>
>
Underwater Acoustic Modem Market Size By Range, By Communication, By Application, By End Use, Growth Forecast 2025 – 2034
Download Free PDF
Underwater Acoustic Modem Market
Get a free sample of this reportGet a free sample of this report Underwater Acoustic Modem Market
Is your requirement urgent? Please give us your business email for a speedy delivery!
Buy Now
$4,123 $4,850
15% off
$4,840 $6,050
20% off
$5,845 $8,350
30% off
Buy now
Premium Report Details
Base Year: 2024
Companies covered: 20
Tables & Figures: 200
Countries covered: 24
Pages: 180
Download Free PDF
Underwater Acoustic Modem Market Size
The global underwater acoustic modem market was valued at USD 727.3 million in 2024 and is estimated to register a CAGR of 7.7% between 2025 and 2034. Modems will be required in the foreseeable future, as there is an increase in demand for subsea communication and the use of acoustic modems for underwater communication.
Communication between naval defense platforms such as submarines, underwater drones, autonomous underwater vehicles, as well as maritime command units, is highly desired. These platforms require fast ocean data transfer capabilities that are, in many cases, quite secure, allowing underwater active operations to take place. Additionally, there are the underwater communication needs of sensors, which may act in an autonomous mode due to the underwater environment and need reliable communication during covert operations.
The system can identify both surface and underwater threats in the vicinity of the naval jetty. The Indian Navy is determined to strengthen its capabilities. The Andaman and Nicobar Islands’ naval sector is at the center of focus, and exploring India’s defense acquisition will only fuel investment further into the arena. The increased defense budgets in the US and other countries are expected to act as a stimulus for further underwater technological innovations.
The underwater acoustic modem market is growing because of a need for more efficient subsea communication. For offshore exploration and production, oil and gas companies necessitate a reliable means of underwater communication. With oil exploration moving deeper into the oceans, the efficient transmission of information from underwater facilities to surface ones becomes critical. These systems are also useful for marine studies, as researchers are able to send and gather data from ecosystems underwater. These industries are expanding, and their need for reliable underwater communication systems is increasing, which drives the growth of the market.
Underwater Acoustic Modem Market Trends
The market expands in large measure due to improvements in signal processing. It has been proven that, over the years, the reliability, range, and throughput of underwater communication systems have greatly improved thanks to innovations in signal processing. These include more advanced algorithms for noise suppression, more sophisticated error correction methods, and better modulation techniques that produce good quality signals even in harsh underwater conditions. Also, enhanced digital signal processing increases the reliability of the systems since it allows for better adjustment to the changing environment. As these technologies develop further, underwater acoustic modems will soon improve their performance and offer high transmission of data over longer distances.
Water is a problematic medium with great variation. Factors such as temperature, salinity, and pressure are among the challenges that modems face in transmitting acoustic signals over water. Since underwater acoustic modems operate using sound as a signal, the waves generated weaken with time, rendering the communication system unusable within a set distance. Foreign noises associated with rough underwater environments could further damage communication quality, including strong water currents and marine life sounds. The distortion and attenuation ultimately result in communication failures, poor data transmission, and low-quality signals in extreme situations.
Underwater Acoustic Modem Market Analysis
Based on range, the underwater acoustic modem market is divided into shallow water, medium water, and deep water. In 2024, the shallow water segment held a market share of over 40% and is expected to cross USD 500 million by 2034.
A communication system display is required for coastal, offshore, and nearshore applications, and this factor is a major contributor to the shallow water range. Oil and gas, marine, and environmental industries are likely to benefit from shallow water communication modems as the depth of the water can range from several meters to several hundred meters.
There are multiple activities associated with the underwater infrastructure that include installing and maintaining equipment and monitoring environmental changes along with the studies of marine life, which are suited to the systems. Unlike deeper water, the shallower depths provide a more stable acoustic environment and, in turn, provide acoustic modems the ability to operate efficiently with a clarity of signal and less signal attenuation.
Based on communication, the underwater acoustic modem market is categorized into point-to-point, multiple access, and broadcasting. The point-to-point segment holds around 50% share in 2024. Point-to-point systems enable seamless and uninterrupted messaging channels whether it is between the underwater base vehicle and the surface station or direct communication between the Fixed VDS and the monitoring center.
