In terms of actual product usage it is the larger AUV market that is projected to grow at the highest growth rate during the forecast period due to the increasing demand for such AUVs for use in military & defence and oil & gas exploration applications. According, to the research, the UK Ministry of Defense (MoD) has recently placed an order to deliver an extra-large AUV (XL-AUV) to support the Royal Navy and explore the utility of uncrewed submarines in the future underwater battlespace. Similarly, the Chinese Navy is focusing on developing many Al-enabled underwater vehicles. China's push for advancements is to counter US dominance in the Indo-Pacific region.

The medium AUV's used mainly for environmental applications

The autonomous underwater vehicle (AUV) market for medium AUVs segment for environmental protection & monitoring applications is expected to grow at the highest CAGR during the forecast period. Medium AUVs can operate at depths of up to 1,000 m, which is ideal for environmental protection and monitoring applications. This is due to the AUVs ability to reach a wide range of underwater environments. These AUVs have increasingly been adopted for applications such as water sampling, habitat research, oceanographic research, marine pollution monitoring, fishery studies, and emergency response is likely to grow during the forecast period.

The US holds the largest market share 

In North America, the US accounted for the largest market share of the autonomous underwater vehicle (AUV) market in 2023 and is expected to retain its position during the forecast period due to heavy investments made by the US government in the defence sector. The increasing offshore activities, such as mine hunting, are expected to boost AUV adoption in the country. For instance, the analysts mention that recently, the US Navy has signed a USD 18.6 million contract with Anduril Industries (US) to build five of its Dive AUVs. The company has also announced the establishment of a new centre in Quonset Point, Rhode Island, to increase its Dive-LD AUV production. The factory will cover up to 150,000 square feet and include dedicated service bays, testing laboratories, and additional spaces to accommodate lifecycle tasks from research through sustainment. The centre is expected to boost the assembly of Dive-LD's family of AUVs to more than 200 annually. The research suggests that such contracts undertaken by leading companies have contributed to the growth of the commercial exploration segment of the US autonomous underwater vehicle market.

Key players

Some of the leading companies operating in the autonomous underwater vehicle (AUV) market and mentioned with the report are Kongsberg, Teledyne Technologies, General Dynamics, Saab, Exail Technologies, Lockheed Martin Corporation, Fugro, Atlas Elektronik, Boston Engineering Corporation, L3Harris Technologies, Graal Tech, International Submarine Engineering Ltd, Riptide Autonomous Solutions, Msubs, Falmouth Scientific Inc, and Terradepth, amongst others.