Market Trends of Autonomous Underwater Vehicles
Military & Defense will a Hold Significant Market Share
Autonomous underwater vehicles (AUVs) are utilized in various military and defense applications due to their ability to operate autonomously and gather valuable information in underwater environments. These vehicles provide military and defense forces with valuable capabilities for underwater operations, including surveillance, reconnaissance, mine countermeasures, and special operations, enhancing maritime security and situational awareness in complex and challenging environments.
Defense spending has significantly increased due to security issues, concerns over contested territories, and threats. According to new data on global military expenditure published by the Stockholm International Peace Research Institute (SIPRI) in April 2024, total global military spending increased by 6.8% in real terms in 2022, reaching USD 2,443 billion. Countries use cutting-edge technologies to protect their borders from underwater threats.
According to the ICC International Maritime Bureau (IMB) 's annual Piracy and Armed Robbery Report, 120 incidents of maritime piracy and armed robbery against ships were reported in 2023 compared to 115 in 2022. This increase in threats creates security issues across marine borders. Thus, the factors mentioned above are expected to drive market growth.
North America will Witness the Highest Growth During the Forecast Period
The autonomous vehicle market in North America is expected to showcase the highest growth during the forecast period, owing to the presence of leading manufacturers, rising demand for AUVs from the US Navy, and extensive research and development.
In February 2024, the US Navy selected Anduril and its Dive family of large autonomous underwater vehicles (AUVs) to prototype distributed, long-range, persistent underwater sensing and payload delivery in contested environments. Anduril provides a family of AI-enabled AUVs that are designed to perform a wide range of defense and commercial missions.
Amid rising tensions in the Indo-Pacific region, particularly in the maritime environment, the US Department of Defense (DoD) is heavily investing in the development of autonomous systems to strengthen national security. For instance, The Boeing Company is developing the Orca XLUUV with funding from the US Navy. In 2019, the company won a USD 43 million contract to build four of the AUVs based on the design of Boeing’s Echo Voyager. They are planned to be finished in 2024. Such factors will stimulate the market growth in North America.
