Submarine battery market

The global submarine battery market generated a revenue of US$ 1,100 Mn in 2023 and is expected to reach US$ 1,643.1 Mn by 2030, exhibiting a CAGR of 5.9% over the forecast period (2023-2030). A submarine is a watercraft, which is used for various commercial and military applications. In submarines, a battery plays a major role in its smooth running. For power supply, submarines are equipped with a diesel engine that burns fuel or nuclear reactors that use nuclear fusion, which helps charge its batteries. The rising demand for unmanned underwater vehicles is driving the market growth. The increasing applications of submarines, such as commercial use, research, air crash investigation, naval use like intelligence, surveillance, and reconnaissance, mine countermeasures, anti-submarine warfare, inspection/identification, etc., have accelerated the global submarine battery market growth. Moreover, increasing investments for the production of submarines are supporting the growth of the global submarine battery market.

Global Submarine Battery: Covid 19 Impact Analysis

The global submarine battery market experienced significant impacts from the COVID-19 pandemic. One major effect was the disruption of global supply chains, leading to delays in production and delivery of submarine batteries. Lockdown measures and travel restrictions hindered manufacturing operations and logistics, resulting in supply chain disruptions and decreased availability of batteries. Additionally, the economic challenges brought about by the pandemic led to budget constraints and reprioritization of defense expenditures in many countries. As a result, some nations reduced or postponed their defense spending plans, including investments in submarines and associated batteries. This had a direct impact on the demand for submarine batteries during the pandemic. Furthermore, deferred maintenance and upgrades of submarine fleets due to economic uncertainties affected the demand for new batteries. Research and development activities in the submarine battery market were also disrupted, potentially slowing down progress in new battery technologies. Additionally, the shift in operational priorities for naval forces during the pandemic, focusing on humanitarian efforts and homeland security, affected the immediate demand for new submarine batteries.

Global Submarine Battery: Regional Insights

North America held a dominant position in the global submarine battery market in 2022 and is expected to retain its dominance over the forecast period. The U.S. and Canada are the major countries driving the growth of the global submarine battery market in this region. Rising spending on submarines and increasing defense budget under the National Defense Authorization Act have accelerated the regional market growth. For instance, in June 2020, GNB Industrial Power, a division of Exide Technologies, LLC, was awarded a delivery order for five additional stationary back-up power battery banks for the U.S. Navy’s Los Angeles-class submarines. The award is a part of the latest five-year contract awarded to Exide by the Department of Defense for main storage lead-acid battery systems for the U.S. Navy’s fleet of submarines.

Moreover, the Asia Pacific region is expected to exhibit the highest CAGR over the forecast period. China, India, and Japan are some of the major countries driving the growth of the global submarine battery market in this region. Increasing government investments in submarine production is fueling the regional market growth. For instance, in January 2021, Kounotori, an unmanned transport vehicle built by the Japan Aerospace Exploration Agency, or JAXA, delivered the GS Yuasa batteries to the station. It was the 4^th delivery done by this company to NASA with the first delivery made in 2016. With the latest delivery, all batteries aboard the space station have been replaced with GS Yuasa's lithium-ion power cells. This was the first time batteries from a Non-USA company were used by NASA.

                                                        Figure 1: Global Submarine Battery Market Share (%), By Region, 2023

Global Submarine Battery Market- Drivers

• Increased government spending on the defense sector: Increased government spending on the defense sector is the main factor driving the global submarine battery market growth. Investments made by market players to develop submarines are expected to boost the global submarine battery market growth. One of the main drivers fueling the market growth is the demand for unmanned underwater vehicles. To operate equipment and other internal systems in the submarine, electrical energy is needed. Diesel engines are installed in submarines, which run on fuel or use nuclear reactors that use nuclear fission for propulsion. For power supply, some submarines are equipped with battery banks. A fully powered battery can help in the propulsion of the submarine in emergency situations. On the surface, the diesel engine powers the submarine propulsion, which in turn charges the battery. Once the charging is done, the submarine can be submerged in the water and can be used to perform operations underwater. Hence charging the battery is the only way possible for a diesel engine submarine to submerge underwater. The market is growing due to the increasing demand for renewable energy and hybrid marine propulsion systems, and adhering to strict policies related to marine emissions. For Instance, In 2020, NATO member nations collectively increased their defense spending. This commitment to defense investment was reinforced during the NATO Leaders' Meeting in December 2019, where member nations reaffirmed their commitment to reaching the target of spending 2% of their gross domestic product (GDP) on defense by 2024.

