Visiongain has published a new report entitled Undersea Defence Infrastructure & Security Market Report 2026-2036 (Including Impact of U.S. Trade Tariffs), providing detailed forecasts by component, end-user, business model, platform and technology, alongside regional and leading national market analysis.

Visiongain estimates the global undersea defence infrastructure & security market at US$29.47 billion in 2026 and forecasts growth at a CAGR of 6.8% through 2036.

Impact of US Trade Tariffs on the Global Undersea Defence Infrastructure & Security Market  

U.S. tariffs and broader trade protection measures have introduced a new layer of uncertainty into the global undersea defence infrastructure and security market. Although defence procurement is often partially insulated from trade barriers through government-to-government agreements and national security exemptions, the undersea domain is highly dependent on globally distributed supply chains. Critical components such as advanced sensors, specialised electronics, propulsion systems, rare earth materials, and subsea-grade alloys are frequently sourced from multiple countries. Tariffs imposed on defence-relevant imports, particularly those originating from China and other strategic competitors, have increased input costs and lengthened procurement timelines for both U.S. and allied defence contractors. These measures have also encouraged localisation of production, reshoring of sensitive manufacturing, and diversification of supplier networks, reshaping global competitive dynamics. For non-U.S. market players, tariffs have influenced pricing strategies, partnership structures, and access to the U.S. defence market, which remains the largest single source of undersea defence spending worldwide.

Rapid Adoption of Unmanned Systems and Autonomy across the Undersea Domain

Unmanned undersea vehicles (UUVs/AUVs), large-diameter UUVs and complementary unmanned surface vehicles are transitioning from experimental to operational status, creating a multi-layered force structure that multiplies sensing density and reduces platform costs per patrol; this trend increases demand for persistent platforms, payloads (sonars, cameras, magnetometers), autonomy software, mission planning and launch/recovery systems. Industry responses include accelerated production and localisation of AUV manufacturing, expanded demonstrations for defence evaluation authorities, integration of high-end synthetic aperture sonars and autonomy packages onto operational AUVs, and service models that offer AUV fleets as an operational capability, as evidenced by recent in-water demonstrations and moves to start local production of proven AUV lines in key markets.

What are the Current Market Drivers?

Convergence of AI, Advanced Signal Processing and Big Data for Undersea Analytics

Acoustic and multi-sensor data volumes from seabed arrays, towed arrays and AUV surveys are rising, and defence customers increasingly demand AI/ML-enabled signal processing, sensor fusion and automated detection/classification to turn raw acoustic returns into actionable contact tracks and anomaly alerts; this is shifting value from hardware alone to software, data services and secure cloud/edge analytics, prompting legacy primes and specialist software firms to incorporate or partner for analytics capabilities while pushing higher recurring revenue streams through managed monitoring and analytics subscriptions. Recent product introductions and events show large defence electronics firms announcing miniaturised, network-friendly sonar products and analytics platforms designed to fit into multi-domain architectures, and specialist analytics and sensor firms highlighting AI-enabled payloads and processing suites in exercises and trials.

Geopolitical Competition and Fleet Modernization Driving ASW & Infrastructure Protection Budgets

Heightened great-power competition in littorals and along critical sea lines of communication has compelled major navies and allies to accelerate ASW investments, submarine procurement, and undersea infrastructure protection programs; consequently, budget prioritization is shifting toward sonar upgrades, UUV fleets, seabed monitoring, and secure subsea communications. This is manifest in large defense industrial programmes, nuclear and conventional submarine procurements, and national industrial mobilisation (supplier qualification, local production) that underpin multi-year capital flows into the undersea sector, and in major prime and supplier contract awards and national industrial plans tied to submarine and undersea infrastructure programmes.

Where are the Market Opportunities?

Rapid Expansion of Persistent Monitoring as a Service (Surveillance-as-a-Service) for Navies and Infrastructure Owners

The shift from one-off system sales to subscription models for persistent undersea monitoring creates recurring revenue opportunities: vendors can bundle sensor networks, AUV/USV patrols, secure data pipes and analytics into service agreements that offer predictable cash flows and higher lifetime value; several firms are already moving to offer fleet-based, data-centric services and long-term frameworks with energy companies and navies to monitor seabed infrastructure and deliver alerts and forensic data to operators, converting capital budgets into operational ones and opening procurement avenues for smaller, nimble providers that can field managed capabilities quickly.

Software, AI and Edge Analytics Monetisation through Modular Upgrades and Subscription Licenses

As acoustic and multi-sensor data scales, defence customers will pay a premium for AI algorithms that reduce false positives, automate classification and enable autonomous mission planning; this creates high-margin opportunities to sell software stacks, updates, and edge-processing modules that can be retrofitted to existing hardware, enabling vendors to increase software revenue share and deliver continuous improvement via subscription or licence models. Industry moves to showcase analytics in exercises and challenges underline the commercial potential for analytics-first offerings and partnerships between sensor OEMs and analytics specialists.

Competitive Landscape

Major players in the undersea defence infrastructure & security market include Anduril Industries, Atlas Elektronik GmbH, BAE Systems, Elbit Systems Ltd, Fugro N.V., General Dynamics Corporation, Kongsberg Defence & Aerospace, Lockheed Martin Corporation, Ocean Infinity, QinetiQ Group Plc, Raytheon Technologies (RTX), Saab AB, TechnipFMC plc, Teledyne Technologies Incorporated, Thales SA. These companies are pursuing strategies including M&A, partnerships, R&D investment and regional expansion.

Recent Developments

• 22-Jan-26, Elbit Systems completed the full acquisition of UAV Tactical Systems Ltd. (UTACS) through its UK subsidiary. The move strengthens the UK as a hub for advanced uncrewed aerial systems, supporting NATO and European defence requirements while expanding Elbit’s uncrewed technology portfolio.
• 15-Jan-26, Anduril Industries was awarded a US$23.9 million contract by the U.S. Marine Corps to deliver over 600 Bolt-M systems under the OPF-L program. The man-portable precision strike system demonstrated superior range, endurance, and payload capacity during 13 months of operational testing and was selected for initial fielding beginning February 2026.
• 14-Jan-26, Saab launched ORP Henryk Zygalski, the second and final SIGINT ship for the Polish Navy under the DELFIN programme. The vessel will be fitted with advanced reconnaissance and signals intelligence systems, strengthening Poland’s maritime surveillance, intelligence gathering, and undersea situational awareness capabilities.
• 13-Jan-26, ThyssenKrupp Marine Systems (TKMS) signed a Teaming Agreement with Cohere to explore AI integration for the Canadian Patrol Submarine Project (CPSP). The collaboration focuses on AI-driven decision-support tools, onboard information management, training systems, and secure naval interfaces, aligning with Canada’s future submarine modernisation priorities.
• 06-Jan-26, QinetiQ was awarded £67 million by MBDA to deliver the laser source for the UK’s DragonFire directed energy weapon. The system will be integrated on Royal Navy platforms from 2027, strengthening naval air defence against emerging threats.
• 29-Dec-25, Thales secured a major contract from Defence Equipment and Support to deliver next-generation portable autonomous command centres for the Royal Navy. The solution integrates cortAIx-powered AI, Mi-Map, and M-Cube applications to enable remote, AI-driven mine hunting and support the UK’s Hybrid Navy vision.

About Visiongain

Established in 1998, Visiongain is an independent publisher of analyst-led market intelligence, delivering data-driven research, forecasts, and strategic insight across global industries and emerging markets. Visiongain supports evidence-based decision-making for investment, procurement, and long-term strategic planning.

Media Contact

press@visiongain.com
+44 (0)20 7336 6100
www.visiongain.com