Underwater Warfare Market Expected to Witness Steady Revenue Growth, Achieving $5.7 Billion by 2028

Delray Beach, FL, Jan. 16, 2026 (GLOBE NEWSWIRE) -- The report "Underwater Warfare Market by Systems (Sonar, Electronic Warfare, Weapons, Communications, Unmanned), Platform (Submarine, Surface Ship, Naval Helicopter), Capability (Attack, Protect, Support) and Region - Global Forecast to 2028" The market is valued at USD 3.7 billion in 2023 and is projected to reach USD 5.7 billion by 2028, at a CAGR of 9.0% from 2023 to 2028.

The Underwater Warfare Industry is driven by the increasing demand for undersea warfare systems due to rising disputes over offshore resources, trade routes, and maritime borders. Governments are actively strengthening their maritime bases to maintain underwater security by developing advanced undersea warfare technologies. The underwater warfare market growth is driven by technological advancements, including the integration of unmanned naval systems, stealth submarines, uncrewed vehicles, and enhanced sonar detection ranges.

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Underwater Warfare Market Companies:

Raytheon Technologies (US),
L3Harris Technologies, Inc. (US),
Elbit Systems Ltd. (Israel),
Northrop Grumman Corporation (US) and
Thyssenkrupp AG (Germany).

Browse in-depth TOC on "Underwater Warfare Market"

120 – Tables
85 – Figures
220 – Pages

Underwater Warfare Market Segmentation:

Based on the systems, the Unmanned systems segment is estimated to hold the highest market share during the forecast period.

Based on the systems, the unmanned systems segment is estimated to lead the Underwater Warfare Industry from 2023 to 2028. The unmanned systems market is growing rapidly due to various factors including technological advancement in naval industry. The unmanned systems include autonomous or remote-controlled vehicles designed to perform various tasks underwater, such as surveillance, mapping, and even warfare. Unmanned systems are equipped with advanced weaponry, which can engage hostile targets and minimize risk. The rising investment by the government in developing Unmanned systems based on advanced technologies to reduce casualties and increase operational efficiency is driving the market growth.

Based on the platform, the Surface ships segment is estimated to hold the highest market share during the forecast period.

Based on the platform, the surface ship segment is estimated to show the highest CAGR during the forecast period. Defense forces worldwide are investing significantly in the development of modern naval fleets including surface ships. The surface ships offer several advantages which include the ability to carry out stealthy operations, such as mine countermeasures or intelligence gathering, with reduced risk of detection. The increasing demand for anti-submarine warfare equipment has contributed to the growth of surface ships in the underwater warfare market.

Based on regions, the Europe market is estimated to have the highest CAGR during the forecast period.

Based on region the Asia Pacific market is estimated to grow at the highest CAGR during the forecast period. The various countries in Europe are witnessing increased investment in research and development for the deployment of advanced underwater technologies, including autonomous underwater vehicles (AUVs), unmanned underwater vehicles (UUVs), and advanced sonar systems. European countries are prioritizing the modernization and expansion of their naval forces. Collaborative efforts of European Union member states and NATO initiatives contribute to the collective development of underwater warfare capabilities in the region.

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Underwater Warfare Market Opportunities and Challenges:

Opportunities: Development of Anti-Submarine Warfare Systems

The development of anti-submarine warfare (ASW) systems enhances the effectiveness and security of underwater warfare operations. Nations globally are aiming to strengthen their naval capabilities, countering the threat posed by submarines has become a top priority. The advancements in sonar technologies, signal processing, and data analytics have enabled the creation of more advanced Anti- anti-submarine warfare systems that can detect, track, and neutralize enemy submarines with greater precision.

Challenges: Environmental and Regulatory Restrictions

Environmental and regulatory regulations restrictions stand as significant challenges for underwater warfare. The US Navy is committed to operating in a manner compatible with the environment and meeting all environmental laws and regulations, with specific programs and instructions in place to ensure environmental readiness and compliance. Legal challenges have arisen under US and international environmental law which impacts the use of certain sonar systems and lead to alterations in training schedules to accommodate environmental concerns.

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