Market Trends of Naval Combat Weapons Industry
This section covers the major market trends shaping the Naval Combat Weapons Market according to our research experts:
Submarines Segment Will Showcase Significant Growth During the Forecast Period
Increasing expenditure from the defense forces on the expansion of the naval fleet and modernization of existing submarines drive the growth of the market. Growing focus on enhancing naval capabilities and increasing procurement of new submarines boosts the market growth. In April 2021, Progeny Systems Corporation would build and upgrade an integrated system to help submarine crew members to control submarine combat weapons such as missiles, torpedoes, unmanned underwater vehicles (UUVs), and mines. Furthermore, in late 2019, the United States navy deployed the new W76-2 low-yield Trident submarine warhead.
The United States Navy is on track to deploy hypersonic weapons on its attack submarines in 2028. The first Zumwalt-class destroyer will get a hypersonic weapon in 2025 and the first Virginia-class submarine will deploy with hypersonic weapons in 2028. Furthermore, key players highly invested in artificial intelligence for anti-submarine warfare missions in which the sensors equipped with AI technology can detect enemy submarines based on noise and eliminate such submarines are also gaining popularity. Thus, growing spending on improving the naval sector and the rising installation of advanced weapons on submarines drive the growth of the market.
Asia-Pacific Will Witness Remarkable Growth During the Forecast Period
An increase in defense spending from countries such as China, India, South Korea, Japan, and others drives market growth across the region. China is the fastest-growing market for naval combat weapon systems. The People's Liberation Army Navy (PLAN) currently, has the largest number of major surface combatants of any navy worldwide. According to the 2020 China military power report, China has the largest navy in the world with an overall battle force of approximately 350 surface ships as well as submarines including over 130 major surface combatants. Moreover, China has two functioning aircraft carriers deployed near Taiwan with the country launching a third aircraft carrier. The Pentagon estimates that China's overall naval fleet will grow and reach 420 ships by 2026 as compared to the current count of 350 ships. Moreover, according to Pentagon estimates, China will also be adding 110 submarines, many of which will be equipped with nuclear-tipped missile systems.
According to the Center for Strategic and International Studies, the growth of the military budget in China has outpaced its overall economic growth because China spends more on its military than any other country except the United States. With the order of Chinese President, Xi Jinping for modernizing the Chinese army by 2035, there have been various advancements in terms of the production of naval combat weapons with advanced technologies. Moreover, various contracts which have been signed by China to retrofit their ships and submarines with advanced naval combat weapons will lead to its significant growth during the forecast period.
