Self-Guided Torpedo Market Report 2025

The self-guided torpedo market size has grown strongly in recent years. It will grow from $1.41 billion in 2024 to $1.5 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth during the historic period can be attributed to expanding naval modernization initiatives, heightened maritime security challenges, the growth of submarine fleets, increasing defense budgets in emerging economies, and a rise in underwater intrusions and related threats.

The self-guided torpedo market size is expected to see strong growth in the next few years. It will grow to $1.86 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The expected growth in the forecast period is driven by increased focus on indigenous defense manufacturing, greater adoption of lightweight and heavyweight torpedoes for multi-mission purposes, heightened emphasis on anti-submarine warfare capabilities, expanding joint naval exercises and procurement partnerships, and growing deployment of autonomous underwater vehicles. Key trends during this time include advancements in propulsion and energy systems, improvements in sonar and acoustic homing technologies, development of compact and lightweight warhead designs, progress in guidance and navigation algorithms, and maturation of fiber-optic and wire-guided communication technologies.

The rise in naval modernization is expected to drive growth in the self-guided torpedo market. Naval modernization involves upgrading a country’s naval forces by acquiring advanced ships, submarines, weapons systems, technologies, and infrastructure to improve maritime security, operational capabilities, and strategic deterrence. This increase is largely driven by escalating geopolitical tensions, with nations aiming to control key maritime regions, protect trade routes, deter rivals, and maintain regional power balance amid heightened competition. Self-guided torpedoes contribute to naval modernization by offering precise, autonomous targeting, adapting to underwater environments, and integrating with advanced combat systems to enhance maritime operations. For example, in August 2024, the Congressional Research Service, a U.S. federal agency, reported that China’s navy has expanded to over 370 ships and is projected to reach approximately 395 by 2025. Consequently, naval modernization is fueling growth in the self-guided torpedo market.

Leading companies in the self-guided torpedo market are focusing on innovative technologies such as advanced propulsion and guidance systems to improve targeting precision, extend operational range, and enhance maneuverability in challenging underwater conditions. Advanced propulsion and guidance systems incorporate cutting-edge technologies that allow torpedoes to move faster, more quietly, and efficiently through water while precisely navigating and tracking targets using sensors, algorithms, and real-time data processing. For instance, in November 2024, Global Industrial and Defence Solutions (GIDS), a Pakistan-based defense company, introduced the Eghraaq, an ultra-lightweight anti-submarine torpedo (ULWT). This next-generation torpedo features a compact, streamlined design suited for deployment from aerial platforms, small naval vessels, and unmanned underwater vehicles (UUVs). It offers advanced guidance for improved target acquisition, high-speed propulsion for rapid engagement, and a reduced acoustic signature to boost stealth. The Eghraaq also supports modular payload configurations, allowing flexibility across various missions, and incorporates locally developed technologies, highlighting Pakistan’s focus on defense self-reliance.

In October 2022, Raytheon Technologies, a U.S.-based aerospace and defense company, partnered with Aerojet Rocketdyne to co-develop the Compact Rapid Attack Weapon (CRAW). Through this collaboration, Raytheon seeks to enhance its undersea warfare capabilities by integrating Aerojet Rocketdyne’s expertise in advanced propulsion systems, including the Stored Chemical Energy Propulsion System (SCEPS) that powers the next-generation CRAW. This partnership aims to help Raytheon deliver agile, adaptable, and high-performance torpedo systems to the U.S. Navy, addressing both offensive and defensive underwater threats in contemporary maritime operations. Aerojet Rocketdyne is a U.S.-based aerospace and defense company specializing in the manufacture of self-guided torpedoes.

Major players in the self-guided torpedo market are Raytheon Technologies Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Naval Group, Saab AB, ASELSAN A.Ş., LIG Nex1 Co. Ltd., Roketsan Roket Sanayii ve Ticaret A.Ş., Anduril Industries Inc., ATLAS ELEKTRONIK GmbH, Bharat Dynamics Limited, Marshall Aerospace and Defence Group, Tactical Missiles Corporation JSC, Rosoboronexport JSC, Vatn Systems Inc.

North America was the largest region in the self-guided torpedo market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in self-guided torpedo report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the self-guided 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 sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

A self-guided torpedo is an underwater missile equipped with onboard sensors and control systems that allow it to independently detect, track, and navigate toward its target without the need for external guidance. It relies on advanced sonar and navigation technologies to accurately locate and engage underwater targets.

The primary types of self-guided torpedoes are heavyweight and lightweight torpedoes. Heavyweight torpedoes are large, powerful, and long-range weapons typically launched from submarines. Key technologies involved include guidance systems, propulsion mechanisms, and various warhead types. These torpedoes can be deployed from multiple platforms such as surface ships, submarines, aircraft, and land-based systems. Their applications cover naval vessels, submarines, and other uses, with primary users including military forces and defense contractors.

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

The self-guided torpedo market consists of sales of electrically propelled torpedoes, thermal propulsion torpedoes, autonomous underwater vehicles (AUVs), wake-homing torpedoes, and acoustic homing torpedoes. 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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