Torpedo Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Weight (Heavy-weight Torpedoes, Light-weight Torpedoes), By Launch Platform (Sea-launched, Air-launched), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.07 Billion
CAGR (2026-2031)	5.56%
Fastest Growing Segment	Heavy-weight Torpedoes
Largest Market	North America
Market Size (2031)	USD 1.48 Billion

Market Overview

The Global Torpedo Market will grow from USD 1.07 Billion in 2025 to USD 1.48 Billion by 2031 at a 5.56% CAGR. A torpedo is a guided underwater missile deployed from submarines, surface vessels, or aircraft to neutralize maritime targets through contact or proximity detonation. The global market is primarily propelled by escalating geopolitical friction regarding maritime boundaries and the consequent strategic necessity for naval modernization programs. Furthermore, the critical requirement for effective underwater warfare capabilities to counter stealthy threats supports sustained procurement across major naval powers. These drivers ensure continuous investment in arsenal upgrades to maintain maritime sovereignty and provide effective deterrence against hostile maneuvers.

However, the market faces a significant challenge due to the exorbitant costs and technical complexity associated with developing advanced propulsion and guidance technologies. These financial barriers often delay procurement cycles for nations with limited defense budgets and impede the integration of next generation systems. Despite these hurdles, expenditure in the sector remains robust due to overriding security imperatives. According to the Aerospace, Security and Defence Industries Association of Europe, in 2025, the defense sector recorded a turnover increase of 13.8 percent for the preceding year, underscoring the substantial capital allocated toward strengthening naval and territorial security architectures.

Key Market Drivers

The Expansion of Global Defense Budgets for Naval Procurement acts as a fundamental engine for market growth, enabling nations to systematically address the financial demands of high-intensity underwater warfare readiness. As geopolitical instability rises, governments are prioritizing naval spending to procure advanced munitions and sustain operational superiority, ensuring their forces are equipped with sufficient stockpiles of precision-guided weapons. According to the Stockholm International Peace Research Institute, in April 2025, global military expenditure reached $2,718 billion in 2024, marking a 9.4 percent increase that underpins this surge in acquisition activity. This capital injection extends beyond direct weapon purchases to include critical lifecycle support and infrastructure; for example, according to Science Applications International Corp., in November 2025, the company was awarded a $242 million contract to modernize the U.S. Navy’s torpedo testing and maintenance facilities.

Simultaneously, the Global Modernization of Naval Fleets and Submarine Arsenals necessitates the integration of sophisticated torpedo systems designed to counter quieter, more elusive submarines. Naval forces are replacing obsolete legacy platforms with digitized, modular weapons featuring enhanced acoustic homing and autonomous decision-making capabilities suited for both deep-water and littoral engagements. This drive for technological renewal forces defense ministries to initiate substantial upgrade programs to maintain deterrence credibility. Illustrating this trend, according to Saab, in May 2025, the Swedish Defence Materiel Administration finalized an order valued at approximately SEK 1.3 billion for advanced lightweight torpedoes and tubes. Such investments highlight the urgent operational requirement to equip modern submarines and surface vessels with resilient, next-generation kinetic solutions.

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Key Market Challenges

The financial and engineering burdens required to manufacture next-generation underwater weaponry constitute a formidable obstacle to the growth of the Global Torpedo Market. As naval requirements shift toward autonomous and stealth-enabled systems, the capital intensity of research and development rises disproportionately. This economic pressure forces nations with finite defense appropriations to extend procurement timelines or scale back acquisition volumes, effectively stalling the integration of modern capabilities. Such delays disrupt the supply chain and reduce the frequency of large-scale contracts, thereby slowing the overall momentum of the sector.

The magnitude of these financial requirements is illustrated by the sheer scale of revenue necessary to sustain naval industrial bases. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the European naval sector generated a total turnover of €43.2 billion. This substantial figure reflects the immense costs embedded in the production of maritime defense systems. Consequently, while security needs remain acute, the high unit price of these complex assets restricts immediate accessibility for many naval forces, directly dampening the potential velocity of market growth.

Key Market Trends

The Integration with Unmanned Underwater Vehicles (UUVs) is fundamentally altering naval engagement strategies by decoupling weapon delivery from high-value manned platforms. Operational doctrines are shifting toward distributed lethality, where autonomous underwater drones are equipped with munition capabilities to strike in contested waters without risking crewed submarines. This evolution facilitates the deployment of swarms of loitering munitions that can saturate enemy defenses and extend the reach of naval forces into anti-access areas. According to Anduril Industries, in April 2025, the company unveiled its Copperhead family of autonomous vehicles, stating that its Dive-XL autonomous submarine is capable of carrying and deploying dozens of the smaller Copperhead-100M munition variants.

