UNDERWATER DRONE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Underwater Drone Market Size and Forecast – 2025-2032

The Global Underwater Drone Market is estimated to be valued at USD 4.43 Billion in 2025 and is expected to reach USD 12.75 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.3% from 2025 to 2032.

Key Takeaways of the Global Underwater Drone Market:

• The remotely-operated segment is expected to lead the market, holding an estimated share of 61.2% in 2025.
• Among application, the defense and security segment is projected to dominate with a share of 35.5% in 2025.
• North America is expected to be the largest regional market, accounting for 45.80% of the market share in 2025.
• The Asia Pacific region, holding a share of 28.7% in 2025, is projected to be the fastest-growing region.

Market Overview:

The underwater drone market is witnessing significant growth driven by increasing areas of applications such as defense, security, and monitoring. Rising security concerns due to geopolitical tensions among countries have led to increased defense spending on maritime security. Underwater drones help in border monitoring, improving maritime domain awareness and countering small vessel threats. Moreover, increasing use of these drones in commercial applications, such as oil & gas exploration, environmental monitoring and ship hull inspections, are supporting the market growth. Advancements in battery technologies, imaging solutions, and artificial intelligence are further enhancing the capabilities of these drones. Integration of 5G connectivity and development of low-cost solutions will continue to introduce new growth opportunities during the forecast period.

Segmental Insights

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Type Insights – Remotely-operated Drones Lead Due to Flexibility and Safety Advantages

The remotely-operated segment is expected to account for the largest share of 61.2% in the market in 2025 due to several key advantages over autonomous and hybrid options. Remote operation allows for greater flexibility that is appealing to defense, scientific, and commercial users. Operators retain full control over missions and can make adjustments in real-time based on changing underwater conditions or new objectives. This makes remotely-operated drones well-suited for inspection, mapping, and surveillance applications where tasks may need to be altered on short notice.

Safety is another major benefit, as remote operation removes humans from dangerous underwater environments. Defense and scientific missions often involve uncharted or hazardous areas like shipwrecks, reefs, or near operating vessels and infrastructure. Remotely piloting drones from the surface allows users to closely monitor environments and retrieve or cancel missions instantly if threats arise. This gives remotely-operated drones a clear advantage for applications in defense, offshore energy, and scientific research of unknown or potentially dangerous underwater locations.

Ease of development and regulatory acceptance have also propelled the remotely-operated segment. Existing remote control technologies could be adapted from other industries like aviation, making initial development more straightforward than creating autonomous capabilities. Regulatory bodies have been more receptive to remotely-operated vehicles for defense, commercial, and scientific use due to retained human oversight and safety advantages. This early regulatory acceptance opened greater opportunities for remote underwater drones.

Widespread familiarity and experience with remote systems among potential customers in defense, oil/gas, and research has further supported demand. For many organizations, remote operation allows seamless integration of underwater drones into established remote vehicle fleets and operating procedures. Forward compatibility of skills and infrastructure yields long-term cost benefits.

Application Insights – Defense and Security Lead Due to Critical Military and Black Operations

The defense and security segment is expected to account for the largest share of 35.5% in the global underwater drone market in 2025 due to diverse and critical military applications. Underwater drones are invaluable tools for naval operations like port and harbor security, infrastructure protection, and mine countermeasures. They can covertly map and monitor foreign waters to detect threats and monitor potential adversaries.

Underwater drones also see extensive use in defense technology demonstration and testing. They are widely employed to evaluate new undersea vehicle designs, verification of platform capabilities, and testing of autonomous navigation, guidance, and payload functions. Given substantial national defense budgets and technological priorities, defense entities invest heavily in continuous demonstration and evaluation projects.

Covert intelligence, surveillance, and reconnaissance comprise another major application domain. Remote-controlled and autonomous underwater drones enable clandestine intelligence gathering of critical ocean-going vessels and seabed infrastructure around the world. They allow observation without risking sensitive assets or tipping off targets to physical presence.

Regional Insights

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North America Underwater Drone Market Trends

North America is expected to dominate the underwater drone market, holding a share of 45.8% in 2025. The region’s lead can be attributed to the large presence of underwater drone manufacturers as well as the extensive use of underwater drones by governmental agencies for marine research, environmental monitoring, and defense applications. Countries like the U.S. have heavily invested in boosting their naval capabilities, which has driven significant demand for underwater drones.

Asia Pacific Underwater Drone Market Trends

The Asia Pacific region, holding a share of 28.7% in 2025, is expected to exhibit the fastest growth, led by emerging economies like China, Japan, and South Korea. The underwater drone market is gaining traction in the region due to rising maritime concerns and growing emphasis on port security management. Rapid industrialization along coastal lines has also increased the need for underwater inspections.

Underwater Drone Market Outlook for Key Countries

U.S. Underwater Drone Market Trends

The U.S. underwater drone market is the most advanced and dominant globally, driven by significant defense funding, cutting-edge technological innovations, and extensive research and development. Leading companies such as Boeing, Lockheed Martin, and General Dynamics have pioneered underwater drone technology for both military and commercial applications. The U.S. Navy has been a major force behind the adoption of Autonomous Underwater Vehicles (AUVs) and Remotely Operated Vehicles (ROVs), using them for mine countermeasures, intelligence gathering, and deep-sea reconnaissance. Beyond defense, commercial sectors, including offshore energy and underwater infrastructure inspection, are increasingly deploying these technologies. Startups and research institutions, such as Anduril Industries and the Woods Hole Oceanographic Institution, are also contributing to the evolution of next-generation underwater drones with AI-driven capabilities and enhanced autonomy.

China Underwater Drone Market Trends

The China underwater drone market is expanding rapidly, supported by state-backed marine projects, growing maritime trade, and a strong push for technological self-sufficiency. The Chinese government has placed significant emphasis on developing indigenous Autonomous Underwater Vehicles (AUVs) and hybrid underwater drones to bolster naval surveillance, territorial security, and deep-sea exploration. Leading domestic players like Chengdu Guangtong and PowerVision are at the forefront of innovation, producing a range of underwater drones for both military and commercial applications. State-owned defense firms and academic institutions, such as the Harbin Engineering University, are heavily investing in research for long-endurance underwater drones with applications in deep-sea mapping and undersea warfare. Additionally, China is rapidly expanding its commercial underwater drone segment, with growing demand for underwater inspections in offshore oil rigs and subsea telecommunications infrastructure.

Japan Underwater Drone Market Trends

Japan remains a leader in the Asia Pacific underwater drone market, primarily focusing on coastal surveillance, disaster management, and oceanographic research. With its long coastline and reliance on maritime security, the Japanese government has increased investments in Remotely Operated Vehicles (ROVs) and AUVs for monitoring territorial waters and responding to natural disasters such as tsunamis. Companies like Shibuya Electronics and CHINO are playing a significant role in advancing compact, high-precision underwater drones, used extensively for infrastructure inspections, marine biodiversity studies, and naval reconnaissance. Additionally, Japan’s shipbuilding giants and robotics firms are collaborating with research institutions to develop next-generation AI-powered underwater drones that can operate in extreme environments, including the deep-sea trenches around Japan. This technological push aligns with Japan’s broader Blue Economy strategy, promoting sustainable marine exploration and offshore resource management.

South Korea Underwater Drone Market Trends

The South Korea underwater drone market is growing rapidly, driven by naval modernization efforts, strong government R&D initiatives, and an expanding defense sector. The country is investing heavily in unmanned underwater systems as part of its broader strategy to enhance maritime security, combat asymmetric threats, and strengthen anti-submarine warfare capabilities. Key domestic players like Hyundai Heavy Industries, LIGHTTECH, and Daewoo Shipbuilding & Marine Engineering (DSME) are leading the charge in developing autonomous and remotely operated underwater drones tailored for naval defense and commercial applications. In addition to military applications, South Korea is focusing on underwater drones for offshore energy exploration, shipwreck surveys, and environmental monitoring. The government has also established collaborative research programs with universities and private enterprises to develop next-generation AI-powered underwater robots, further solidifying its position in the regional market.

