According to a market research report published by the consulting firm MarkNtel Advisors, the global nuclear powered naval vessels market is expected to grow from USD 24.6 billion in 2024 to USD 33.92 billion by 2030.
This forecast reflects a compound annual growth rate (CAGR) of 5.50% between 2025 and 2030. The report attributes this projected growth to rising geopolitical tensions, government investments in maritime defense, and the modernization of aging naval fleets.
Nuclear-powered submarines, particularly submerged vessels, are cited as the most in-demand category, accounting for more than 55% of the market share.
In terms of reactor types, pressurized water reactors (PWRs) dominate with an estimated 80% share, due to their compact design and operational reliability.
Government initiatives contributing to market expansion include Australia's USD 170 million Submarine Industry Strategy (2025), France's SNLE3G ballistic missile submarine development program (2024), and India’s Project 77 (2024) aimed at producing six nuclear-powered attack submarines.
North America leads the market with an estimated 40% regional share, supported by the U.S. Navy's fleet of approximately 70 nuclear-powered vessels and a 2025 U.S. defense budget of USD 890 billion.
Key companies listed in the report include General Dynamics Electric Boat, Huntington Ingalls Industries, BAE Systems, Naval Group, China State Shipbuilding Corporation, Austal Ltd., Babcock International Group, BWX Technologies, Kongsberg Gruppen ASA, Thales Group, Rosatom, United Shipbuilding Corporation, Kawasaki Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Mitsubishi Heavy Industries.
The report identifies key opportunities in public-private partnerships and the use of artificial intelligence in vessel systems, while challenges include high capital costs and long production timelines—ranging from 10 to 15 years per unit.
General Dynamics Electric Boat is a wholly owned subsidiary of General Dynamics Corporation, Electric Boat is a U.S.-based shipbuilder headquartered in Groton, Connecticut. It is the primary designer and builder of nuclear submarines for the U.S. Navy and was the original manufacturer of the first nuclear submarine, USS Nautilus.
Headquartered in Virginia, Huntington Ingalls Industries is the largest military shipbuilding company in the United States. It was formerly part of Northrop Grumman before becoming an independent company in 2011. It operates the Newport News Shipbuilding division, the sole builder of U.S. Navy aircraft carriers.
BAE Systems plc is a British multinational defense, security, and aerospace company headquartered in London, United Kingdom. It plays a key role in the UK’s submarine programs and develops advanced technologies for autonomous naval systems.
Naval Group is a French state-owned defense contractor specializing in naval-based defense solutions.
China State Shipbuilding Corporation (CSSC) is a Chinese state-owned shipbuilding conglomerate headquartered in Beijing. It oversees the construction of naval vessels for the People's Liberation Army Navy, including both conventional and nuclear submarines.
Thales Group is a French multinational company that designs and builds electrical systems and provides services for the aerospace, defense, transportation, and security markets.