As part of the naval modernization initiatives, the procurement of next generation nuclear-powered ballistic missile submarines (SSBN) and nuclear-powered attack submarines (SSN) by major military powers like the US, Russia, China, France, India and UK are anticipated to be the key factors driving the global naval engines market during 2021-2031. These initiatives will enhance their strategic deterrence capabilities significantly and replace the ageing cold war era platforms with new surface vessels and submarines, says GlobalData, a leading data and analytics company.

Additionally, several other emerging militaries such as India, Brazil, and recently Australia have also announced multiple programs for the development and induction of new nuclear-powered submarines.

Tushar M, Defense Analyst at GlobalData, comments: “Albeit the lesser overall number of nuclear reactors for naval vessels and submarines, the highly complex nature of the technology and manufacturing processes ensure that they continue to be the most highly priced type of naval engines. Additionally, the restrictions and stringent international regulations regarding export and sharing of nuclear technology ensure that very few countries will have access to nuclear reactors for naval applications.”

Mr. Tushar continues: “The countries that do not possess nuclear propulsion technology are focusing on acquiring AIP equipped Diesel AIP Submarines (SSP), resulting in AIP emerging as the fastest growing segment over the forecast period. Europe is estimated to be the largest market for AIP systems, followed by the Asia-Pacific region. These two regions will cumulatively account for approximately 90% of the AIP market from 2021 to 2031.”

Diesel engines are expected to be the largest segment from 2021 to 2031 owing to its higher adoption across surface vessels and submarines. Nuclear Reactor and Air-Independent Propulsion (AIP) segments follow with a cumulative share of 47% over the next ten years.

Mr. Tushar concludes: “Even though modernization of naval fleets drives the naval engines market across geographies, the presence of key naval engine manufacturers and the associated ecosystems are vital factors driving the European naval engines market over the forecast period. With their focus on developing and supporting their local ship building industry, China and India will assist the overall growth market, especially with recent advancements made in the indigenous design and construction of naval platforms as varied as aircraft carriers to nuclear submarines.”