Global undersea warfare systems (USW) market, valued at US$11.0 billion ($14.3 billion) in 2017, is projected grow at a CAGR of 3.85 per cent, to a value of US$16.1 billion by 2027. The cumulative market for global expenditure on undersea warfare is valued at US$148.7 billion over the forecast period. The demand for USW systems is expected to be driven by growing disputes over maritime borders, offshore resources and trade routes. Anti-access area denial (A2/AD) and counter A2/AD are becoming a vital part of maritime strategies employed by major navies across the world and undersea warfare is expected to regain its prominence.
Undersea Warfare Systems market is split into four segments: combat systems, manned and unmanned systems, sensors, and communication and countermeasures. During the forecast period, combat systems are expected to account for the largest share of spending, accounting for 61.5 per cent of the overall global market.
Manned and unmanned systems segment is projected to be the third largest segment over the forecast period, and is expected to account for a total share of 13.8 per cent of the global market. The remaining 9.4 per cent share of the overall USW market is expected to be accounted by the communication and countermeasures segment, during 2017-2027. Asia Pacific, North America and Europe are projected to account for the first, second and third largest markets in this segment respectively.
The USW market is expected to be led by Asia Pacific with a share of 34.1 per cent over the forecast period, followed by North America with 31.5 per cent which in turn is closely followed by Europe with a share of 28.0 per cent. The Middle Eastern market is expected to account for 3.3 per cent, followed by the Latin America and African markets with a collective share of 3.0 per cent.
Asia Pacific, the largest market for the USW systems with a cumulative market of US$50.8 billion, is characterised by incremental year-on-year investments by China, India, Australia, Japan, South Korea and other fast growing nations owing to regional power projection mechanisms, maritime conflicts and protection of maritime natural resources. North America represents the second largest market, with total spending on USW systems valued at US$46.9 billion the forecast period.