July 24, 2024
Submarine Battery Market
Ict

Growing Defense Budget Allocations to Boost the Growth of the Global Submarine Battery Market

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 3.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Submarine batteries are rechargeable batteries that power the propulsion, auxiliary, and emergency diesel generator drives of submarines. The primary batteries used in submarines are lead–acid batteries due to their high energy density and low cost. Submarine batteries provide propulsion as well as power various electrical systems and components when the submarine is submerged. They play a critical role in submarine operations by providing silent and emission-free power. Advances in battery technology are leading to the development of lithium-ion batteries with higher energy density for usage in submarines. Key manufacturers are focusing on developing advanced sealed and maintenance-free batteries with longer lifecycles.

Market key trends:

One of the key trends in the submarine battery market is the increasing adoption of lithium-ion batteries. Lithium-ion batteries have a higher energy density compared to traditional lead-acid batteries, which allows them to store more power in smaller volumes. This enables greater submarine endurance and operational capabilities. Several navy fleets across the US, France, UK, China, and South Korea are evaluating the usage of lithium-ion batteries for new-generation submarines due to their superior characteristics. Another trend gaining traction is the development of cobalt-free lithium-ion batteries for submarines. This is mainly due to concerns over cobalt supply risks and price volatility. Key manufacturers such as Kokam are focused on developing advanced batteries incorporating lithium iron phosphate and other chemistries without relying on cobalt for submarine applications.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is low for the submarine battery market due to high capital requirements, long development periods, and well-established suppliers.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established suppliers in the market providing differentiated products.

Bargaining power of suppliers: The bargaining power of suppliers is high as raw materials like lithium, nickel, cobalt etc. require many compliance and there are few raw material suppliers.

Threat of new substitutes: The threat of new substitutes is low as there are limited alternative technologies that can provide the required power density and duration for submarine applications.

Competitive rivalry: The competitive rivalry is high among the key global players operating in the market.

Key Takeaways:

The Global Submarine Battery Market Demand is expected to witness high growth, exhibiting CAGR of 3.2% over the forecast period, due to increasing investments in new submarine development programs.

Regional analysis: The Asia Pacific submarine battery market is expected to grow at the fastest rate during the forecast period owing to the increase in submarine fleet in countries like China, Japan and India. China dominates the regional market and is expected to continue its dominance in coming years backed by growing indigenous submarine construction.

Key players: Key players operating in the submarine battery market are Kokam, Champion Storage Battery Company Limited, Epsilor, HBL, Zibo Torch Energy Co. Ltd. Kokam is one of the leading manufacturers and supplier of lithium-ion battery for submarine applications. Zibo Torch Energy Co. Ltd specializes in developing advanced lead-acid batteries for defence applications including submarines.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it