Australia Submarine Market Report and Forecast 2025-2034

Australia Submarine Market Outlook

The Australia submarine market size is projected to grow at a CAGR of 4.43% between 2024 and 2032.

Key Takeaways

• The Australian Parliament anticipates the commencement of the first Future Submarine's construction in 2022–23, with plans for it to be operational and in service around 2032–33.

• Australia plans to increase its yearly defence expenditure by an average of 0.15% of GDP over three decades, funding the procurement, building, and running of nuclear submarines under the AUKUS pact, totalling $268 billion to $368 billion.

• As per the Australian Submarine Agency, Australia is set to purchase three Virginia Class SSNs (nuclear-powered submarines) from the early 2030s onwards, a move authorized by the US Congress in December 2023.

Ballistic missile submarines in the Australia submarine market represent a crucial element of a nation's nuclear triad, ensuring a secure and resilient capability for second-strike scenarios

Ballistic Missile Submarines (SSBNs) are crucial for nuclear deterrence, providing a secure second-strike capability. Their constant readiness at sea, along with their survivability, global range, and strategic stability, minimize conflict escalation risks.

Nuclear-powered attack Submarines (SSNs) offer a strategic edge with stealth features and adaptable weapon systems. Their nuclear propulsion, power projection abilities, and advanced technologies establish them as a reliable and stealthy deterrent.

In November 2023, the US Congress approved legislation allowing for the sale of Virginia-class submarines to Australia under the Aukus security pact. This legislation, addressing multiple military goals including Aukus, received approval from the US House of Representatives in Washington.

Market Segmentation

Australia Submarine Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Nuclear-powered attack submarines (SSNs)

• Ballistic Missile Submarines (SSBNs)

• Diesel-electric attack submarines (SSKs)

• Guided-Missile Nuclear Submarines (SSGNs)

Market Breakup by Propulsion

• Non-Nuclear

• Nuclear

Market Breakup by Application

• Marine Weather Monitoring and Scientific Research

• Military surveillance and Combat

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

The Australia submarine market key players are ASC Pty Ltd., Rolls-Royce Holdings plc, bae systems plc, and ThyssenKrupp AG among others.

Key Highlights of the Report