Submarines require energy storage systems that allow them to operate underwater for extended periods. Submarine batteries fill this purpose by storing electricity to power onboard systems, weapons, and propulsion while submerged. Lead-acid batteries are the most widely used energy storage technology in submarines currently due to their low cost, high reliability, and long service life. However, lithium-ion batteries are gaining popularity due to their higher energy density and longer lifespan compared to lead-acid batteries.
The global submarine battery market is estimated to be valued at US$ 1.8 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the submarine battery market is the increasing adoption of lithium-ion batteries. Lithium-ion batteries offer higher energy density compared to lead-acid batteries, enabling submarines to operate for longer durations underwater without refueling. Additionally, lithium-ion batteries have a longer service life and require less maintenance. Several navies are upgrading their fleet of submarines with lithium-ion batteries to enhance their operational capabilities. For instance, in 2019, the US Navy commissioned the first lithium-ion battery installation on a Los Angeles-class submarine. This is indicative of the growing demand for advanced lithium-ion batteries in military submarines globally.
Threat of new entrants: The threat of new players entering the submarine battery market is moderate due to the high capital investment required for R&D and manufacturing.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of a few established players and specialized applications of submarine batteries.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute raw materials and focus of players on backward integration.
Threat of new substitutes: The threat of substitutes is low as submarine batteries have no close substitute for powering underwater vessels.
Competitive rivalry: The submarine battery market witnesses high competition due to technological innovations and expansions by major players.
The Global Submarine Battery Market Demand is expected to witness high growth over the forecast period supported by increasing defense budgets.
Regional analysis: North America dominates the submarine battery market currently owing to the presence of major OEMs and high defense spending in the region, especially by the U.S.
Key players: Key players operating in the submarine battery market are Novartis International AG, Pfizer, Inc., Sanofi S.A., Amgen, Inc., Regeneron Pharmaceuticals, Inc., F. Hoffmann-La Roche AG, Bluebird Bio, Inc. (Celgene Corporation).
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it