Submarine Battery Market Analysis & Forecast: 2025-2032

Submarine Battery Market Share Size and Forecast – 2025 to 2032

Submarine Battery Market is estimated to be valued at USD 1,233.6 Mn in 2025 and is expected to reach USD 1,842.7 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 5.9% from 2025 to 2032.

Key Takeaways

• Based on Battery Type, the Lead Acid Battery segment acquired the most prominent share in 2025 and is expected to retain its dominance over the forecast period 2025-2032 on account of its affordability. ​
• On the basis of the Application, the market is bifurcated into Military and Civilian. The growth of these batteries in military is driven by the increasing defense expenditure.
• Based on Region, North America acquired the largest share in the submarine battery market in 2025 and is expected to retain its dominance over the forecast period owing to growing marine industry.

Market Overview

A submarine is a watercraft, which is used for various commercial and military applications. In submarines, a battery plays a major role in its smooth running. For power supply, submarines are equipped with a diesel engine that burns fuel or nuclear reactors that use nuclear fusion, which helps charge its batteries. The rising demand for unmanned underwater vehicles is driving the market growth. The increasing applications of submarines, such as commercial use, research, air crash investigation, naval use like intelligence, surveillance, and reconnaissance, mine countermeasures, anti-submarine warfare, inspection/identification, etc., have accelerated the global submarine battery market growth. Moreover, increasing investments for the production of submarines are supporting the growth of the global submarine battery market.

Current Events and Their Impact on the Market

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Segmental Analysis 

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Submarine Battery Market Insights, by Battery Type: Lead-Acid Batteries contribute the highest share of the market owing to their proven reliability and established infrastructure

Lead-acid batteries will continue their leading position in submarine battery market in 2025. The successful use of lead-acid batteries dates back to naval operations because these batteries demonstrate excellent safety performance and affordable costs combined with easy availability. These batteries serve military submarines and civilian models alongside each other specifically for duties lasting from short to medium durations and having no need for extended endurance.

Many naval forces choose to keep using lead-acid systems because their basic maintenance methods combined with tested performance under stress conditions and efficient recycling capabilities. Lithium-ion systems with heightened energy capacity and reduced servicing needs continue to increase their market share and might establish new industry leadership in upcoming years.

Submarine Battery Market Insights, by Application: Military Submarines Drives the Market Growth Owing to the Rising Defense Budgets

The submarine battery market experienced dominance through military submarines in 2025. The market demand continues to rise because of intensifying geopolitical conflicts together with national security objectives and expanded naval warfare funding from developed as well as developing countries.

Various governments across different nations have designated submarine fleet modernization as their key priority. Two primary submarine programs in India and the United States are accelerating the purchase of advanced battery systems to power missions from surveillance to nuclear deterrence under their Project-75 Alpha and Columbia-class Virginia-class submarine programs. The growing use of UUVs for reconnaissance together with mine countermeasure roles continues to drive the market expansion. For instance, in October 2024, the Indian Navy unveiled its fourth indigenously developed nuclear-powered ballistic missile (SSBN) submarine at the Ship Building Centre (SBC) in Visakhapatnam, aiming to enhance its nuclear deterrence against potential adversaries.

Export-Import Analysis of the Submarine Battery Market

According to Coherent Market Insights, India shipped 4 submarine battery exports between July 2023 and June 2024 (TTM), with 3 Indian exporters selling to 4 buyers. This represents a 99% decline compared to the previous year.

In June 2024, India exported 1 Submarine Battery shipment, reflecting a 1% year-on-year increase compared to June 2023 and a 1% sequential rise from May 2024. On a global scale, the leading exporters of Submarine Batteries are China, India, and Vietnam. China tops the list with 800 shipments, followed by India with 585 shipments, and Vietnam in third place with 171 shipments.

Trade Policy Influences

• The flow of submarine battery technologies between countries faces boundaries due to ITAR (International Traffic in Arms Regulations) requirements in the U.S. and dual-use export control systems within the EU. Relevant government policies often cause approval delays and enforce restrictions on submarine battery technology exports to countries outside alliances.
• New imports regulations in major importing nations now force international suppliers to execute joint ventures or establish domestic facilities which changes conventional importing approaches.

Regional Insights

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North America Submarine Battery Market Trends

The submarine battery market in North America holds the top position in worldwide submarine battery market operations during 2025 and will continue doing so until the end of the forecast period. Due to their defensive programs and ship upgrades combined with advances in technologies like Thin Plate Pure Lead (TPPL) and lithium-ion batteries the United States and Canada jointly dominate the regional market growth.

EnerSys achieved a USD 91.8 million contract with the U.S. Navy during 2023 to deliver TPPL batteries for all four classes of nuclear submarines thus securing the region's technical supremacy. The National Defense Authorization Act (NDAA) provides substantial funding to submarine production and retrofitting which makes North America maintain its top market position.

