Asia-Pacific navies are expected to surpass European nations on submarine spending over the next 10 years because of increasing instability in the region, according to a new report.
The submarine market in the Asia-Pacific region is valued at $7.3 billion this year, but is projected to grow at an annual rate of 4.18 percent to reach $11 billion in 2025, according to a new report “The Global Submarine and MRO Market 2015–2025,” produced by Strategic Defence Intelligence, a London-based business information firm. The United States is expected to remain the largest market for submarines, with a projected cumulative spending of $102.2 billion over the next decade.
The growth in Asia is primarily driven by major countries such as China, India, Australia and South Korea, which are focusing more on developing their naval capabilities. This is attributed to the rising number of maritime conflicts and potential threats in the South China Sea as well as the Pacific and Indian Oceans, the report said.
“Growing Chinese assertiveness in disputes over islands in the South China Sea and the rapid modernization of China’s submarine fleet spurred the demand for submarines in countries such as India, Japan, Taiwan, Australia and Vietnam,” Sravan Kumar Gorantala, an analyst at SDI said in a statement.