Offshore Autonomous Underwater Vehicle Market Analysis

Increase in Defense Expenditure

According to the Stockholm International Peace Research Institute, global military spending witnessed a 2.6% increase from 2017 to 2018, reaching a total of approximately USD 1.82 trillion in 2018. Notably, India surpassed the UK to become the fifth-largest defense spender globally. While there was a marginal decline in defense spending, the United States is anticipated to substantially augment its military budget over the next two years, emphasizing the modernization of both conventional and nuclear weapons. Concurrently, several countries are strategically investing in advanced technologies to expand, modernize, and enhance the operational capabilities of their armed forces.

Various factors contribute to the surge in military spending. Ongoing conflicts in the Middle East and Africa, longstanding tensions, territorial disputes in the Asia-Pacific region, efforts to counter terrorist activities, and combating drug cartels in the Americas are compelling governments to reinforce their defense capabilities. The escalating military spending directly stimulates growth in the defense equipment industry, encompassing a broad spectrum from aircraft and weapons to Autonomous Underwater Vehicles (AUVs).

The application of AUVs in the military domain has gained substantial importance due to their extensive capabilities in ensuring national security. Initially utilized for preliminary underwater observations and the recovery of lost weapons, AUVs are now gradually being adopted by defense forces worldwide for security reasons amid increasing global political conflicts. The current emphasis on enhancing maritime security has led to the integration of AUVs for the secure execution of underwater missions. Advanced AUVs with improved thrust are now available, making them well-suited for naval operations. The military and defense industry extensively employs this technology for research, reconnaissance, mine countermeasures, and other operations required during emergencies. Consequently, the surge in military spending and the prioritization of AUV procurement by defense organizations are anticipated to propel market growth throughout the forecast period.

In summary, the rise in global military spending, coupled with the growing emphasis on leveraging advanced technologies such as AUVs, signifies a substantial impetus to the defense industry, contributing to enhanced national security and operational capabilities.