Underwater Drones Market Ascends Rigorously at a CAGR of 11.9%

Introduction

Unmanned underwater vehicles (UUVs), commonly referred to as underwater drones, are vehicles that can operate in the ocean and sea without a human occupant. The two main categories of these machines are remotely used underwater vehicles (ROVs), directed by a distant human operator throughout their operations, and autonomous underwater vehicles (AUVs), which can operate independently without any real-time human inputs. Technological advancements in unmanned underwater vehicles, such as high-resolution cameras, superior manipulator arms, and highly sensitive sonar have reduced the time needed to inspect equipment and other submerged items. This has created an ocean of opportunity in the underwater drones market.

Market Dynamics

Widescale Deployment of Underwater Drones in Defense & Security Applications Stimulate the Global Market

The military has recently started utilizing underwater drones for observation and inspection, including in the US and the UK. The US Navy, for instance, considers underwater drones to be a crucial component of their military strategy. The autonomous underwater vehicle requirement for 2025 study from the US Department of Defense (DoD) states that submarine-based underwater drones will be employed over time to extend the effective range of the submarine's weapons and sensors.

A network for underwater monitoring, investigation, and information gathering can be established using unmanned underwater vehicles (UUVs) or drones. These drones are beneficial when performing risky tasks like mine countermeasures. Unmanned Undersea Vehicle Squadron One, the US Navy's first underwater-only drone unit, was established in 2017. Additionally, the US and the UK performed the first unmanned warrior drill in Scotland in 2016 when drones from several countries were structured to function as a unit. It is anticipated that the growing use of underwater drones for military purposes would fuel the market expansion during the projected period.

Untapped Growth Opportunities Amid Growing Adoption of Underwater Drones by the Developing Countries

To upgrade the naval forces amid the rise in conflicts and tensions with neighboring countries, several countries in Asia-Pacific are focusing on the procurement and development of underwater drones to be at par with the increase in capabilities of the other naval forces. For instance, the Indian Navy is looking to develop and incorporate underwater drones in its weaponry to keep an eye on China's growing footprint in the Indian Ocean. In line with the strategy, the Indian Navy procured four HUGIN AUV systems (manufactured by Kongsberg Maritime) in September 2020. Furthermore, several start-up companies (e.g., IROV Technologies) are also developing underwater drones, creating umpteen growth opportunities for the underwater drones market.

The government of South Korea launched the Defense Reform 2.0 project on July 27, 2018. This policy played a significant role in developing advanced underwater drones to strengthen the naval forces' defense competencies. The South Korean Navy requires upgraded technologies amid the rising defense capabilities of North Korea. The rise in the adoption of underwater drones to upgrade and modernize the military forces in developing nations is expected to foster the growth of the underwater drones market during the forecast period.

Regional Insights

North America is the highest shareholder and is estimated to grow at a CAGR of 11.5% during the forecast period. The demand for underwater drones in North America is primarily driven by a rise in the procurement of ROVs and AUVs for military modernization. Furthermore, the need for underwater drones in the North American oil & gas industry for offshore drilling, inspection, and surveying the oil & gas reserves has increased the sales of underwater drones over the years.

Asia-Pacific is the fastest-growing region. China is increasing its military dominance in the region. It sends underwater drones across different places for spying purposes to better understand other countries' military activities and developments. Consequently, India and Japan have started developing and procuring underwater drones in the region to counter the rise in interference from the Chinese army.

Europe is the second-largest region in the global underwater drones market. It is estimated to reach USD 3,930 million, growing at a CAGR of 12.2% during the forecast period. In major countries like Germany, France, and the UK, the armies are strengthening their forces by acquiring and developing underwater drones, driving market growth. 

Key Highlights

• The global underwater drones market was worth USD 4,545 million in 2021. It is projected to reach USD 12,500 million by 2030, growing at a CAGR of 11.9% during the forecast period (2022–2030). 
• Type-wise, the global underwater drones market is divided into Remotely Operated Vehicles (ROV), Autonomous Underwater Vehicles (AUV), and Hybrid Vehicles. Remotely Operated Vehicle (ROV) is expected to dominate the market, growing at a CAGR of 9.6% during the forecast period.
• Propulsion system-wise, the global underwater drones market is segmented into Electric Systems, Mechanical Systems, and Hybrid Systems. The Electric System is expected to dominate the market at a CAGR of 12.3% during the forecast period.
• Application-wise, the global underwater drones market is segmented into Defense & Security, Scientific Research, Commercial Exploration, and Others. The Defense & Security application is expected to be the largest segment during the forecast period and is estimated to grow at a CAGR of 12.2%.
• Product type-wise, the global underwater drones market is segmented into Micro, Small & Medium, Light Work-Class, and Heavy Work-Class. The Light Work-Class segment is expected to dominate the market at a CAGR of 11.9% during the forecast period.

Competitive Players

Key Market Players

The key players in the global underwater drones market are the Boeing Company, Lockheed Martin Corporation, Teledyne Marine Group, Bluefin Robotics, Saab Seaeye Ltd, Kongsberg Maritime, Oceaneering International, Inc., TechnipFMC plc, ECA Group, and Deep Ocean Engineering, Inc.

Recent Developments

Market News

• In June 2022, the Norwegian Defense Materiel Agency contracted Kongsberg Defense & Aerospace (KONGSBERG) to improve the combat system on the Skjold Class ships of the Royal Norwegian Navy as part of the Life Time Extension (LTE) program. 267 MNoK is the contract's total value.
• In June 2022, Kongsberg Maritime (KM) signed a new contract with the design, development, engineering, and consulting company Aker Arctic (Aker Arctic Technology Inc.), which will see KM supplying propellers and shafts for four newbuilds SQ2020 corvette ships.

Segmentation

Global Underwater Drones Market: Segmentation

By Type

• Remotely Operated Vehicle (ROV)
• Autonomous Underwater Vehicles (AUV)
• Hybrid Vehicles

By Application

• Defense & Security
• Scientific Research
• Commercial Exploration
• Others

By Propulsion System

• Electric System
• Mechanical System
• Hybrid System

By Product Type

• Micro
• Small & Medium
• Light Work-Class
• Heavy Work-Class

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA