In recent years the market for unmanned surface vehicles (USVs) in the defense and security domain has gained significant traction. These vessels, capable of operating on water without onboard crew, are increasingly seen as game-changers in maritime operations, providing enhanced surveillance, reconnaissance, mine counter-measure and patrol capabilities. According to market research, the USV segment in the defense and security realm was valued at approximately USD 2.93 billion in 2024 and is forecast to expand to about USD 8.5 billion by 2035, reflecting a compound annual growth rate (CAGR) of around 10.2%.

Market Overview

Unmanned Surface Vehicles for Defense and Security Technology Market represent a shift in naval and maritime defense thinking. Where traditionally human-crewed vessels carried risk in contested environments, unmanned platforms now offer a lower-risk, more agile alternative. These systems are being deployed in applications ranging from coastal patrol and border security to mine detection and search-and-rescue support. The segmentation of the market clearly highlights this diversity of use, with the defense sector—military, coast guard and government agencies—accounting for the lion’s share of demand.

Key drivers in the market include rising geopolitical tensions at sea, budget increases for maritime security, and technological breakthroughs in autonomy, sensors and communications.

Growth Factors

Several underlying factors are fuelling the growth of USVs in the defense and security space. First, increased defense budgets globally are channelled into maritime modernization efforts, especially as nations respond to asymmetric threats, disputed waters and the need for persistent surveillance.

Second, the integration of technologies such as artificial intelligence (AI), machine learning, autonomous navigation systems and real-time telemetry has significantly enhanced USV capabilities. These advances enable vehicles to undertake longer missions, operate with reduced human intervention and leverage sensor fusion for higher situational awareness.

Third, there is growing demand for cost-effective maritime surveillance and defense solutions. USVs, particularly smaller and medium-sized platforms, offer a lower cost footprint compared with larger crewed ships, making them appealing for many navies and coast guard organisations.

Trends and Opportunities

Several trends are emerging that are reshaping how USVs are deployed and developed. One major trend is the move towards greater autonomy and “smart” systems. USVs are increasingly being designed to operate in networked swarms, to collaborate with aerial and underwater drones, and to carry modular payloads for mine detection, anti-submarine warfare, or intelligence, surveillance and reconnaissance (ISR) roles.

Another trend is the growing focus on regional growth, especially in the Asia-Pacific region where naval modernization, maritime domain awareness and coastal defence are gaining urgency.

The opportunity space is rich: manufacturers and solution providers can leverage rising demand for USVs in multi-use platforms, develop sensor- and communication-rich modules, and partner with defence agencies to co-develop new systems tailored to evolving missions. The counter-measure market (for mine warfare) and patrol/surveillance applications in littoral zones present especially attractive niches.

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Challenges

Despite the strong momentum, the USV market in defense and security also faces a number of challenges. Firstly, regulatory and legal frameworks for unmanned maritime systems remain under-developed in many jurisdictions, creating uncertainty around certification, rules of engagement, and interoperability. Research points out that transitioning from research prototypes to operationally reliable systems remains complex.

Technical hurdles also persist: autonomous navigation in dynamic maritime environments, reliable communications at sea, cyber-security robustness of unmanned systems, and integration with legacy defence platforms are non-trivial. Moreover, cost constraints and procurement cycles in defence organisations can slow adoption, particularly for smaller nations with limited budgets. Finally, ensuring operational endurance and payload flexibility while maintaining affordability remains a balancing act for USV developers.

Future Outlook

Looking ahead, the outlook for unmanned surface vehicles in defense and security is highly positive. As navies and security agencies worldwide increasingly recognise the value of unmanned platforms, demand is expected to grow steadily. The forecast of around 10.2% CAGR through 2035 underscores this growth trajectory.

Advances in propulsion (including hybrid and alternative energy systems), improved sensor miniaturisation, tighter human-machine teaming, and networked autonomy will drive next-generation USVs that are more capable, resilient and mission-adaptive. Further, the proliferation of smaller, more affordable USV platforms will democratise access to unmanned maritime solutions, enabling a broader set of countries to deploy them for coastal defence, maritime security and surveillance. As the technology matures and regulatory frameworks catch up, USVs are poised to become an integral component of naval and coast guard fleets, with the potential to transform maritime defence operations globally.