Unmanned Surface Vehicle (USV) Market Size, Share, and Russia-Ukraine War Impact Analysis, By Size (Small, Medium, Large & Extra-Large USV), By Component (Power and Propulsion Systems, Communication Systems, Sensors & Optronics, Hull), By Mode of Operation (Autonomous and Remotely Operated), By Endurance (Short, Medium, Long & Extra-Long), By Hull Type (Kayak, Catamaran, Trimaran, Rigid Inflatable Hull), By Application (Intelligence, Surveillance, and Reconnaissance, Naval & Homeland Security), By End Use (Environmental, Defense, Offshore Oil & Gas, Science) & Regional Forecast, 2024-2032

The global unmanned surface vehicle (USV) market size was valued at USD 2.15 billion in 2023. The market is projected to grow from USD 2.27 billion in 2024 to USD 3.29 billion by 2032, exhibiting a CAGR of 4.7% during the forecast period.

Unmanned Surface Vehicle (USV) is a type of waterborne vessel that operates without the need for human on-board operators. It can be operated remotely by an operator or can be programmed to run on its own. Most USVs are powered by fast-recharging lithium-ion battery packs or solar energy and are primarily used for ocean research and maritime applications.

USVs offer a wide range of benefits, ranging from commercial and research applications to defense applications, search and rescue applications, and others. There is a steady increase in the adoption of USVs across various industries, including aquaculture. They exhibit the potential to be suitable for disaster management.

The forecast indicates that the global market for unmanned surface vehicles (USVs) is expected to reach a significant value in the billions. The unmanned surface vehicle (USV) market is experiencing significant growth, driven by several key factors. One of the primary drivers is the increasing demand for efficient and cost-effective maritime surveillance and inspection solutions. USVs are well-suited for these applications as they can operate for extended periods of time without the need for human intervention, providing real-time data and insights to operators. Another factor contributing to market growth is the advancement of autonomous technology, which has enabled USVs to operate with greater accuracy and reliability. Additionally, the increasing adoption of USVs in commercial and recreational activities, such as offshore oil and gas exploration, environmental monitoring, and research, is also driving market growth. Furthermore, government agencies and militaries are also investing in USVs for various applications, including surveillance, patrol, and logistics support, which is expected to boost market growth.

RUSSIA-UKRAINE WAR IMPACT

Unmanned Surface Vehicle Demand Has Risen Globally due to Russia-Ukraine War

Russia’s conflict with Ukraine has largely been a land-based and air-based campaign, which has made the use of armed drones and high-tech missiles a normal part of modern warfare, propelling the unmanned surface vehicle (USV) market growth. The Black Sea was especially important in the maritime region.

Russian Navy's significant naval strength stems from Russia's efforts to safeguard against maritime surveillance operations related to Ukraine. Additionally, Russia has been engaged in political maneuvers concerning the strategically important Bosphorus Strait in Turkey. Another “unexploited” arsenal is hidden within the Black Sea in the form of Russian subs. These subs, which have both operational and non-operational roles, are seen as critical against Ukrainian forces and NATO assets.

Germany might need to broaden its equipment mix by looking for non-traditional military suppliers. The Israeli defense industry, for example, has already leased Unmanned Underwater Vehicles (UUVs) and Unmanned Aerial Vehicles (UAVs) to Germany and could potentially benefit by becoming a preferred supplier for Germany. The Nordic region is expected to see another characteristic change. Norway, which had previously opted out of joint procurement, might now rejoin and enter into a joint procurement to improve defense equipment interoperability against its common adversary.

• For instance, the U.S. has pledged over USD 43 billion since January 2021 to provide security assistance to Ukraine to demonstrate their strong and unwavering support for Ukraine's sovereignty and security. Since Russia's invasion of Ukraine on the 24th February 2022, the total U.S. security assistance since January 2021 has exceeded USD 43 billion. Since 2014, the U.S. has provided Ukraine with more than USD 47.4 billion for security assistance in the form of training and equipment to support Ukraine's territorial integrity, border security, and NATO interoperability.

Unmanned Surface Vehicle (USV) Market Trends

Rising Adoption of Small Sized USVs for Non-Lethal Missions with AI Capabilities 

Most USVs are less than 14m in length. Therefore, they have low radar, acoustic, infrared, and magnetic signatures. With the increasing use of stealth technology, USVs will become even less visible. Today, most USVs are dedicated to core non-destructive missions such as surveys, mine countermeasures, intelligence, surveillance, and reconnaissance. In particular, SUSVs (small USVs), VSUSVs (very small USVs), and gliders are best suited to a single type mission such as hydrographic surveying and ISR. Very few USVs have weapon systems and very few are currently operated. This is due to legal issues or lack of mature and tested autonomous systems.

• For instance, in March 2023, HII entered a strategic partnership with Ocean Aero. The deal would demonstrate how any two types of unmanned vessels can work together to tow, drive, and transmit data between each other — a move that would significantly enhance the capabilities of both vessels.

As the amount of sensor data collected by unmanned vehicles increases, there will be a growing need for advanced analysis of this data. To effectively process sensor data and generate meaningful insights, unmanned vehicle solutions will need to leverage the most up-to-date data analytics technologies available. AI also allows for continuous learning for unmanned vehicles based on machine learning techniques, allowing for complex capabilities, such as autonomous navigation and obstacle detection and avoidance, based on the International Regulations for Preventing Collisions at Sea (COLREGs).

For instance, in February 2023, the U.S. Navy and UAE Navy maritime forces completed a week-long joint unmanned systems and artificial intelligence integration exercise in the Arabian Gulf. A total of five UAE Navy unmanned surface vehicles participated in the joint exercise.

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Unmanned Surface Vehicle (USV) Market Growth Factors 

Increased Demand and Need for Cleaning Oceans by Unmanned Vehicle Drive the Market Growth

Contamination of oceans has been continuously growing over the years. The United Nations estimates that 95% of global plastic pollution enters the oceans through 10 major rivers. Eight of these rivers are located in Asia. By 2040, the amount of plastic trash entering marine environments is projected to almost triple, adding 23-37 million metric tons to the oceans annually, which is roughly 50 kg of plastic trash per meter of coastline worldwide.

• For instance, in June 2021, the Ocean Cleanup and Oceans Unmanned announced a new collaboration to use unmanned technologies to evaluate and enhance ongoing efforts to collect and remove marine debris in the GPA.

About 75% of the Earth’s surface is covered by water, 97.5% of which is the ocean, and the remaining 2.5% is fresh water. With an ever-growing population, fresh water is increasingly needed for drinking and other uses. On the other hand, industrialization and globalization have resulted in an increase in water pollution. Large amounts of plastic waste are discharged into the ocean, contaminating the water. Oil and gas exploration and transport have also resulted in several oil spills that have damaged aquatic life and water quality. Chemical contamination is a concern for health, environment, and economic reasons, which led to the need to clean these water resources.

• For instance, in April 2022, Open Ocean Engineering launched Clearbot Neo, an AI-powered robotic boat that collects tons of floating debris that would otherwise end up in the Pacific Ocean from the region’s bustling port. After years of development, Open Ocean Engineering plans to expand its Clearbot Neo fleet to clean and protect waters around the world.

Increased Use of Autonomous Surface Vehicles for Defense Missions to Propel the Market Growth

In recent years, in this market, Surface-to-Air Missile (SAM) has revolutionized naval operations. They have evolved from tools to perform a variety of tasks to systems that can operate with a high level of autonomy. In addition, most countries face asymmetric warfare due to different strategies formulated by various defense departments. Asymmetric warfare can also refer to conflicts.

These conflicts often include strategies and tactics that are based on unconventional warfare. An example of an asymmetrical threat is an attack by an individual, an organization, or a nation on a government, military, or a valuable asset to acquire that asset or to destroy that state. Countries must constantly monitor these attacks to protect themselves from attacks or other applications such as illicit drug trafficking, an air crash, a maritime search investigation, payload delivery, and others.

