Autonomous Underwater Vehicle (AUV) Market Size

Autonomous Underwater Vehicle Market Size

Autonomous Underwater Vehicle Market size was valued at USD 1.9 billion in 2023 and is estimated to register a CAGR of over 14% between 2024 and 2032. Owing to the ongoing research, analysis, and real-world applications of the vehicles by renowned military organizations across the globe. These powerful autonomous vehicles drastically increase reconnaissance and mine detection, leading to lower casualties among soldiers performing crucial underwater missions.

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In the wake of more and more military operations being extended underwater, the demand for more proficient and competent autonomous systems is on the rise. For instance, in March 2024, the Defence Research & Development Organisation (DRDO) successfully conducted the inaugural surface run of a High Endurance Autonomous Underwater Vehicle. The test took place at the Shipyard's International Ship Repair Facility Jetty in Kochi.

The demand for Autonomous Underwater Vehicles (AUVs) is flourishing, owing to the innovations in the field and the wide range of applications they serve. These machines are becoming indispensable in marine exploration, monitoring of surroundings, and offense affairs. The rapid development of AUV equipment, including more advanced sensors, high-power batteries, and efficient autopilot navigation systems, has improved their overall reliability and usage.

Moreover, AUVs have become a key military asset and perform both mine countermeasures and submarine detection. Therefore, the market will grow driven by their multi-aspect features sought after by several industries. For instance, in June 2023, an autonomous underwater vehicle (AUV), the first of its kind in India, was launched. Named 'Neerakshi', the AUV was designed to detect mines and was a collaborative effort between Engineers (GRSE) Ltd, the MSME entity AEPL, and Kolkata-based warship maker Garden Reach Shipbuilders.

The AUV market could have a promising future. However, the market faces some significant challenges that could become a hindrance to its expansion. The high initial amount needed for AUV development and procurement has become an issue, especially for organizations of smaller scale or a singular research institution. Moreover, AUVs generally require special maintenance and hence have high capital costs.

The low range and endurance of these systems, along with the need for continuous battery charging requirements, may become a hindrance, especially during longer missions or deep-sea operations. Likewise, licensing regulations and restrictions in policies may present limitations of possibilities for global outreach. However, although there are some barriers, it is predicted that the AUVs market will probably remain on the growth trajectory.