Unmanned Surface Vehicle Market Expected to Reach $2.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Unmanned Surface Vehicle Market," The unmanned surface vehicle market was valued at $0.92 billion in 2022, and is estimated to reach $2.7 billion by 2032, growing at a CAGR of 11.5% from 2023 to 2032.

The growth of the global unmanned surface vehicles market is driven by an increase in emphasis on maritime safety and security, particularly in the face of evolving security threats and environmental concerns, which has propelled the demand for USVs. These vehicles are being widely adopted for tasks such as coastal & border surveillance, maritime domain awareness, anti-piracy operations, and environmental monitoring. Their ability to operate autonomously or remotely, often in challenging and hazardous maritime environments, makes them invaluable for enhancing situational awareness and response capabilities. For instance, in December 2020, the U.S. Coast Guard Research and Development Center (RDC) focused on Unmanned Surface Vehicles (USVs) from Saildrone and Spatial Integrated Systems. The RDC purchased its own 29RDC, which shares the same hull as the RBS-II from Metal Shark and configured it to host an autonomous control system from Sea Machines in Boston, MA. Such developments are expected to offer lucrative opportunities for the growth of the unmanned surface vehicle market. 

The burgeoning need for effective environmental monitoring and disaster response capabilities is a driving force behind the rapid expansion of the unmanned surface vehicle (USV) market. In light of the growing frequency and severity of natural disasters and escalating worries about environmental shifts, the inadequacies of traditional approaches to data collection and emergency management are becoming apparent. In addressing the escalating frequency and severity of natural disasters and growing concerns about environmental changes, Unmanned Surface Vehicles (USVs) are gaining prominence as essential assets. These vehicles come equipped with an assortment of sensors and instruments adept at evaluating a wide range of environmental parameters, encompassing water quality, pollution levels, and weather conditions. Additionally, in scenarios demanding swift disaster response, USVs can be promptly deployed to conduct surveys in affected areas, acquire vital information, and transmit it in real-time to command centers. This process enhances the capacity for well-informed decision-making and the effective allocation of resources.
For instance, in May 2022, Central Asia, the Aga Khan Agency for Habitat (AKAH) used the APACHE 3 unmanned surface vehicle (USV) to conduct a bathymetric survey to estimate lake water volume and assess the impact of glacial lake outburst floods on local communities.

Deployed USVs were able to navigate flooded streets and assess the extent of damage while providing essential data for coordinating rescue operations and resource distribution. This successful deployment highlighted the USVs' adaptability and effectiveness in supporting environmental monitoring and disaster response efforts, positioning the unmanned surface vehicle market for substantial growth as stakeholders increasingly recognize their pivotal role in safeguarding communities and the environment.

Significant countries including China, India, Japan, South Korea, and the "rest of Asia-Pacific" region, which also includes Indonesia, Singapore, Thailand, Vietnam, and Malaysia, form the Asia-Pacific region. Notably, it is expected that countries such as China, Japan, and India would continue to be leading markets, with growing domestic and international player investment and research and development (R&D) activity in Unmanned Surface Vehicle (USV) technologies.

The thriving maritime trade and commerce across the Asia-Pacific region have generated a demand for efficient and economical solutions, particularly in tasks such as maritime transportation, cargo monitoring, and environmental surveillance. USVs offer a versatile platform for these applications, contributing to their rising popularity. Moreover, the region's vast coastline and extensive maritime territories make it an ideal testing ground for USV technologies, fostering innovation and development, which is beneficial for the growth of the unmanned surface vehicle industry. 

Governments and commercial organisations are actively funding R&D projects to enhance USV capabilities and broaden their scope of uses. For instance, in July 2023, the Navy's Weapons and Electronic Systems Engineering Establishment (WESEE) and Bharat Electronics (BEL) teamed up to develop an autonomous ship with ISR capabilities. This 15-meter-long autonomous boat underwent its inaugural sea trial and demonstrated its capacity to navigate effectively within busy maritime traffic on the route between Mumbai and Goa. Therefore, these developments are expected to drive the growth of the unmanned surface vehicle market during the forecast period. 

For defense and security purposes, unmanned surface vehicles are widely used in surveillance and reconnaissance: USVs are equipped with various sensors, including cameras, radar, and sonar, which enable them to gather intelligence, conduct surveillance, and provide real-time situational awareness in maritime environments. Innovations in autonomous navigation, sensor technologies, and communication systems have made USVs more capable, reliable, and versatile. These advancements enable USVs to operate effectively in complex and contested maritime environments, providing superior surveillance, reconnaissance, and response capabilities.

The cost-effectiveness of USVs compared to crewed vessels is another significant growth factor. For instance, in July 2023, The Indian Navy is set for the trial of its first indigenously developed, ocean-going multirole unmanned surface vessel (USV) for surveillance and minesweeping. The USV is designed and developed for maritime intelligence gathering, surveillance and reconnaissance. The growing emphasis on maritime domain awareness and security is also fueling the demand for USVs. Nations and organizations recognize the importance of safeguarding their coastal waters, territorial seas, and maritime trade routes. USVs offer an efficient means of patrolling and monitoring these areas, deterring threats, and responding to incidents promptly.

Under the commercial segment, the oil & gas exploration, offshore energy industry, oceanography and environmental monitoring, search and rescue operations. The unmanned surface vehicle are quite useful in surveying and inspecting offshore oil & gas reserves. The adoption of USVs in offshore oil and gas operations underscores their cost-effectiveness and efficiency. Companies operating in this sector recognize substantial savings in terms of reduced operational costs, fewer personnel requirements, and decreased downtime when deploying USVs for surveying and inspections. As these cost savings become more apparent, it encourages further investment in USV technology. For instance, in August 2023, Remota AS has been contracted by USV AS to operate and manage remotely controlled offshore operations for its first newbuild USV that is expected to enter service in 2025.

In addition, the data accuracy and real-time monitoring capabilities of USVs enhance the decision-making process for offshore operations. The precise data collected by USVs ensures that companies can proactively address maintenance needs and structural integrity issues, reducing the risk of unplanned downtime or environmental incidents. This, in turn, leads to increased operational reliability and compliance with regulatory requirements.

Russia Ukraine War Impact

The conflict between Russia and Ukraine has intricately influenced the unmanned surface vehicles (USV) market. Escalating geopolitical tensions and security issues in the Black Sea region and other water bodies have prompted a surge in the demand for USVs, particularly in military and defense sectors. Nations, in their efforts to enhance maritime surveillance capabilities and safeguard their interests, are investing significantly in advanced USV technology, focusing on applications like intelligence gathering, reconnaissance, and border security. Simultaneously, the imposition of sanctions and export restrictions on Russia, a major player in the USV market, has disrupted global supply chains, impacting the availability of crucial components and technologies essential for USV manufacturing. This, in turn, has led to delays in the adoption of USVs for commercial purposes, including shipping, offshore exploration, and environmental monitoring.

KEY FINDINGS OF THE STUDY

• By size, the more than 26 meters segment is anticipated to exhibit significant growth in the near future.
• By application, the defense segment is anticipated to exhibit significant growth in the near future.
• By mode of operation, the remotely operated surface vehicle segment is anticipated to exhibit significant growth in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global unmanned surface vehicle market include Atlas Elektronik GmbH, ECA Group, Elbit Systems Ltd., Israel Aerospace Industries, Kongsberg Maritime, L3Harris Technologies, Inc., Liquid Robotics, Maritime Robotics, SeaRobotics Corp. and Teledyne Technologies Incorporated. The companies are adopting strategies such as collaboration, acquisition, product launch, partnership, and others to improve their market positioning.