Simultaneously, the Implementation of Spiral Software Upgrades for Lifecycle Management has emerged as a vital method for sustaining effectiveness against sophisticated acoustic countermeasures. Rather than exclusively funding new airframes, naval commands are prioritizing the integration of advanced digital processing kits into existing torpedo inventories to enhance guidance precision. This iterative modernization allows navies to rapidly adapt to quieting technologies in adversary vessels while maximizing the return on legacy investments. For instance, according to General Dynamics Mission Systems, in January 2025, the company was awarded a contract with a potential value of $808.6 million to provide advanced electronics for the U.S. Navy’s Mk 54 lightweight torpedo program.

Segmental Insights

Based on comprehensive market analysis, the Heavy-weight Torpedoes segment is identified as the fastest-growing category within the Global Torpedo Market. This accelerated expansion is primarily driven by the global surge in submarine procurement and fleet modernization programs aimed at strengthening maritime deterrence. As naval forces increasingly prioritize blue-water operations, there is a heightened demand for high-endurance weapons capable of neutralizing large surface vessels and underwater threats at extended ranges. Consequently, substantial defense allocations toward these strategic assets are effectively fueling the rapid development and acquisition of heavyweight systems.

Regional Insights

North America maintains the leading position in the global torpedo market, primarily driven by substantial defense budget allocations within the United States. The dominance of this region is supported by the United States Navy, which actively prioritizes fleet modernization and the procurement of advanced anti-submarine warfare systems. Additionally, the presence of major manufacturers allows for continuous product development and rapid delivery of contracts. This sustained demand, backed by strategic initiatives from the Department of Defense, ensures North America remains the central hub for market expansion and technological progress in the naval sector.

Recent Developments

• In December 2024, Lockheed Martin secured a contract extension worth $245 million from the U.S. Naval Sea Systems Command for the Mark 48 Mod 7 torpedo program. This modification authorized the continued production of guidance and control sections for the heavyweight torpedo, supporting the requirements of the U.S. Navy, the Royal Australian Navy, and Foreign Military Sales clients. The award highlighted the sustained demand for the advanced undersea weapon and facilitated the ongoing revitalization of the company's manufacturing lines to ensure sufficient inventory for fleet operations.
• In December 2024, the French Navy successfully conducted a live-fire test of the F21 heavyweight torpedo, which was developed by Naval Group. During the exercise, a nuclear-powered attack submarine launched the warshot torpedo against a decommissioned target vessel, resulting in the target's destruction. This test validated the weapon's lethal performance and operational readiness in a realistic combat scenario. The F21 is engineered for modern submarine warfare, featuring advanced sonar and autonomous decision-making capabilities to operate effectively in complex littoral and deep-water environments.
• In September 2024, the UK Ministry of Defence awarded BAE Systems a £60 million contract to upgrade the Sting Ray lightweight torpedo. This agreement initiated the assessment phase for the Sting Ray Mod 2, a programme designed to enhance the weapon's lethality and deployment options against emerging submarine threats. The four-year project involves the design and development of prototypes as well as comprehensive in-water trials. The upgrade aims to ensure the torpedo remains a leading anti-submarine warfare asset for the Royal Navy and international customers.
• In March 2024, Bharat Dynamics Limited achieved a significant milestone by delivering the final batch of Varunastra heavyweight torpedoes to the Indian Navy. This event marked the completion of a major contract for the indigenous anti-submarine weapon, which was designed by the Naval Science and Technological Laboratory. The electrically propelled torpedo, capable of targeting submarines in both deep and shallow waters, features a high degree of indigenous content. The successful delivery underscored the company's role in strengthening national maritime defense capabilities through the domestic production of advanced underwater systems.

Key Market Players

• BAE Systems plc
• thyssenkrupp AG
• RTX Corporation
• Saab AB
• Leonardo SpA
• ASELSAN AS
• Naval Group
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• JSC Tactical Missiles Corporation

By Weight	By Launch Platform	By Region
Heavy-weight Torpedoes Light-weight Torpedoes	Sea-launched Air-launched	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Torpedo Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Torpedo Market, By Weight:

• Heavy-weight Torpedoes
• Light-weight Torpedoes

• Torpedo Market, By Launch Platform:

• Sea-launched
• Air-launched

• Torpedo Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE