The global torpedo market size is projected to reach USD 1165.9 million by the end of 2027. Technological intervention has played a massive role in the growth of the market in recent years. According to a report published by Fortune Business Insights, titled “Torpedo Market Size, Share Industry Analysis, By Weight (Heavyweight Torpedoes, and Lightweight Torpedoes), By Launch Platform (Air-launched, Surface-Launched, and Underwater-Launched), By Propulsion (Electric Propulsion, and Convectional Propulsion) and Regional Forecast, 2020-2027, the market was worth USD 838.0 million and will exhibit a CAGR of 5.9% during the forecast period, 2020-2027.
A torpedo is a military weapon system that is mostly used in naval warfare. It is used as a mode of explosive and defense in cases of war attacks. The entire torpedo unit consists of a guided system, propulsion system, and explosives. The shape of the torpedo is such that it caters to travelling long distances at a rapid pace. Recent advances in this product have allowed flexible applications, including control of depth and direction through preset plans. The massive investments in the research and development of torpedo are consequential to the increasing Military conflicts across the world. The growing military budget allocation will emerge in favor of the companies operating in the market in the coming years. The increasing number of company collaborations will provide impetus to the growth of the market.
Covid-19 Pandemic has Brought Manufacturing Units to a Halt and Subsequently Delayed Product Deliveries
The recent coronavirus outbreak has had a drastic impact on several Industries across the world. To curb the rapid spread of the disease, governments across all countries have advised people to avoid public gatherings and adopt social distancing practices. The aerospace and defense sector is among the worst-hit sectors across the world due to the ongoing coronavirus pandemic. As a result, manufacturing units and similar businesses have been compared to shut down either temporary or permanently. The shutdowns in manufacturing units have directly affected deliveries across the torpedo sector. As a result the covid-19 pandemic will affect the growth of the torpedo market in the immediate future.
Browse Summary of this Report:
Company Collaborations are an Increasing Trend Among Major Businesses
The report encompasses several factors that have contributed to the growth of the overall market in recent years. According to the increasing demand for defense organizations are looking to enter into long-term contracts with manufacturers in the torpedo market. Among all factors, the increasing number of company collaborations has made the highest impact on the growth of the market in recent years. In June 2019, Bharat Dynamics Limited announced that it has signed a new contract with Indian Navy. The contract is said to be worth a whopping USD 169.8 million. Through this contact, the company will work towards developing a new heavyweight torpedo. The ‘Varunastra’ will be used by the Indian Navy for advanced naval operations. Increasing number of search company collaborations will have a massive impact on the growth of the global torpedoes market in the coming years.
North America to Emerge Dominant; Increasing Defense Budget Allocations to Bode well for Market Growth
The report analyzes the ongoing market Trends across five major regions. Among all regions, the market in North America is expected to hold the largest market share in the coming years. The increasing number of torpedoes procured by the US Navy in the past few years has had a huge impact on the growth of the market. The rising investments in defense tools as well as explosives will bode well for the growth of the regional market. Additionally, the presence of several large scale companies in this region will also emerge in favor of market growth. As of 2019, the market in North America was worth USD 258.1 million and this value is projected to rise at a considerable pace in the coming years.
List of companies profiled in the report:
- ASELSAN AS (Ankara, Turkey)
- Atlas Elektronik GmbH (Bremen, Germany)
- BAE Systems PLC (Farnborough, the U.K.)
- Bharat Dynamics Limited (India)
- Honeywell International Inc.(Charlotte, the U.S.)
- Leonardo S.P.A. (Italy)
- Lockheed Martin Corporation (Bethesda, the U.S.)
- Naval Group (Paris, France)
- Northrop Grumman Corporation (Falls Church, the U.S.)
- Raytheon Technologies Corporation (Farmington, the U.S.)
- Rosoboronexport (Moscow, Russia)
- Saab AB (Sweden)
- Sechan Electronics Inc. (Pennsylvania, the U.S.)
- Other Players
July 2020 –Raytheon Technologies Corporation announced that it has aged a contract from the US Navy. The contract is said to be worth USD 88 million and is aimed at modifying MK54 lightweight torpedoes with new spare components to make it more efficient to track and attack underwater targets