life.
The submarines are used as a nuclear deterrent, the British government said.
NATO Commitment to the Defense Industry
The British government also has pledged $231 billion as part of a NATO commitment to increase defense spending.
The nation will increase spending to 2% of its gross domestic product.
The budget will be spent on armored vehicles, airplanes and ships.
The new submarines will enter service in the 2030s. They will carry Trident missiles.
Construction will begin this week.
ReportLinker Review – Global Marine Vehicles Market
- During the period 2016-2020, the marine electric vehicles market is forecasted to grow at a CAGR of 9.5%. (source: TechNavio)
- By 2020, the unmanned underwater vehicle market is expected to reach $4 billion. From 2015 to 2020, this represents a CAGR of 11.9%. (source: MarketsandMarkets)
- More than 500 submarines are operated by 41 nations. These navies are modernizing their fleets as a response to unstable political situations. (source: TechNavio)