Forecast International's "The Market for Submarines," concludes that 64 percent of the vessels will be diesel-electric but they will only account for a projected 30.6 percent of the $106 billion in sub-building revenue.
The average value of the vessels will be about $960 million.
"Over the long term, constant shifts in the structure of construction costs and the steadily growing number of countries that are interested in nuclear-powered submarines mean that the average cost of submarines will continue to increase on an annual basis," said warships analyst and report author Stuart Slade.
Forecast International, Inc. is a leading provider of market intelligence and analysis in the areas of aerospace, defense, power systems and military electronics.
It said the submarine market is divided into three subsectors. The first is the market for ballistic missile submarines. There are 13 such submarines on order or under construction, representing 11.7 percent of the total market in terms of numbers but with a value of $26 billion, a 24.5 percent of the total value of the market.
The average unit cost of the SSBNs is $2 billion.
Projections in the second sector -- nuclear-powered attack submarines -- indicate sales of 27 such vessels, representing 24 percent of the total number and valued at $48.32 billion.
The SSN section represents 45.7 percent of the total funding for all submarines over the forecast period.
The third sector is diesel-electric submarines. From 2011-20, 71 of these boats will be built, representing 64 percent of the total, Forecast International said.