Naval ISR Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Naval ISR Market is poised to grow at a CAGR of 3.5% by 2027. The Market is Segmented by Vessel Type (Surface Vessel ISR and Underwater Vessel ISR), Operation (Defense and Commercial), Application (Search and Rescue, Intelligence Gathering, Coastal Surveillance, and Tactical Support), and Geography (North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa). The report covers market sizes of different geographical regions. The report offers a market forecast and is represented by USD million.

Naval ISR Market Size

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Naval ISR Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 3.50 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

Naval ISR Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Naval ISR Market Analysis

The Naval ISR market is anticipated to grow at a CAGR of 3.5% during the forecast period.

The COVID-19 pandemic hugely impacted various naval ISR manufacturing plants and industries worldwide. Many manufacturing companies witnessed a decline in orders due to the lack of components and equipment. This led to a disruption in the manufacturing schedules of the naval ISR companies. Moreover, manufacturers of naval ISR systems also faced delivery challenges owing to border restrictions imposed by various countries and bottlenecks in the supply chain. With the end of the pandemic and the reopening of global borders, there was an increase in the number of orders for naval ISR systems by various governments, and this, in turn, led to many manufacturers increasing their production capacities to meet the surge in demand for naval ISR systems and this will lead to the growth in the market in the coming years.

The demand for naval ISR is anticipated to experience substantial growth during the forecast period, primarily due to their broad application and scope, especially in the commercial and defense sectors. Naval ISR is used for activities such as navigating the ocean floor, detecting enemy threat vessels, mapping out the ocean floor, and improving the situational awareness of military and commercial naval vessels.

The significant increase in defense spending and procurement programs by various countries in recent years and the increasing usage of artificial intelligence shall propel the market's growth in the coming years. According to the data released by the Stockholm International Peace Research Institute (SIPRI), world military spending witnessed growth in 2021, reaching an all-time high of USD 2.1 trillion.

Naval ISR Market Trends

This section covers the major market trends shaping the Naval ISR Market according to our research experts:

Underwater Vessel ISR is Expected to Witness Growth During the Forecast Period

The underwater vessel ISR segment is expected to grow during the forecast period. The development of territorial conflicts and border issues increased the risk for maritime assets of militaries, which led to increasing emphasis on surveillance, threat detection, and target identification at sea. Several modernization programs are currently underway to upgrade the capabilities of regional naval forces to ensure the combat readiness of existing underwater naval systems. Intelligence, surveillance, and reconnaissance ISR is a key mission area for current military applications. While it involves all platforms on land, air, and sea, the emerging capabilities of unmanned underwater vehicles (UUVs) will provide a new dimension to ISR operations. Unmanned vehicle programs are currently progressing toward a variety of applications, ranging from UAVs equipped with non-acoustic sensors for large-area search to crewless surface vehicles (USVs) equipped with active sources as part of multistatic operations and crewless underwater vehicles (UUVs) relying on special onboard sensors that can support covert tracking and trailing operations against adversaries' submarines during prehostilities. In addition, crewless underwater vehicles' command and control (C2) is not mature and will ultimately depend on acoustic and RF communications advances. For example, advanced acoustic communications techniques between UUVs, surveillance arrays, and host SSNs must be stealthy and reliable to facilitate future covert operations off an adversary's coast. Moreover, ongoing efforts at the Naval Warfare Systems Center SSC San Diego will combine expertise in both ISR and UUV systems to meet the requirements for global militaries in terms of naval ISR. Thus, such advancements will lead to growth in the market during the forecast period.

Naval ISR Market, by Vessel Type, CAGR, 2022

North America Is The Largest Market For Naval ISR Systems Globally

The North American region is the largest market for Naval ISR systems. The increased adaptation of advanced ISR technologies, such as artificial intelligence integration, increasing defense expenditure, and growing naval threats will significantly extend to the North American region during the forecasted period. As of 2022, the United States Navy plans to adopt AI-based navigation on their manned vessels. As part of the decision, Naval Sea Systems Command (NAVSEA) sought information on the technologies which can be integrated into the existing bridge systems, such as electronic chart displays and information systems. Increasing investments in terms of the development of advanced naval ISR systems in the region to support the navy in carrying out intelligence, surveillance, and reconnaissance missions has also provided a boost to the naval ISR manufacturing companies which are based in the North American region to develop advanced products, and this shall lead to the area experiencing significant growth during the forecast period.

Naval ISR Market, Growth Rate by Region, 2022-2027

Naval ISR Industry Overview

The most prominent players in the Naval ISR market are BAE Systems, General Dynamics Corporation, L3 Harris Technologies, Lockheed Martin Corporation, and Thales Group.

