Naval Intelligence, Surveillance, Reconnaissance Global Market Report 2025

The naval intelligence, surveillance, reconnaissance market size has grown strongly in recent years. It will grow from $18.42 billion in 2024 to $19.53 billion in 2025 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period resulted from increasing geopolitical conflicts, expanding maritime territorial disputes, rising defense budgets, growing demand for real-time situational awareness, and the modernization of naval fleets.

The naval intelligence, surveillance, reconnaissance market size is expected to see strong growth in the next few years. It will grow to $24.38 billion in 2029 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period is driven by higher investments in advanced surveillance systems, wider adoption of network-centric warfare strategies, increasing demand for unmanned aerial and underwater vehicles, greater focus on electronic intelligence gathering, and the growing need for integrated command and control systems. Key trends in the forecast period include advancements in satellite communication technologies, integration of artificial intelligence and machine learning, development of autonomous and unmanned surveillance platforms, innovations in electronic warfare and signal intelligence systems, and research and development in next-generation sensors.

The growing geopolitical tensions are expected to drive the growth of the naval intelligence, surveillance, and reconnaissance (ISR) market in the coming years. Geopolitical tensions refer to heightened political, military, and strategic rivalries between nations, which increase the likelihood of conflict and compel governments to bolster their defense and security measures. These tensions are intensifying due to rising defense budgets and escalating regional conflicts, which demand a stronger naval presence and deterrence. Naval ISR is crucial for managing these tensions, as it provides accurate and timely intelligence on enemy movements, potential threats, and developments in contested maritime areas. This enables navies to monitor disputed waters, anticipate hostile actions, and make informed operational and diplomatic decisions. For instance, in July 2024, the Armed Conflict Location and Event Data, a U.S.-based non-profit organization, reported that between July 2023 and June 2024, over 165,273 incidents of political violence occurred worldwide, representing a 15% increase from the previous year. During this period, it was estimated that one in seven people globally was affected by conflict. As a result, the rising geopolitical tensions are driving demand for naval ISR systems.

Key players in the naval ISR market are focusing on technological advancements, such as miniaturized passive communications intelligence sensors, to enhance operational effectiveness and tactical awareness. These compact electronic support systems are designed to intercept and analyze communication signals without emitting detectable transmissions, improving stealth, survivability, and the ability to operate across multiple domains. For example, in October 2024, Saab AB, a Sweden-based defense and security company, introduced the Sirius Compact L20C, a highly mobile, passive sensor designed for tactical reconnaissance of communication signals. The Sirius Compact L20C can detect, classify, localize, and track a wide range of communication signals, including enemy radios and drone links, providing real-time situational intelligence. Its compact design allows it to be deployed on foot, light vehicles, or naval platforms, while NATO-compatible interfaces ensure seamless integration into command and control systems, enhancing operational flexibility and decision-making speed.

In January 2025, Fincantieri S.p.A., an Italy-based shipbuilding and defense company, acquired the Underwater Armaments and Systems (WASS) business from Leonardo S.p.A. for an undisclosed amount. This acquisition strengthens Fincantieri’s capabilities in underwater defense technologies and enhances its role as a strategic integrator in naval operations. By acquiring WASS, Fincantieri aims to improve its autonomy in critical defense sectors, particularly those supporting naval ISR and anti-submarine warfare (ASW) operations. Leonardo S.p.A. is a leading provider of underwater warfare systems, including sonar technologies, torpedoes, and acoustic detection systems.

Major players in the naval intelligence, surveillance, reconnaissance market are Raytheon Technologies Corporation, The Boeing Company, Airbus SE, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, L3 Harris Technologies Inc., Leonardo SpA, Bombardier Defence Inc., Science Applications International Corporation, Indra Sistemas S.A., Israel Aerospace Industries. Ltd., Embraer SA, Saab AB, General Atomics, Kratos Defense & Security Solutions Inc., QinetiQ Group plc, LIG Nex1 Co. Ltd., Teledyne Flir Inc., ATLAS ELEKTRONIK INDIA PRIVATE LIMITED, Meteksan Defence AS, and Consolidated Resource Imaging Inc.

North America was the largest region in the naval intelligence, surveillance, reconnaissance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this 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 naval intelligence, surveillance, reconnaissance market research report is one of a series of new reports that provides naval intelligence, surveillance, reconnaissance market statistics, including naval intelligence, surveillance, reconnaissance industry global market size, regional shares, competitors with a naval intelligence, surveillance, reconnaissance market share, detailed naval intelligence, surveillance, reconnaissance market segments, market trends and opportunities, and any further data you may need to thrive in the naval intelligence, surveillance, reconnaissance industry. The naval intelligence, surveillance, reconnaissance 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.

Naval intelligence, surveillance, and reconnaissance involve the collection, processing, and analysis of information to support maritime situational awareness and decision-making. It employs a combination of technologies, including sensors, radar, sonar, satellites, and unmanned systems, to monitor naval operations and identify potential threats.

The primary types of naval intelligence, surveillance, and reconnaissance are surface naval vessels intelligence, surveillance, and reconnaissance, and underwater naval vessels intelligence, surveillance, and reconnaissance. Surface naval vessels intelligence, surveillance, and reconnaissance includes systems integrated into surface naval ships, designed to gather, process, and analyze data through radar, sonar, electro-optical sensors, and communication networks for real-time maritime situational awareness. Operations cover defense and commercial activities, with applications such as search and rescue missions, critical infrastructure protection, coastal surveillance, maritime monitoring, tactical support, disaster relief, and more.

The countries covered in the naval intelligence, surveillance, and reconnaissance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The naval intelligence, surveillance, and reconnaissance market consists of revenues earned by entities by providing services such as real-time intelligence gathering, surveillance monitoring, reconnaissance operations, data analysis, and secure communication solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The naval intelligence, surveillance, and reconnaissance (ISR) market includes sales of advanced sensors, unmanned platforms, communication networks, and electronic warfare systems. 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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