Underwater Warfare Market
Report ID: SQMIG20A2505
Report ID: SQMIG20A2505
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Report ID:
SQMIG20A2505 |
Region:
Global |
Published Date: January, 2026
Pages:
179
|Tables:
122
|Figures:
70
Global Underwater Warfare Market size was valued at USD 2.98 Billion in 2024 and is poised to grow from USD 3.16 Billion in 2025 to USD 5.16 Billion by 2033, growing at a CAGR of 6.3% during the forecast period (2026–2033).
As financing for navy modernization continues to grow globally, the underwater warfare market growth reaches the expansion stage globally as well. The funds are mostly allocated to sensor upgrades, submarine purchases, and hull construction in response to increasing global defense spending with particular emphasis to maritime programs. Increased orders with regards to sonar suites, torpedoes, and combat system upgrades draw closer; NATO allies and partners in the Indo-Pacific are generally in the same fleet-recapitalization cycles. Together with these budget increases towards stable multi-year procurement, the underwater warfare industry is also protected from cyclical changes.
Besides, submarine proliferation is the factor that brings into play contested littorals. The fleet's growth was such that over 60 hulls were in service and included 12 attack boats, nuclear-powered. The Indo-Pacific navies went on making counterinvestments. In addition, minor countries such as North Korea, which is estimated to have 70 boats, and Iran that has coast-minisubs, resort to diesel-electric technologies to threaten chokepoints. Advances in quieting techniques and air-independent propulsion have enabled diesel boats to claim comparable acoustic stealth against nuclear boats with in-shallow littorals, during the most demanding conditions. This implies a considerable expense that comes with upgrading the sensors on patrol units. In addition, there is an increased need for quick-response torpedoes that work well in noisy conditions, helicopter-dipping sonars, and persistent surveillance platforms due to the emerging tension in the region.
How Is AI Integration Improving Decision-Making in Underwater Missions?
With artificial intelligence (AI), the global underwater warfare market outlook is revolutionized by making the target location easier, navigation, and chores all by itself. For example, real-time detection of threatening factors can be done while ensuring that AI-powered sonar and data analytics keep all these matters hidden. The Orca Extra-Large Unmanned Undersea Vehicle (XLUUV) of the U.S. Navy is upgraded using AI algorithms in 2024 to improve the system under underwater warfare conditions rendering autonomous decision making. Testing by Saab and NATO in 2025 shows that AI is coupled with underwater drones as they could foresee upcoming threats and can make their own routes, being one further bright spot in the development of autonomous underwater fighting capabilities.
Market snapshot - 2026-2033
Global Market Size
USD 24.31 Billion
Largest Segment
Manned Operations
Fastest Growth
Autonomous Operations
Growth Rate
7.0% CAGR
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Global Underwater Warfare Market is segmented by System, Platform, Capability, Application, Technology, End User and region. Based on System, the market is segmented into Submarines, Unmanned Underwater Vehicles, Torpedoes, Mines and Mine Countermeasures, Sonar Systems, Anti Submarine Weapons and Electronic Warfare Systems. Based on Platform, the market is segmented into Surface Ships, Submarines, Aircraft, Unmanned Platforms and Coastal Defense Systems. Based on Capability, the market is segmented into Detection, Tracking, Engagement, Navigation and Communication. Based on Application, the market is segmented into Defense, Homeland Security, Intelligence Surveillance Reconnaissance and Naval Warfare Operations. Based on Technology, the market is segmented into Acoustic Systems, Magnetic Systems, Pressure Based Systems, Optical Underwater Systems and Autonomous Navigation Technologies. Based on End User, the market is segmented into Navy, Coast Guard and Special Operations Forces. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the 2024 underwater warfare market analysis, the submarines segment dominated the market, which undertook stealth, durability, and versatility operations. Next-generation attack submarines that use AI-based sonar and missile systems are high investments from countries like the US, China, and Russia. For instance, in 2024, the US Navy extended its Virginia-class program to offer more enhanced undersea strikes and intelligence capabilities to address the ongoing rising maritime threats.
However, the unmanned systems category is expected to have the highest underwater warfare market share as developing technology has led to developing AI and autonomous navigation. By 2025, the U.K. Unmanned Underwater Vehicles (UUVs) entered extensive testing through the Royal Navy to use in mine countermeasure and surveillance tasks. This indicated how globally important low-cost, low-risk defense technologies are.
As per the underwater warfare market forecast, the manned operations sector dominated the market, as there arose an incessant requirement for crewed submarines and naval vessels doing complex missions. Moreover, the Indian Navy inducted advanced Scorpène-class submarines with human-machine interfaces being integrated in 2024. It proved that manned systems are still preferred for high-risk missions and tactical leadership.
Whereas the autonomous operations category would be the fastest-growing segment going right up to 2025 because of the ongoing infusion of AI and machine learning in operations. For instance, in 2025, Kongsberg Group of Norway demonstrated long-range autonomous underwater drones capable of monitoring vast distances without the aid of humans. It is shown that we are making strides towards autonomous next-generation underwater defense systems.
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As per the underwater warfare market regional forecast, considering the submarine world, North America is certainly attributed to the United States and the growing American naval expansion and development of unmanned undersea vehicles (UUV) by US NAVY partner countries. The US Navy progressed its Orca XLUUV program in 2024, seeking system integration and stand-alone operations. The next growth area is currently being seen in the AI-based detection and control systems area forwarded by Lockheed Martin and General Dynamics. There is concerted hope to strengthen the deep-sea surveillance and maritime deterrence capabilities here.
The US is taking the right steps to keep up with the rest of the world because of the advancements that are constantly taking place in the diesel-electric submarines and UUVs areas. The US Navy started the sea trials of the Orca XLUUV in mid-2024 to further develop its Virginia-class attack submarines. The U.S. Navy is currently aiming to increase the size of autonomous undersea systems right through 2025 and find some way to augment the capability of manned platforms to track and fight submarines and gather more intelligence.
Canada is bidding intensively to expand underwater capabilities in defense. The existing Victoria-class submarines will, for that matter, be replaced with new ones through the initiation of the Canadian Patrol Submarine Project, which just opened in July 2024; the government has asked the Canadian companies/suppliers to tender. The initiative revolves around enhancing Arctic surveillance and sovereignty on disputed northern waters. This surely tells for Canada's commitment to enhancing its long-term underwater security by responsibly investing in sonar and propulsion technologies-the latter enabled through domestic shipbuilders and international collaboration.
The underwater warfare industry in Europe is changing rapidly as nations all over the continent work toward developing submarines and use advanced technologies. In December 2024, Germany and Norway progressed the Type 212CD submarine program. The two countries are concentrating on batteries and low noise criteria. Their other endeavors included production and operation of underwater drones capable of autonomously detecting and neutralizing mines. The success of such programs is a harbinger of Europe's interest in finding common defense and developing new underwater capabilities for partner nations in NATO.
The United Kingdom is fostering its maritime superiority under decentralized underwater autonomy and others in actual warfare. In the beginning of 2025, the Royal Navy took AUVs up in size and used them for countermining and reconnaissance tests. The development of this system is seen as a bridge to expand and improve operations in complete autonomy-the United Kingdom is already working on enhancing the astute-class submarines with an autonomous weapon. It was an expression of proceeding with the strategy to enhance maritime superiority into further areas and across multiple tasks.
France keeps bringing in autonomous tech for underwater defense modernization. Thales delivered the first batch of mine-countermeasure drones to the French Navy towards the end of 2024. Collaboration with NATO concerning the coastline was highly recommended. It was with this military incursion that France established itself as a European leader in underwater warfare, simultaneously investing in deep-sea surveillance to progressively implant itself in the Atlantic and Indico Pacific regions.
Germany is now in the upgrading of submarines for the collective defense-a promising underwater warfare arena together with partner nations. A further funding package for Block 3 Type 212CD submarines is precisely identified in the bill, authorized by the Bundestag in December 2024 and financed with Norway. With the subsurface challenges on the emergent front in the European seas, Germany is concentrated around coming out with enhanced propulsion, highly accurate sonar detection, and NATO interoperability. The long periods during which fuel-cell submarines have been able to remain undetected are very well documented.
The underwater combat investment is rapidly growing in the Asia Pacific as maritime security issues increase. All Chinese, Japanese-the US, and India-not only bought new submarines but also are thinking of pouring resources into autonomous systems in 2024. ASEAN, a group in the making for maritime security, can be examined if such acts, by nature, are to confirm the necessity to enhance multi-platform capacity for potential war preparations, such as cooperative anti-submarine warfare drills. However, as the UUVs are evolving rapidly in terms of AI, a geopolitical push is now felt toward strategic maritime location influencing maritime security in the region.
The Chinese continue their technological advancement in their underwater combat capabilities-due to the increasingly invested new technologies in upcoming submarines and other autonomous platforms. PLAN tested AI-operated UUVs for the long-distance patrols and introduced new Type-093B submarines in 2024. It might be that other upgrades, such as these submarines, were implemented to bode well for China's Western Pacific and South China Sea surveillance and deterrence capacities.
The policy of underwater warfare on which Japan is focused is on reform within the submarines and, of course, requires allied cooperation. Japan Maritime Self-Defense Force (JMSDF) accepted the Taigei-class submarine JS Jingei into service in March 2024. Its diesel-electric propulsion air-independent system is now powering its large lithium-ion-enriched batteries to increase its underwater-endurance power. Japan is otherwise working with the United States and Australia on AUVs to strengthen its capacity for maritime self-defense amidst the increasing forces acting against it in the Indo-Pacific.
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Modernising the Navy Away from Adversaries and Bringing on Strategic Purposes
Advances in Sensor and Autonomy Technologies
Inexorably High Costs of Development and Lifecycle
Complex Interoperability & Technical Integration Interoperability
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The underwater warfare market is ruled by large defense primes offering integrated platform solutions (guns, sonars, submarines) and system integrators giving lifecycle support. Some mid-tier specialists develop sensors, propulsion modules, and UUVs, whereas tech start-ups are very agile in the areas of AI, autonomy, and mission software. Complete integration, very low noise, and rapid software updates are now the competitive bases. Expect the rise of increased collaboration, prime-subcontractor collaborations, and targeted mergers and acquisitions to bring the tech stacks together and garner long-term sustainment contracts.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, underwater warfare market trends is undergoing a very crucial technological transformation. While the scope of operations is increasing rapidly under autonomy, sensors, and software, people are still investing in crewed submarines for high-end strikes and deterrence. Constant ISR and mine warfare require integrated, flexible systems with unmanned assets, minimal acoustic signatures, and very secure data fusion by a navigator. High costs and complex integration would slow certain acquisitions, but the overall demand will remain high due to consistent defense spending, allied interoperability initiatives, and even the increasing use of commercial technologies for military use. On top of that, if suppliers could ensure that their platform expertise would go with open architectures, software-defined payloads, and dependable maintenance schedules, they might find great success in years to come.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 2.98 Billion |
| Market size value in 2033 | USD 5.16 Billion |
| Growth Rate | 6.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Underwater Warfare Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Underwater Warfare Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Underwater Warfare Market:
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