Torpedo Market By Type (Heavyweight Torpedo, Lightweight Torpedo); By Propulsion System (Electric, Thermal); By Launch Platform (Submarine-Launched, Ship-Launched, Air-Launched, UUV-Launched); By Geography, Segment Revenue Estimation, Forecast, 2024–2030.

Introduction And Strategic Context

The Global Torpedo Market will witness a robust CAGR of 6.2%, valued at $1.15 billion in 2024, and is expected to appreciate and reach $1.65 billion by 2030, confirms Strategic Market Research.

 

Torpedoes, self-propelled underwater weapons used predominantly in naval warfare, are integral to modern maritime defense systems. In 2024, the market sits at the intersection of rising geopolitical tensions, accelerating undersea capabilities, and growing investments in naval modernization across major global powers. Technological leaps—ranging from enhanced guidance systems to electric propulsion and stealth coatings—are driving strategic procurement cycles. Simultaneously, the surge in unmanned underwater vehicle (UUV) integration with torpedo systems is reshaping fleet readiness and tactical doctrine.

 

Strategically, torpedoes are not only critical for submarine warfare but are increasingly being adapted for ship- and aircraft-launched operations. Their role in Anti-Submarine Warfare (ASW), Anti-Surface Warfare ( ASuW ), and area-denial strategies makes them indispensable to navies in both defensive and offensive missions.

 

Macroeconomic factors such as rising maritime disputes in the South China Sea, Arctic militarization, and multi-domain warfare preparedness among NATO and Indo-Pacific nations further underline the sector's importance. Additionally, innovation incentives, defense offset policies, and security alliances like AUKUS are accelerating torpedo demand across procurement pipelines.

 

Key stakeholders in the market include:

• Original Equipment Manufacturers (OEMs) developing propulsion, guidance, and warhead systems.

• Naval forces and defense ministries —primary end users and funding sources.

• Private defense contractors and system integrators, particularly those focused on modular torpedo systems.

• Maritime R&D institutions and naval laboratories, conducting trials and simulations.

• Investment firms supporting advanced weapons manufacturing and dual-use defense technologies.

As underwater threat detection evolves in complexity, torpedo systems are no longer blunt instruments of naval warfare, but precision tools within an integrated defense network.

 

Market Segmentation And Forecast Scope

The global torpedo market can be segmented across four major dimensions to reflect both technological diversity and end-use scenarios:

By Type

• Heavyweight Torpedoes

• Lightweight Torpedoes

Heavyweight torpedoes dominate the market, accounting for approximately 58.3% of global revenue in 2024, due to their deployment from submarines and long-range strike capabilities. These torpedoes are typically wire-guided, designed for deep-sea operations, and feature advanced sonar homing and propulsion systems.

Lightweight torpedoes, while smaller and more agile, are gaining traction in coastal defense missions and are extensively used by helicopters and maritime patrol aircraft.

Expert insight: “The shift toward hybrid deployment platforms—including aerial drones and ship-launched UUVs—is driving innovation in lightweight torpedo systems, which are increasingly modular and network-enabled.”

 

By Propulsion System

• Electric Propulsion

• Thermal Propulsion

Electric propulsion systems are expected to be the fastest-growing segment through 2030, supported by rising demand for low-noise, high-efficiency underwater weapons. Modern navies prefer electric systems for their stealth attributes, low acoustic signatures, and compatibility with lithium-ion energy storage.

Thermal propulsion, while still relevant for heavyweight configurations requiring high thrust, is gradually being phased out in favor of more sustainable and compact alternatives.

 

By Launch Platform

• Submarine-Launched

• Ship-Launched

• Air-Launched

• Unmanned Underwater Vehicle (UUV)-Launched

The submarine-launched segment remains dominant, leveraging silent, stealth-enabled platforms for strategic underwater warfare. However, the UUV-launched torpedo segment is emerging rapidly, with increasing military focus on autonomous and semi-autonomous underwater operations.

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

North America leads in 2024, largely driven by the U.S. Navy's aggressive procurement of Mk-48 and hybrid torpedo systems. Asia Pacific, however, is projected to be the fastest-growing region, fueled by escalating defense expenditures in China, India, South Korea, and Australia. Rising tensions in maritime chokepoints like the Taiwan Strait and the Indian Ocean are catalyzing torpedo system acquisitions across the region.

This segmentation provides a strategic framework for understanding demand shifts, innovation hotspots, and procurement preferences across defense ecosystems. It will also be used to construct revenue forecasts and growth opportunity maps through 2030.

 

Market Trends And Innovation Landscape

The global torpedo market is undergoing a significant transformation, shaped by advances in propulsion, guidance technologies, and increasing integration with digital warfare ecosystems. This section explores the technological, strategic, and institutional innovations redefining the future of underwater armament.

Technological Innovation Trends

• Electric and Battery-Driven Propulsion
  Lithium-ion and solid-state batteries are revolutionizing torpedo propulsion, enabling quieter operation, extended range, and reduced maintenance. These systems are becoming standard in lightweight and next-gen torpedoes deployed from aircraft and autonomous vehicles.

• Smart Guidance and Sonar Systems
  Integration of Artificial Intelligence (AI) and advanced sonar signal processing is enhancing target acquisition and discrimination capabilities. New-generation torpedoes are equipped with adaptive homing algorithms that dynamically adjust to countermeasures.

• Modular Warhead and Payload Systems
  Modern navies are adopting torpedoes with modular architecture, allowing for quick customization depending on mission requirements—anti-submarine, anti-surface, or training modes.

• Hybrid Deployment with Autonomous Platforms

• There is growing R&D around torpedo-launching UUVs (Unmanned Underwater Vehicles) that operate in swarm configurations. These platforms, when paired with low-signature lightweight torpedoes, can silently infiltrate high-risk zones.

“Autonomous deployment capability is no longer experimental. Several nations are actively testing AI-guided UUVs equipped with disposable micro-torpedoes for stealth operations,” notes a former naval weapons engineer involved in NATO trials.

 

Strategic Collaborations and R&D Investments

Recent years have seen a flurry of defense-industrial collaborations:

• Naval Group (France) has partnered with European defense contractors to enhance the F21 Artemis torpedo's range and stealth features.

• BAE Systems and Raytheon Technologies are jointly investing in compact electric propulsion platforms for next-gen U.S. Navy torpedoes.

• India’s DRDO is developing indigenous thermal-electric hybrid torpedoes with active-passive acoustic seekers under the Varunastra program.

These partnerships are not limited to weapon development but extend to training systems, launch integration software, and simulation platforms for naval crews.

 

Pipeline Announcements and Military Doctrines

• The U.S. Navy has announced increased procurement targets for heavyweight Mk-48 Mod 7 torpedoes through 2030, citing growing undersea threats in the Pacific theater.

• China's PLAN is reportedly developing AI-powered torpedoes capable of underwater networked communication and multi-target tracking.

• AUKUS alliance nations are investing in long-range torpedo systems capable of being launched from manned and unmanned subsurface vehicles.

“There’s a definitive shift from single-shot tactical torpedoes to multi-role systems that can operate as part of a networked maritime kill chain,” observed a senior policy researcher at RAND Corporation.

Innovation will continue to center around stealth, autonomy, and energy density—key attributes that define operational superiority in underwater conflict environments.

 

Competitive Intelligence And Benchmarking

The torpedo market features a combination of established defense giants and emerging innovators, each contributing to advancements in design, guidance, propulsion, and launch integration. These companies compete not only on product performance but also on procurement partnerships, technology transfer, and strategic export deals.

Key Players in the Torpedo Market

• Raytheon Technologies
  A major supplier to the U.S. Navy, Raytheon is known for its involvement in the Mk-48 heavyweight torpedo program. The firm continues to invest in miniaturization and dual-mode seeker technology, integrating thermal and electric propulsion systems for superior performance. Its supply agreements span beyond the U.S. to key allies in Europe and Asia.

• BAE Systems
  Headquartered in the UK, BAE Systems is a critical player in lightweight torpedo systems, notably the Sting Ray Mod 1. Its focus is on rapid-response, air-launched torpedoes optimized for Anti-Submarine Warfare (ASW) missions. BAE also leads in modular architecture R&D, allowing navies to swap out torpedo payloads and guidance modules based on mission needs.

• Naval Group
  The French defense contractor manufactures the F21 Artemis, considered one of the most advanced torpedoes in the world. With enhanced stealth, fiber-optic guidance, and deep-sea operability, Naval Group is a preferred supplier for the French Navy and export markets across Asia-Pacific and the Middle East.

• Leonardo S.p.A .
  Italy’s Leonardo brings strong expertise in torpedo guidance systems, especially in the development of electric propulsion for compact underwater weapons. The Black Shark Advanced (BSA) torpedo is gaining traction among NATO allies and Middle Eastern defense clients.

• DCNS (Direction des Constructions Navales Services)
  A sister concern to Naval Group, DCNS is focused on upgrading legacy torpedo systems used in European fleets. It specializes in retrofit services, software-defined sonar upgrades, and simulation training platforms that complement torpedo procurement.

• Saab AB
  The Swedish defense firm leads in lightweight and portable torpedoes under the Saab Lightweight Torpedo (SLWT) initiative. Known for their low acoustic signature and adaptability, Saab’s torpedoes are being increasingly deployed on both surface ships and aircraft in the Baltic and Arctic regions.

• DRDO (India)
  India's Defence Research and Development Organisation is a rising player, especially in self-reliant torpedo production. The Varunastra and Takshak programs aim to replace imports and enable scalable, export-friendly systems.

 

Benchmarking Strategy Comparison

Company	Region	Key Strength	Focus Area	Innovation Type
Raytheon	North America	Heavyweight torpedo integration	Submarine & deep-sea warfare	AI, propulsion hybrid
BAE Systems	Europe	Lightweight, air-launch systems	ASW from aircraft	Modular payloads
Naval Group	Europe	Advanced fiber-optic guidance	Submarine stealth missions	Deep-sea operability
Leonardo	Europe	Compact electric propulsion	Export-focused markets	Power efficiency
Saab AB	Europe	Arctic-combat ready torpedoes	Light platform compatibility	Cold-water systems
DRDO	Asia	Indigenous tech development	Domestic & Southeast Asia	Cost-effective design

“Western firms lead in stealth and acoustic superiority, while Asian manufacturers are rapidly scaling in affordability and multi-environment adaptability,” notes a defense procurement analyst at SIPRI.

 

Regional Landscape And Adoption Outlook

The torpedo market is highly regionalized, with each geography exhibiting distinct military doctrines, procurement behaviors, and technological focus areas. From the technologically mature navies of North America and Europe to the rapidly modernizing fleets of Asia-Pacific, torpedo adoption is being shaped by regional tensions, funding cycles, and strategic maritime goals.

North America

North America remains the global leader in torpedo development and deployment, driven primarily by the U.S. Navy’s modernization agenda. With a dominant share in 2024, the region benefits from a mature industrial base, deep R&D funding, and strong interoperability standards across allied naval forces.

• The U.S. Navy continues to invest in the Mk-48 Mod 7 heavyweight torpedo, complemented by a growing interest in autonomous and AI-enabled underwater systems.

• Canada is also investing in torpedo modernization through its Victoria-class submarine upgrades, aligning with NATO standards for lightweight torpedo use.

“North America will remain the innovation frontier of the torpedo market, especially in propulsion systems, acoustic countermeasures, and deep-sea performance.”

 

Europe

Europe maintains a robust presence with defense collaborations across NATO-aligned countries. Leading producers like France, the UK, Italy, and Sweden are central to lightweight and heavy torpedo exports, especially within the Eurozone and the Middle East.

• The UK’s Royal Navy has upgraded its Sting Ray torpedoes with new sonar processors and targeting systems, tailored for both helicopter and surface ship deployment.

France, through Naval Group, is exporting the F21 Artemis torpedo to allied nations in Asia-Pacific and the Middle East.

