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Global Surge In Terrorism Fuels Demand For Submarine Combat Systems: Strengthening the Growth Trajectory of the Submarine Combat System Market

07-17-2025 02:05 PM CET | Aerospace & Defense

Press release from: The Business Research Company

Submarine Combat System Market

Submarine Combat System Market

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What Is the Expected CAGR for the Submarine Combat System Market Through 2025?
The market size of submarine combat systems has experienced swift expansion in the past few years. Projected to rise from $11.6 billion in 2024 to a solid $13.48 billion in 2025, the market exhibits a compound annual growth rate (CAGR) of 16.2%. Factors such as geopolitical tensions, naval modernization initiatives, perceived threats, strategic deterrence, and issues of global maritime security have significantly contributed to the market's growth during the historical period.

What's the Projected Size of the Global Submarine Combat System Market by 2029?
In the coming years, substantial growth is anticipated in the submarine combat system market. Projections see the sector expand to a $23.41 billion valuation by 2029, developing at a compound annual growth rate (CAGR) of 14.8%. This robust growth forecast can be credited to various factors, such as the evolution of undersea warfare, the emergence of unmanned underwater vehicles, regional military expansions, system upgrades, retrofits, and a flourishing submarine export market. The period is also expected to witness several significant trends such as rising cybersecurity issues, increased collaboration and defense alliances, technological advancement, adoption of sustainable and green technologies, and improved underwater communication.

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Top Growth Drivers in the Submarine Combat System Industry: What's Accelerating the Market?
The increase in acts of terrorism is anticipated to fuel the expansion of the submarine combat system market in the future. Terrorism involves the intentional perpetration of violence, intimidation, or destruction by individuals, groups, or entities seeking to instill fear, incite panic, and attain political, ideological, or religious goals. Submarine combat systems are utilized in detecting underwater terrorist threats to identify possible risks and monitor enemy ship activity. For example, in March 2023, a report by the Institute for Economics and Peace (IEP), an Australia-based research group that develops measurements for peace analysis, revealed that 43% of worldwide terrorism-related fatalities were concentrated in the Sahel area of sub-Saharan Africa. Consequently, the escalating frequency of terrorism is fuelling the expansion of the submarine combat system market.

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What Trends Will Shape the Submarine Combat System Market Through 2029 and Beyond?
The rise in technological innovations is a key trend garnering momentum in the submarine combat systems market. To maintain their competitive edge, major players in this market are employing cutting-edge technologies. For instance, Leonardo S.p.A., an aerospace, defense, and security company based in Italy, unveiled the Athena MK2/U submarine combat system in February 2023. Regarded as the most refined and holistic ground-unit combat management system (CMS) platform, the Athena MK2/U integrates target motion analysis (TMA), video processing, heavy torpedo management, and extensive application of artificial intelligence algorithms in its surface units, designed specifically to adapt to the unique features of the underwater environment.

What Are the Main Segments in the Submarine Combat System Market?
The submarine combat system market covered in this report is segmented -

1) By System: Sensors, Electronic Support Measures (ESM), Armaments
2) By Weapon System: Electronic Warfare, Torpedoes, Ballistic Missiles, Cruise Missiles, Mines
3) By Submarine Type: Ship Submersible Hunter Killer (SSK), Ship Submersible Nuclear (SSN), Ship Submersible Ballistic Nuclear (SSBN), Ship Submersible Guided Missile Nuclear (SSGN)

Subsegments:
1) By Sensors: Sonar Systems (Active And Passive), Radar Systems, Electro-Optical Sensors, Infrared Sensors, Periscopes And Optronics
2) By Electronic Support Measures (ESM): Signal Intelligence (SIGINT) Systems, Electronic Warfare (EW) Systems, Communication Intercept Systems, Threat Detection And Countermeasures
3) By Armaments: Torpedoes, Cruise Missiles, Ballistic Missiles, Anti-Submarine Warfare (ASW) Weapons, Mine Laying Systems

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Which Top Companies are Driving Growth in the Submarine Combat System Market?
Major companies operating in the submarine combat system market include Raytheon Technologies Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems Plc., Thales Group, L3Harris Technologies Inc., Kawasaki Heavy Industries Ltd., Huntington Ingalls Industries Inc., Fincantieri S.p.A., Leonardo S.p.A, Hyundai Heavy Industries Co. Ltd., Samsung Heavy Industries Co. Ltd., Naval Group, Saab AB, Daewoo Shipbuilding & Marine Engineering Co. Ltd., Kongsberg Gruppen ASA, Damen Shipyards Group, Bharat Heavy Electricals Ltd., Austal Limited, Navantia S.A., Mazagon Dock Shipbuilders Limited, ASC Pty Ltd., Atlas Elektronik GmbH, HAVELSAN Inc., ThyssenKrupp Marine Systems GmbH, Hellenic Shipyards Co., Odense Maritime Technology Private Limited, DCN International S.A.

Which Regions Will Dominate the Submarine Combat System Market Through 2029?
North America was the largest region in the submarine combat system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the submarine combat system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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