Torpedo Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Torpedo Market Trends and Insights

Accelerated induction of nuclear and diesel-electric submarines worldwide

Navies are fielding new attack and ballistic-missile submarines at a record pace, generating sustained demand for heavyweight torpedoes. Australia’s March 2025 order for additional MK-48 Mod 7 rounds positions Collins-class boats for interim lethality ahead of nuclear-powered replacements. Brazil followed by commissioning Humaitá in 2024, equipped with F21 weapons and an integrated combat suite. Greece’s Type 214 upgrade to the SeaHake Mod 4 underscores how even mid-sized fleets modernize magazines with 50 km-range warheads. The pattern is clear: underwater deterrence outranks surface power in budget priority.

Ongoing naval fleet modernization across key maritime powers

Multi-domain doctrines emphasize layered defense; thus, torpedoes remain indispensable despite long-range missile proliferation. Japan’s Type 12 missile expansion coexists with a nationwide Sting Ray refresh that keeps antisubmarine punch aboard P-1 aircraft and Mogami-class frigates. The UK allocated USD 75 million in 2025 for Sting Ray mid-life work, ensuring availability through 2040. Germany sourced the same lightweight round for its Poseidon fleet, illustrating how interoperability accelerates procurement cycles. These moves signal that navies view torpedoes as the only proven close-range kill solution once missiles exhaust or fail.

Increased utilization of lightweight torpedoes in airborne ASW platforms

Fixed-wing and rotary-wing platforms extend engagement envelopes when equipped with high-altitude or autonomous drop kits. The US Navy declared HAAWC operational in 2025, letting P-8A Poseidon release MK-54s from cruising altitudes that keep aircraft outside threat rings. Germany’s NH90 Sea Tiger now trial-fits dipping sonar alongside twin torpedo hardpoints, turning the helicopter into a stand-alone hunter.^{[1]Airbus Helicopters, “NH90 Sea Tiger ASuW Configuration,” airbus.com} Bell’s V-247 unmanned tilt-rotor is designed around sonobuoy and torpedo carriage, pointing to a future where crew risk is optional.

Rising strategic need for sub-surface deterrence in geopolitically contested waters

China’s Yu-10 program and accompanying laser-propelled concepts raise the undersea threat profile in the South China Sea. Russia’s Baltic Sea duel drills with Kilo-class boats have pushed NATO states to deepen antisubmarine readiness. Taiwan’s Manta USV now carries mini-torpedoes that can patrol near shorelines that manned subs cannot safely access. Political flashpoints are, therefore, translating into concrete torpedo stockpiling.

High unit costs of heavyweight torpedoes strain defense procurement budgets

A MK-48 Mod 7 round with a new guidance package can exceed USD 6 million, compressing buying power when naval budgets fund submarines and missiles. The US Navy’s FY 2025 decision to accept only one Virginia-class hull instead of two highlights how expensive ammunition cascades into wider force-structure trade-offs. Though flush with funds, Saudi Arabia still awaits Congressional clearance before ordering MK-54s, signaling that even cash-rich customers weigh cost-to-benefit carefully.^{[2] U.S. Defense Security Cooperation Agency, “Saudi Arabia – MK 54 Torpedoes,” dsca.mil}

Extended platform integration and qualification timelines delay deployment

Modern rounds must clear shock, electromagnetic-compatibility, and software-safety gates for each launch interface, from torpedo tubes to UUV canisters. The US Navy’s Compact Rapid Attack Weapon remains in design testing while engineers validate composite launch tubes for shock Category A compliance. After protracted software-in-the-loop trials, Japan’s upgraded Type 12 is not due on frontline ships until 2026. Such schedules postpone revenue recognition for vendors and slow user adoption.

Segment Analysis

By Weight: Heavyweight resilience meets lightweight innovation

Heavyweight models captured 53.78% of the torpedo market share in 2024, underlining their dominance in blue-water deterrence, where high-yield warheads and 50 km+ ranges remain decisive. Australia’s USD 200 million restock and Brazil’s Scorpène fitout confirm steady volume in the heavyweight class. Conversely, very-lightweight designs are on an 8.24% CAGR path to 2030, propelled by unmanned integration and coastal defense missions that favor compact rounds. Sweden’s Torpedo 47 and the Pentagon-funded Skelmir concept show how micro-torpedoes weighing under 25 kg can neutralize mines and midget subs in littorals, often at one-tenth the cost of a traditional weapon.

Growth signals a bifurcating toolkit: navies procure fewer but smarter heavyweights for peer engagements while adopting swarms of light rounds for saturation coverage. This balanced portfolio lowers per-shot cost for routine patrol but retains strategic punch for contested deep-water engagements. The torpedo market, therefore, continues to diversify, with niche suppliers entering lighter niches as primes focus on heavyweight sustainment.