• Sweden’s Saab AB continues to penetrate Arctic markets with torpedoes adapted for sub-zero operations and shallow littoral zones.

Despite moderate defense budgets compared to the U.S., Europe is known for its highly specialized, export-friendly systems, especially in acoustic stealth and modular payloads.

 

Asia Pacific

The fastest-growing region, Asia Pacific is undergoing rapid torpedo capability expansion amid rising geopolitical tensions and maritime disputes.

• China’s PLA Navy (PLAN) has significantly expanded its undersea arsenal, integrating both indigenous and Russian-origin torpedoes, and investing in AI-based swarm torpedo systems .

• India, under the “Make in India” initiative, is accelerating the deployment of Varunastra and Takshak systems, both developed by DRDO, with plans for export to ASEAN nations.

• Australia is prioritizing long-range torpedoes as part of the AUKUS alliance, while South Korea and Japan are investing in multi-domain underwater systems that integrate torpedoes with drones and submersibles.

“Asia Pacific represents the most dynamic demand center, where indigenous programs and international procurement are progressing in parallel,” according to a regional defense strategist.

 

Latin America

While still a smaller market, Latin America is showing increasing interest in torpedo modernization:

• Brazil is the region’s leading player, investing in submarine-launched torpedoes as part of its Scorpène -class submarine program in partnership with Naval Group.

• Other nations like Chile and Colombia are focused on retrofitting existing platforms with European lightweight torpedoes.

Regional constraints include limited defense budgets and a focus on coastal defense, rather than full-spectrum undersea warfare.

 

Middle East & Africa (MEA)

In MEA, demand is largely driven by oil corridor security and littoral defense in the Gulf region :

• Saudi Arabia and the UAE are procuring torpedoes as part of broader naval expansion efforts, often through U.S. and French defense partnerships.

• North African nations, particularly Egypt and Algeria, are working with European suppliers to enhance submarine deterrence.

Despite interest, infrastructure limitations and dependence on foreign OEMs hinder rapid adoption in several MEA nations.

 

White Space Opportunities:

• Coastal nations in Southeast Asia and East Africa with growing economic zones but limited undersea capabilities.

• Arctic nations investing in cold-water torpedo systems, particularly for search-and-rescue or environmental enforcement missions.

 

End-User Dynamics And Use Case

Torpedoes, as underwater guided weapons, are highly specialized systems used by a select group of defense stakeholders. Understanding how different end-users adopt, deploy, and maintain torpedo systems reveals crucial insights into procurement cycles, platform integration, and mission-driven innovation.

Key End-User Segments

• Naval Forces and Submarine Commands
  This is the primary and most technologically advanced user segment. Torpedoes are a staple in submarine fleets and destroyer classes, used for Anti-Submarine Warfare (ASW), Anti-Surface Warfare ( ASuW ), and area-denial operations. Nations with blue-water navies like the United States, China, India, France, and the UK possess sophisticated deployment infrastructure, including deep-sea testing ranges and acoustic telemetry systems.

• Naval Aviation Commands
  Maritime patrol aircraft (MPA) and ASW helicopters such as the P-8 Poseidon and MH-60R Seahawk often carry lightweight torpedoes. These units require fast-response, mid-range systems for detecting and neutralizing subsurface threats from above water. Lightweight torpedoes like Mk-54 or Sting Ray Mod 1 are preferred due to their compact size and multi-environment adaptability.

• Unmanned Systems Divisions
  With the rise of underwater drones and autonomous UUVs, a new category of torpedo deployment is emerging. These unmanned systems are equipped with micro-torpedoes for swarm or stealth missions in high-risk or GPS-denied environments. Major navies are beginning to create dedicated divisions for unmanned and hybrid torpedo platforms .

• Naval Training and Simulation Centers
  This segment requires inert or exercise torpedoes for skill development, operational readiness, and acoustic signature analysis. Torpedo training systems have also become essential tools in countries with growing naval programs but limited operational experience.

 

Realistic Use Case: Submarine-Torpedo Integration in South Korea

A strategic naval base in Busan, South Korea, upgraded its fleet of Type 209 submarines with newly acquired heavyweight torpedoes supplied by a European defense firm. The torpedoes were retrofitted with electric propulsion and fiber-optic guidance systems. During joint exercises with the U.S. Navy, the submarine successfully demonstrated real-time guidance via acoustic telemetry, completing a simulated interception at over 30 km range.

The upgrade not only enhanced South Korea’s undersea deterrence posture but also significantly reduced the time required for targeting and response, thereby improving regional maritime security in contested zones.

 

Emerging End-User Trends

• Hybrid Integration: Some naval forces are beginning to co-deploy torpedoes with undersea sensors and unmanned intercept drones, enabling layered defense networks.

• Cost-Conscious Procurement: Countries with constrained budgets are opting for mid-life upgrade packages for torpedoes rather than full replacements, extending the lifecycle of existing arsenals.

• Cloud-Based Simulation: Virtual environments are now being used to simulate torpedo launch scenarios, lowering the cost and risk of live exercises.

“The emerging doctrine favors versatility over brute force—torpedoes must now integrate into a digital maritime kill chain, not operate in isolation,” remarks a senior NATO systems analyst.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• U.S. Navy Expands Mk-48 Procurement (2023)
  The U.S. Department of Defense announced an extended procurement cycle for Mk-48 Mod 7 heavyweight torpedoes, with additional funding allocated for digital sonar and fuel-efficient propulsion upgrades.

• India’s DRDO Tests Indigenous “ Takshak ” Torpedo (2024)
  India’s Defence Research and Development Organisation successfully test-fired Takshak, an AI-enabled torpedo developed for autonomous submarine warfare scenarios.

• France’s Naval Group Begins Export of F21 Artemis to Middle East (2024)
  Naval Group initiated export of the F21 Artemis torpedo to an undisclosed Middle Eastern nation under a €200M deal, highlighting global demand for advanced torpedo systems.

• Leonardo Unveils Lightweight Electric Torpedo for UAV Deployment (2023)
  Italy’s Leonardo introduced a drone-compatible electric torpedo, intended for deployment via small underwater drones or airborne ASW platforms.

• Australia Accelerates Torpedo Integration with AUKUS Platforms (2024)
  As part of the AUKUS alliance, Australia has begun integrating U.S.- and UK-origin torpedoes with its next-gen autonomous submarines under development.

 

Opportunities

• Integration with Autonomous Systems
  Demand is accelerating for torpedoes compatible with UUVs and maritime drones. This offers OEMs a new platform segment beyond submarines and destroyers.

• Rising Defense Budgets in Asia-Pacific and MENA
  Countries like India, South Korea, UAE, and Saudi Arabia are scaling up naval investments, creating new market penetration opportunities for torpedo manufacturers.

• Export Incentives for Indigenous Programs
  Nations such as India and Brazil are building torpedoes for domestic use and export, backed by government incentives—opening up regional white spaces in Africa and Southeast Asia.

 

Restraints

• High Capital Cost and Long Development Cycles
  Modern torpedo systems are expensive to develop and procure, with lifecycle costs impacted by R&D, testing, and integration. This limits adoption by mid-tier navies.

• Regulatory and Technology Transfer Restrictions
  Many advanced torpedo technologies are subject to ITAR (International Traffic in Arms Regulations) and similar frameworks, restricting cross-border tech transfers and slowing down global collaborations.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 1.15 Billion
Revenue Forecast in 2030	USD 1.65 Billion
Overall Growth Rate	CAGR of 6.2% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Type, By Propulsion System, By Launch Platform, By Geography
By Type	Heavyweight Torpedo, Lightweight Torpedo
By Propulsion System	Electric, Thermal
By Launch Platform	Submarine-Launched, Ship-Launched, Air-Launched, UUV-Launched
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, Australia, Saudi Arabia
Market Drivers	- Naval modernization across Asia-Pacific and MENA - Electric propulsion and stealth innovations - Integration with autonomous naval platforms
Customization Option	Available upon request