The configuration is especially important in the oil and gas, defense, oil and scientific industries, because these businesses require real time communications. Less interference amidst surrounding noise and other devices with a more dependable connection has been achieved through point-to-point communication due to higher data integrity being maintained in the process.
As AUVs and ROVs undergo continuous enhancements, the growth in demand for the said vehicles will stand strong due to their reliance on control, bi-directional communication, and active status updates. As the ROVs continue to proliferate, the need for reliable underwater communication systems will only increase owing to the submarine communication demand across various industrial sectors.
U.S. dominated the North America underwater acoustic modem market with a major share of around 80% in 2024. Underwater vehicles require reliable communication during surveillance, reconnaissance, and protection operations, thus driving the US underwater acoustic modem industry. Along with deep-sea oil and gas exploration, the underwater surveillance systems also allow for monitoring.
The enhancement of the researcher’s focus on environmental and oceanographic developments complements the advancement and availability of acoustic modems and further stimulates market growth. Moreover, these advanced modems ensure an optimal defense strategy that is tailored to fit and suit the US market.
An important increase in the demand for Europe’s subsea acoustic modem market comes from the expanding deployment of smart aquaculture as well as underwater monitoring systems. Europe has emerged as a global center for aquaculture, owing to heavy funding into sustainable seafood farming.
This has resulted in the need for sophisticated underwater communication systems, which monitor water conditions, fish condition, and farm environment on a real-time basis. Ambient noise modems are a crucial component in transmitting data to underwater outstations aimed at efficient management of marine farms and environmental monitoring.
The Asia-Pacific area’s till-now unfulfilled offshore oil and gas exploration capabilities along with advanced technology is predicted to be a major factor in encouraging underwater acoustic modem market growth in the future. It is expected that the energy preoccupation of states like China, India, and Australia will see increased investments into deep-sea drilling and subsea infrastructural developments.
Such activities offshore will require robust communication systems that permit the over-the-horizon monitoring, control, and transmission of data equipment under challenging underwater operations. Acoustic communication equipment enables uninterrupted connectivity between submerged equipment and surface-based platforms. The region’s interest in marine research and environmental monitoring also serves to enhance the civil market for underwater and acoustic modem communication techniques.
Underwater Acoustic Modem Market Share
Teledyne and L3Harris hold a market share of around 20% in the market. Teledyne is dedicated to pursuing continuous technological developments in subsea communications, through offering powerful and highly effective Teledyne acoustic modems that have been specially designed for use in defense and marine accident research markets. Extensive research and development also form a bulk of their strategy as this enables them to always remain at the forefront of consciousness with regards to acoustic communication technology. Apart from this, Teledyne actively seeks out joint ventures and collaborates with key industry players to bolster its position in the underwater acoustic modem market.
Backed by their broad experience in defense systems, L3Harris sets itself as a key player in underwater communication solutions for military purposes. As the company focuses on creating sophisticated underwater acoustic communication systems, it seeks to increase the range and data throughput. L3Harris also increases its position in the market by making acquisitions and broadening their operations with the aim to cater to both the commercial and defense industry efficiently. Demand for both companies’ acoustic modems is likely to be enhanced by the growth of autonomous underwater sensor systems, which they see as the future market direction.
Underwater Acoustic Modem Market Companies
Major players operating in the underwater acoustic modem industry include:
The market for underwater acoustic modems includes established companies as well as niche players focusing on improving underwater communication technology for defense, scientific and offshore applications. Key players tend to put focus on the integration of modems with high data transfer rates with long range application, that tend to address the issues associated with the underwater spectrum, such for instance signal loss and multipath problems. These manufacturers use modern ways of signal processing, adaptive modulation and noise-resistant protocols in order to improve efficiency and reliability.
Underwater Acoustic Modem Industry News
The underwater acoustic modem market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (Units) from 2021 to 2034, for the following segments:
Click here to Buy Section of this Report
Market, By Range
Market, By Communication
Market, By Application
Market, By End Use
The above information is provided for the following regions and countries: