Sea based Defense Equipment Market Report 2026

The sea based defense equipment market size has grown strongly in recent years. It will grow from $38.88 billion in 2025 to $41.9 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to expansion of global naval fleets and submarine programs, technological advancements in sonar and naval radar systems, growth in production of naval vessels and support crafts, government defense contracts driving sea-based defense equipment procurement, integration of satellites for maritime surveillance and defense operations.

The sea based defense equipment market size is expected to see strong growth in the next few years. It will grow to $58.2 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to rising adoption of autonomous and unmanned naval systems, advancements in stealth and multi-role naval vessels, growth in investment for submarine and undersea warfare capabilities, increasing demand for integrated radar, sonar, and satellite systems for maritime defense, expansion of maintenance and support services for sea-based defense equipment. Major trends in the forecast period include growing deployment of nuclear and diesel-electric submarines, increasing investment in naval radar and sonar systems, expansion of autonomous sea-based defense platforms, rising demand for coastal surveillance and mcm operations, integration of advanced communication and navigation systems in naval vessels.

The rise in defense spending is expected to drive the growth of the sea-based defense equipment market in the coming years. Defense expenditure refers to the total financial resources a government allocates to its military forces and related activities. This funding enables defense organizations to develop, acquire, and sustain sea-based defense equipment, ensuring that countries can effectively respond to emerging threats and strengthen their maritime security capabilities. For example, in October 2025, according to the UK Parliament's House of Commons Library, defense spending outlined in the 2025 Spending Review is projected to reach USD 83.3 billion (£62.2 billion) in 2025/26 and rise to USD 98.2 billion (£73.5 billion) in 2028/29, representing an average annual real-term growth rate of 3.8% over this period. Therefore, the increase in defense expenditure is contributing to the expansion of the sea-based defense equipment market.

Leading companies in the global sea-based defense equipment market are focused on developing advanced technologies, such as autonomous navigation and operation, which allow vessels to navigate and execute missions without human involvement. Autonomous navigation and operation refer to technology that uses sensors, AI algorithms, and control systems to interpret environmental data and make real-time decisions. For instance, in January 2024, Austal USA’s shipyard, a U.S.-based manufacturing company, launched the Vanguard unmanned surface vessel (OUSV3), designed specifically for autonomous missions and representing a major advancement in the Navy’s unmanned maritime capabilities. It is intended for multiple roles, including surveillance and reconnaissance, and will operate alongside other vessels in the Navy's USV Division 1. The vessel is part of the Overlord program, which aims to expand the Navy’s operational understanding and experimentation with unmanned systems.

In April 2024, Thales Group, a France-based aerospace and defense company, acquired Cobham Aerospace Communications Limited for an undisclosed amount. Through this acquisition, Thales Group seeks to strengthen its avionics portfolio and secure a leading position in safety cockpit communications and connected avionic systems. By integrating Cobham Aerospace Communications Limited’s advanced technologies, skilled workforce, and global presence, Thales aims to enhance aircraft connectivity, drive innovation, and support a safer, more efficient, and more sustainable future in the aerospace sector. Cobham Aerospace Communications Limited is a UK-based manufacturer specializing in advanced, highly reliable safety cockpit communication and connectivity systems.

Major companies operating in the sea based defense equipment market are General Dynamics Corporation, Huntington Ingalls Industries Inc., Naval Group, Bae Systems plc, Fincantieri SpA, Northrop Grumman Corp, Leonardo SpA, Raytheon Co, Lockheed Martin Corporation, Mitsubishi Heavy Industries ltd., BMT Group Ltd., BMTI Composite Materials and Parts for Submarines, Radio Communication Antenna Systems, Boeing Defense, Space & Security, Bohai Shipbuilding Heavy Industry Co Ltd., Bolidt synthetic systems, Booz Allen Hamilton Holding Corp, Data Modul AG, Decksmaschinen und Automation Vertriebs GmbH., Deep Trekker Inc., Defence Research and Development Organisation, DeRegt Marine cables, Diagnostic Retrieval Systems Inc., ECA Group Ltd., Elbit Systems Intelligence and Electro-optics - Elop Ltd., Fincantieri S.p.A., FLIR Systems Inc., Fluidmecanica SA Inc., Kongsberg Defence & Aerospace.

Asia-Pacific was the largest region in the sea-based defense equipment market in 2025. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in the sea based defense equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on naval vessels, submarines, and sea-based defense equipment have raised procurement costs and created supply chain disruptions, particularly affecting defense organizations in North America, Europe, and Asia-Pacific. Submarines and advanced battle force ships are most impacted due to dependence on imported high-tech components. While costs and project timelines may increase, tariffs are also driving domestic manufacturing investments, local sourcing strategies, and development of cost-efficient autonomous sea-based platforms.

The sea-based defense equipment market research report is one of a series of new reports that provides sea-based defense equipment market statistics, including sea-based defense equipment industry global market size, regional shares, competitors with a sea-based defense equipment market share, detailed sea-based defense equipment market segments, market trends and opportunities, and any further data you may need to thrive in the sea-based defense equipment industry. This sea-based defense equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Sea-based defense equipment encompasses the support and auxiliary gear utilized in maritime defense operations, with a particular focus on applications such as submarines. This sea-based defense equipment represents the integral naval component that plays a pivotal role in delivering essential regional and homeland defense capabilities.

The primary categories of sea-based defense equipment consist of battle force ships and submarines, including nuclear submarines. Battle force ships are officially designated United States Ship (USS) warships capable of active involvement in combat operations, or United States Naval Ships directly aiding Navy warfare or support missions, and they must be formally recorded in the Naval Vessel Register. These operations encompass a spectrum of functions, including autonomous sea-based defense equipment, manual operations, and various applications like search and rescue, combat missions, mine countermeasures (MCM) operations, coastal surveillance, and more.

The countries covered in the sea based defense equipment market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The sea-based defense equipment market consists of sales of sea-based defense equipment including naval vessels, crafts, radar, satellites, and sonars. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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