Military Shipbuilding & Submarine Market
Military Shipbuilding & Submarine Market Study by Surface Vessels and Submarines From 2024 to 2034
Analysis of Military Shipbuilding & Submarine Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Military Shipbuilding & Submarine Market Outlook (2024 to 2034)
The global sales of military shipbuilding & submarines are estimated to reach US$ 80.88 billion in 2024; this value is forecasted to reach US$ 126.84 billion by the end of 2034 with a CAGR of 4.6% between 2024 and 2034.
The design, construction, and maintenance of naval vessels, such as warships and submarines, for military use are the focus of the military shipbuilding and submarines market, a specialized sector within the defense industry. This market is at the intersection of cutting-edge technology, rigorous security rules, and complex engineering. Its primary objective is to meet the evolving strategic and tactical needs of the armed forces by providing modern ships equipped for maritime operations.
A comprehensive and well-coordinated plan is necessary for professional and high-quality execution in the military shipbuilding and submarine business. This encompasses several stages, starting with research and development, where innovative materials and technologies are examined to enhance the functionality and performance of vessels. To ensure mission success, optimal operation, and survivability, the design process involves creating blueprints that integrate intricate systems.
Parts are meticulously put together in construction, usually in safe, specialized facilities, with an emphasis on precision and rigorous adherence to quality standards. The integration of advanced weapons, propulsion, communication, and stealth technologies is a crucial step in this process. Furthermore, compliance with international maritime rules and regulations is crucial for ensuring the safety and compatibility of boats in global naval settings.
There has been a discernible shift toward more technologically advanced vessels and strategic innovations in military shipbuilding and submarine fields. The current trends, which emphasize unmanned systems, cyber capabilities, and modular designs, demonstrate the need for increased agility and efficiency in naval operations. Other significant factors affecting the evolution of military shipbuilding and submarines include sustainable practices and collaborative international efforts.
| Report Attribute | Detail |
|---|---|
| Military Shipbuilding & Submarine Market Size (2024E) | US$ 80.88 Billion |
| Forecasted Market Value (2034F) | US$ 126.84 Billion |
| Global Market Growth Rate (2024 to 2034) | 4.6% CAGR |
| East Asia Market Growth Rate (2024 to 2034) | 4.6% |
| North America Market Value (2034F) | 45.84 Billion |
| Surface Vessels Segment Value (2034F) | US$ 87.23 Billion |
| Submarines Segment Value (2034F) | US$ 39.61 Billion |
| Key Companies Profiled | Northrop Gruman Corporation; General Dynamics Corporation; BAE Systems; DCNS S.A; Mitsubishi Heavy Industries; Lockheed Martin Corporation; Leonardo SpA; Singapore Technologies Engineering. |
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Why is the Market Improving for Shipbuilding & Submarine Worldwide?
“High Requirements for UUVs Leading to Increasing Profits”
Unmanned underwater vehicles (UUVs) are in high demand for anti-submarine warfare missions, mine countermeasures (MCM) operations, intelligence, surveillance and reconnaissance functions, and naval intelligence. The market is expanding because of the increasing usage of UUVs in military operations, including autonomous underwater vehicles (AUVs) and remotely operated vehicles (ROVs). ROVs connect to the surface. 3D printing technology uses computerized numerical control cutting to enable users to design and produce items in new ways.
This technique is used to print complex elements, such as guidance systems, submarine sections, and missile fins. Cost-effectiveness, speedy design, rapid internal feature modifications, and just-in-time part production are some of its advantages. These factors are contributing to the increasing military shipbuilding & submarine market growth.
To cover gaps in the navy's underwater combat force and boost the capabilities of their local shipyards, several governments throughout the world are investing more in submarines. To satisfy several purposes, submarines are equipped with nuclear power, ballistic missiles, or other facilities. One of the prominent users of submarines is the military. Furthermore, the commercial sector's growing need for submarines is contributing to the sustained compound annual growth rate of the market.
“United States Working on Advancing its Military Creating Opportunities”
The United States spends more on its military than any other country. The US Department of Defense is attempting to bolster its naval capabilities in response to the increasing danger posed by China and Russia by introducing new surface ships and submarines. In 2021, the Navy unveiled its long-term construction plans, which included acquiring two SSN submarines and increasing its fleet to 72 SSNs. The federal government also provides a sizable amount of funds to the Navy. Ballistic missile submarines of the Columbia and Virginia classes are to be purchased for USD 6.95 billion and USD 5.03 billion, respectively, according to the planned US budget for FY 2022.
“Advances and Sophisticated Technology Making Naval Equipment More Capable”
The increasing sophistication of marine security concerns is leading to a greater demand for stealth and submerged capabilities. Navigators are trying to get submarines and surface ships that are operating surreptitiously to make it more difficult for adversaries to track and target them. To meet this need, cutting-edge stealth technologies, including anechoic coatings and signature reduction techniques are created.
Global geopolitical issues, particularly in the Middle East and Asia-Pacific, are increasing demand for military ships and submarines. Countries in these regions are trying to modernize their naval forces to keep an eye on potential adversaries and maintain control of strategic waterways. In the forecasted period, it is projected that this rising demand will assist in development leading to the increasing military shipbuilding & submarine market size.
What are the Primary Restraints Hurting the Profits of Manufacturers?
“Too High Investment and Complex Technologies”
Developing and constructing military ships and submarines is extremely expensive, which discourages new competitors and restricts the ability of current firms to grow. The military industry needs to adhere to strict rules and compliance standards, which is making research and manufacturing procedures more difficult and time-consuming.
Research, development, and integration are difficult because of the sophisticated technology needed for modern military vessels, such as automation, stealth capabilities, and complex weapon systems, which are consequently adversely affecting market dynamics.
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Country-wise Analysis
Countries around the world are focusing right now on advancing their military tactics to win the geopolitical war for resources. This is stimulating the demand for professional and advanced military ships and submarines around the world. The United States market in this case is forecasted to hold a significant military shipbuilding & submarine market share in North America.
Which Conditions are Making the Profits Jump for Shipbuilding and Submarine Manufacturers in the United States?
“Extensive Requirement for Military Facilities for Maintaining Position as one of the Global Superpowers”
| Attribute | United States |
|---|---|
| Market Value (2024E) | US$ 25.66 Billion |
| Growth Rate (2024 to 2034) | 4.5% CAGR |
| Projected Value (2034F) | US$ 41.66 Billion |
The profits for shipbuilding and submarine manufacturers in the United States are significantly driven by the country's status as one of the global superpowers. This status necessitates a robust military capability, influencing defense spending and investment in naval assets. Increased geopolitical tensions, particularly in regions, such as the Indo-Pacific and the Atlantic, are compelling the United States to modernize its fleet and advance its naval capabilities.
Technological advancements and a focus on developing next-generation submarines and vessels further attract investment and ensure competitiveness. The urgency to secure naval superiority and protect national interests leads to ongoing governmental support and funding for shipbuilding projects, creating a favorable economic climate for manufacturers. As defense budgets grow, the shipbuilding industry is ideally positioned to capitalize on these trends, yielding substantial profits and bolstering national security.
What is the Prominent Factor Behind the Expanding Military Force in China?
“Geopolitical Tension Between Neighboring Countries Escalating Naval Equipment Requirements”
| Attribute | China |
|---|---|
| Market Value (2024E) | US$ 12.78 Billion |
| Growth Rate (2024 to 2034) | 4.7% CAGR |
| Projected Value (2034F) | US$ 21.29 Billion |
The prominent factor behind the rising military shipbuilding and submarine capacity in China is the escalating geopolitical tensions with neighboring countries. As China seeks to assert its influence in contested waters, particularly in the South China Sea and around Taiwan, it faces increasing maritime challenges from regional powers and the United States. These tensions necessitate a modernized and effective naval fleet to safeguard China's interests and enhance national security. Consequently, the government in China prioritized the development of its maritime capabilities, leading to significant investments in new and advanced warships and submarines.
Category-wise Insights
Countries are working to strengthen their military powers from every angle. With relatively big coastlines, they are investing highly in surface vessels, including ships as well as submarines to keep an eye on enemies and improve the protection.
Which Products and Services are Making More Money for Manufacturers?
