Underwater Communication System Market Size, Share & Trends Analysis Report By Component, By Connectivity, By Application (Environmental Monitoring, Pollution Monitoring), By End-user, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global underwater communication system market size was worth USD 3.08 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.1% from 2022 to 2030. The rise in spending on defense by various countries is one of the main reasons for the growth of the industry. Threats, concerns over contested areas, and security worries have increased global defense spending. The naval defense system mainly uses UCS for safe communication and dependability. The military uses it to detect intrusion and conduct underwater surveillance. These factors are expected to contribute to the growth of the industry in the forthcoming years. UCS is helpful for commercial purposes, mainly in industries like oil and gas. The system is used in exploring submerged resources.

UCS is also advantageous to science as they are used for data collection and underwater exploration. It is used in oceanology, marine archeology, and marine biology. These systems also help the government in monitoring the environment. Activities of companies in the oil and gas industry; about how they affect the environment can be checked with the help of these systems. Environmental pollution can also be monitored and subsequently controlled through these systems.

In August 2022, Stanford University researchers developed a robot capable of diving deep into sunken planes and ruins. Its operators can have the same sense as OceanOneK’s underwater trips. OceanOneK’s 3D camera catches the underwater environment in vivid color, and its arms and hands can reach those of a diver. In March 2022, WhitePointer is a DSIT Solutions underwater acoustic communication system that provides simultaneous communication between underwater platforms and multiple surfaces.

The system is based on the company's undersea technology and allows for networked communication among several users. The WhitePointer system is NATO-compliant and allows for reliable voice and data communication between submarines, surface ships, and other underwater users such as drones and divers such as unmanned underwater vehicles (UUVs), autonomous underwater vehicles (AUVs), diver propulsion vehicles (DPVs), and swimmer's delivery vehicles (SDVs).

Subsea, marine, and subsea communication systems frequently convey positional data for inspection, mapping, and tracking. They can also relay video data and control UUVs. Using intelligent nodes on the seafloor to interact with autonomous underwater vehicles allows access to a broad range of subsea applications that may need bi-directional, low latency, high bandwidth, and wireless communication links.

Positioning data must be communicated for subsea drones to perform complicated autonomous activities underwater. In addition to subsea inspection and mapping, secure, interoperable maritime communication systems are critical in enabling autonomous undersea vessels to support countermeasures for anti-submarine operations and mining.

COVID-19 Impact on the Underwater Communication System Market

Many nations' COVID 19 restrictions and lockdowns have impacted the AUV supply chain. Lower supplier and customer activity, travel restrictions, and a higher risk of project delays owing to a temporary shutdown and a scarcity of inputs are all expected to impact sales, profitability, and order intake.

Furthermore, because a significant percentage of the customer base is affected, there is a greater chance of customer contract cancellation and late or non-payments, which may raise the risk of losses on accounts receivable, project assets, products, and currency futures.

OEMs and players in the AUV market have been particularly heavily hit. COVID-19 can potentially have a long-term impact on the AUV sector by driving changes in the macroeconomic climate, regulatory trends, and technology. Manufacturers found it more challenging to anticipate the industry's recovery due to uncertainty throughout the shutdown and supply-chain interruptions.

The pandemic crisis caused structural changes in the supply chain that had far-reaching commercial repercussions. The temporary shutdown of factories in the early half of 2020 resulted in production limits and limited operations throughout the year, which significantly influenced 2020 supplies and deployments.

Component Insights

The hardware segment dominated with the largest revenue share of 53.1% in 2021 and is expected to witness a CAGR of over 9.0% during the forecast period. Underwater communication hardware components include LCDs, capacitors, resistors, cables & connectors, transistors, PCBs, diodes, adapter/transformer, LEDs, and push buttons.

These devices transmit messages over water, and the electronic components are assembled on specialized circuit boards. The hardware implementations include reconstruction and amplification filters, minimizing hardware cost and complexity while increasing flexibility.

UCS provides engineering services and maritime solutions such as systems engineering, maintenance, and technical support. SEASCAPE is a corporation that sells, manufactures, and services underwater equipment and gadgets. SEASCAPE designs, develops, and manufactures specialized surface and subsea products for global distribution.

Connectivity Insights

The wireless segment held the largest revenue share of 63.9% in 2021. The segment is expected to grow at a rapid CAGR of 10.4% throughout the forecast period. Hardwired communication involves the use of a cable to transport data.

While many divers love the concept of being able to dive wherever they choose with the ability to communicate wirelessly, for professional divers, this is not always the most practical choice owing to the environment, scenario, and function required for the work at hand. Hardwired communications, similar to a landline phone, offer the greatest quality and most dependable type of underwater communications by removing the influence of outside factors.

As a result, hardwired communications function best in circumstances where extrinsic forces make wireless transmission impossible. Furthermore, many professional divers in the Public Safety or Commercial Dive industries require tethering to a cable for safety reasons, making hardwired communications the logical next step.

Wireless communication uses water to transport data. Environmental monitoring, underwater exploration, and collecting scientific data rely on underwater wireless communications. Due to the unique and severe circumstances that define underwater channels, underwater wireless communications remain relatively tricky.

These situations include, for example, significant attenuation, multipath dispersion, and restricted resource usage. Nonetheless, improved communication systems based on acoustic, electromagnetic, and optical waves have evolved to address underwater wireless communications' basic and practical constraints. Many academic and corporate researchers have recently focused on developing cutting-edge solutions for future underwater wireless communications and networks.

