Increased investments in submarines to address rising security issues
Mumbai, India – June 30, 2014 - Expected to be cumulatively worth over USD 281 billion across 2014-2024, the global submarine market currently stands at USD 19 billion. Set to rise by a CAGR of just under 5.20%, of which North America constitutes about 32% of the market share, the market speculates a total spending of USD 88.8 billion within the forecast period. Inspite of the budget sequestration measures, the US still records the highest spending in the sector, almost equal to that of the entire Asia Pacific region.
This report: Global Submarine Market 2014-2024 give the readers detailed insight on the global industry values, factors that influence its demand and various challenges that are faced by industry participants. The report provides a thorough analysis of the competitive landscape and provides strategic insights into the market over the forecast period of 2014-2024.
The fast changing global security scenario has forced the submarine navies to become flexible. With the rising maritime threats like piracy, increased transnational demands of greater security for sea-lanes have been raised. Since submarines form essential core of all naval fleet, most nations are modernizing their available fleet or increasing them in order to address the changing security situations. Becoming an increasingly valuable strategic resource, the submarine industry is also adding new capabilities like ELINT (electronic technologies) and SIGINT (signal intelligence) payloads to their conventional nuclear attack roles, thereby indicating a growth of its associated intelligence market.
China currently has the second largest submarine fleet in the world, although North America accounts for the highest spend in this sector, while Europe is ranked the second largest regional market. Asia Pacific comes in a close third. Given the market prospects and high security requirements, European nations are expected to spend more than USD 83 billion across the forecast period, primarily on modernization and fleet-building activities. Furthermore, for emerging economies like India and China, a strong desire of power projection coupled with growing regional tensions with maritime conflicts, are some of the key factors that are expected to fuel the growth of the industry, especially in the Asia Pacific region. The area is also keen on developing indigenous submarines with spends amounting close to USD 88 billion. Besides these regions, Brazil and Argentina are some of the other key spenders in the submarine sector in the Latin American markets, expected to spend close to USD 12 billion collectively on the growth of the industry.
Currently, there are only six nations that operate nuclear submarines, namely the US, UK, Russia, France, China and India. Of them, UK, Russia, US, and China have already deployed the SSBN (Ballistic Missile Submarine) submarines with China being the latest among these countries to gain this capability. Furthermore, a study of the submarine industry statistics also revealed that there are number of ongoing procurement programs that are being undertaken, in order to renew and upgrade these SSBN submarines which will be valued at USD 56.7 billion.
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