The market for unmanned surface vehicles (USVs) is expected to grow from USD 637.29 million in 2021 to USD 1,674.03 million in 2027 and will grow at a CAGR of 13.37% from 2022 to 2027. Factors contributing to the market growth include the rising demand for unmanned surface vehicles in the research of hydrography and oceanography. The wide applications of unmanned surface vehicles in the defense sector and the growing need for regular monitoring of water qualities are also fueling the growth.
Unmanned surface vehicles (USVs) also known as autonomous surface vehicles are machines that can function remotely on the surface of a waterbody and are capable of operating with the least human involvement. Unmanned surface vehicles (USVs) are more flexible and cost-efficient as compared to full manned ships and have a wide range of applications in the maritime sector. The USVs are taken into use for conducting research related to hydrography and oceanology to monitor water bodies to keep a check on quality, temperature, salinity, pH values, and also to understand the dynamics of the ocean.
The USVs are also widely being used for a variety of military and commercial applications as well. The rising occurrences of terrorism, cross-border dispute, and conflict across the countries have necessitated the government and defense sector to adopt the USVs for security and surveillance purposes. Defense originations are using USVs for border and coastal zone patrol, submarine hunting, minesweeping, ISR, offensive capabilities, and seaborne targets thus contributing significantly to the growth of the market. On the other hand, the commercial application includes the exploration of minerals, oil, and gas resources. They can be installed to inspect and capture specific events and locations and can communicate the data in real-time and provide a mechanism for quantifying natural variability to drive and calibrate exploration and research efforts and thus are substantially influencing the market towards a positive trend. However, the manufacturing cost of the unmanned surface vehicle can act as a major restrain for the market growth. Many small sizes and cost-efficient systems have been launched in the unmanned vehicle market sector which can easily replace unmanned surface vehicles.
With the rise in conflicts between countries and increase terrorism the USVs are highly used by military organizations for security and surveillance purposes. USVs are deployed for submarine hunting, minesweeping, and patrolling and are resulting to be more efficient in operations when compared to the full manned vessel. The USVs can also be equipped with several systems such as radar, sonar, imaging systems, ISR systems, environmental sensors, and dataloggers and can be deployed to conduct research related to hydrography and oceanography hence are acting as proponents to the market growth.
The cost of manufacturing an unmanned surface vehicle is high as compared to the other unmanned systems like unmanned ground vehicles (UGVs), unmanned aerial vehicles (UAVs), and unmanned underwater vehicles (UUVs) which is acting as a prime reason for limiting the adoption of the USVs. Also, there are fewer companies that manufacture USVs when compared to other unmanned systems. Due to this, the manufacturers are aiming for reducing their procurement as USVs are slowly being replaced by small UUVs for various operations like search and exploration activities, rescue missions, and oil and gas exploration among others.
Among these, the surface type sector holds the major share due to the rising demand for vehicles for commercial and defense applications such as ISR, marine surveys, and firefighting, among others. The subsurface market is anticipated to substantially grow in the coming years as more vehicles are used for applications like seabed mapping, environment monitoring, bridge inspections, and other activities related to infrastructure inspection and assessment.
The communication segment held 14% of the market share in 2021. Acoustic as well as satellite communication are available for USVs to communicate. Navigation information is critical for effective mission completion because navigation information such as the location of USVs is critical for their safe operations and recovery. The communication segment witnessed significant growth due to the introduction of advanced wifi and satellite systems for long-range operations, which propels the growth of the segment during the forecast period.
Among these, the Remotely Operated Surface Vehicle captured the major market share and is expected to grow at a CAGR of 11.35% during the forecast period. The autonomous segment has also shown significant growth as the USVs are being widely used in defense and commercial applications. They can be installed to inspect and capture specific events and locations and can communicate the data in real-time and provide a mechanism for quantifying natural variability to drive and calibrate exploration and research efforts and thus are substantially influencing the market towards a positive trend.
Sizes of vehicles vary from small which is less than five meters, Medium whose size lies between five to seven meters and large vehicle sizes could be up to twenty meters. Due to increased demand for big USVs for defense and commercial operations such as ISR activities, combat operations, and freight transportation, the large USVs market is expected to rise significantly.
Among these, Kayak, a single-hull type segment, holds the major share in the global USVs market and fastest-growing segment with a CAGR of 12.75% during the forecast period. Factors like easy mounting and loading capabilities are aiding the market growth of the single-hull type segment. The twin hulls segment has also driven the market growth because of its greater system stability.
The Unmanned Surface Vehicle market has varied applications. In 2021, the defense sector is expected to account for over 50% of the market share. The use of USVs for defense applications is expanding in countries including the United States, Canada, France, and China, which is fueling the market's growth. The defense application includes ISR, Mine Countermeasure, Firefighting, Maritime Security, Electronic Warfare, Anti-Submarine Warfare, and Maritime Interdiction Operation Support among others. The defense sector of the market is predicted to increase significantly owing to the rise in demand for USVs for maritime monitoring grows. The ISR subsegment within the defense application segment is expected to grow at the fastest rate throughout the projection period. USVs may be used to collect minerals like cobalt, zinc, and magnesium, which are utilized in the manufacture of smartphones, computers, and hybrid automobiles, among other things, thus driving the commercial sector growth.
By geography, North America dominates the unmanned surface vehicle industry, followed by Asia-Pacific and Europe. North America emerged as the largest market for the Unmanned Surface Vehicle and is projected to grow at a CAGR of 12.75% during the forecast period. The major economy in the region such as the USA has increased their military spending to guard their water boundaries over the past few years due to the rising geopolitical tensions that are driving the growth in the market.
The European market also holds a substantial market share and is expected to grow significantly during the forecast period. Factors attributing to the growth in the region include the usage of USVs by navies for mine countermeasures (MCM), ISR activities, anti-submarine warfare (ASW), and oceanographic applications.
The Asia Pacific region is also a major contributor to the growth of the unmanned surface vehicles market due to increasing defense expenditure from countries such as China and India. Asia Pacific market is anticipated to have the fastest growth in terms of revenue in near future.
The demand generated from military and commercial operations is fueling the market growth. Middle East witnessed moderate growth due to increasing demand from countries such as UAE, Israel, and others for oil & gas exploration applications.
The Unmanned surface vehicle market is very specialized and is highly consolidated due to the presence of big market players.Prominent players in the market have adopted various strategies comprising investment in R&D, collaborations, partnerships, regional business expansion, and new product launches.
NOTABLE HAPPENINGS IN THE UNMANNED SURFACE VEHICLES MARKET
The global crisis caused by the COVID-19 pandemic caused significant disruptions in most industries and the manufacturing industry was severely hit. The lockdown imposed due to the pandemic caused the major manufacturing sectors to suspend their operations. The lockdown imposed by the government of several countries has slowed the production and the import and export of raw materials and finished products. The restriction created a supply chain crisis during the pandemic as there was a shortage of labor, and raw materials, and the localized shutdown of a few production plants decelerated the overall market growth. The research and commercial activities were halted which negatively affected the growth of the market. However, in the upcoming years, the market is expected to bounce back and gain momentum due to the relaxation of restrictions and restarting of the R&D and manufacturing activities. All these factors are working as proponents for the growth of the market rise during the forecast period.
Chapter 1. Unmanned Surface Vehicles Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Unmanned Surface Vehicles Market – Executive Summary
2.1. Market Size & Forecast – (2022 – 2027) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2022 - 2027
2.3.2. Impact on Supply – Demand
Chapter 3. Unmanned Surface Vehicles Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. Unmanned Surface Vehicles Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porters Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Unmanned Surface Vehicles Market - Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Unmanned Surface Vehicles Market – By Type
Chapter 7. Unmanned Surface Vehicles Market – By Systems
7.4. Chassis Material
Chapter 8. Unmanned Surface Vehicles Market – By Mode of Operation
8.1. Autonomous Surface Vehicle
8.2. Remotely Operated Surface Vehicle
Chapter 9. Unmanned Surface Vehicles Market – By Size
Chapter 10. Unmanned Surface Vehicles Market – By Hull Type
10.1. Kayak (Single Hulls)
10.2. Catamaran (Twin Hulls)
10.3. Trimaran (Triple Hulls)
10.4. Rigid Inflatable Hull
Chapter 11. Unmanned Surface Vehicles Market – By Application
11.2. Scientific Research
Chapter 12. Unmanned Surface Vehicles Market – By Region
12.1. North America
Chapter 13. Unmanned Surface Vehicles Market, By Geography - Market Size, Forecast, Trends & Insights
13.1. North America
13.2.7. Rest of Europe
13.3. Asia Pacific
13.3.2. South Korea
13.3.5. Australia & New Zealand
13.3.6. Rest of Asia-Pacific
13.4. Rest of the World
13.4.1. Middle East
13.4.3. South America
Chapter 14. Unmanned Surface Vehicles Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)
14.1. Company 1
14.2. Company 2
14.3. Company 3
14.4. Company 4
14.5 Company 5
14.6. Company 6
14.7. Company 7
14.8. Company 8
14.9. Company 9
14.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.