Application Insights

In terms of application, the market is classified into climate monitoring, environmental monitoring, hydrography, oceanography, pollution monitoring, and others. Among these, the environmental monitoring segment dominated in 2021, gaining a revenue share of around 31.0%. It is expected to grow at a CAGR of 10.5% throughout the forecast period. UCS aid the government in environmental monitoring.

The activities of corporations in the oil and gas sector can be monitored in terms of how they affect the environment. Environmental contamination may also be monitored and managed with these methods. Climate change is also detectable. Natural catastrophes can also be predicted by detecting early warning indications with these technologies. This minimizes the risk of such calamities occurring.

UCS aid in the study of oceanography since they are utilized for underwater exploration and data collecting. The underwater discoveries might be valuable to the health sector as well as in the development of current innovations. Offshore demonstration and verification tests are carried out for various types of experimental sea regions such as offshore and deep sea, in conjunction with the application requirements of ocean observation and so on.

The submarine observation network and the underwater acoustic communication network are combined to improve connection and optimization between the underwater communication network and the submarine optical cable network, as well as to increase the flexibility of the deep-sea observation network.

End-user Insights

In terms of end-user, the market is classified into marine, military & defense, oil & gas, scientific research & development, and others. Among these, the scientific research & development segment is expected to dominate in 2021, with a revenue share of 32.3%. It is expected to grow at a CAGR of around 9.0% throughout the forecast period. UCS plays an important role in safeguarding a country's security.

It is utilized by the military for underwater surveillance as well as incursion detection. As opposing states may plot sabotage via the water, installing a communication system in the body of water will warn the nation of the threat. Underwater wireless communications applications for the defense industry include:

• AUV communications are included in submarine communications systems.

• Mine lift bags are used to remove mines from vulnerable regions and dispose of them in safer locations.

• Special forces employ a variety of communications technologies, for example, mine clearing.

• Different underwater instrument packages such as listening devices, communication systems, and underwater networks are used.

• Wide-area networks that connect to radio-based equipment on the ground, such as network-centric combat systems.

Scientific research is also aided by a UCS. Autonomous underwater vehicles have also been used to locate wrecked planes and investigate the reasons for their crashes. The development of communication systems has led to the finding of the Titanic's wreckage as well as the discovery of hydrothermal vents in the deep ocean. These devices identify items that help in mapping and discovery underwater. They are also quite dependable for rescue operations.

Regional Insights

North America led the overall market in 2021, with a revenue share of 32.2%. Underwater acoustic communication is predicted to have the biggest share in North America. Due to rising security concerns in these nations, the United States is deploying unmanned underwater vehicles (UUVs) for a range of defense purposes, including anti-submarine warfare, security, and surveillance.

As a result, the increasing utility of UUVs in the defense and commercial sectors is likely to drive market growth in North America. In January 2021, the US Office of Naval Research awarded a $9.3 million contract to Advanced Acoustic Concepts LLC to develop supporting technologies for autonomous underwater vehicles to detect and operate things in deep ocean conditions. Government investments of this nature are boosting the industry in this area.

Europe is expected to register a substantial CAGR of 10.4% during the forecast period. The newly issued statement on international ocean governance charts the course for EU ocean policy in the following years. Among the necessary measures is a series of EU agreements to assist the aquaculture sector's innovation, sustainability, and competitiveness. Aquaculture is one of Europe's most important food industry sectors, contributing significantly to food security.

However, there are several barriers to the growth of the aquaculture industry that the EU is working to remove, both at the regulatory and technological levels, by encouraging creative ideas and digitalization. The EU-funded SEASTAR project is a novel concept that can potentially transform the aquaculture industry. SEASTAR addresses the sector's lack of complete digitization, which compels aquaculture operators to undertake daily duties and monitoring activities manually or with expensive in-situ interventions.

SEASTAR accomplishes the same responsibilities by utilizing cutting-edge internet of things technology and merging them with minuscule sensors that are placed on fish. The resulting system offers an innovative underwater wireless monitoring arrangement that, for the first time, will enable fish farmers to monitor fish health in real time remotely and collect relevant data (cage structural integrity and water quality) for precise forecasting, risk assessment, and management.

Key Companies & Market Share Insights

Due to multiple companies, the market is fragmented and expected to see growing rivalry. Significant firms are investing a lot of money in research and development to incorporate new technologies in underwater communication systems used for military and defense purposes has increased rivalry among these players. Kongsberg, L3Harris Technologies, Inc., Thales, Saab AB, Teledyne Marine, and Ultra Electronics Holdings plc are among the market's significant companies.

These companies are concentrating on improving their technology and developing better underwater communication equipment. These businesses also partner with other organizations and local and regional players to gain a competitive advantage over their competitors and win a sizable market share. Some prominent players in the global underwater communication system market include:

• Kongsberg

• L3Harris Technologies, Inc.

• Thales

• Saab AB

• Teledyne Marine

• Ultra Electronics Holdings plc

• Sonardyne

• DSPComm

• Undersea Systems International, Inc.

• Sea and Land Technologies Pte Ltd.

• EvoLogics GmbH

• Hydromea

Underwater Communication System Market Report Scope

Global Underwater Communication System Market Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global underwater communication system market report based on component, connectivity, application, end-user, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Connectivity Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardwired

  • Wireless

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Climate Monitoring

  • Environmental Monitoring

  • Hydrography

  • Oceanography

  • Pollution Monitoring

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Marine

  • Military & Defense

  • Oil & Gas

  • Scientific Research & Development

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia-Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa