Unmanned Surface Vehicles Market Size, Share, Trends & Growth

[286 Pages Report] The Unmanned surface vehicles market is estimated to be USD 0.8 billion in 2023 and is projected to reach USD 1.2 billion by 2028, at a CAGR of 10.3% from 2023 to 2028. The volume of Unmanned surface vehicles is projected to grow from 1,285 (in Units) in 2023 to 2,067 (in Units) by 2028. The growth of the market is attributed to the increasing investment for the innovations in Unmanned surface vehicles used for inspection and hydrographic surveying across the world. There is growing demand of USVs due to the  defense budgets and growing focus on maritime security for surveillance, national water protection and other military operations. The growing applications of USVs in commercial industries, including offshore exploration and oceanography due to their cost-effectiveness and efficiency drives the market growth.

Unmanned surface vehicles Market Forecast to 2028

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Unmanned Surface Vehicles Market Dynamics

Driver: High demand for water quality monitoring and ocean data mapping

USVs are equipped with various sensor payloads and are primarily used for oceanographic research and data mapping. These vehicles are used to measure water quality, temperature, salinity, pH values, and currents, in addition to understanding the dynamics of the ocean. USVs can autonomously navigate and collect information with respect to water quality, which is relayed back to operators on the shore in real-time. For instance, USVs can monitor water quality parameters like temperature, salinity, and pollution levels, aiding in environmental conservation efforts. Additionally, they are used for ocean data mapping, assisting researchers in understanding marine ecosystems and mapping underwater terrain. The versatility and autonomy of USVs make them valuable tools for continuous data collection, enabling real-time insights and informed decision-making in various marine-related industries. Checking water quality with the help of USVs has several advantages over the manual water sampling technique. They can promptly inspect and capture specific events and locations and provide a mechanism for quantifying natural variability to drive and calibrate modeling efforts. They also enable inland and offshore hydrographic surveys by collecting high-quality, high-resolution ocean data. USVs can effectively operate in wind conditions up to 15 knots and detect obstacles in the water, including trees, floating nodes buoys, boats, and canoes. Hence, there is an increased use of USVs for water quality monitoring and ocean data mapping, which, in turn, is expected to drive the growth of the unmanned surface vehicle market globally. In 2021, A/S Norske Shell was actively conducting a comprehensive seabed monitoring initiative for the immense Ormen Lange gas field, situated 120 km off the coast of Norway. In this endeavor, they have deployed an array of our cutting-edge Fetch pressure monitoring transponders (PMTs) in water depths ranging from 800 to 1,100 meters at the field. This long-term monitoring campaign ensures the continuous assessment of critical underwater conditions, facilitating informed decision-making and maintaining optimal operational efficiency for the gas field. Sonardyne International Limited provided the solution by using the XOCEAN XO-450, a state-of-the-art Unmanned Surface Vehicle (USV), to Norway for the project via a cargo ship and subsequently deployed by the esteemed marine operations service provider, SafePath AS. Additionally, in 2023, Saildrone launched Voyage USV, bridging the gap between the Explorer (23-ft-long/7-m) and Surveyor (65-ft-long/20-m) models. The Voyage is designed to excel in near-shore (ocean) and lakebed mapping tasks while also serving as a reliable asset for intelligence gathering in vital areas such as law enforcement, maritime safety, drug enforcement, and border/harbor security missions. Additionally, its surveillance capabilities were instrumental in combatting illegal fishing operations. The Voyager promised exceptional performance and versatility for a wide array of business applications.

Restraints: Presence of low-cost substitutes

Compared to unmanned ground vehicles (UGVs), unmanned aerial vehicles (UAVs), and unmanned underwater vehicles (UUVs), the adoption of USVs is limited owing to their high manufacturing cost. The total number of USVs manufactured is less than other unmanned systems. Manufacturers of USVs are focused on reducing their procurement and operational costs. USVs are gradually being replaced by small UUVs for various applications, such as oil & gas exploration activities and search & rescue missions, owing to the affordable cost of small UUVs. There is a huge scope for improvement in the design and technical aspects of USVs.

