Transforming Water Operations and Defense with the Growth of Unmanned Surface Vehicles

Published: Dec 2024

Unmanned surface vehicles are transforming the current water scenario. They are used for a variety of applications, such as defense and security, marine research, commercial shipping, disaster response, climate monitoring, seafloor mapping, passenger ferries, robotic research, inspection of infrastructure, and military and naval operations. The global unmanned surface vehicle market is anticipated to grow at a significant CAGR of 4.9% by 2031. 

USVs form a major part of the naval infrastructure across the globe. The defense industry is increasingly adopting USVs for border surveillance and defense. For instance, In April 2024, the US Navy intensified the deployment of USVs throughout Central and South America, strengthening the naval operations in the region. Additionally, the Navy has employed surface drones to gain domain space awareness in the Middle East. 

  • In June 2024, the US Navy displayed the Sea Hunter USV prototype fleet, during Los Angeles Fleet Week. 
  • Additionally, in June 2024, the US Navy planned to spend nearly a billion dollars among 49 companies for designing next-generation unmanned surface vessels (USVs). The investment is planned for the next five years. The companies will receive $1,000 up-front.
  • In May 2024, the US Navy officially established its second Unmanned Surface Vessel Squadron (USVRON) at Naval Amphibious Base Coronado. The USVRON Three will oversee a fleet of small USVs known as Global Autonomous Reconnaissance Craft (GARC).
  • In January 2024, the US Naval Forces Central Command organized a new unit for unmanned operations in the Middle East. ‘The Pioneers’ will be an integration of unmanned and manned systems to increase maritime security in the region.

Similarly, the European defense system is strengthening its hold on the unmanned vessel zone. For instance, in October 2024, the French Navy ordered an autonomous underwater vehicle from Exail which is capable of operating at depths of up to 6,000 meters. The platform will primarily be used for reconnaissance operations across the seabed for sensitive infrastructure such as submarine cables.  

Additionally, in November 2021, the European Defence Agency (EDA) launched a Medium Unmanned Surface Vehicle (MUSV) project with Estonia, France, and Latvia. The vessel sizes would range from 250 to 500 tons.  

The Naval command in the Asia-Pacific region are adopting USVs to maintain the balance of power. For instance, in October 2024, the Indian Navy launched Matangi developed by Sagar Defence Engineering. The autonomous surface vessel is 13 meters in size and makes a sea transit from Mumbai to Tuticorin, covering a distance of 850 nautical miles or 1500 kilometers. The Navy is initiating the induction of 12 of these indigenously developed platforms. 

Furthermore, China is among the prominent contributors to the USV industry in the Asia-Pacific region and around the globe. In November 2024, China built the world’s largest unscrewed warship. The JARI-USV-A Orca is an uncrewed combat vessel featuring a trimaran hull with a Vertical Launch System (VLS) for missiles and a helipad for UAVs at the stern. It additionally has an integrated mast with multiple radar arrays, unlike other combat USVs. It has a displacement of 420 tons, a length is 58-60 meters (190-197 feet), and is 23 meters (74 feet) across, and is larger than the Sea Hunter and Sea Hawk of the US.  

  • In addition, in May 2024, Chinese defense company Poly Technologies presented the A2000 ‘Thunderer’ sea-based drone, at the Defense Services Asia 2024 exhibition in Kuala Lumpur, Malaysia. The vessel is designed for intelligence, surveillance, reconnaissance, and anti-access/area denial operations. The vessel is armed with interceptor missiles and a 30mm cannon. It can be controlled from a shore-based station and employed in littoral waters. It features a length of 45 meters (147 feet) and a displacement of 280 tons and is powered by twin diesel engines with two controllable pitch propellers. It has a trimaran hull design and a maximum speed of 35 knots. The vessel is equipped with Active Electronically Scanned Array radar, an eight-cell vertical launching system for surface-to-air missiles, and 24-cell launchers on both sides for rockets. 
  • In November 2024, amid the growing USV climate in the region, the Philippines Navy procured advanced USVs from the US. The transfer is made through US Foreign Military Financing (FMF) and is aimed at defending the country in the South China Sea. The vessels include the MANTAS T-12 systems from Maritime Tactical Systems (MARTAC). It is a 3.6-meter-long unmanned surface vessel that can carry up to 64 kilograms of payload.  
  • In October 2024, South Korea tested USVs to respond to potential infiltrations by North Korea. The USVs are 6.5 meters long and feature the use of AI to detect targets and prevent collisions. The USVs offer a maximum speed of 37 kilometers and can detect and respond to battleground situations by leveraging algorithm learning. 
  • In April 2024, HD Hyundai Heavy Industries was selected as a preferred bidder for the concept design of a 'Ship-deployed USV' for the Republic of Korea (ROK) Navy. The USV is to be deployed aboard some of the ROK Navy’s core combat vessels such as frigates and destroyers. It is anticipated to be the key component of the Navy Sea GHOST concept. 

Additionally, governments around the globe are contributing significantly to the growth of the USV industry. For instance, the Defence Ministry in India has sanctioned a plan of INR 2500 crore ($300 million) for the Indian Navy, to build 100-ton unmanned underwater vessels. The vessels will enhance the Navy's capabilities in underwater operations, including mine laying, surveillance, and launching weapons. The project will be issued under the Aatmanirbharta initiative.

Furthermore, in September 2024, the Defense Acquisition Program Administration selected LIG Nex1 as the preferred bidder for the ‘Reconnaissance Unmanned Surface Vessel System Development Project’. It is the first initiative for the Korean Navy's unmanned and manned integrated combat system known as 'Navy Sea GHOST'.  The project involves the R&D of two 12-meter-long USVs, aimed at enhancing surveillance, reconnaissance, and rapid on-site response capabilities for naval forward bases and key ports. The project is anticipated to be completed in 2027.

The major players in the USV market include ECA Group, Elbit Systems Ltd., Kongsberg Gruppen ASA, L3Harris Technologies, Inc., Teledyne Technologies Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, among others.  

Recent Developments 

  • In November 2024, Saab presented Autonomous Ocean Core, a ready-to-use autonomous control system. It is a vessel-agnostic control system that offers open architecture, designed to make vessels autonomous.  It can be used for mine detection and clearance, intelligence, surveillance and reconnaissance, and electronic warfare. The system has different modes for maneuvering on a mission. It can be configured to operate in three different manners, tailored to specific operational needs and safety requirements. 
  • In October 2024, Turkish defense companies, Meteksan Defence and ARES Shipyard, signed an agreement with Qatar's Ministry of Interior for the export of the ULAQ 11 Port Security Vessel (PSV). The PSV will be built for reconnaissance, surveillance, intelligence missions, and critical facility protection activities. The vehicle will feature a 12.7 mm remote control weapon system, radar, encrypted communication systems, and autonomous software on a high-capability platform. 
  • In October 2024, Austal Australia and Greenroom Robotics entered into a strategic commercial partnership, post-completion of the Patrol Boat Autonomy Trial (PBAT) for the Royal Australian Navy.  The two companies will collaborate further on developing watercraft-based products, services, and technologies that may reduce crewing, increase safety, and enable remote and autonomous operation of vessels designed and constructed by Austal Australia.
  • In October 2024, Teledyne Marine expanded business to Southeast Asia with iOne Resources Inc. as the new official distributor in the Philippines for its product lines. The product lines covered in the agreement include sonar systems, data acquisition and post-processing software, echo sounders, motion and inertial sensors, Underwater cameras, lighting, and vision systems for Remotely Operated Vehicles (ROVs), Autonomous Underwater Vehicles (AUVs), Unmanned Surface Vessels (USVs), acoustic Doppler products. 
  • In September 2023, Fincantieri and its subsidiaries Fincantieri NexTech and IDS – Ingegneria Dei Sistemi presented their products including Multi-Mission MUS Toolkit based on the SAND (Surface Advanced Naval Drone) together with an innovative UMS (Unmanned Management System), at the REPMUS (Robotic Experimentation and Prototyping augmented by Maritime Unmanned Systems) 2023. REPMUS is an annual military exercise organized and hosted by the Portuguese Navy and NATO. 

In a nutshell, USV is the future of operations over the waters. Nations around the globe are actively employing modern technologies such as AI to develop future-proof combat vehicles. The utilization of the same across the waters enables better surveillance, reconnaissance, and effective checking of the anti-access/area denial operations. The US and China are among the prominent countries witnessing the development and deployment of the USVs. Additionally, the Asia-Pacific region is among the fastest-growing markets for USVs owing to the significant contribution by China and India. Moreover, the intense border tensions demand active government involvement of various nations to ensure border safety. Thus, the market is anticipated to propel shortly.