Asia Pacific Submarine Battery Market Trends

The Asia Pacific submarine market is seeing rapid growth due to rising defense budgets and strategic naval developments. Countries like China, India, and Japan are modernizing and expanding their submarine fleets. For instance, China has significantly increased its production of nuclear-powered submarines, while India launched its fourth indigenously built SSBN submarine in October 2024. Additionally, Japan is focusing on advanced conventional submarines, such as the Soryu-class, to enhance its regional security. The growing emphasis on undersea warfare capabilities, along with geopolitical tensions in the South China Sea, continues to drive the demand for advanced submarines in the region.

Europe Submarine Battery Market Trends

The European submarine battery market is evolving with a focus on advanced lithium-ion (Li-ion) technologies to enhance operational capabilities. In December 2024, Fincantieri's subsidiary, Power4Future, completed final testing of a Li-ion battery system for Italy's U212 Near Future Submarines, aiming to replace traditional lead-acid batteries with safer, longer-lasting alternatives. Similarly, Germany's Thyssenkrupp Marine Systems is developing its own Li-ion batteries for the Type 212A submarines, targeting improved performance and safety. These advancements are part of a broader trend in Europe towards adopting high-energy-density batteries and air-independent propulsion systems to extend underwater endurance and reduce detection risks

China Submarine Battery Market Trends

China is actively working to upgrade its conventional submarine fleet by replacing traditional lead-acid batteries with lithium-ion technology. This transition aims to enhance underwater endurance, improve acceleration, and create additional space for weaponry.​

Historically, the Chinese Navy expressed concerns about lithium-ion batteries' safety, particularly regarding fire or explosion risks. However, recent advancements in China's electric vehicle industry have led to technical solutions that mitigate these risks, making lithium-ion batteries a viable option for submarine applications.​

End-user Feedback and Unmet Needs

• Enhanced Battery Life and Energy Efficiency: Submarine operators often express the need for longer-lasting, more energy-efficient batteries. Submarines are expected to operate for extended periods underwater, so the development of advanced, high-capacity batteries is critical to reducing reliance on surface charging and increasing operational range.
  • Example: In January 2025, L3Harris delivered its first batch of autonomous undersea vehicles (AUVs) with lithium-ion PPR batteries, approved for U.S. submarines. These batteries power the Iver4 900 AUV, allowing it to carry out multiple missions with minimal space in the torpedo room.
• Autonomous and AI Integration: There is an unmet need for increased integration of autonomous systems and artificial intelligence (AI) for better navigation, mission planning, and threat detection. Autonomous capabilities can also help reduce crew fatigue and improve operational efficiency.
  • Example: In March 2025, MSubs, a British unmanned systems company, introduced the UK Royal Navy's upcoming Extra Large Autonomous Underwater Vehicle (XLAUV). This submarine can cover around 1,000 miles (1,609 kilometers) on a single mission and has a five-day endurance. It is also designed to support additional capacity and power if needed. This achievement is a key part of the "Cetus Project" in London, aimed at creating a crewless submarine fleet to boost the military’s capabilities in modern underwater warfare.

Global Submarine Battery Market Trends

Rising Need for Naval Submarines:

 The market is expanding due to the rising need for naval submarines that can fire ballistic missiles, conduct rescue missions, and house nuclear weapons. For instance, the Indian defense program under Project-75 Alpha functions as a strategy to build six nuclear-powered attack submarines (SSNs) while the Strategic Forces Command operates Arihant-class nuclear-powered ballistic missile submarines (SSBNs) for strategic missions across worldwide waters. Additionally, there is a growing need for Unmanned Underwater Vehicles (UUVs) to offer precise images below the surface for intelligence collection, mine hunting, scientific investigation, and ship hull inspection. In addition to the expanding military and defence industries, these present investors in the industry have enormous expansion opportunities. In addition, various governments invest in the military to build nuclear-powered attack submarines, thus boosting the market expansion.

Transition Towards Lithium-Ion Technologies

The admission of lithium-ion technology marks a significant market trend in submarine batteries because this technology delivers improved weight-to-power performance alongside better operation in harsh conditions while requiring minimal upkeep. Saft Groupe S.A. with Exide Technologies, along with other defense contractors, work on creating high-energy-density submarine battery systems. Improved battery modularity and cooling systems, joined with enhanced safety features, enable the next-generation lithium batteries to avoid former safety problems. For instance, in November 2024, L3Harris teamed up with the U.S. Navy to apply the Navy's fault-tolerant Li-ion PPR battery pack technology to power Iver4 900 AUVs used on U.S. submarines.

Global Submarine Battery Market Challenges: Possibility of Explosion and Recycling of Batteries

The possibility of explosion posed by the presence of liquid electrolyte is a limitation for the global submarine battery market. The growing worries regarding the recycling of lead-acid batteries may limit the growth of the global submarine battery market. In the global submarine battery market, the possibility of battery explosions and the need for battery recycling are counterbalanced by various measures. Stringent safety standards and regulations are implemented to minimize the risk of explosions. Manufacturers adhere to these standards, ensuring that submarine batteries are designed, manufactured, and tested to meet rigorous safety requirements. Advanced battery management systems (BMS) play a crucial role in monitoring and controlling battery operations, incorporating safety features to prevent hazardous conditions. Ongoing research and development efforts focus on developing safer battery chemistries and materials, exploring alternative technologies that offer enhanced safety profiles.

Global Submarine Battery Market Opportunities: Growing Investments in Military

The escalating investment by emerging nations in their militaries is one of the key factors propelling the submarine battery market growth. Furthermore, the government has also increased its funds in the defense sector. For instance, in April 2025, Kazakhstan announced to allocate around USD 265 million to strengthen its defense industry through the Defence Industry Development Fund. Various maritime operations will also get support owing to the ongoing technological advancements related to developing durable and efficient batteries.

Global Submarine Battery Market- Drivers

Increased government spending on the defense sector

An increased government defense budget is the main factor driving the global submarine battery market growth. For instance, India's Ministry of Defense (MoD) has revealed a 9.53% increase in its defense budget for the 2025-2026 fiscal year. One of the main drivers fueling the market growth is the demand for unmanned underwater vehicles. To operate equipment and other internal systems in the submarine, electrical energy is needed. Governments are allocating more funds to modernize their naval fleets, including the development and procurement of submarines equipped with advanced technologies for defense and strategic purposes. Submarines play a critical role in national security, particularly in maintaining deterrence and securing maritime borders. This focus on military enhancement, especially in countries like the U.S., China, India, and Russia, is driving the submarine market forward.

Analyst Opinion (Expert Opinion)

• The Submarine Battery Market is undergoing a pivotal transformation, primarily driven by technological advancements and escalating defense expenditures.
• The increase in global defense budgets, particularly in North America and Asia-Pacific regions, is fueling the demand for advanced submarine batteries. For instance, the U.S. National Defense Authorization Act has allocated substantial funds towards the modernization of naval fleets, including the integration of cutting-edge battery technologies. This financial commitment underscores the strategic importance of submarines in modern naval warfare and the critical role of efficient energy storage systems.​
• The Japanese Navy's success with lithium-ion batteries marks a critical milestone in submarine technology, with early estimates suggesting up to a 40% improvement in underwater endurance benchmarks. This innovation is poised to push global competitors to accelerate their own R&D efforts in submarine battery technology.

Market Segmentation

• By Battery Type
  • Lithium-ion Battery
  • Lead Acid Battery
  • Others
• By Application
  • Military
  • Civilian
• By Region:
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East 
  • Africa
• Company Profiles:
  • EnerSys
  • EverExceed Corporation
  • Exide Industries
  • Exide Technologies
  • GS Yuasa Corporation
  • HBL Power Systems Limited
  • Korea Special Battery Co., Ltd.
  • Sunlight Systems S.A
  • Zibo Torch Energy Co., Ltd.

Sources:

Primary Research Interviews:

Stakeholders:

• Submarine OEMs and Defense Contractors
• Battery Manufacturers and Suppliers
• Naval Technology Experts and Marine Engineers
• Defense Ministry Officials and Naval Research Institutes
• Energy Storage System Integrators
• ESG Consultants and Green Energy Specialists

Databases:

• Naval Vessel Register (NVR)
• SIPRI Arms Transfers Database
• U.S. Energy Information Administration (EIA)
• OECD Statistics
• GlobalData Defense Intelligence

Magazines:

• Naval Technology
• Marine Electronics Journal
• Defense & Security Systems International
• Recharge News (for battery and energy tech)

Journals:

• Journal of Power Sources
• Energy Storage Materials
• Journal of Electrochemical Energy Conversion and Storage
• Naval Engineers Journal

Newspapers:

• Jane’s Defence Weekly
• Defense News
• The Maritime Executive
• The Hindu BusinessLine (for Indian Navy and indigenous defense initiatives)

Associations:

• International Battery Materials Association (IBA)
• International Maritime Organization (IMO)
• U.S. Naval Institute
• European Defence Agency (EDA)
• Society of Naval Architects and Marine Engineers (SNAME)

Public Domain Sources:

• United Nations Conference on Trade and Development (UNCTAD)
• EUROSTAT
• World Bank
• ResearchGate
• Indian Ministry of Defence and U.S. DoD publications

Proprietary Elements:

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years