Note: Segment shares of all individual segments available upon report purchase

By Launch Platform: Unmanned systems reshape traditional paradigms

Sea-launched weapons still dominate at 62.33% in 2024, leveraging submarines’ stealth to provide first-strike capacity against undersea and surface threats. Yet, unmanned-platform-launched systems are growing fastest at 8.80% CAGR as navies deploy UUVs such as Anduril’s Dive-LD that can self-recover after 10-day missions.^{[3]Anduril Industries, “Dive-LD Production Milestone,” anduril.com} Air-launched usage is rising through high-altitude kits that allow fixed-wing aircraft to stand off from air-defense umbrellas, giving commanders wider engagement arcs without risking hulls.

The torpedo market size for unmanned platforms is projected to reach USD 0.22 billion by 2030, reflecting high sensor-to-shooter automation rates. As autonomy scales, traditional frigates may offload magazine weight to loyal-wingman surface drones, making torpedo salvos more distributed and survivable.

By Propulsion Type: Electric systems challenge conventional dominance

Conventional thermal drives retained 66.89% share in 2024 because of established logistics chains and speed advantages that remain valuable in open-ocean chases. Even so, electric systems are growing at 7.42% CAGR on the back of lithium-ion safety advances such as passive propagation-resistant cells. Samsung SDI’s trials on Republic of Korea Navy boats validate a two-fold endurance increase and noise cuts that shrink detection ranges by 30%.

Electric adoption is initially heaviest in lightweight classes, where run-time and acoustic stealth outweigh sprint speed. As cell energy density exceeds 300 Wh/kg by 2028, heavyweight adopters will likely follow, displacing thermal units for patrol and loiter roles while retaining them for high-speed intercept.

By Guidance System: Fiber-optic innovation drives optical growth

Wire-guided rounds owned 43.71% of revenue in 2024, yet optical-fiber designs are accelerating at 6.81% CAGR because they offer jam-resistant, high-bandwidth links. Greece’s SeaHake Mod 4 with fiber-optic spool supports real-time image feeds for mid-course redirects, improving hit probability against maneuvering diesel-electrics. Acoustic homing remains essential for terminal navigation, implying future rounds will blend optical mid-course links with passive acoustic seekers.

Hybridization also protects investment, letting navies upgrade guidance packages via software rather than full torpedo replacement, smoothing acquisition budgets.

By Application: ASW primacy meets ASuW resurgence

Anti-Submarine Warfare (ASW) owned 68.20% revenue in 2024, reflecting submarine proliferation from the Arctic to the Indo-Pacific. India delivered its final Varunastra batch in 2025, backing a homegrown ASW strategy that hedges against Chinese SSK deployments in the Indian Ocean. Meanwhile, Anti-Surface Warfare (ASuW) is growing 6.15% on new wake-homing algorithms that raise hit odds against fast-evasive corvettes, as proven by Turkey’s 50 km-range Akya now in serial production.

This dual-role potency underlines torpedoes’ relevance even as hypersonic missiles capture headlines; once inside 30 km, a self-guided torpedo remains the only weapon capable of tracking a submarine or surface ship through evasive maneuvers beneath the sea surface.

Geography Analysis

North America held 33.90% of 2024 sales, supported by the US Navy’s Virginia-class construction queue and Canada’s entry into AUKUS technology sharing. The SSN(X) concept, now in early design, is expected to carry next-generation electric torpedoes with modular payload bays, ensuring the region stays the largest buyer well into the 2030s. Budget ceilings, however, may compress annual buy quantities until new industrial capacity reduces unit costs.

Asia-Pacific is the fastest-growing territory at 7.21% CAGR. China’s Indigenous Yu-10 development and India’s DRDO pipeline exemplify the pivot toward self-sufficiency. At the same time, Japan’s Mogami-class frigates integrate Type 97 torpedoes and improved sonar chains to counter a maturing PLAN submarine arm. South Korea’s supercavitating prototype and Taiwan’s expanding unmanned fleet signal a technology leap that could shift future volume away from Western primes toward local champions.

Europe, South America, and the Middle East and Africa regions show steady but varied trajectories. Europe’s collaborative buys—such as Germany procuring UK Sting Ray stocks—optimize interoperability under NATO task force constructs. Brazil’s ProSub yard is turning out the region’s first nuclear attack submarine around 2029. Egypt and Saudi Arabia are evaluating Type 039A and MK-54 packages, respectively, indicating that the torpedo market is widening beyond traditional power blocks into littoral states seeking credible underwater deterrence.