According to Market Research Future (MRFR) analysis, the global torpedo market is projected to record a CAGR of about 4% from 2018 to 2023 (forecast period).
Torpedo is an underwater missile intended to detonate when it hits a target or approaches the vicinity of a target. Torpedoes are one of the most favored lethal underwater weapons. Very few countries around the world have the capacity to design and develop torpedo natively. Modern torpedoes are capable of carrying nuclear warheads. Torpedoes can be launched from a range of platforms.
Torpedoes are usually propelled underwater to a target. It can be launched from above by fixed-wing aircraft and helicopters, from the surface of the water by ships, and from below the surface of the water through submarines. The torpedoes fired from the aerial platform fall into the lightweight category, while those fired from the naval platforms fall into the heavyweight category. In addition, modern torpedoes can operate independently and can be propelled using thermal and electrical power.
Focusing on the enhancement of strategic equipment and the subsequent procurement of lethal weapons to achieve supremacy over the enemy during naval and coastal combat is a key factor driving the growth of the torpedo industry. In addition, increased investment in torpedo upgrade programs around the world and an emphasis on producing torpedoes indigenously enhance market development. In addition, focusing on developing submarines to improve the naval fleet of countries around the world creates exciting growth prospects for market players. However, cuts in defense budgets in developed economies impede business growth.
The global market for torpedoes has been segmented by operation, type, propulsion, launch platform, and region.
Depending on the operation, the market for torpedoes is divided into autonomous and guided operations. In 2017, the autonomous segment registered for the largest market share as it possesses high-speed, highly maneuverable capabilities, which is very successful during the war.
Based on the type, the market for the torpedoes is divided into heavy torpedoes and lightweight torpedoes. In 2017, the heavy torpedo category accounted for the largest market share, as these weapons can carry lethal warheads and can inflict more damage.
Based on the launch platform, the torpedo market is divided into aerial platforms and naval platforms. The aerial platform includes aircraft and helicopters, and the naval platform encompasses ships and submarines. In 2017, the naval platform segment registered for the largest market share, as these platforms can carry heavy torpedoes. Investment by countries in the production of nuclear submarines and smart torpedoes are some of the main drivers for the growth of this segment. In addition, the development of new unmanned underwater and surface vessels with torpedo-launching capabilities may accelerate the development of this segment in the future. For example, the ISTAR division of Elbit Systems has partnered with Leonardo to develop and demonstrate the launch of the lightweight and mini torpedoes of the SeagullTM Unmanned Surface Vessel (USV) of Elbit Systems.
Regionally, the global torpedo market has also been segmented into North America, Europe, the Asia Pacific, and the rest of the world.
North America is projected to have the largest share during the review period due to the focus of defense organizations on improvements of the electronics and torpedo control system. In addition, the growing emphasis on improving ship combat systems in the US and Canada is leading to high demand for torpedoes in North America.
The prominent players in the global torpedo market are Naval Group (France), Atlas Elektronik GmbH (Germany), Bharat Dynamics Limited (India), Raytheon Company (US), China Shipbuilding Industry Corporation (China), Leonardo SpA (Italy), Saab AB (Sweden), BAE Systems plc (UK), and Tactical Missiles Corporation JSC (Russia).