• For instance, in January 2023, the Indian Navy signed a contract under 'SPRINT' to develop Armed Autonomous Boat Swarms. The contract was signed with Sagar Defense Engineering Pvt. Ltd. to develop 75 indigenous technologies for the Indian Navy. SPRINT is India’s 50th contract to support niche defense technologies development by domestic companies.

RESTRAINING FACTORS

Limited Range and Endurance of USVs to Restrict Operational Effectiveness, Hampering the Market Growth

Typically, unmanned surface vehicle and unmanned underwater vehicle (UUV) are powered by lithium-ion batteries (Li-ion). These batteries are responsible for the overall vehicle power and propulsion. There have been many UUV stories that have failed to achieve mission endurance in their environment. There have even been cases where UUVs have failed to move forward when faced with fast-moving traffic.

Now in development, fuel cell systems can extend mission life while providing safety and logistics benefits. Fuel cells improve vehicle availability by reducing the time it takes to recharge a vehicle’s lithium battery replacing it with a fuel cell refueling process that takes the same amount of time as refueling a car with gasoline.

Unmanned Surface Vehicle (USV) Market Segmentation Analysis

By Size Analysis

Increased Demand for Small USVs for Survey Coverage to Aid Market Growth

Based on size, the market is classified into small, medium, large, and extra-large USVs.

The small USV segment dominated the market in 2023. Using small USVs alongside conventional survey vessels as a ‘force-multiplier’ can double the amount of survey coverage and reduce the amount of time spent on site. Small USVs, also known as mini-USVs, are designed to provide survey coverage and are being increasingly adopted by industries such as offshore oil and gas, environmental monitoring, and hydrographic surveying. These mini-USVs are capable of operating in shallow waters, navigating through tight spaces, and providing high-resolution data and images.

The demand for mini-USVs is driven by the need for accurate and detailed survey data, which is critical for making informed decisions in various industries. Additionally, mini-USVs offer cost-effective solutions, as they can operate for extended periods of time without the need for human intervention, reducing the overall cost of operations. As a result, the demand for mini-USVs is expected to continue to grow, driving the global USV market growth. Furthermore, advancements in autonomous technology and sensors are also enabling mini-USVs to operate more effectively, further increasing their adoption and contribution to the growth of the USV market.

As small USVs dominate the market segment, medium-category USVs also make up a significant share, the second-largest share. Medium USVs provide additional payload capabilities and cost-effective solutions compared to large and extra-large USVs. 

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By Component Analysis

Power & Propulsion Systems Segment to Dominate due to Higher Replacement of Human Interface Elements with Remote Human Interface

On the basis of components, the market is classified into power and propulsion systems, communication systems, sensors & optronics, hull, inertial navigation & positioning systems, ISR & imaging systems, and weapon payloads.

The power & propulsion systems segment is expected to be the dominant and fastest growing segment over the forecast period. In USVs, the builder must replace the human interface elements with a remote human interface. Developing remote-control capabilities for the propulsion systems requires interaction with their proprietary and closed internal communications. Torqeedo, Volvo, Mercury, and many others, offer control interfaces that are intended for human operation. For the uncrewed vessel, improved control interfaces are necessary to make the designer's job easy.

• For instance, in July 2023, USV AS entered into a contract with the shipyard Astilleros gondán to construct an unmanned surface vessel, which would significantly reduce emissions and operating costs compared to traditional vessels used for subsea inspection, maintenance, and repair (IMR) operations. The USV would have a length of 24 meters and a width of 7.5 meters with hybrid diesel and electric propulsion system, which includes a battery package by Seam. This package would enable the unmanned vessel to be deployed at sea for a period of 30 days without refueling or charging.

Further, the market is dominated by communication systems and hull. Communication Systems work as the contact interface between the user and vessels. These systems consist of telemetry, receiver, and transmitter and work as the command massager and information data receiver. Additionally, this system is not very complex, but small misalignments and inappropriate calibration can lead to the loss of unmanned surface vehicles.

Hulls play a vital role in the USVs as all the payload and systems are integrated into the hull, and the design and development of the hull take type comparatively, and the price of hulls is high. Due to this reason, the communication and hull segments are dominating the market after the power & propulsion systems segment.        