Various companies now focus on growth strategies, including developing and launching new products, product approvals, and patents. In the current scenario, countries are looking to procure more advanced naval-based ISR systems to tackle and carry out more strategic ISR missions easily.

Implementing new technologies such as artificial intelligence and machine learning helps vessels plan and execute ISR missions. Focus on developing more recent and advanced ISR technologies while keeping the overall costs low is one of the main factors taken care of by the OEMs.

Naval ISR Market Leaders

  1. BAE Systems

  2. General Dynamics Corporation

  3. Lockheed Martin Corporation

  4. Thales Group

  5. L3 Harris Technologies

*Disclaimer: Major Players sorted in no particular order

Naval ISR Market Concentration
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Naval ISR Market News

In October 2022, Textron Systems announced they won a contract to deploy their Aerosonde UAS aboard the USS Miguel-Keith (ESB-5). The Aerosonde UAS provides extended-range intelligence, surveillance, and reconnaissance services with extended mission payloads. The contract was valued at USD 22 million, with a five-year performance period beginning from the fiscal year of 2023.

In October 2022, the United States Navy announced they intended to employ extra-large underwater drones for deterrence against China. These underwater drones could be used for offensive or intelligence-gathering missions at a much lower cost than conventional submarines.

In August 2022, the US Navy and BAE Systems signed a real-time ISR data network contract. BAE Systems was awarded a contract of USD 42.6 million to manufacture seven network tactical common data link systems (NTCDL), which enables the Navy to transmit and receive real-time intelligence, surveillance, and reconnaissance data from multiple sources, and enables the exchange of command-and-control information over various data links.

Naval ISR Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness/Porters Five Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 By Type

      1. 5.1.1 Surface Vessel ISR

      2. 5.1.2 Underwater Vessel ISR

    2. 5.2 By Operation

      1. 5.2.1 Defense

      2. 5.2.2 Commercial

    3. 5.3 By Application

      1. 5.3.1 Search & Rescue

      2. 5.3.2 Intelligence Gathering

      3. 5.3.3 Coastal Surveillance

      4. 5.3.4 Tactical Support

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Russia

        5. Spain

        6. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. Brazil

        2. Latin America

      5. 5.4.5 Middle East and Africa

        1. United Arab Emirates

        2. Saudi Arabia

        3. Rest of Middle East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BAE Systems PLC

      2. 6.2.2 General Dynamics Corporation

      3. 6.2.3 L3 Harris Technologies

      4. 6.2.4 Lockheed Martin Corporation

      5. 6.2.5 Thales Group

      6. 6.2.6 Atlas Elektronik

      7. 6.2.7 Leonardo SpA

      8. 6.2.8 Northrop Grumann Corporation

      9. 6.2.9 Ultra Electronics

      10. 6.2.10 Elbit Systems

      11. 6.2.11 Kratos Defense and Security Solutions

      12. 6.2.12 Rheinmetall Defense

    3. *List Not Exhaustive

**Subject to Availability
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Naval ISR Industry Segmentation

Naval Intelligence, Surveillance, and Reconnaissance (ISR) systems aid in the detection and monitoring of friendly and hostile forces and assess the damage to the enemy forces within a particular region. Naval ISR helps in various security activities to improve situational awareness and increase military personnel protection. 

The market is segmented by vessel type (surface vessel ISR and underwater vessel ISR), operation (defense and commercial), application (search and rescue, intelligence gathering, coastal surveillance, and tactical support), and geography (North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa). The report covers market sizes of different geographical regions. The report offers a market forecast and is represented by USD million. Furthermore, the information also includes various vital statistics on the market status of leading Naval ISR market players and provides key trends and opportunities in the Naval ISR market.

By Type
Surface Vessel ISR
Underwater Vessel ISR
By Operation
By Application
Search & Rescue
Intelligence Gathering
Coastal Surveillance
Tactical Support
By Geography
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Latin America
Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Rest of Middle East and Africa
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Naval ISR Market Research FAQs

The Naval ISR Market is projected to register a CAGR of 3.5% during the forecast period (2024-2029)

BAE Systems, General Dynamics Corporation, Lockheed Martin Corporation, Thales Group and L3 Harris Technologies are the major companies operating in the Naval ISR Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Naval ISR Market.

The report covers the Naval ISR Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Naval ISR Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Naval ISR Industry Report

Statistics for the 2024 Naval ISR market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Naval ISR analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Naval ISR Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)