Global Submarine Battery Market- Opportunities

Due to the growing amount of money that emerging nations are investing in their militaries, businesses have an opportunity in the submarine battery industry. The market is projected to experience huge expansion over the forecast period due to increasing investments by major market players to develop advanced submarines. Furthermore, the government has also increased its funds in the defense sector. Various maritime operations will also get support owing to the ongoing technological advancements related to the development of durable and efficient batteries.

Global Submarine Battery Market-Trends

• Rising Need For Naval Submarines: The market is expanding due to the rising need for naval submarines that can fire ballistic missiles, conduct rescue missions, and house nuclear weapons. Additionally, there is a growing need for Unmanned Underwater Vehicles (UUVs) to offer precise images below the surface for intelligence collection, mine hunting, scientific investigation, and ship hull inspection. In addition to the expanding military and defence industries, this present investors in the industry have enormous expansion opportunities. In addition, governments in various nations are investing in the military to build nuclear-powered attack submarines, thus boosting the market expansion. Additionally, the market is expanding due to the increasing demand for lithium-ion batteries to power lighter submarines with a high energy-to-weight ratio. The need for energy-efficient systems and hybrid marine propulsion systems is also rising globally. This trend is positively impacting the industry, along with the rising need for durable batteries that can produce high currents. Additionally, a good market outlook is being provided by the growing use of Valve-regulated Lead Acid (VRLA) batteries to supply high surge currents at low temperatures globally. The market is expanding as a result of the increasing use of VRLA batteries in Uninterruptible Power Supplies (UPS), emergency power supply systems, and telecommunications base stations.

Global Submarine Battery Market - Restraints

• Possibility of Explosion and Recycling of Batteries: The possibility of explosion posed by the presence of liquid electrolyte is a limitation for the global submarine battery market. The growing worries regarding the recycling of lead-acid batteries may limit the growth of the global submarine battery market. In the global submarine battery market, the possibility of battery explosions and the need for battery recycling are counterbalanced by various measures. Stringent safety standards and regulations are implemented to minimize the risk of explosions. Manufacturers adhere to these standards, ensuring that submarine batteries are designed, manufactured, and tested to meet rigorous safety requirements. Advanced battery management systems (BMS) play a crucial role in monitoring and controlling battery operations, incorporating safety features to prevent hazardous conditions. Ongoing research and development efforts focus on developing safer battery chemistries and materials, exploring alternative technologies that offer enhanced safety profiles.

Global Submarine Battery Market- Segmentation:

The global submarine battery market report is segmented into battery type, application, and region.

Based on battery type, the lead acid battery segment held the dominant position in the market in 2022 and is expected to retain its dominance over the forecast period (2023-2030). This is due to various advantages of lead batteries such as reliability, robustness, and the capability to deliver high current. Lead acid batteries provide standby and propulsion power in various submarines. Continuous technical improvements in lead acid battery technology have accelerated the segment growth in the market. North America held the dominant position in the submarine battery market in 2022 and is expected to retain its dominance over the forecast period. The U.S. and Canada are the major countries, driving the growth of the global submarine battery market in this region. Increasing spending on submarines and increasing defense budget under the National Defense Authorization Act have accelerated the regional market growth.

Global Submarine Battery Market: Key Companies Insights

The major players operating in the global submarine battery market include EnerSys, EverExceed Corporation, Exide Industries, Exide Technologies, GS Yuasa Corporation, HBL Power Systems Limited, Korea Special Battery Co., Ltd., Sunlight Systems S.A, and Zibo Torch Energy Co., Ltd.

Global Submarine Battery Market Detailed Segmentation:

• By Battery Type
  • Lithium-ion Battery
  • Lead Acid Battery
  • Others
• By Application
  • Military
  • Civilian
• By Region:
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa