Undersea Warfare Systems Global Market Report 2025

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp increase in U.S. tariffs and resulting trade disputes in spring 2025 are significantly affecting the aerospace and defense sector. Prices for key materials such as titanium, carbon fiber composites, and avionics primarily sourced from international suppliers have surged. Defense contractors, constrained by fixed-price government contracts, are forced to absorb these rising costs. Meanwhile, commercial aerospace companies are encountering resistance from airlines over increased aircraft prices. In addition, customs delays are disrupting already tight production timelines for jets and satellites. In response, the industry is stockpiling essential materials, pursuing import waivers for defense-related goods, and working with allied nations to diversify supply chains.

The undersea warfare systems market research report is one of a series of new reports from The Business Research Company 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 size has grown strongly in recent years. It will grow from $20 billion in 2024 to $21.14 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. 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 $27.13 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. 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 forecast of 6.4% growth over the next five years indicates a slight reduction of 0.1% from the previous projection for this market.This marginal decrease is influenced by ongoing tariff-related uncertainties between the U.S. and its trade partners.This is likely to directly affect the US through supply chain disruptions for fiber-optic towed arrays, sourced from key regions such as the UK, Norway, and Japan, which could impair submarine detection capabilities.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

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 $2,240 billion 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.

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.

Undersea Warfare Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on undersea warfare systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for undersea warfare systems? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The undersea warfare systems market global report from the Business Research Company answers all these questions and many more.

The 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 market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Communication And Surveillance Systems; Sensors And Computation Systems; Countermeasure Systems And Payload; Unmanned Underwater Vehicles; Weapon Systems
• 2) By Mode of Operation: Manned Operations; Autonomous Operations; Remotely Operations
• 3) By End-User: Navy; Air Force; Army
• Subsegments:
• 1) By Communication And Surveillance Systems: Acoustic Communication Systems; Data Link Systems; Surveillance Sonar Systems
• 2) By Sensors And Computation Systems: Sonar Sensors; Electronic Support Measures (ESM); Decision Support Systems
• 3) By Countermeasure Systems And Payload: Torpedoes; Decoys; Electronic Countermeasures (ECM)
• 4) By Unmanned Underwater Vehicles (UUVs): Autonomous Underwater Vehicles (AUVs); Remotely Operated Vehicles (ROVs)
• 5) By Weapon Systems: Torpedo Systems; Anti-Submarine Warfare (ASW) Systems; Mine Warfare Systems
• Companies Mentioned: 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.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Italy; Spain; Canada
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.