Undersea Warfare Systems Market Report 2025

This Undersea Warfare Systems report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The undersea warfare systems market size has grown strongly in recent years. It will grow from $20 billion in 2024 to $21.26 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to anti-submarine warfare (asw) development, naval modernization programs, electronic warfare (ew) capabilities, renewable energy infrastructure protection, environmental sensing and monitoring.

The undersea warfare systems market size is expected to see strong growth in the next few years. It will grow to $27.37 billion in 2029 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to emerging naval powers, undersea drone technology, multi-domain integration, undersea communication networks, maritime border security. Major trends in the forecast period include unmanned underwater vehicles (uuvs), advanced sonar and sensor technologies, integrated multinational operations, artificial intelligence (ai) in submarine warfare, enhanced stealth technologies.

The undersea warfare systems market is anticipated to experience growth in the future due to increasing tensions among nations resulting from rising wars and conflicts. War, defined as a violent conflict between nations or states, prompts the utilization of undersea warfare systems by armed forces to counter underwater threats, maintain control in war situations, and safeguard national security. For example, in July 2022, Ukraine's forces, as reported by the UK Ministry of Defence in the context of the Russia-Ukraine War, employed long-range artillery across the Dnipro River to target bridges, including two attacks on the Antonivskiy Bridge in Kherson. Consequently, the escalating tensions among nations are a driving force behind the growth of the undersea warfare systems market, fueled by the increasing number of underwater threats.

The growth of the undersea warfare systems market is expected to be propelled by the rise in military expenditure. Military expenditure denotes the financial resources allocated by governments or nations to fund their military forces, defense infrastructure, and related activities. Increased defense budgets enable the acquisition and upgrading of underwater warfare systems, such as submarines, torpedoes, sonar technology, and anti-submarine warfare equipment. In April 2023, according to the Stockholm International Peace Research Institute, global military expenditure reached a record high of $2.24 trillion in 2022, reflecting a 3.7% increase in real terms compared to the previous year. The top three spenders, the United States, China, and Russia, accounted for 56% of the world total, with the United States leading as the largest military spender with a budget of $877 billion, constituting 39% of the total global military spending. Consequently, the surge in military expenditure is a driving factor for the growth of the underwater warfare systems market.

A key trend gaining prominence in the undersea warfare systems market is technological advancement. Major companies in this sector are compelled to develop technologically advanced systems to expand their presence in new areas. For instance, in June 2022, Spear, an Israel-based unmanned aerial solution company, introduced the Ninox 103 drone equipped with an autonomous artificial intelligence-based system. Specifically designed for underwater and undetectable launches from a submarine, this drone features point-to-multipoint networking capabilities, offering a flight duration of up to 50 minutes and a communication range of 10 kilometers while flying at a velocity of 23 mph.

Companies operating in the undersea warfare systems market are increasingly focusing on introducing acoustic firing devices to gain a competitive edge. Acoustic firing devices utilize sound waves to trigger underwater explosives or weapons, commonly employed in naval mine warfare and anti-submarine warfare. For example, in September 2023, RTSYS, a France-based underwater acoustics and robotics company, unveiled SonaBlow, a novel underwater acoustic detonation tool enhancing the safety of mine warfare. Engineered for clearance divers, SonaBlow enables the safe and efficient neutralization of electrically activated underwater mines by transmitting an acoustic command from a surface communication module to the device. The device maintains secure communication over a horizontal range of 2 km, extendable to 5 km with a positioning and relay beacon, and operates effectively at depths of up to 300 meters with a designed operational lifespan of one week, while its surface communication module can operate autonomously for up to 25 hours.

In August 2022, Advent International, a US-based private equity firm, acquired Ultra Electronics for an undisclosed amount. This acquisition is intended to enhance Ultra Electronics' capabilities and broaden its presence in the defense and security markets. Ultra Electronics is a UK-based provider of underwater warfare systems.

Major companies operating in the undersea warfare systems market include BAE Systems plc, General Dynamics Corporation, Kongsberg Gruppen AS, L3Harris Technologies Inc., Leonardo S.p.A., Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation, Saab AB, Thales Group, ATLAS ELEKTRONIK GmbH, S.A. de Electronica Submarina, ECA Group, The Boeing Company, Ultra Electronics Holdings plc, Abeking & Rasmussen GmbH & Co. KG, Associated Electrical Industries Limited, Babcock International Group PLC, Bharat Electronics Limited, DRS Technologies Inc., Elbit Systems Ltd., Fincantieri S.p.A., Hydroid Inc., Israel Aerospace Industries Ltd., Kraken Robotics Inc., L3 OceanServer, Navantia S.A., Ocean Aero Inc., QinetiQ Group plc, Rafael Advanced Defense Systems Ltd., Safran Electronics & Defense, Sonardyne International Ltd.

North America was the largest region in the undersea warfare systems market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the global undersea warfare systems market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the undersea warfare systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Undersea warfare systems serve the purpose of defending against undersea threats posed by adversaries, contributing to the enhancement of a nation's security. These systems are typically employed in naval operations of a specific country to ensure security against potential adversaries. The undersea warfare arsenal encompasses antisubmarine, offensive and defensive submarine, and mine warfare systems, which collectively manage and safeguard the maritime borders by employing diverse and effective underwater weapons and systems.

The primary categories of undersea warfare systems include communication and surveillance systems, sensors and computation systems, countermeasure systems and payloads, unmanned underwater vehicles, and weapon systems. Communication and Surveillance systems within this framework oversee various communication channels, such as emails, phone calls, servers, and others, facilitating data exchange monitoring and threat assessment. The modes of operation encompass manned, autonomous, and remote operations. The diverse end-users of these systems span the navy, air force, and army.

The undersea warfare systems market research report is one of a series of new reports that provides undersea warfare systems market statistics, including undersea warfare systems industry global market size, regional shares, competitors with undersea warfare systems market share, detailed undersea warfare systems market segments, market trends and opportunities, and any further data you may need to thrive in the undersea warfare systems industry. This undersea warfare systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The undersea warfare systems market consists of sales of submarines, communication systems and mine warfare systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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