Sub-Surface Loitering Torpedo Drone Global Market Report 2025

The sub-surface loitering torpedo drone market size has grown rapidly in recent years. It will grow from $1.19 billion in 2024 to $1.34 billion in 2025 at a compound annual growth rate (CAGR) of 12.7%. The growth during the historic period can be attributed to escalating geopolitical tensions, increasing naval modernization budgets, rising demand for asymmetric warfare capabilities, greater adoption of autonomous underwater vehicles, and heightened focus on mine countermeasures.

The sub-surface loitering torpedo drone market size is expected to see rapid growth in the next few years. It will grow to $2.15 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth during the forecast period can be attributed to increasing investment in artificial intelligence and machine learning, the expanding development of underwater communication networks, rising deployment of seabed warfare systems, growing emphasis on multi-domain naval integration, and increased procurement by allied nations. Key trends in the forecast period include advancements in AI-driven autonomy, development of longer-endurance power systems, innovations in modular payload designs, progress in cooperative swarm technologies, and the development of counter-UUV systems.

The rising geopolitical tensions in contested maritime regions are expected to drive the growth of the subsurface loitering torpedo drone market moving forward. These tensions largely stem from competition over strategic sea routes and natural resources, as nations aim to secure trade, energy supplies, and maintain territorial influence. A subsurface loitering torpedo drone contributes to securing contested maritime areas by autonomously patrolling strategic waters, monitoring for hostile submarines or surface vessels, and remaining ready to engage threats with precision. This enhances deterrence, situational awareness, and maritime control while minimizing risks to human crews. For example, in January 2025, Euronews SA, a France-based television network, reported maritime disruptions in early and mid-2025, including a surge in GPS jamming incidents during the Iran-Israel conflict in June 2025, which impacted over 13,000 vessels globally and caused rerouting and delays. Therefore, increasing geopolitical tensions in contested maritime regions are fueling growth in the subsurface loitering torpedo drone market.

The rise in defense budgets is anticipated to further propel the growth of the subsurface loitering torpedo drone market. Increasing defense expenditures, driven by rapid technological advancements, reflect nations’ investments in modernizing weapons, cybersecurity, and defense systems to maintain strategic advantages. Higher defense budgets support the acquisition and upkeep of subsurface loitering torpedo drones, allowing navies to improve underwater threat detection and precision strike capabilities. For instance, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based NGO, global military spending reached $2.44 trillion in 2023, marking a 6.8% real-term increase from 2022. Thus, growing defense budgets are bolstering the subsurface loitering torpedo drone market.

Key players in the subsurface loitering torpedo drone market are increasingly focusing on developing advanced autonomous underwater systems to boost naval defense capabilities. These drones combine self-propelled unmanned submersible technology with precision strike functions, enabling navies to conduct persistent underwater surveillance, rapid-response missions, and networked operations with enhanced stealth and efficiency. For example, in April 2025, Anduril Industries Inc., a U.S.-based defense firm, unveiled the Copperhead-M, a torpedo-like autonomous drone deployable in swarms from larger unmanned underwater platforms. Designed for rapid deployment and scalable maritime defense, the Copperhead-M showcases how emerging autonomous torpedo systems can improve underwater threat detection, precise engagement, and operational flexibility while reducing dependence on legacy systems.

Major players in the sub-surface loitering torpedo drone market are The Boeing Company, Lockheed Martin Corporation, Leidos Holdings Inc., Huntington Ingalls Industries Inc., Elbit Systems Ltd., Israel Aerospace Industries Ltd., Saab AB, Naval Group S.A., General Dynamics Mission Systems Inc., Anduril Industries Inc., AeroVironment Inc., Atlas Elektronik GmbH, ARQUIMEA S.A., UVision Air Ltd., Bluefin Robotics Corporation, Cellula Robotics Inc., Vatn Systems AS, IQUA Robotics S.L., Riptide Autonomous Solutions, The Mistral Incorporated, RAFAEL Advanced Defense Systems Ltd.

North America was the largest region in the sub-surface loitering torpedo drone market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in sub-surface loitering torpedo drone report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and 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.

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.

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

A subsurface loitering torpedo drone is an autonomous unmanned underwater vehicle (UUV) built to operate beneath the ocean surface, merging the capabilities of a torpedo and a drone. It pairs the endurance and autonomy of loitering drones with the destructive power of torpedoes, primarily serving roles in anti-ship and area-denial naval warfare. This drone can engage targets with high precision, making it a strategic underwater weapon for naval defense and surveillance missions.

The primary product types of subsurface loitering torpedo drones are autonomous torpedo drones and remotely operated torpedo drones. Autonomous torpedo drones are engineered to function independently, able to navigate, identify targets, and carry out missions without direct human control. These drones employ various propulsion systems, including electric, hybrid, and conventional options. They are deployed in areas such as naval defense, surveillance and reconnaissance, anti-submarine warfare, research and exploration, and other applications, serving end users that include military forces, commercial entities, and research institutions.

The countries covered in the sub-surface loitering torpedo drone market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sub-surface loitering torpedo drone market consists of sales of ship-launched loitering torpedo drone, submarine-launched loitering torpedo drone, aerial aircraft-deployed loitering torpedo drone and port-launched loitering torpedo drone. 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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