Unmanned Underwater Vehicles Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Unmanned Underwater Vehicles Market Analysis

The global unmanned underwater vehicles (UUVs) market generated USD 4,046.7 million revenue in 2023, and it is projected to witness a CAGR of 16.5% during 2024–2030, to reach USD 11,739.7 million by 2030. The major factors behind the growth of the market are the rising defense spending of countries worldwide and the growing demand for seafloor mapping data.

UUVs are widely used for search and rescue operations to locate and retrieve objects and individuals lost at sea. These vehicles can operate in harsh underwater environments and provide valuable assistance to maritime search and rescue teams.

For instance, in June 2023, Titan, a submersible for tourists operated in America, was lost in the North Atlantic Ocean during a visit to see the wreck of the Titanic. For the search and rescue operation of that submersible, an unmanned underwater robot was deployed from a Canadian ship to find the wreckage of the submersible.

UUVs play a significant role in naval warfare as they offer significant standoff and clandestine capabilities and have the ability to adapt intelligently to changes in tactical situations. Their onboard systems are capable of adapting to the mission plan and recognizing changes without the need for intervention by operators. Thus, the navy and other departments of defense in several countries are partnering with private players to conduct research and development (R&D) for next-generation UUVs.

For instance, in November 2023, Hanwha Systems Co., an air mobility and defense unit of Hanwha Group, announced that it would develop technology that would open the way for the development of extra-large unmanned underwater vehicles (XLUUVs).

Similarly, in March 2022, HII, a defense technologies provider, announced its advanced UUV, REMUS 300, which was picked for the Navy’s program of record.

Unmanned Underwater Vehicles Market Trends & Drivers

Introduction of Technologically Advanced UUVs Is a Key Market Trends

• A wide range of vehicle types and applications, as well as a number of creative approaches to boost the effectiveness of UUVs, have been developed.
• Battery technology, underwater communication, propulsion systems, and sensor fusion are all examples of components that have undergone technological advancements.
• UUVs equipped with advanced technologies can conduct underwater surveys for up to two days since the operators remain on the ground.
• For instance, the underwater vehicle Hugin by Kongsberg Gruppen ASA can operate for up to 100 hours due to its advanced battery technology.
• Such advancements in UUV technology can be viewed as a major trend in the unmanned underwater vehicles market.

Various Applications of UUVs Are Driving the Market

• Increasing applications of UUVs in every sector are driving the growth of the market. UUVs are widely used in intelligence, surveillance, and reconnaissance; mine countermeasures; anti-submarine warfare; inspection/identification; oceanography/hydrography; communication/navigation network nodes; payload delivery; influence activities; time critical strike; and other applications.
• The increasing usage of oil and gas is another prominent factor driving the market. The oil and gas industry has seen a groundbreaking movement with the adoption of UUVs; for instance, the utilization of these trends set innovation to improve subsea tasks, pipeline observation, and seaward investigation.
• As a basic part of business mechanical development, UUVs are instrumental in tending to key difficulties and accomplishing key goals.
• Subsea inspections are one of the key uses of UUVs in the oil and gas industry. Conventional techniques frequently include human jumpers or remotely worked vehicles (ROVs), which can be tedious, exorbitant, and present danger in testing submerged conditions.
• UUVs, furnished with cutting-edge sensors and imagine frameworks, offer additional productive and practical options. These vehicles are capable of navigating intricate pipelines, infrastructure, and complex subsea structures, and capturing high-resolution imagery and data for critical asset condition assessments.
• Pipeline monitoring is another essential viewpoint where UUVs assume a crucial part. Subsea pipelines are fundamental parts of seaward oil and gas infrastructure.

High Cost of Vehicle May Hinder the Market Growth

• Manufacturing and designing UUVs can be costly, especially for high-end models with advanced technology. Additionally, maintenance and repair expenses can be significant over the lifespan of the vehicle.
• Further, when the unmanned underwater vehicle is used, it creates some challenges, such as position uncertainty and noisy communication, and it may also lead to robot failures sometimes.
• Moreover, UUV information and data face various challenges including limited communications, which result in latency problems.
• Developing advanced UUVs needs advanced hi-tech technology for navigation, communication, and sensing. Ensuring reliability and performance in challenging underwater environments poses significant hurdles for the designer.
• Most UUVs have limited battery life and operational range, which constrains their ability to perform long-duration missions or operate far from their base stations without frequent recharging or refuelling.     

