A submarine is one of the most complex platforms in Navy. Submarines are equipped with payloads systems, which accommodate advanced technologies and enhance the submarine’s warfighting capabilities. The wide variety of payloads mounted on submarines make them more flexible, survivable, and effective. For instance, nuclear-powered submarines and ballistic missile submarines carry payloads such as torpedoes and cruise missiles. Therefore, significant investment has been done on the development of submarine payload, and consequently, the market would witness a rapid growth during the forecast period. However, only a few countries are working on the development of submarine payload systems due to limited defense expenses and lack of modernization, which is a major restraint for the market.
Some of the recent developments in the market would be, BAE systems signing a contract with General Dynamics Electric Boat to begin work associated with the production of Virginia Payload Module (VPM) tubes for Block V Virginia-class submarines, which contains four large-diameter payload tubes capable of storing and launching up to seven Tomahawk cruise missiles, General Dynamics Electric Boat signing a contract with U.S. Navy to provide research and development and lead-yard services for Virginia-class nuclear-powered attack submarines which include Virginia Payload Module, and Raytheon signing a contract with U.S. Navy to build Tomahawk cruise missiles from new submarine payload tubes.
The increased need for intelligence, surveillance, and reconnaissance (ISR) will enable the defense vendors to offer new growth opportunities for the market players. The factors responsible for the growth of the global submarine payload market are extensive investments in the development and installation of command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, missiles, radars, and sensors on the submarines by countries such as the U.S., Russia, China, India, Iran, Japan, South Korea, Turkey, and the U.K. Another key driver for the growth of the global submarine payload market is the increase in the number of naval defense units.
The submarines are equipped with payload systems such as vertical missile launch tubes, lock-out/lock-in chamber, and torpedo tubes. The submarine payload systems are designed for counterterrorism, localized conflict operations, and nuclear warheads. The widespread use of submarines, procurement of newly built submarines, export of new submarines, and spreading of submarine construction to several parts of the world has increased the competitiveness of submarine payload market. The changing trends in armaments policy in the naval industry have affected the submarine payload market, and several activities which used to be performed by government organizations are now being performed by commercial industries and previous government armament establishments which have now become commercial enterprises.
The global submarine payload market is segmented into submarine type, payload, application, and regions. Among submarine types, the nuclear-powered attack is widely used and has the largest market share in its segment. In the payload segment, sensors are estimated to have the largest demand during the forecast period, due to the continuous rise in R&D activities. When it comes to application, military application has the largest demand in submarine payload market, due to increasing technological requirements of military forces. For instance, Northrop Grumman Corporations Electronic Systems signed a contract of $34 million with U.S. Navy Strategic Systems Programs (SSP) to adopt missile tubes of fleet ballistic missile submarines for launching missiles, ranging from nuclear ballistic missiles to conventional cruise missiles.
Segmentation of the global submarine payload market
On the basis of region, the market is segmented into North America, Asia Pacific, Europe, the Middle East, and South America. The North America region is expected to dominate the market in future, due to the rise in defense budgets and spendings of the countries. Asia Pacific region is second to the North America region in the global submarine payload market, due to increase in border disputes and rising number of maritime conflicts in the Indian Ocean and the South China Sea, in the regions such as Australia, China, India, Japan, Korea, Malaysia, Pakistan, Singapore, Taiwan, and Vietnam.
The key players in the global submarine payload market are BAE Systems (U.K), General Dynamics (U.S.), Lockheed Martin Corporation (U.S.), Northrop Grumman Corporation (U.S.), DSME Co. Ltd. (South Korea), Raytheon (U.S.), Thales (France), Fincantieri (Italy), Huntington Ingalls Industries (U.S.), and Kawasaki Heavy Industries (Japan).
The market values and forecasts are derived using MRFR research methodology, which includes secondary research, primary interviews, data triangulation, and validation from an in-house data repository and statistical modeling tools.
In this process, data is collected from various secondary sources, including annual reports, SEC filings, journals, government associations, aerospace & defense magazines, white papers, corporate presentations, company websites, and paid databases.
In this process, both the demand- and supply-side parties are interviewed to extract facts and insights into the market forecast, production, trends, and projected market growth. Industry stakeholders such as CEOs, VPs, directors, and marketing executives across the value chain are approached to obtain key information.
Market Sizing, Forecast, and Analysis: Detailed coverage of the market segment and sub-segments
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Market Dynamics Intelligence: Market drivers, opportunities, trends, restraints, Porter’s five forces, supply chain, and value chain analysis
Technology Trends, Regulatory Landscape, and Patent Analysis Outlook
Competitive Intelligence: Market share analysis, financial analysis, product benchmarking, and strategic developments including joint ventures, product launches, and mergers & acquisitions
Regional attractiveness and related growth opportunities
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The Global Submarine Payload Market will be expanding at 4% CAGR in the future.
The growth period for the Global Submarine Payload Market is 2020–2027.
Global Submarine Payload Market is growing with the improved need for intelligence, surveillance, and reconnaissance (ISR).
BAE systems has signed a contract with General Dynamics Electric Boat to begin work associated with the production of the Virginia Payload Module (VPM) tubes for Block V Virginia-class submarines. General Dynamics Electric Boat signed a contract with U.S. Navy to propose research and development and lead-yard services for Virginia-class nuclear-powered attack submarines. Raytheon also signed a contract with U.S. Navy to build Tomahawk cruise missiles from new submarine payload tubes.
the Asia Pacific, the Middle East, North America, Europe, and South America are the regions studied to recognize the dynamics of the market regionally.