Germany Underwater Drone Market Trends

Germany has established itself as a key player in the global underwater drone market, leveraging its strong engineering expertise, precision manufacturing, and research collaborations. The country is home to major defense and technology firms like Thales, Atlas Elektronik, and ECA Group, which are actively developing advanced underwater drones for both military and civilian applications. German companies have focused on producing highly specialized AUVs and ROVs, often used in deep-sea exploration, subsea infrastructure inspections, and mine countermeasure operations. The country’s emphasis on modular, AI-driven underwater drones has made its technology highly sought after for defense and commercial applications across Europe. Additionally, Germany's extensive research collaborations with marine institutions such as GEOMAR Helmholtz Centre for Ocean Research have facilitated innovations in autonomous navigation, underwater mapping, and environmental monitoring, ensuring its continued leadership in the sector.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In November 2024, BAE Systems, a multinational aerospace, defense and information security company, successfully demonstrated a new type of autonomous submarine, called Herne, developed specifically for military use, off the south coast of England
• In April 2024, Anduril, a U.S.-based defense startup, unveiled the prototype Ghost Shark extra-large autonomous underwater vehicle (XL-AUV) for the Royal Australian Navy (RAN)

Top Strategies Followed by Global Underwater Drone Market Players

• Established Players: Leading companies in the global underwater drone market intensely focus on research and development activities to introduce innovative products. They invest heavily in improving drone capabilities such as range, payload capacity, and battery life. For instance, companies like SeaRobotics and Deep Ocean Engineering pump millions annually into developing smart propulsion systems and advanced sensors. This helps them deliver high-performance drones for industrial and scientific applications.
• Mid-Level Players: Medium-sized companies cater to price-sensitive customers by offering affordable yet reliable drone solutions. They concentrate on optimizing design and manufacturing processes to minimize expenses. Some develop simplified drones for tasks like infrastructure surveys and leak detection that do not require complex features. This makes their products competitively priced without compromising heavily on functionality. For example, Deep Trekker, a Canada-based company, specializes in cost-effective, portable ROVs used in infrastructure inspections, aquaculture management, and search & rescue operations. Their DTG3 and Revolution ROV models provide robust performance at an affordable price, making them popular among utility companies, research institutions, and commercial divers.
• Small-Scale Players: New entrants often target niche underwater sectors like salvage operations, aquaculture management, or environmental monitoring that attract limited competition. They design drones specialized for such applications by integrating unique payloads. This allows small companies to tap a dedicated customer base and establish expertise. Some also collaborate with research institutes to build customized prototypes addressing specific project needs. For example, Blueye Robotics, a Norway-based startup, has carved a niche in marine environmental monitoring and underwater exploration. Their flagship drone, Blueye X3, is designed for marine research, ship hull inspections, and aquaculture management, featuring interchangeable sensors and live video streaming capabilities. This makes it an ideal tool for environmental scientists and commercial fish farmers monitoring underwater ecosystems.

Emerging Startups – Underwater Drone Industry Landscape

• Innovative Technologies: Startups are coming up with advanced technologies that could disrupt the market. Companies like OceanAlpha and Deep Trekker are developing smart sensor arrays and AI-powered analytics for autonomous inspection missions. These technologies can optimize route planning, detect anomalies, and transmit insights in real-time. With maturation, they are expected to enhance work efficiency multi-fold and open up new commercial avenues.
• Sustainable Solutions: A few startups focus on sustainability. Deeped and Hydrovision utilize recycled plastics and bioplastics to manufacture lightweight, durable drone components. SwitchDiver generates propulsion without polluting fuels. Such innovations aim to minimize environmental footprint and appeal to eco-conscious customers and regulators. If successful, they could significantly influence broader adoption of unmanned systems.
• Market Contribution: Some ventures identify niche segments lacking solutions and address them expressly. Riffe International builds corrosion-resistant drones for offshore oil & gas cleaning tasks. Similarly, Subsea Tech designs drones optimized for aquaculture surveillance requirements. 

Market Report Scope

Market Dynamics

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Global Underwater Drone Market Driver - Technological advancements enhancing underwater drone capabilities

The underwater drone market is witnessing significant technological advancements that are enhancing the capabilities of these unmanned vehicles. Major players in the market are investing heavily in R&D to develop more sophisticated sensors, navigation systems, and propulsion mechanisms. This is enabling underwater drones to operate autonomously for extended durations in challenging underwater environments. Some of the key capability enhancing technologies include:

Next-generation cameras and vision systems: Manufacturers are developing advanced optical and ultrasonic cameras that provide higher resolution live feed and images from depths of over 1,000 meters underwater. These cameras utilize blue light which transmits farther in water bodies. Some drones are even equipped with multi-spectral cameras and light systems for night operation capabilities.