In-Depth Segmentation Analysis

Type Insights

• The remotely operated vehicle (ROV) category held the largest share in 2023. This is attributed to the advantages associated with this type of vehicle, as it can be operated at maximum depths of water and worked for a long period of time.
• Whereas, autonomous underwater vehicle (AUVs) is expected to be the fastest-growing category in the UUVs market during the forecast period.
• This can be ascribed to the wide usage of this vehicle in the oil and gas industry to make detailed maps of the seafloor before building the subsea infrastructure. This makes the installation of pipelines and systems easy and cost-effective, with minimal destruction of the environment.

Based on type, the market is divided into the following:

• Remotely Operated Vehicle (ROV) (Largest Category)
• Autonomous Underwater Vehicle (AUV) (Fastest-Growing Category)
• Hybrid Underwater Vehicle

Propulsion Type Insights

• By propulsion type, the electric type is expected to be the fastest-growing category. This can be because electric UUVs are used for a wide range of applications including oceanographic research, environmental monitoring, underwater mapping, and surveillance.
• They make less noise, which is advantageous for stealth operations and research tasks that require minimal disturbance to marine life. However, electric UUVs typically have limited endurance compared to non-electric ones due to battery capacity limitations.
• Whereas, the non-electric category held the largest share in the market. It is due to non-electric UUVs include vehicles powered by combustion engines or other non-electric propulsion systems.
• They often have longer endurance capabilities compared to electric UUVs, making them suitable for extended missions and tasks requiring greater distances to be covered.

Further, the following propulsion types are covered in the report:

• Electric (Fastest-Growing Category)
• Non-Electric (Larger Category)
• Hybrid

Application Insights

• Based on application, the commercial category is expected to witness the fastest growth in the UUVs market. This can be mainly attributed to the several commercial applications of UUVs, such as survey and seabed mapping, offshore drilling, pipelining, and cabling.
• Unmanned underwater vehicles are also used for filming/shooting purposes. For instance, UUVs were used in a documentary by National Geographic named “The Dark Secrets”.

The application segment is divided into the following categories:

• Commercial (Fastest-Growing Category)
• Defense (Largest Category)
• Scientific Research
• Others

Geographical Analysis

• Geographically, North America is the largest contributor to the unmanned underwater vehicles market. This is mainly attributed to the rising use of advanced underwater inspection techniques and the increasing need for maritime protection.
• In addition, the increasing defense spending on advanced unmanned military and navy equipment has further resulted in the growth of the regional market.
• Moreover, major stakeholders continue to focus on improving the autonomous functions and increasing the battery life of UUVs.
• On the other hand, the APAC market is projected to witness the fastest growth, advancing at a growth rate of 16.8%, during the forecast period. This can be due to the increased expenditure on the defense sector of countries like India, China, and Japan.
• For instance, in India, the percentage of budget allocated in the 2023–2024 Budget was around 13%.
• Europe also holds a significant share of the market, owing to the increasing expenditure and high demand for these vehicles, and defense organizations are majorly involved in R&D activities in the region.
• For instance, in February 2023, the U.K. received an agreement for autonomous underwater vehicles (AUVs). The objective of this purchase is that they are used in various missions such as multi-domain intelligence, anti-submarine warfare, and others.

Further, these regions and countries were analyzed for this report:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany
  • U.K. (Largest Country Market)
  • France (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan (Fastest-Growing Country Market)
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

The global unmanned underwater vehicles market is consolidated in nature. The commercial and defense sectors are mainly involved in this market. With the increasing advancement in unmanned underwater vehicles, which boosts the deployment of UUVs in the market, companies are receiving funding for making technologically advanced automated underwater vehicles (AUVs). This leads to increased competition in the market.

Unmanned Underwater Vehicles Industry News

• In February 2024, Kongsberg Discovery gained an agreement with the Defense Innovation Unit (DIU) to design HUGIN AUV for the U.S. Military.
• In January 2023, Penn State University was awarded a contract worth USD 1.8 billion by experts of the U.S. Navy undersea warfare. The aim of this billion-dollar contract is to investigate guidance, propulsion, and navigation for future UUVs.
• In April 2022, The U.S. Navy awarded around USD 72 million to Boeing to provide a sample of the unmanned submarine for testing purposes.
• In June 2021, Huntington Ingalls Industries Inc. announced that the Royal New Zealand Navy had placed its first purchase order for four REMUS 300 UUVs.