Undersea warfare market
The undersea warfare market structure is changing. The highcost sector of the market is expanding as new unmanned vehicles, torpedoes and fire control systems are developed to replace older-generation equipment. Meanwhile, production of lowcost items like sonobuoys is declining as the need to chase submarine contracts fades.
The Pentagon’s budget request for unmanned maritime systems (including unmanned surface) research, development, testing, procurement, operations and maintenance is approximately $641 million for the 2011 to 2015 period.
With the end of the Cold War and diminished threat levels, the US Department of Defense (DoD) reduced its torpedo inventory requirements. Based on current threat projections, the department does not expect to require full production again for approximately 25 years when replacement torpedoes will be needed. Torpedo production capability is waning accordingly, and each of theprime manufacturers currently has excess torpedo production capacity.
Worldwide Torpedo Production
Torpedoes are purchased by almost all navies to support their military needs. In 1994, the value of worldwide torpedo production totalled $655 million, and it increased by almost 70 per cent in 2002. The increasing number of countries with diesel electric submarines and littoral warfare surface craft is increasing torpedo demand. Additionally, the need to upgrade older, primarily deepwater, torpedoes to improve their performance in shallow water increases demand in this market.
Current worldwide torpedo producers of both heavyweight and lightweight torpedoes include the United States, the United Kingdom, France, Germany, Italy, Sweden, the former Soviet Union, Japan, and China.