“Escalating Demand for Surface Level Vessels Compared to Submarines”
| Attribute | Surface Vessels |
|---|---|
| Segment Value (2024E) | US$ 54.71 Billion |
| Growth Rate (2024 to 2034) | 4.3% CAGR |
| Projected Value (2034F) | US$ 87.23 Billion |
Manufacturers in the maritime industry are seeing significant growth from surface-level vessels compared to submarines. The primary reason lies in the high demand and multifunctionality of surface vessels, including cargo ships, oil tankers, and passenger ferries. These vessels are critical for global trade and transportation, making them essential investments for several sectors.
Furthermore, surface vessels often lower production and maintenance costs than submarines, which require advanced technology and specialized materials, driving up their overall expenses. Services, such as retrofitting, repairs, and technical support for surface vessels also create ongoing revenue opportunities and further positively impacting military shipbuilding & submarine market trends.
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Competitive Landscape
Key players in the military shipbuilding & submarine market are focusing on new advancements, including ship hulls and ship keels.
For instance :
- In February 2022, General Dynamics Electric Boat delivered the USS Oregon (SSN 793), the 20th Virginia class submarine, to the United States Navy. It is the second Block IV-equipped submarine to be delivered to the Navy.
- In February 2022, PT PAL Indonesia and the Naval Group signed a memorandum of understanding (MoU) to work together on the research and development of submarines that would bolster Indonesia's maritime defense.
Fact.MR provides detailed information about the price points of key players in the military shipbuilding & submarine market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.
Segmentation of Military Shipbuilding & Submarine Market Research
-
By Product & Service :
- Surface Vessels
- Submarines
-
By Region :
- North America
- Western Europe
- Eastern Europe
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa
Table of Content
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis and Forecast, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis and Forecast 6.1. Product And Service 7. Global Market Analysis and Forecast, By Product And Service 7.1. Surface Vessels 7.2. Submarines 8. Global Market Analysis and Forecast, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. Asia Pacific 8.6. East Asia 8.7. MEA 9. North America Sales Analysis and Forecast, by Key Segments and Countries 10. Latin America Sales Analysis and Forecast, by Key Segments and Countries 11. Western Europe Sales Analysis and Forecast, by Key Segments and Countries 12. Eastern Europe Sales Analysis and Forecast, by Key Segments and Countries 13. Asia Pacific Sales Analysis and Forecast, by Key Segments and Countries 14. East Asia Sales Analysis and Forecast, by Key Segments and Countries 15. MEA Sales Analysis and Forecast, by Key Segments and Countries 16. Sales Forecast by Products And Services for 30 Countries 17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 18. Company Profile 18.1. General Dynamics Electric Boat 18.2. Huntington Ingalls Industries 18.3. Lockheed Martin Corporation 18.4. ThyssenKrupp Marine Systems 18.5. BAE Systems Plc 18.6. Naval Group 18.7. Fincantieri S.p.A. 18.8. Kawasaki Heavy Industries 18.9. Submarine Construction Company (Zvezda) 18.10. China Shipbuilding Industry Corporation (CSIC)
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- FAQs -
How big is the military shipbuilding & submarine market in 2024?
The global market for military shipbuilding & submarines is estimated to reach US$ 80.88 billion in 2024.
What is the demand projection for military shipbuilding & submarines?
Worldwide revenue from sales of military shipbuilding & submarines is projected to reach US$ 126.84 billion by 2034-end.
At what rate is the demand for military shipbuilding and submarines analyzed to increase?
Demand for military shipbuilding & submarines is forecasted to rise at 4.6% CAGR through 2034.
Who are the leading manufacturers of military shipbuilding & submarines globally?
Key market players include BAE Systems, DCNS S.A., and Mitsubishi Heavy Industries.
Which type of products and services in military shipbuilding and submarines accounts for a higher revenue?
The military surface vessels segment is projected to reach a revenue of US$ 87.23 billion by 2034.
At what rate is the market projected to advance in Japan?
The market in Japan is forecasted to rise at 3.7% CAGR through 2034.
Which region is approximated to progress at a significant CAGR?
East Asia is projected to advance at a CAGR of 4.6% through 2034.
Military Shipbuilding & Submarine Market