By Mode of Operation Analysis

Use of Remotely Operated USVs is Rising due to Great Performance

By mode of operation, the market is classified into autonomous and remotely operated.

The remotely operated segment held a dominating market share in 2023. Companies are seeking to leverage the advantages of remote operation and unmanned vessel technologies to improve performance and reduce costs and risks in a variety of offshore wind farm offshore development and subsea operations.

• For instance, in June 2023, a Norwegian Joint Undertaking formed by DeepOcean, SOLstad Offshore, contracted the first unmanned surface vessel specially designed for offshore inspection, maintenance, and repair work.

The autonomous segment is anticipated to be the fastest growing segment for the period 2024-2032 the autopilot allows a USV to run a mission autonomously from beginning to end. USV operators can use the same sophisticated features found in Unmanned Aerial Vehicles (UAVs). The segment is growing due to advancements in technology.

By Endurance Analysis

High Demand for Short (Up to 100 Hours) Segment in the Unmanned Surface Vehicle to Support the Market Growth

By endurance, the market is classified into short (up to 100 hours), medium (100 – 500 hours), long (500 – 1000 hours), and extra-long (above 1000 hours).

The short (up to 100 hours) segment dominated the global market share in 2023 due to high demand for short endurance USVs for natural resource mapping & exploration and environmental & meteorological monitoring. The segment is expected to support the growth of the USV market. These USVs are particularly appealing to industries such as offshore oil and gas, environmental monitoring, and hydrographic surveying, which require USVs to operate for extended periods of time. USVs with a short-duration capability are designed to provide flexible and cost-effective solutions as they can be deployed quickly and easily and can operate for several days without the need for human intervention. This makes them ideal for applications such as surveying, monitoring, and inspection, where data collection over an extended period is required.

Additionally, advancements in battery technology and power management systems are enabling USVs to operate for longer periods of time, further increasing their adoption in various industries. As a result, the short-duration segment is expected to drive market growth as more industries adopt these versatile and efficient vehicles.

Medium-range (100 – 500 hours) USVs are the second fastest-growing segment in this particular market. This range provides additional mission hours with cost-effective solutions and an effective and suitable equipment range.

In the case of long-endurance USVs, USVs require an extra range of battery, fuel capacity, communication, and other equipment, affecting the models' overall pricing, which is unnecessary as these USVs are used in fewer missions/occasions. Due to this, after short-range, medium-range USVs are holding significant share in the market growth.

By Hull Type Analysis

Growing Demand of Kayak (Single Hull) USVs to Support Marine Explorations Market Growth

Based on hull type, the market is classified into kayak (single hull), catamaran (twin hull), trimaran (triple hull), and rigid inflatable hull.

The kayak (single hull) segment is expected to be dominant and the fastest growing segment over 2024-2032. Bathymetry, benthic properties, water column components, and hyperspectral radiometry are some of the environmental parameters that can be measured in shallow coastal marine environments by kayak (single hull) USVs. The demand for kayak (single hull) USVs will remain high as marine exploration activities will be growing over the forecast period.

Trimaran (Triple Hull) is also leading the market growth as this hull provides better balance, is very good for high speed and moderated weight carrying capacity, and has greater resistance. Additionally, Trimaran provides good sea-keeping capabilities and a larger available desk area, which makes them an ideal choice for USVs.

By Application Analysis

Hydrography & Oceanography Segment Dominated as Hydrographic Surveys are the Most Popular and Well-established

On the basis of application, the market is classified into intelligence, surveillance, and reconnaissance, naval & homeland security, anti-submarine warfare, hydrography & oceanography, environmental & meteorological monitoring, natural resource mapping & exploration, and others.

The hydrography & oceanography segment dominated the market share in 2023. Hydrographic surveys are the most popular and well-established field where unmanned surface vehicles are used. These surveys typically require long sail times and constant round-trips. With the autonomous navigation system built into hydrographic survey USVs, one can ignore repetitive, laborious tasks.

