Underwater Warfare Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Underwater Warfare Market

• The annual demand for underwater warfare was USD 4.28 billion in 2024 and is expected to reach USD 4.69 billion in 2025, up 9.6% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the underwater warfare market is expected to grow at a CAGR of 10.40%. The annual demand will reach of USD 8.69 billion in 2032.
• During 2025-2032, the underwater warfare industry is expected to generate a cumulative sales opportunity of USD 52.27 billion.

High-Growth Market Segments:

• Europe region accounted for the largest share of the underwater warfare market.
• By System type, Unmanned systems segment is anticipated to have the highest CAGR during the forecast period.
• By Platform type, Surface Ships segment is expected to dominate the market with the largest share during the forecast period.
• By Capability type, Protect segment is expected to be the fastest-growing segment during the forecast period.

Market Statistics

Have a look at the sales opportunities presented by the underwater warfare market in terms of growth and market forecast.

Market Dynamics

Introduction:

What is an underwater warfare?

Underwater warfare refers to military operations conducted beneath the surface of the sea, involving submarines, unmanned underwater vehicles (UUVs), mines, and sonar-based detection systems. It plays a critical role in naval defense strategies, focusing on stealth, surveillance, and the disruption of enemy vessels, communications, and maritime infrastructure.

Market Drivers:

Development and Deployment of Advanced Sonar Technologies

• The development and deployment of advanced sonar technologies is a major growth driver for the underwater warfare market. The integration of autonomous underwater vehicles (AUVs) and unmanned underwater vehicles (UUVs) with advanced sensors and sonar technologies enhances underwater surveillance, enabling improved detection, tracking, and monitoring of submarine activities in increasingly complex maritime environments.
• As nations prioritize maritime security, investments in stealth, AI-driven analytics, and next-gen submarine technologies are accelerating, making sonar innovation critical to modern underwater defense operations.

Market Challenges:

High Cost of Underwater Warfare Technologies

• The high cost of underwater warfare technologies significantly hampers market growth. These systems are expensive to develop and maintain due to the use of specialized materials and technologies designed to withstand extreme underwater conditions.
• Additional expenses such as routine maintenance, personnel training, cybersecurity measures, and ongoing technological upgrades further raise operational costs.
•  High-cost platforms like submarines and naval ships make adoption difficult for countries with limited defense budgets, thereby restraining market expansion.

Segment Analysis

By System Type 

“Unmanned systems segment is anticipated to have the highest CAGR during the forecast period.”

• The underwater warfare market is segmented by system type into sonar, electronic warfare, weapons, communications, and unmanned.
• Unmanned systems segment is anticipated to have the highest CAGR during the forecast period, driven by the rising need for continuous underwater monitoring, safer mission execution, and more affordable operational solutions.
• Unmanned underwater vehicles (UUVs) equipped with advanced sonar, sensors, and autonomy enhance detection, reconnaissance, and threat neutralization, making them ideal for complex and high-risk missions without endangering human operators.

By Platform Type

“Surface Ships segment is expected to dominate the market with the largest share during the forecast period.”

• The underwater warfare market is segmented by platform into submarine, surface ships, and naval helicopter.
• Surface Ships segment is expected to dominate the market with the largest share during the forecast period, due to their critical role in naval operations, including surveillance, anti-submarine warfare, and maritime security.
• Moreover, they are essential in modern naval operations because they can carry advanced sonar systems, launch unmanned underwater vehicles, and perform multiple missions, making them a valuable asset for maritime defense.

Regional Analysis 

“Europe region accounted for the largest share of the underwater warfare market.”

• In terms of region, the underwater warfare market is segmented into the North American region, the European region, the Asia-Pacific region, and the rest of the world.
• Europe region accounted for the largest share of the underwater warfare market, due to strong naval modernization initiatives and  significant investments in advanced technologies.
• The UK, in particular, is advancing underwater capabilities through AI integration and cyber-secure platforms. These strategic developments are driving regional dominance in underwater defense systems and platforms.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the underwater warfare market -  

• General Dynamics Corporation
• BAE Systems plc
• Elbit Systems Ltd
• Saab AB
• Naval Group
• Huntington Ingalls Industries
• Northrop Grumman Corporation
• Raytheon Technologies
• Thales
• L3Harris Technologies

Note: The above list does not necessarily include all the top players in the market.

Are you a leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions: 

• In April 2025, Thales Australia and Saildrone successfully integrated the BlueSentry thin-line towed sonar array into the Surveyor-class USV. During a 26-day mission off the U.S. coast, the system demonstrated high-performance underwater surveillance, marking a breakthrough in autonomous maritime defense capabilities. 

• In January 2025, Lockheed Martin Rotary and Mission Systems was awarded a $502 million IDIQ contract by the U.S. Navy to enhance its Surface Ship Undersea Warfare combat systems, including associated spares, engineering support, and testing services, reinforcing advanced naval ASW capabilities.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The underwater warfare market is segmented into the following categories. 

Underwater Warfare Market, by System Type

• Sonar
• Electronic Warfare
• Weapons
• Communications
• Unmanned

Underwater Warfare Market, by Platform Type

• Submarine
• Surface Ships
• Naval Helicopter

Underwater Warfare Market, by Capability Type

• Attack
• Protect
• Support

Underwater Warfare Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s underwater warfare market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]