Underwater Expendables Market Analysis | 2026-2035

Market Insights

“The Underwater Expendables market size/value was US$ 640.4 billion in 2025 and is likely to grow at a decent CAGR of 3.6 % in the long run to reach US$ 967.6 billion in 2035.”

Market Dynamics

Introduction

Underwater expendables are among the key technologies used in the maritime defense. The expendable sonar and countermeasure systems used for conducting anti-submarine warfare, underwater acoustic research, and torpedo defense countermeasures can be termed as underwater expendables. Underwater expendables mainly include sonobuoy and acoustic countermeasures deployed from maritime aircraft, helicopters, surface ships, and submarines. The primary sonobuoy for the anti-submarine warfare was invented during the World War-II for the detection and localization of submarines. With the increasing SSBN and SSN submarine fleet, every country is gradually increasing its anti-submarine capabilities including sonobuoys and acoustic countermeasures.

Market Drivers:

Rising Offshore Oil and Gas Exploration and Subsea Intervention Activities

Expanding offshore oil and gas exploration, particularly in deepwater and ultra-deepwater basins, is increasing the need for specialized consumables used in subsea drilling, well intervention, inspection, maintenance, and repair operations. As operators pursue new hydrocarbon reserves and extend the productive life of existing offshore fields, the resulting increase in underwater activities supports market growth by creating recurring requirements for expendable equipment and materials designed for demanding subsea environments.

• According to the U.S. Bureau of Ocean Energy Management (BOEM), its 2026 assessment estimates 65.80 billion barrels of undiscovered technically recoverable oil and 218.43 trillion cubic feet of natural gas across the U.S. Outer Continental Shelf. Exploring and developing these offshore resources requires drilling, well servicing, and subsea intervention activities, supporting demand for consumables used in underwater operations.

• In July 2026, India's Ministry of Petroleum and Natural Gas initiated drilling of the first appraisal well in the Mahanadi Offshore Basin, as part of a programme involving four planned deepwater wells. Additionally, the government's Samudra Manthan scheme allocates ₹43,200 crore to accelerate offshore exploration, including deepwater and ultra-deepwater drilling. These investments are expected to expand subsea exploration and production activities, increasing requirements for consumable tools, materials, and equipment used during underwater drilling and intervention operations.

Increasing Naval Investments in Anti-Submarine Warfare and Underwater Countermeasure Systems

Growing maritime security concerns and naval fleet modernization are accelerating investments in anti-submarine warfare (ASW), underwater surveillance, and torpedo defence capabilities. These systems require expendable products such as torpedoes, acoustic decoys, and underwater countermeasure devices, while their operational use and replacement needs are strengthening market demand for underwater expendables.

• In October 2026, India’s Ministry of Defence signed a contract worth ₹1,543 crore with Bharat Dynamics Limited for Varunastra heavyweight torpedoes for the Indian Navy. Designed to engage enemy submarines, these weapons strengthen underwater combat capabilities and illustrate how naval procurement programmes support demand for expendable weapons used in anti-submarine warfare.

• In August 2026, the UK Ministry of Defence awarded BAE Systems a £135 million, three-year contract to maintain and repair Spearfish and Sting Ray torpedoes used by submarines, surface warships, and maritime patrol aircraft. The investment highlights the importance of maintaining operational readiness across undersea warfare fleets, supporting continued requirements for torpedoes, replacement components, and related expendable systems.

Market Challenges:

High Costs and Technical Complexity of Deepwater Operations

High costs and technical complexity of deepwater operations pose significant market challenges for the underwater expendables market, as products must withstand extreme hydrostatic pressure, low temperatures, corrosive seawater, and demanding operational conditions. Developing and qualifying expendables for these environments requires specialized materials, rigorous testing, and compliance with stringent safety standards, increasing manufacturing costs and limiting adoption among operators with constrained budgets.

Stringent Environmental Regulations and Disposal Challenges for Underwater Expendables

Environmental concerns surrounding marine pollution, underwater debris, and the release of hazardous substances are increasing scrutiny of expendable products used in subsea and naval operations. These concerns can constrain market growth by requiring manufacturers to invest in environmentally compatible materials, improve product recoverability, and meet stricter disposal requirements, potentially increasing production costs and complicating product qualification for sensitive marine environments.

Market Opportunities:

Expansion of Deep-Sea Mining and Underwater Resource Exploration

Growing interest in seabed minerals, polymetallic nodules, and offshore resource exploration is creating opportunities for specialized expendables used in underwater sampling, drilling, and remotely operated vehicle (ROV) operations. This market trend could open new avenues for manufacturers supplying pressure-resistant consumables, replaceable cutting tools, and sampling components as deep-sea exploration technologies advance and commercial interest in seabed resources increases.

• In August 2026, India’s Ministry of Earth Sciences reported that the National Institute of Ocean Technology had successfully conducted mobility and system-powering trials of an indigenous seabed mining system at a depth of 5,270 metres in the Central Indian Ocean Basin. The system’s development creates opportunities for underwater expendables used in polymetallic nodule collection, crushing, sampling, and subsea equipment operations.

• In August 2026, the U.S. National Oceanic and Atmospheric Administration (NOAA) initiated an environmental review for an exploration application covering approximately 122,000 km² of seafloor, containing an estimated 1.02 billion tonnes of polymetallic nodules. Exploration and potential future recovery across such a large area could create opportunities for underwater expendables used in seabed sampling, mineral collection, and subsea equipment maintenance.

Segment Analysis

By Product Type

“Sonobuoys are expected to remain the dominant segment while also registering the highest growth rate in the underwater expendables market during the forecast period.”

• The underwater expendables market is segmented based on the product type as sonobuoy and acoustic countermeasures. Sonobuoy is further sub-segmented into active, passive, and special-purpose system. Sonobuoy is expected to remain the larger segment of the market during the forecast period.

• They are widely used in anti-submarine warfare for detecting and tracking underwater threats using acoustic signals. Their repeat-use demand cycle makes them commercially significant. Strong demand from the U.S. Navy and innovations in sonobuoys targeting future UAVs are likely to create a healthy demand for sonobuoys.

By Platform Type

“Defense is expected to remain the dominant and fastest-growing Platform type in the market during the forecast period.”

• The market is segmented into defense and commercial platforms. The defense segment is anticipated to account for the larger share of the market and exhibit the strongest growth momentum throughout the forecast period.

• The segment's leadership is supported by the widespread adoption of sonobuoys in anti-submarine warfare, intelligence gathering, and maritime patrol operations. Most sonobuoy procurement is concentrated within naval and defense agencies, which rely on these systems to enhance underwater threat detection and tracking capabilities. Furthermore, the increasing integration of advanced acoustic technologies into naval operations and the growing emphasis on maritime security are expected to sustain demand for sonobuoys across defense platforms over the forecast period.

By Regional Type

“The North America is expected to remain the largest region during the forecast period.”

• In terms of region, North America is estimated to maintain its dominant position in the market in the coming years. The USA is projected to remain the growth engine for underwater expendables in years to come. The USA has the world’s largest navy budget and the country keeps upgrading its existing capabilities in order to maintain its supremacy in the market. Every year the U.S. Navy generates a strong demand for at least 204,000 sonobuoys to conduct anti-submarine warfare missions. In order to cater to this huge demand, all the major players have a strong foothold in the region.

• Asia-Pacific is estimated to maintain its growth momentum in the long run. Increasing the Chinese submarine fleet and Chinese Navy movements in the South China Sea led the neighboring countries to increase their anti-submarine warfare capability. China, India, South Korea, and Japan are key countries in the region that are generating a considerable market demand.

Competitive Landscape

The market is highly consolidated with the presence of a handful number of players. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the Underwater Expendables market.

Here is the list of the Top Players (Based On Dominance)

• CobhamUltra

• Elbit Systems  

• Thales Group

• Rafael Advanced Defense Systems Ltd

• Lockheed Martin Corporation

• Naval Group

• ASELSAN A.Ş.

• Leonardo S.p.A.

• L3Harris Technologies, Inc

• General Dynamics Corporation

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In 2025, Fincantieri completed the acquisition of Leonardo’s Underwater Armaments & Systems (UAS) business line. The transaction strengthened Fincantieri’s portfolio in underwater sensors, sonar systems, and naval combat systems, enhancing its position in the global underwater defense market.

• In 2022, Ultra Maritime was acquired by Advent International. This strengthened its capabilities in sonar buoys, acoustic sensors, and anti-submarine warfare technologies of advent international.

• In 2021, Elbit Systems completed the acquisition of Sparton Corporation’s sonobuoy and maritime ISR business. The acquisition expanded Elbit’s presence in anti-submarine warfare systems and strengthened its underwater surveillance and acoustic sensing portfolio.

• In 2020, Thales Group and Naval Group expanded their collaboration under the Franco-British maritime defense cooperation framework, focusing on advanced sonar systems, underwater detection technologies, and naval mission systems integration.

Recent Contracts:

• In 2024, the U.S. Navy awarded Ultra Maritime contracts exceeding US$148 million for the low-rate initial production (LRIP) of next-generation sonobuoy systems, including the AN/SSQ-53H and AN/SSQ-62G variants. The contracts highlight increasing investments in advanced anti-submarine warfare (ASW) capabilities and reinforce Ultra Maritime’s leadership position in underwater expendable technologies.

• In 2023, ERAPSCO, the joint venture between Ultra Maritime and Sparton, continued deliveries under the U.S. Navy’s multi-year sonobuoy procurement program valued at up to US$1.04 billion. The sustained order pipeline reflected strong global demand for expendable underwater surveillance systems amid rising submarine activity across the Indo-Pacific and North Atlantic regions.

• In 2022, the U.S. Navy awarded a Multiple Award Delivery Order Contract (MADOC) with an aggregate ceiling value of US$5.1 billion to Lockheed Martin, Sparton, and Undersea Sensor Systems (formerly Ultra USSI) for the production and delivery of sonobuoy capabilities through September 2027. The contract covers a broad range of underwater expendables, including bathythermograph, passive, active/passive, multistatic source, multistatic receiver, and special mission sonobuoys.

• In 2022, the U.S. Navy awarded ERAPSCO contracts worth approximately US$181.9 million for the production and delivery of multiple sonobuoy variants used in anti-submarine warfare missions. The procurement emphasized the strategic importance of sonobuoys in strengthening maritime surveillance, submarine detection, and underwater domain awareness capabilities.

• In 2020, the U.S. Navy awarded ERAPSCO contracts exceeding US$83 million for the production of AN/SSQ-125 and next-generation AN/SSQ-125A sonobuoys. The awards supported the modernization of acoustic sensing capabilities designed to improve detection of increasingly stealthy submarine threats in complex underwater environments.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.

• Market trend and forecast analysis.

• Market segment trend and forecast.

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors.

The global underwater expendables market is segmented into the following categories. 

Underwater Expendables Market, by Product Type

• Sonobuoy

  • (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

  • (Function Type: Active, Passive, and Special Purpose)

• Acoustic Countermeasures (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Underwater Expendables Market, by Platform Type

• Defense (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

• Commercial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Underwater Expendables Market by Region

• North America (Country Analysis: The USA, Canada, and Mexico)

• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)

• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)

• Rest of the World ((Sub-Region Analysis: Latin America, the Middle East, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Underwater Expendables market realities and future market possibilities for the forecast period.

• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.

• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.

• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)

• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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