Opportunity: Increased defense budget for USVs

In the last ten years, emerging economies such as India, China, and Singapore have increased their defense budgets. The US topped the list for military spending in 2023, followed by China, Saudi Arabia, and Russia. The US Department of Defense (DoD) has increased its budget for unmanned systems in recent years. This is due to a number of factors, including the growing demand for unmanned systems in military applications, the development of new unmanned system technologies, and the increasing cost of manned systems. The US Navy has a vision for the development of Low-Cost Unmanned Surface Vehicles (LUSVs) as versatile, reconfigurable ships with dimensions ranging from 200 to 300 feet and a full load displacement of 1,000 to 2,000 tons, similar in size to a corvette. These LUSVs are intended to have extended operational capabilities and are designed to carry various modular payloads, with a primary focus on anti-surface warfare and strike capabilities, such as anti-ship and land-attack missiles. Each LUSV is planned to incorporate a vertical launch system (VLS) featuring 16 to 32 missile-launching tubes. While often referred to as unmanned vehicles, it is essential to note that the LUSVs might initially have a limited onboard crew presence, particularly during the early stages of technology and operational concept development. The US Navy has already initiated the use of LUSV prototypes to refine operational concepts. As part of its budget submission for Fiscal Year 2024, the procurement of produced LUSVs is channeled through the Navy's shipbuilding account. The acquisition plan includes the first LUSV to be procured in FY2025 at a cost of USD 315.0 million, followed by two more in FY2026 at a combined cost of USD 522.5 million (approximately USD 261.3 million each on average). Subsequently, three LUSVs are scheduled for procurement in FY2027 at a combined cost of USD 722.7 million (about USD 240.9 million each on average), and another three in FY2028 at a combined cost of USD 737.2 million (averaging about USD 245.7 million each).

Challenges: Unclear navigation rules and need for human intervention

The navigation rules of USVs focus on several aspects of maritime navigation, such as multi-ship operations for collision avoidance. New instructions for navigation are formulated depending on the rule-based approach. This approach handles three basic exercises for collision avoidance among vessels, which are listed below:

• If one vessel overtakes another, there should be space between the two vessels for overtaking. Additionally, the vessel should pass from the port side of the other vessel. It can pass from the right-hand side unless it sounds like an audible whistle signal.
• If two vessels meet on mutual paths, then each vessel should change the path to the right-hand side so that each shall pass on the port side of the other.
• If two vessels cross each other, then the vessel that has the other on its right-hand side should keep out of the way and should avoid crossing in front of the other vessel.

The above three rules, however, do not clearly define angles and ranges. There is a need for human insight and experience to fill these gaps. For instance, if two oil tankers are very close to each other, operators need to alter these rules to ensure the safety of tankers and prevent a collision. When applied to USVs, these rules should be comprehensive, and all parameters related to the size and maneuverability of USVs need to be tested.

Unmanned surface vehicles Market Segmentation

Defense application segment of Unmanned Surface Vehicles to dominate the market by the application segment.

By application segment the market is segmented into defense and commercial. The defense sector is the primary driver of the Unmanned Surface Vehicle (USV) market, mainly because of increased global security concerns. Governments are investing heavily in the procurement of the unmanned surface vehicles for intelligence gathering, surveillance, reconnaissance, mine countermeasures and anti- submarine warfare. The growing requirement for autonomous systems to protect maritime interests and its ability to operate in hostile environments without risking human lives. The various military modernization programs and increasing maritime security concerns globally further drives the market growth of the Unmanned Surface Vehicles.

Intelligence, Surveillance, and Reconnaissance of the defense application segment of Unmanned Surface Vehicles to show the highest growth rate.

The ISR (Intelligence, Surveillance, and Reconnaissance) sub-application within the defense segment of the USV (Unmanned Surface Vehicle) market is poised for the highest growth rate due to its critical role in enhancing situational awareness and information gathering. USVs are equipped with ISR capabilities which provides crucial intelligence, operational support and enables efficient monitoring, data collection, and analysis which increases demand for unmanned systems in defense operations. The increasing use of unmanned systems in modern defense strategies to enhance security and operational efficiency drives the market growth of Unammed Surface Vehicles.

Autonomous Type USVs to hold the highest share for the Unmanned Surface Vehicles market.

The autonomous Unmanned Surface Vehicle (USV) market is set to experience substantial growth, with the category segment anticipated to demonstrate the most significant market expansion. This demand is propelled by the diverse applications of these USVs in defense, oceanography, and offshore industries. The enhanced operational efficiency and advanced technological features such as improvements in artificial intelligence, sensor technology, and machine learning, enables these USVs to navigate and perform tasks more effectively in varied maritime environments. The capability of Autonomous type USVs to execute complex missions with enhanced precision and reliability drives the market growth.

Single Hull segment of the Unmanned Surface Vehicles is to hold the largest market share for the estimated year.

The hull type segment market is segmented into single, twin, triple, and rigid inflatable. Single hull configurations provide a straightforward, cost-efficient, and adaptable solution, making them well-suited for a variety of missions. Their established performance, easy integration, and reliability contribute to their dominance in the expanding Unmanned Surface Vehicle (USV) industry. The growth of the single hull segment is attributed due to its streamlined structure which enhances operational efficiency and maneuverability in various maritime conditions. The inherent simplicity of single hull USVs allows for reduced manufacturing and maintenance costs, making them a cost-effective choice for many organizations which further drives the market growth of the segment.

<10 Knots Cruising Speed segment of Unmanned Surface Vehicles is to hold the largest market share.

By Cruising Speed, the market is segmented into the <10 knots, 10-30 knots, and>30 knots. The <10 kt cruising speed segment dominates the USV market due to its optimal balance of efficiency and versatility. Vessels in this category offer cost-effective operations, extended mission durations, and adaptability for various applications such as surveillance, research, and environmental monitoring. Their cruising speed ensures optimal performance and endurance, making them the preferred choice across diverse maritime sectors. The growth of the segment is attribute due to the their efficiency in low-speed operations with reduced operational costs and lower energy consumption which makes them highly desirable for sustained missions that require extended time at sea.

The North America market is projected to contribute the largest share from 2023 to 2028.

Unmanned surface vehicles Market by Region

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North America's dominance in the Unmanned Surface Vehicle (USV) market, boasting over 35% market share, can be traced to a multitude of factors. The region stands out for its advanced technology development, with industry leaders like Liquid Robotics(a subsidiary of Boeing) and Textron spearheading innovation in both military and civilian USVs. Robust defense spending in the United States propels the growth, particularly in maritime security, surveillance, and combat applications. Simultaneously, North America strategically leverages USVs for diverse commercial purposes such as hydrographic surveys, oil and gas exploration, and aquaculture, capitalizing on its extensive coastline and growing environmental monitoring priorities. In essence, North America's amalgamation of technological expertise, security focus, and versatile commercial applications positions it prominently at the forefront of global USV adoption, shaping the market landscape.

Emerging Industry Trends

Cross-platform operations

Cross-platform operations involve the coordination of drones operating in the air, water, and on land. These operations are particularly important for swarm missions. For example, underwater drones in a swarm can share information using slow acoustic waves with unmanned surface vehicles (USVs). The USVs, in turn, can transmit signals rapidly through electromagnetic waves to operators on the ground. This facilitates fast and efficient communication.

Key Players

Major players in the Unmanned surface vehicles market include L3Harris Technologies (US), Saab AB (Sweden), Textron Inc. (US), Exail Group (France), Thales Group (France), Fugro (Netherlands), and Kongsberg Maritime (Norway). The report covers various industry trends and new technological innovations in the Unmanned surface vehicles market for the period, 2019-2028.

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Scope of the Report

Unmanned surface vehicles Market Highlights

The study categorizes the unmanned surface vehicles market based on Application, Type, Size, System, and Region.

Recent Developments

• North America: In March 2023, Textron Systems secured a potential $54 million, four-year contract from the U.S. Navy for the development of a mine countermeasure system under the Magnetic and Acoustic Generation Next Unmanned Superconducting Sweep program. The cost-plus-fixed-fee contract, known as MAGNUSS, received three offers and encompassed a three-year base period valued at around $20.1 million, with an additional 12-month option term.
• Europe: In September 2022, Saab AB conducted collaborative testing with the Swedish Navy in the southern Baltic Sea to evaluate the Enforcer III, an autonomous function development test platform derived from the Combat Boat 90. The trials aimed to assess the platform's capabilities and performance in the specified maritime environment.
• Middle East: In 2022, AD Ports Group and Geo-data specialist Fugro have entered into a formal agreement for the implementation of remote and autonomous technologies within the specified region.

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