Growth Opportunities in Unmanned Underwater Vehicles, 2023 2032

Revenue Forecast

The revenue estimate for the base year 2023 CAGR of 10.5% during the study period from 2023 to 2032

Scope of Analysis

• This study analyzes the UUV industry, considering its status and prospects over the forecast period.
• The industry is segmented into three main end uses:
  • Defense—most customers are navies. This includes procurement and research and development (R&D) contracts.
  • Commercial—customers are mostly service providers and operators in the offshore wind energy, oil and gas, and telecom industries.
  • Research—universities and oceanographic research institutes are the main end users.

The Impact of the Top 3 Strategic Imperatives on the Unmanned Underwater Vehicles Industry

Disruptive Technologies

Why

• Improving artificial intelligence (AI) for autonomous navigation is crucial in the unmanned underwater vehicle (UUV) industry due to the challenges of communicating with the control station underwater.

Frost Perspective

• Companies providing autonomous underwater vehicles (AUV) that do not invest in the continuous development of autonomous capabilities will find it difficult to grow because AI-enabled autonomy is the key differentiator in that segment.

Competitive Intensity

Why

• New start-ups are springing up globally, posing challenges to big, well-established defense contractors.
• The UUV industry is characterized by numerous technology partnerships between manufacturers to develop optimal solutions.

Frost Perspective

• New companies that can overcome the high entry barriers in this market, including high development costs, will be able to challenge the current competitive landscape, especially in the commercial and research sectors, because defense contractors are better prepared for fewer large contracts.

Geopolitical Chaos

Why

• Growing international conflicts and intensifying tensions are pushing countries to adopt unmanned systems for defense and security applications.

Frost Perspective

• The attacks on the Nord Stream pipelines in 2022 evidenced the need for critical undersea infrastructure security.
• Navies will have to adopt more UUVs to achieve ocean supremacy.

Growth Drivers

• Many military programs are increasing the global demand for UUVs in defense applications, especially in the United States.
• Ongoing global conflicts and tensions, such as the China-Taiwan conflict, are increasing global military forces’ spending on unmanned underwater technology.
• The interest in UUVs for surveillance and security in critical undersea infrastructure boomed after the attack on the Nord Stream pipelines.
• The rising number of offshore wind farms and offshore oil and gas stations drives the use of UUVs in the commercial segment.
• Continuous technological advancements in autonomy; sensor size, weight, and power (SWaP) optimization; and battery endurance enhance UUV applications, increasing UUVs’ customer value.

Growth Restraints

Restraint

• High acquisition and development costs impede some potential customers from buying UUVs and delay some military programs.
• Like most unmanned systems applications, low awareness about the benefits that UUVs offer to underwater operations hampers the growth of the industry.
• Industry participants claim that the global supply chain issues that emerged are still delaying manufacturing processes and challenging new product development.
• Some large oil and gas service providers manufacture their own UUVs (usually ROVs), which limits market penetration in the commercial segment.

Key Competitors

• Advanced Navigation
• Asealan
• Anduril Industries
• Atlas Elektronik (ThyssenKrupp)
• BAE Systems
• Bluefin Robotics (General Dynamics)
• Boeing
• Boxfish Robotics
• Cellula Robotics
• Exail
• Hanwha Systems
• HII
• International Submarine Engineering
• IQUA Robotics
• IAI
• Kongsberg
• Lockheed Martin
• L3Harris Technologies
• Leidos
• Mitsubishi Heavy Industries
• MSubs
• Nauticus Robotics
• Naval Group
• Northrop Grumman
• Ocean Aero
• Oceanengineering
• RTSys
• Saab
• Saipem
• SEABER
• Subsea Tech
• Teledyne Marine
• Terradeth
• Woods Hole Oceanographic Institution
• Atlas Elektronik (ThyssenKrupp)
• Blue Robotics
• Boxfish Robotics
• Deep Trekker (Halma)
• Exail
• Hanwha Systems
• International Submarine Engineering
• L3Harris Technologies
• MacArtney Underwater Technology
• Mitsubishi Heavy Industries
• Oceanbotics (RJE International)
• Oceanengineering
• Saab
• Saipem
• Shark Marine Technologies
• Subsea Tech
• TechnipFMC
• Teledyne Marine
• Total Marine Technology
• VideoRay
• Woods Hole Oceanographic Institution
• Alseamar
• Kongsberg
• Teledyne Marine
• Woods Hole Oceanographic Institution