Lightweight Torpedo Market Report 2025

The lightweight torpedo market size has grown strongly in recent years. It will grow from $1.14 billion in 2024 to $1.22 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increasing naval defense spending, rising demand for anti-submarine warfare, increasing geopolitical tensions, rise in maritime security threats, and rising focus on underwater warfare capabilities.

The lightweight torpedo market size is expected to see strong growth in the next few years. It will grow to $1.58 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. This projected growth is driven by factors such as heightened investment in unmanned underwater vehicles, escalating demand for next-generation torpedo systems, the need for compact and maneuverable weapons, ongoing naval modernization efforts, and growing regional maritime disputes. Key developments during this period include improvements in homing and guidance systems, evolution of propulsion technology, the use of lightweight composite materials, incorporation of AI in targeting, and compatibility with autonomous underwater platforms.

The increasing defense budgets are expected to propel the growth of the lightweight torpedo market going forward. Defense budgets refer to government funding for sustaining and strengthening a country’s military forces and national security. Defense budgets are growing mainly due to escalating geopolitical tensions, prompting nations to boost military strength and safeguard national security. Increasing defense budgets drive greater funding for developing advanced defense systems, including lightweight torpedoes, boosting naval strength with cutting-edge and efficient underwater weapons. This financial support advances research, manufacturing, and deployment, reinforcing maritime security and deterrence. For instance, in April 2024, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based international research institute, global military spending reached $2.44 trillion in 2023, marking a 6.8% increase in real terms compared to 2022. Therefore, increasing defense budgets are driving the growth of the lightweight torpedo market.

Leading players in the lightweight torpedo market are emphasizing collaborative efforts to enhance their product offerings and solidify their presence in global markets. These strategic alliances involve the pooling of expertise, capabilities, and assets to achieve mutual goals, improve market positioning, and stimulate innovation. For example, in April 2025, Sweden's Defense Materiel Administration partnered with Saab to conduct a successful live-fire test of the Torpedo 47 (Tp 47), an electric lightweight torpedo, launched from a 15-meter Combat Boat 90 (CB90). This test represented a significant breakthrough in deploying advanced torpedoes from smaller naval vessels. Additionally, trials of launches from unmanned surface vessels (USVs) demonstrated the future potential for modular, flexible, and autonomous torpedo deployments, especially in littoral warfare scenarios. The initiative aligns with Sweden's push for nimble and versatile defense tools, informed by recent naval combat experiences, and aims to bolster Baltic Sea security through adaptable dual-domain capabilities.

In January 2025, Fincantieri, a shipbuilding and naval technology company based in Italy, acquired Leonardo’s Underwater Armaments Business for an undisclosed amount. With this acquisition, Fincantieri aims to strengthen its capabilities in underwater warfare systems, expand its defense portfolio, and enhance its position as a global integrator of naval platforms and advanced weaponry. Leonardo is an Italy-based manufacturer of lightweight torpedoes.

Major players in the lightweight torpedo market are RTX Corporation, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc., Mitsubishi Heavy Industries Ltd., BAE Systems plc, Thales Group, L3Harris Technologies Inc., FINCANTIERI S.p.A., Elbit Systems Ltd., Saab AB, Defence Research and Development Organisation, ASELSAN A.S., Roketsan, Ultra Group, Tactical Missiles Corporation, KVH Industries, Rosoboronexport, Sechan Electronics Inc., Rafael Advanced Defense Systems.

North America was the largest region in the lightweight torpedo market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in lightweight torpedo report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the lightweight torpedo market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The steep increase in U.S. tariffs and the triggered trade tensions in spring 2025 are profoundly impacting the metal and minerals sector by disrupting supply chains for automakers, appliance manufacturers, and infrastructure projects. Domestic mills have raised prices in response to reduced import competition, but capacity constraints limit their ability to meet demand. Mining firms, meanwhile, grapple with retaliatory tariffs on mineral exports, particularly lithium and rare earths. Industry players are investing in scrap metal recycling, lobbying for exemptions, and forming joint ventures with overseas producers to secure stable supply.

A lightweight torpedo is a compact and swift anti-submarine weapon designed for easy deployment, commonly from surface vessels, aircraft, or helicopters. Its primary role is to engage and neutralize submarines rather than large surface combatants.

The major classifications of lightweight torpedoes include active torpedoes, passive torpedoes, wake-homing torpedoes, and acoustic torpedoes. Active torpedoes utilize sound pulses and their reflections to accurately detect and track targets in complex underwater conditions. They are available in multiple propulsion types such as electric, gas, and hybrid propulsion systems and can be launched from various platforms including submarines, ships, aircraft, and ground-based systems. These torpedoes find application in naval defense, anti-submarine warfare, anti-surface warfare, and coastal security operations, with end-users spanning military forces, naval organizations, government defense entities, and private defense contractors.

The lightweight torpedo market research report is one of a series of new reports that provides lightweight torpedo market statistics, including the lightweight torpedo industry global market size, regional shares, competitors with the lightweight torpedo market share, detailed lightweight torpedo market segments, market trends, opportunities, and any further data you may need to thrive in the lightweight torpedo industry. This lightweight torpedo 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.

The lightweight torpedo market consists of sales of anti-submarine warfare helicopters or maritime patrol aircraft. 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 and 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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