The intelligence, surveillance, and reconnaissance segment is expected to be the fastest growing segment from 2024 to 2032. USVs have a variety of military uses, including powered seabed targets, mine hunting, surveillance and reconnaissance, strike, and area denial or sea denial. Due to growing military applications, the segment growth is expected to be promising in the coming years.

• For instance, in February 2023, EMGEPRON, a Brazilian naval engineering house, and TideWise, a locally owned unmanned systems specialist, developed a long-term USV configured to perform MCM operations and meet potential naval requirements for this type of unmanned system.

By End Use

Defense Segment Dominates the Market Growth Due to Increasing Defense Spending and Rising Geopolitical Tensions

Based on the end use, the market is classified into the environmental, defense, offshore oil and gas, science, seabed mining, and ocean renewables segments.

Unmanned Surface Vehicles (USVs) have demonstrated significant importance in various sectors, with the defense industry currently leading the segment. USVs are used for different military applications, including surveillance, reconnaissance, and mine countermeasures, and are increasingly showcasing their importance in various other missions. USVs offer features such as operating without risking human lives while providing real-time information and valuable data, making them important tools for naval forces. For this reason, the USVs dominate the defense segment.

• For Instance, In December 2024, the Defense Acquisition Program Administration (DAPA) awarded LIG Nex1 a fixed-price contract worth USD 274 million to develop the Reconnaissance Unmanned Surface Vehicle (USV) system. It is expected to be delivered by 2027.

Following the defense sector, the oil and gas industry is a leading user of USVs. These vehicles are used for offshore inspections, environmental monitoring, and assistance in other activities (research and exploration). USVs provide cost-effective solutions and data collection in challenging maritime conditions, providing critical support for both pre-drilling assessments and ongoing infrastructure maintenance, which makes them important assets in this industry.

REGIONAL INSIGHTS

The market is studied across North America, Europe, Asia Pacific, and the rest of the world. The market is estimated to be dominated by North America, followed by Asia Pacific and Europe.

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North America is expected to hold the largest unmanned surface vehicle (USV) market share, as most of the developers are based in the region. This growth is due to an increase in the Navy's defense budget, which has increased the demand for vehicles in the U.S. In addition, increasing Canadian exports and economic development are expected to drive the market growth.

Asia Pacific is expected to be the fastest growing region during the forecast period. China is expected to lead the Asia Pacific market due to the growing demand for heavy-duty USVs in the commercial and defense sectors, including combat, cargo, and other applications. Increased USV activity in India is expected to boost the market. For instance,

• In January 2023, iDEX signed 50th SPRINT contract with Sagar Defense to develop and deploy autonomous weaponized boat swarms for the Indian Navy. Autonomous Weaponized Boat (AWB) is one of the 75 technologies presented by the Indian Navy in the framework of the 75 challenges presented by the Navy in the context of the Azadi Ka Amrit Mahotsav 2022.

In Europe, increasing exploration activities, oil and gas production, and marine activities are expected to increase the market share.

• For instance, in January 2022, Holland Shipyards Group entered into a contract with Trafficikverket Sweden for the construction and operation of up to four autonomous, fully electric ferries. These ferries will be equipped with IMO Autonomy level 2 and will be controlled remotely from a control center in Stockholm.

The Rest of the World is also anticipated to exhibit significant growth during the forecast period due to an increase in the number of autonomous vessel deliveries in the UAE. The rest of the world will witness impressive growth during the forecast period. This growth can be attributed to the expanding exploration and oil & gas industries in Latin America and the Middle East & Africa. 

KEY INDUSTRY PLAYERS

Development of Advanced Technologies by Key Players, such as Kongsberg Maritime and L3 Harris Technologies, to Propel Market Growth

The market is somewhat consolidated due to the presence of major players such as Kongsberg Maritime (Norway), L3 Harris Technologies Inc. (U.S.), SaaB AB (U.S.), Textron Inc (U.S.), ECA Group (France), and Fugro (Netherlands). They are focused on offering advanced and compact UAVs that can track multiple targets at once. Additionally, companies are investing and working on innovation and technological development (improvements in flight endurance, payload capacity, sensors for better tracking and surveillance, and artificial intelligence for autonomous operations), strategic partnerships and collaborations, expansion of product portfolios, sustainability initiatives (environmental concerns grow, companies are increasingly focusing on developing eco-friendly UAVs and sustainable practices in their operations), and acquisitions and mergers to strengthen industry positions of this companies.

List of Top Unmanned Surface Vehicle (USV) Companies:

• Kongsberg Maritime (Norway)


• SaaB AB (Sweden)


• L3 Harris Technologies (U.S.)


• Textron Inc (U.S.)


• ECA Group (France)


• Thales Group (France)


• Fugro (Netherlands)


• Atlas Elektronik GmbH (Germany)


• Elbit Systems (Israel)


• Liquid Robotics (U.S.)


• Teledyne Technologies (U.S.)


• Saildrone Inc (U.S.)


• Liquid Robotics, Inc (U.S.)


• Maritime Robotics (Norway)


• AutoNaut Ltd (U.K.)


• Exail Technologies (France)


• Ocean Aero (U.S.)


• Open Ocean Robotics (Canada)


• Ocius Technology Ltd (Australia)


• Xocean (Ireland)


• Autonomous Marine systems Inc. (U.S.)


• International Submarine Engineering (Canada)


• Graal Tech (Italy)


• Martac (U.S.)


• Navocean Inc (U.S.)


• Seatrac Systems Inc (U.S.)


• SubseaSail LLC (U.S.)


• Unmanned Survey Solutions (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2024 - Ocean Power Technologies (OPT), a U.S.-based marine power, data, and services company, successfully delivered the initial batch of new unmanned surface vehicles (WAM-Vs) to Sulmara, a significant milestone in their previously announced USD 1.6 million contract. The WAM-Vs are designed for global operations and would enable Sulmara to conduct a range of maritime activities, marking the first delivery of these new vehicles under the contract.


• April 2024 - Bharat Electronics unveiled a cutting-edge, zero-emission remotely operated unmanned surface vehicle (USV) tailored for hydro-graphic surveying and coastal surveillance. This innovative vessel boasts a range of advanced features that make it an ideal solution for various applications, offering exceptional versatility and efficiency.


• June 2023 - Thales USV (Unmanned Surface Vessel) Apollo successfully completed a rigorous series of autonomous MCM trials, paving the way for autonomous mine hunting operations in the Royal Navy and the industry. Apollo, a Thales-built (Royal Navy Motor Boat) RNMB, completed a series of open water assurance tests.


• February 2023 - The Blue Essence (USV) by Fugro is the U.K.’s first electric Remotely Operated Vessel (eROV). Approved by the MCA, the Blue Essence is the first USV equipped with an eROV in the U.K. waters.


• October 2022 - L3Harris Technologies announced a strategic partnership with privately-held Seasats, a leader in the development and manufacture of cost-effective solar-powered maritime ASVs for military and commercial applications.


• June 2024 - L3Harris Technologies, a leading technology company, has collaborated with maritime startup Seasats to successfully test the advanced capabilities of an autonomous surface vessel (ASV) in the Pacific Ocean. The ASV, which measures the size of a surfboard, completed a 2,500-mile journey from San Diego to Pearl Harbor, demonstrating reliable, resilient, and effective operations off the coast of Hawaii.


• March 2024 - Spain-based Gondan Shipbuilders has started the construction of an advanced remotely operated unmanned surface vehicle (USV) for a company made up of DeepOcean, Solstad and Østensjø Rederi alliance called USV A/S.

REPORT COVERAGE

The market research report offers a qualitative and quantitative analysis of the market size and growth rate across all possible market segments. The report also includes a detailed analysis of market dynamics and emerging trends as well as the competitive landscape. Key findings of the report include the adoption trends of USV in different segments and industry trends. An in-depth analysis of key players and integrated SWOT analysis, porter’s five forces analysis, businesses of key market players, macroeconomic & microeconomic indicators, and major industry trends are also covered.

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