The Italian state-owned shipbuilder is aiming to lead the global underwater sector, capitalising on its expertise in submarine construction. With a projected $400 billion market by 2030, the company is responding to the growing demand from the US, UK, and Australia for submarine fleet renewals
Submarine ambition. The Italian state-owned shipbuilding company, Fincantieri, has set its sights on dominating the underwater sector.
- CEO Pierroberto Folgiero emphasised this as a key priority.
- The company, with a historic reputation for building over 180 submarines, forecasts that the global underwater market will be worth $400 billion by 2030.
- Drawing on its extensive legacy, Fincantieri is positioning itself to meet the growing demand from the United States, the United Kingdom, and Australia, all of which are investing billions to rebuild their submarine fleets following years of underfunding.
Russian activity. A recent article in Corriere della Sera highlights rising concerns regarding the growing presence of Russian submarines.
- Since Russia’s invasion of Ukraine, the activity of Russian submarines in the Mediterranean has been intensifying, while sightings of American submarines have become less frequent.
- The seabed is not only a strategic transit route but also hosts over 1.4 million kilometres of submarine cables, handling daily data and financial transactions worth $10 trillion.
- Additionally, over 320,000 kilometres of pipelines in the Mediterranean are crucial for Europe’s energy supply, making the region of particular importance to Italy.
The rise of underwater drones. Monitoring such critical infrastructures is both complex and costly.
- To address these challenges, international navies are increasingly incorporating unmanned and manned underwater drones into their fleets.
- These drones provide a cost-effective and efficient solution for tasks including maintenance, intelligence, defence, and, when necessary, offensive operations.
- Fincantieri, through its newly established National Underwater Hub in La Spezia, is developing advanced models of these drones, collaborating with the Italian Navy to expedite research and testing.
Technology first. CEO Folgiero cites software and artificial intelligence systems as the primary technological hurdle, prompting a recent visit to Silicon Valley to explore cutting-edge innovations.
- The return of Donald Trump to the US presidency could shift defence priorities, potentially impacting submarine fleet renewals and collaborations with allied nations.
- Last week, Folgiero announced Fincantieri’s willingness to engage with the German government regarding the sale of Thyssenkrupp Marine Systems (TKMS) after US investment firm Carlyle withdrew its interest.
Strategic partnerships. Domestically, Fincantieri has forged strategic partnerships with top players in the underwater sector.
- This includes Saipem, involved in the pipeline segment; Cabi Cattaneo, which supplies special equipment for Navy commandos; and WSense, a leader in underwater wireless communications technology and the Internet of Things.
- Fincantieri’s €65 million acquisition of Remazel further strengthens its capabilities in drone launch and recovery operations, underlining its commitment to becoming a leader in the sector.
