Unmanned Surface Vehicle Market to reach USD 8.6 billion in 2030, at a CAGR of 23.7%

The Unmanned Surface Vehicle (USV) Market was at USD 2.1 billion in 2023-e, and is projected to grow at a CAGR of 23.7% through 2030 to reach USD 8.6 billion. The ongoing Russia-Ukraine war and rising geopolitical tensions in the Middle East and East Asia are some of the leading drivers for the increased military spending in recent years.

According to the SIPRI report, the military expenditure in Europe has experienced the steepest year-on-year increase in at least 30 years. There’s an increasing demand for unmanned surface vehicles for military and navy operations and key players are actively developing USVs for military applications. For instance, in April 2022, the US Navy awarded Bollinger Shipyards a USD 122 million contract to produce the Mine Countermeasures (MCM) USV. Thus, rising global military expenditure is propelling the USV market.

Communication system involves the use of radio, Wi-Fi, satellite, UHF/VHF, and other communication modalities. Communication systems provide robust and reliable communication links, allowing them to interact with other USVs, manned vessels, and onshore operators.

Technological advances in communication systems have provided seamless connectivity and facilitated real-time data exchange, enabling remote monitoring and control. In recent years, increasing satellite launches, deployment of satellite internet constellations, and increasing adoption of 5G technology have driven innovations in the communication system.

Europe is one of the leading regions in offshore wind. In the first half of 2023, Europe added 2.1 GW of new offshore wind capacity, increasing its total offshore wind capacity to 32 GW. European Governments intend to install up to 160 GW of wind capacity by 2030. Increasing spending on offshore wind farms is driving the demand for USVs. In addition, rising geopolitical tension and the ongoing Russia-Ukraine war is further driving the demand for USVs for military & naval operations. As a result, Europe is expected to maintain a substantial share of the USV market.

The key companies in the unmanned surface vehicle market are continuously striving to strengthen their portfolio to meet the growing demand. The companies are focused on establishing long-term partnerships with logistics service providers, marine operators, governments, and the military. Some of the key companies in the market are CHC Navigation, ECA Group, Elbit Systems, Exail Technologies, Fugro, L3Harris, Saildrone, Teledyne Marine, Textron, and Thales.