Improved navigation and obstacle avoidance: Advanced inertial measurement units, Doppler velocity logs, depth sensors, and obstacle avoidance sonars are enabling more precise self-navigation in zero visibility conditions and complex terrains. Some models can now map the seabed in 3D and autonomously plan path according to the surrounding structures without surface control. This is critical for inspection of offshore infrastructure and scientific research.

Longer battery life and endurance: New lithium polymer and lithium-ion battery chemistries coupled with optimized power consumption of avionics and propulsion systems are providing underwater drones with much higher potential and actual operating times. Some designs can now log over 50 hours of active sonar scanning and recording. This prolongs their utility for surveys across large maritime regions.

Efficient propellers and thrusters: Smaller, more efficient and maneuverable propulsion units like ducted fans, co-axial motors and innovative thruster designs help operate drones effortlessly even in swift ocean currents. Some are bio-inspired with underwater flippers providing precision movements for interaction with subsea assets. This makes drones suitable for applications needing close visual examination and manipulation.

Global Underwater Drone Market Challenge - High operational costs associated with underwater drones

One of the key challenges in the global underwater drone market is the high operational costs associated with these advanced maritime robots. Underwater drones require complex navigation, imaging, and communication systems to function and capture data in hazardous underwater environments. These components and technologies come with a significant price tag. Additional factors like requirement of specially trained pilots to control the drones remotely further increase operational expenditures. Regular maintenance of fleet along with repair and replacement of components damaged by corrosion or during operations drive up recurring maintenance costs. Transportation and deployment of large and heavy drones in offshore locations also lead to high logistical expenses. Limited battery life of drones poses challenges for longer duration missions requiring multiple battery swaps adding to project timelines and costs. With current technology, bringing down the operational costs to make underwater drones more affordable for widespread commercial and industrial adoption remains a major barrier for broader market growth.

Global Underwater Drone Market Opportunity - Expansion into renewable energy sectors, such as offshore wind farms

One of the major opportunities in the global underwater drone market is the expansion into lucrative renewable energy sectors such as offshore wind farms. As installations of offshore wind turbines continue to grow substantially worldwide to meet increasing clean energy targets, underwater drones can play a vital role in various applications across the project lifecycle. Drones are increasingly being used for essential inspections of foundations, turbines and undersea cables during construction, operations as well as maintenance activities. They prove effective for assessing corrosion, structural integrity and detecting defects in a non-intrusive manner. With capability to cover larger areas in shorter timeframes compared to traditional methods, drones provide considerable time and cost savings. As wind farms move into deeper waters, drones equipped with the latest technologies become indispensable for inspection needs. Additionally, drones also enable the collection of high-resolution seabed terrain data for planning new wind farm developments. Hence, sustaining strong growth in offshore wind energy sector is expected to offer substantial opportunities for the adoption of advanced underwater drones in the coming years.

Analyst Opinion (Expert Opinion)

• The underwater drone market is poised for substantial growth in the coming years, driven by increasing defense investments, growing interest in deep-sea exploration, and advancements in artificial intelligence (AI) for autonomous underwater navigation. The demand for remotely operated vehicles (ROVs) and autonomous underwater vehicles (AUVs) continues to rise across defense, commercial, and research applications.
• A significant challenge for market expansion is the high cost of development and deployment, alongside the technical difficulties of deep-sea communication and power supply limitations. These factors may slow adoption, particularly in cost-sensitive industries.
• North America is expected to maintain its dominance due to strong military investments and technological innovations. Meanwhile, the Asia-Pacific region is the fastest-growing market, driven by increasing maritime security concerns and expanding deep-sea exploration initiatives.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2020 - 2032)
• • Remotely-operated
  • Autonomous
  • Hybrid
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
• • Defense and Security
  • Scientific Research
  • Commercial Exploration
  • Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Lockheed Martin Corporation
  • Bluefin Robotics
  • Saab Seaeye Ltd
  • Teledyne Marine Group
  • Kongsberg Maritime
  • Oceaneering International, Inc.
  • TechnipFMC
  • ECA Group
  • Deep Ocean Engineering, Inc.
  • The Boeing Company
  • Anduril Industries
  • BAE Systems
  • Northrop Grumman
  • Huntington Ingalls Industries
  • Cellula Robotics