The cumulative market for military submarine and related maintenance, repair and overhaul (MRO) globally is anticipated to reach $323.7bn by 2026, growing from $22.8bn in the current year to $36.3bn in 2026, at a compound annual growth rate of 4.74%, according to a report by Strategic Defence Intelligence (SDI).
Titled “The Global Submarines and MRO Market 2016-2026”, the report predicts that aging submarines, and increasing conflicts over maritime borders and trade routes will be the major drivers of demand.
The report estimates that approximately $32.9bn will be spent globally on the procurement and building of submarines globally, compared to $20bn in 2016. Expenditure on submarine maintenance, repair and operations (MRO) and upgrades will grow from $2.8bn to $3.3bn over the forecast period, as governments take up mid-life upgrades and MRO programmes given the long development cycles and high costs involved in new submarine development.
Demand will grow from countries with long maritime borders, which are expected to increasingly use submarines in roles including nuclear deterrence, surveillance and reconnaissance, intelligence, patrolling, and security, says the report.
SSN submarines will account for the highest spending by countries because of their ability to be at sea for longer without refuelling, followed by SSK and SSBN types, adds the report.
Geographically, North America will be the biggest market for submarines, followed by Asia Pacific and Europe.