Torpedo Market

Market Overview

The global torpedo market size was valued at USD 1.05 billion in 2023. It is estimated to reach USD 1.85 billion by 2032, growing at a CAGR of 6.50% during the forecast period (2024–2032). The global torpedo market is primarily driven by the rising geopolitical tensions amongst different countries worldwide. This rise in geopolitical tensions has led to a surge in investment in naval capabilities, thereby boosting global market growth. Moreover, manufacturers are investing in research and development to enhance torpedo performance and maintain a competitive edge in the market. This has led to a rise in the launch of technologically advanced torpedoes, thereby creating opportunities for market development.

A torpedo is a self-propelled underwater missile designed to target and destroy enemy vessels. It's a weapon of naval warfare, used both defensively and offensively. Torpedoes come in various types, including lightweight, heavyweight, and guided variants, each with distinct capabilities and ranges. They use internal combustion engines, electric motors, or propellers to propel themselves towards their target. Once launched, torpedoes can be wire-guided or autonomous, homing in on their target using acoustic, magnetic, or wake-seeking sensors. Their destructive power can cause significant damage to ships, submarines, or naval installations. Torpedoes have been crucial in naval combat since their invention in the 19th century, continually evolving technologically to remain a potent threat in modern maritime warfare.

Top 2 Key Highlights

• Heavyweight torpedo dominates the weight segment
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Geopolitical Tensions

Geopolitical tensions play a pivotal role in driving the demand for torpedoes within the global market. Heightened rivalries and territorial disputes among nations across strategic maritime regions like the South China Sea, the Persian Gulf, and the Baltic Sea have spurred substantial investments in naval capabilities. In response to perceived threats and security challenges, countries prioritize the modernization of their naval fleets, including acquiring advanced torpedo systems.

Geopolitical tensions often manifest in naval confrontations and conflicts, necessitating robust underwater warfare capabilities for defense and deterrence. Similarly, the proliferation of asymmetrical warfare tactics, such as submarine operations and naval blockades, intensifies the need for sophisticated torpedo technologies to maintain maritime superiority. As a result, the torpedo market benefits from the strategic imperative of nations to safeguard their territorial waters, protect maritime interests, and assert dominance in contested maritime domains.

Market Restraint

Budget Constraints 

Budget constraints present a significant restraint in the torpedo market as governments, the primary purchasers, may face limitations on defense spending. Economic fluctuations, competing domestic priorities, and fiscal austerity measures can all impact the allocation of funds toward torpedo procurement. Defense budgets are often subject to political debates and budgetary constraints, further complicating the acquisition process.

In times of economic uncertainty or downturns, governments may prioritize essential services over defense expenditures, leading to delays or reductions in torpedo procurement programs. Moreover, the high cost associated with torpedo development, production, and maintenance exacerbates budgetary pressures. As a result, defense planners may opt for alternative solutions or delay procurement decisions, constraining market growth and impacting the sustainability of torpedo manufacturing programs.

Market Opportunities

Technological Advancements

Advances in torpedo technology, like improved range, speed, accuracy, and reduced acoustic signature, stimulate market growth. For instance, in December 2023, Boeing announced that they would soon offer launch kits for the American Navy's Mark 54 (Mk 54) torpedo, enabling them to be deployed from about 30,000 feet by anti-submarine warfare (ASW) aircraft. This will allow the torpedoes to engage enemy submarines from both great distances and high altitudes. The proposed "flying torpedo" technology would revolutionize submarine warfare by eliminating the need for aircraft to approach the water to launch underwater weapons.

In addition, in December 2023, the Turkish Navy's submarine TCG Preveze successfully launched the Akya torpedo. The Akya torpedo, created by Roketsan, is an advanced and powerful torpedo specifically built for submarines to effectively engage and attack both underwater and surface targets. This sophisticated torpedo is distinguished by its exceptional velocity and extensive reach, boasting a range of 50 kilometers and a speed above 45 knots. The Akya torpedo is equipped with advanced technical characteristics, including a proximity/impact fuse, a warhead specifically designed to create underwater shockwaves and a swim-out launch mechanism. Such advancements are estimated to create opportunities for market growth.

Regional Analysis

Based on region, the global torpedo market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global torpedo market shareholder and is expected to expand substantially during the forecast period. North America is a dominates torpedoes market globally, driven by robust defense spending and technological innovation. The United States, in particular, boasts a formidable naval force and allocates substantial budgets for maritime security. Modernization initiatives by the U.S. Navy prioritize the acquisition of advanced torpedo systems to maintain underwater warfare superiority. Canada also contributes to the regional market with investments in naval capabilities and procurement programs. Moreover, the region's strategic position in the Atlantic and Pacific oceans underscores the importance of torpedoes for safeguarding maritime interests and countering potential threats, further fueling market growth.

Furthermore, the collaborative efforts between defense contractors and government agencies in North America foster innovation and the development of cutting-edge torpedo technologies. Also, there has been a rise in investment in the development of technologically advanced torpedoes. For instance, in January 2024, SEA announced that its subsidiary, SEA Canada, has been granted a £15.1 million contract to manufacture lightweight Torpedo Launch Systems (TLS) for a significant naval vessel development. The work will begin promptly and is projected to be finished by 2030. The Sea's TLS is a highly responsive system that has the ability to launch a range of lightweight torpedoes that adhere to NATO standards. The contract will be provided by SEA's fully owned Canadian subsidiary, SEA Canada, with assistance from a team at SEA in the UK. Consequently, all these factors are estimated to boost the regional market growth.

The Asia-Pacific region emerges as a lucrative market for torpedoes, fueled by escalating maritime tensions and military build-ups among regional powers. Countries like China, India, and Japan are investing heavily in naval capabilities, driving the demand for advanced torpedo systems. In addition, there has been a rise in the research and successful development of cutting-edge torpedoes. For instance, In June 2023, the Indian Navy successfully test-fired Varunastra, a ship-launched heavy-weight torpedo intended for combating submarines, which was created indigenously. This native HWT will augment the Navy's capabilities in anti-submarine warfare and render it a formidable force. A submarine launched a torpedo that accurately struck a target 40 kilometers away.

Moreover, in 2024, the Indian Navy improved its underwater fleet by obtaining new heavyweight torpedoes. The defense ministry is considering acquiring a small number of torpedoes from a foreign supplier while also approving a 'Make in India' initiative for a larger quantity. As reported by sources, the ministry is expected to discuss the plan to acquire Heavy Weight Torpedoes (HWT) soon. The plan entails the direct acquisition of 48 torpedoes, as well as discussions on a domestic development strategy for a significantly greater number. Thus, the factors above are estimated to foster the Asia-Pacific torpedo market.

Segmental Analysis

The global torpedo market is segmented by weight, launch platform, and propulsion.

Based on weight, the global torpedo market is bifurcated into heavyweight and lightweight torpedoes. 

The heavyweight torpedo segment dominates the global market. A heavyweight torpedo is a large underwater missile designed for military use, typically launched from submarines or surface ships. It has a powerful propulsion system and sophisticated guidance mechanisms for targeting enemy vessels or coastal installations. These torpedoes can carry explosive warheads, mines, or other payloads, posing significant threats to naval assets and maritime infrastructure.

Due to their size and destructive capability, heavyweight torpedoes play a crucial role in naval warfare, enabling stealthy and devastating attacks against enemy forces. Their advanced technology and stealth features make them difficult to detect and counter, adding to their effectiveness in modern naval operations. Overall, heavyweight torpedoes are essential components of naval arsenals, enhancing maritime security and combat capabilities for naval forces worldwide.

Based on launch platform, the global torpedo market is divided into air-launched, surface-launched, and underwater-launched.

A surface-launched torpedo is a self-propelled underwater missile launched from a surface vessel, such as a ship or a submarine, targeting submerged or surface threats. These torpedoes are designed to be launched from tubes or launchers mounted on the vessel's deck. Upon launch, they utilize their own propulsion systems to travel through the water, guided by sophisticated onboard sensors and navigation systems. Surface-launched torpedoes are commonly used for anti-submarine warfare (ASW), anti-surface warfare (ASuW), and other naval operations. They provide naval forces with a versatile and effective means of engaging underwater and surface threats, enhancing the vessel's defensive and offensive capabilities in maritime operations.

Based on propulsion, the global torpedo market is divided into conventional and electric propulsion.

An electric propulsion torpedo is an underwater weapon propelled by an electric motor instead of a traditional combustion engine. It operates silently, making it harder for enemies to detect. Electric propulsion offers numerous advantages, including increased stealth, longer operational ranges, and improved maneuverability compared to conventional torpedoes. These torpedoes use batteries or other electrical power sources to drive their propulsion systems, allowing them to travel at high speeds for extended durations. Moreover, electric propulsion allows for more precise control over speed and direction, enhancing the torpedo's effectiveness in targeting and engaging enemy vessels. Thus, electric propulsion torpedoes represent a significant advancement in underwater warfare technology, providing navies with a formidable and stealthy means of engaging maritime threats.

Recent Developments

• December 2023- ASC Shipbuilding, a subsidiary of BAE Systems Australia, was awarded a contract to GEIE EUROTORP to install the MU90 Torpedo Launch System (TLS) on the initial three Hunter class frigates for the Royal Australian Navy (RAN).
• January 2024- The Indian Navy effectively launched LSAM 19 (Yard 129), a multifunctional barge that is equipped with ammunition, torpedoes, and missiles. This signifies the successful construction of the fifth barge as part of the 11 x ACTCM Barge Project.