Torpedo Market

Torpedo Market Size, Market Forecast and Outlook By FMI

The torpedo market was valued at USD 1.0 billion in 2025. The market is set to reach USD 1.1 billion by 2026-end and grow at a CAGR of 5.0% between 2026-2036 to reach USD 1.7 billion by 2036. Heavyweight torpedoes will dominate with a 54.3% share, while Electric propulsion will lead with a 61.0%% share.

Summary of the Torpedo Market

• Demand and Growth Drivers
  • Naval modernization programs across major and emerging naval powers are driving procurement of advanced torpedo systems with improved guidance, range, and target engagement capability.
  • Growing submarine fleet sizes in China, India, and the Indo-Pacific region are creating demand for heavyweight torpedo inventories that equip new submarine platforms.
  • Anti-submarine warfare capability development is driving procurement of lightweight torpedoes deployed from maritime patrol aircraft, helicopters, and surface combatants.
• Product and Segment View
  • Heavyweight torpedoes are expected to account for 54.3% in 2026, reflecting their critical role in submarine warfare where range, warhead capacity, and target destruction capability are operational priorities.
  • Electric propulsion is expected to represent 61.0% of the propulsion segment, driven by its quiet operation that supports submarine stealth requirements and reduced thermal signature compared to thermal propulsion.
  • Hybrid guidance systems combining wire guidance, acoustic homing, and INS are becoming standard as navies seek torpedoes with multiple engagement modes for complex threat environments.
• Geography and Competitive Outlook
  • China is expected to lead growth at 6.8%, reflecting its naval expansion, submarine fleet growth, and indigenous torpedo development programs.
  • India at 6.3% reflects naval modernization, submarine procurement, and growing domestic defense manufacturing capability.
  • Companies combining advanced propulsion, multi-mode guidance systems, and established defense prime contractor relationships are positioned to capture procurement.
• Analyst Opinion
  • The torpedo market reflects global naval modernization that prioritizes anti-submarine and anti-surface warfare capability as submarine proliferation increases the underwater threat environment.
  • Adoption is shaped by the strategic imperative for navies to maintain credible underwater warfare capability through advanced torpedo inventories that can engage modern quiet submarines.
  • Growth at 5.0% CAGR reflects sustained defense spending on naval programs, submarine fleet expansion, and the continuous cycle of torpedo technology modernization to counter evolving underwater threats.
  • Companies investing in advanced guidance systems, quieter propulsion, and counter-countermeasure capability are positioned to capture procurement from navies seeking operational superiority.

Key Takeaways, Market Size, and Forecast

• The torpedo market was valued at USD Billion 1 billion in 2025.
• By 2036, the Torpedo Market is expected to be worth USD Billion 1.71 billion.
• From 2026 to 2036, the market is projected to expand at a CAGR of 5.0%.
• The market is projected to create an incremental opportunity of USD Billion 0.66 billion between 2026 and 2036.
• In 2026, heavyweight torpedoes is expected to account for 54.3% of the type segment, driven by heavyweight torpedoes' primary role in submarine and surface ship anti-submarine and anti-surface warfare where range, warhead capacity, and target destruction capability are critical operational requirements.
• China (6.8%) and India (6.3%) are two of the fastest growing markets in the world.

Torpedo Market Definition

The torpedo market covers self-propelled underwater munitions designed for anti-submarine warfare, anti-surface warfare, and tactical naval engagement. Products include heavyweight torpedoes launched from submarines and surface ships, and lightweight torpedoes deployed from aircraft, helicopters, and surface vessels. Propulsion systems include electric and thermal variants with guidance systems spanning wire-guided, acoustic homing, wake-homing, INS, and hybrid configurations.

Torpedo Market Inclusions

Market scope includes all commercially traded torpedo systems categorized by type (heavyweight, lightweight), propulsion (electric, thermal), guidance system (wire-guided, acoustic homing, wake-homing, INS, optical/infrared, magnetic, hybrid), launch platform (submarines, surface ships, aircraft, helicopters, UUVs), and applications (anti-submarine warfare, submarine warfare, anti-surface warfare, stealth operations, tactical scenarios). Revenue coverage spans 2026 to 2036.

Torpedo Market Exclusions

The scope does not include naval mines, depth charges, anti-ship missiles, or unmanned underwater vehicles without integrated torpedo systems.

Torpedo Market Research Methodology

• Primary Research: FMI analysts conducted interviews with manufacturers, technology specialists, and procurement professionals across key markets.
• Desk Research: Combined data from industry associations, regulatory bodies, and manufacturer disclosures.
• Market Sizing and Forecasting: Bottom up methodology aggregating segment and regional data with adoption velocity projections.
• Data Validation: Cross checked quarterly against production data, trade statistics, and manufacturer reporting.

Why is the Torpedo Market Growing?

• Submarine fleet expansion programs in China, India, Australia, and other Indo-Pacific nations create demand for heavyweight torpedo inventories that equip new submarine platforms.
• Anti-submarine warfare investment by NATO and allied navies drives procurement of lightweight torpedoes for maritime patrol aircraft and surface combatant deployment.
• Torpedo guidance technology advancement toward multi-mode systems combining wire guidance, acoustic homing, and autonomous capability reflects the complexity of modern underwater warfare environments.

Demand for torpedoes is driven by naval defense programs that equip submarine and surface ship fleets with underwater warfare capability. Growing submarine proliferation globally is increasing the anti-submarine warfare threat, driving both heavyweight torpedo procurement for submarine launched engagement and lightweight torpedo procurement for air and surface ship defense against submarine threats.

Electric propulsion dominance reflects the submarine warfare priority for stealth. Electric motors produce lower acoustic signatures than thermal engines, maintaining submarine concealment during torpedo approach. Advances in battery technology are extending electric torpedo range while maintaining quiet operation. Thermal propulsion retains relevance for applications where range and speed priority outweigh acoustic stealth requirements.

Guidance system evolution reflects the growing sophistication of torpedo countermeasures. Modern torpedoes employ multiple guidance modes that can be switched during engagement to defeat decoys and countermeasures. Wire guidance provides operator control during the initial approach, acoustic homing provides terminal guidance, and wake-homing enables engagement of surface targets. Hybrid systems that combine these modes provide the engagement flexibility that modern naval warfare demands.

Market Segmentation Analysis

• Heavyweight torpedoes represent 54.3% reflecting their critical submarine warfare role where range and destructive capability are operational priorities.
• Electric propulsion accounts for 61.0%, driven by stealth requirements for submarine launched torpedoes.
• Hybrid guidance systems are becoming standard as navies require multi-mode engagement for complex threat environments.

The torpedo market segments by type, propulsion, guidance system, and launch platform. By type, the market covers heavyweight and lightweight torpedoes. By propulsion, the market includes electric and thermal systems.

Insights into the Heavyweight Torpedoes Type Segment

In 2026, heavyweight torpedoes are expected to account for 54.3% of the segment. These weapons are primarily launched from submarine torpedo tubes and provide the range, speed, and warhead capacity required to engage both submarine and surface ship targets at extended distances. Heavyweight torpedoes represent the primary striking capability of conventional and nuclear submarines.

Insights into the Electric Propulsion Segment

Electric propulsion is expected to represent 61.0% in 2026. Electric motors provide quiet operation that maintains submarine stealth during torpedo approach and reduces the probability of torpedo detection by the target. Advances in lithium battery technology are extending electric torpedo range and speed performance while maintaining the acoustic advantages.

Torpedo Market Drivers, Restraints, and Opportunities

• Naval modernization and submarine fleet expansion create sustained procurement demand for torpedo systems across heavyweight and lightweight categories.
• Long development cycles, stringent qualification requirements, and limited production volumes create high barriers to market entry for new torpedo manufacturers.
• Autonomous underwater vehicle integration and network-centric warfare create emerging requirements for torpedo systems with enhanced connectivity and autonomous engagement capability.

The torpedo market is expanding at 5.0% CAGR driven by naval modernization, submarine expansion, and anti-submarine warfare investment. Development barriers protect incumbent positions, while technology evolution drives modernization procurement.

Naval Modernization Programs

Global naval spending on submarine and surface combatant programs creates sustained torpedo procurement as new platforms require weapon inventories and existing inventories require modernization and replenishment.

High Entry Barriers

Torpedo development requires specialized propulsion, guidance, and warhead engineering combined with extensive qualification testing. Development cycles span years and production volumes are limited, creating high barriers that protect established manufacturers.

Submarine Fleet Expansion

New submarine programs in China, India, Australia, and other navies create heavyweight torpedo procurement demand as each submarine requires a torpedo magazine inventory plus training and reserve stocks.

UUV Integration

Unmanned underwater vehicle development is creating new launch platforms and engagement concepts for torpedo deployment, expanding the operational context beyond traditional submarine and surface ship launched operations.

Analysis of Torpedo Market By Key Countries

Country	CAGR
China	6.8%
India	6.3%
Germany	5.8%
France	5.3%
UK	4.8%
USA	4.3%
Brazil	3.8%

• China leads at 6.8% CAGR through 2036.
• India leads at 6.3% CAGR through 2036.
• Germany leads at 5.8% CAGR through 2036.
• France leads at 5.3% CAGR through 2036.

The global torpedo market is projected to grow at a CAGR of 5.0% from 2026 to 2036. The analysis covers more than 30 countries, with the leading markets detailed below.

Demand Outlook for Torpedo Market in China

China is expected to lead growth at 6.8% through 2036, reflecting its naval expansion, submarine fleet growth, and indigenous torpedo development and production programs.

• Naval expansion drives overall underwater weapons procurement.
• Submarine fleet growth creates heavyweight torpedo inventory demand.
• Indigenous development programs build domestic production capability.

Future Outlook for Torpedo Market in India

India is expected to grow at 6.3% through 2036, supported by submarine modernization, naval expansion programs, and growing indigenous defense manufacturing.

• Submarine modernization creates heavyweight torpedo procurement.
• Naval expansion programs drive both heavyweight and lightweight demand.
• Indigenous manufacturing development supports domestic production.

Opportunity Analysis of Torpedo Market in Germany

Germany is expected to grow at 5.8% through 2036, driven by its torpedo manufacturing capability, submarine export programs, and NATO defense commitment.

• Torpedo manufacturing leadership through Atlas Elektronik.
• Submarine export programs create bundled torpedo procurement.
• NATO commitment supports defense spending and weapon modernization.

In-depth Analysis of Torpedo Market in the United States

The USA is expected to grow at 4.3% through 2036, reflecting its submarine fleet modernization, MK 48 torpedo upgrades, and anti-submarine warfare investment.

• Submarine fleet modernization drives heavyweight torpedo upgrades.
• MK 48 program sustains long term procurement and modernization.
• Anti-submarine warfare investment supports lightweight torpedo demand.

Sales Analysis of Torpedo Market in the United Kingdom

The UK is expected to grow at 4.8% through 2036, supported by its submarine programs, torpedo development investment, and NATO defense obligations.

• Submarine programs drive heavyweight torpedo procurement.
• Torpedo development supports next generation capability.
• NATO obligations drive defense spending commitment.

Competitive Landscape and Strategic Positioning

• Raytheon Technologies leads the market with comprehensive product and service capabilities and established customer relationships.
• Multiple global and regional players compete on technology capability, certification credentials, and geographic reach.
• Emerging players are targeting specialized applications and next generation technology development.

Raytheon Technologies leads the global torpedo market through the MK 48 ADCAP heavyweight torpedo program that serves the US Navy and allied navies. Lockheed Martin provides lightweight torpedo systems and integration solutions.

Leonardo provides the Black Shark heavyweight torpedo for Italian and export naval markets. BAE Systems serves the UK submarine torpedo program. Saab AB provides lightweight and heavyweight torpedo solutions through its torpedo division.

Atlas Elektronik serves German and export submarine programs with integrated torpedo systems. LIG Nex1 provides South Korean naval torpedo capability. Thales Group contributes sensor and guidance technology.

Key Companies in the Torpedo Market

Key global companies leading the torpedo market include:

• Raytheon Technologies (USA), Leonardo S.p.A. (Italy), BAE Systems (UK), Saab AB (Sweden), Lockheed Martin Corporation (USA) hold strong positions through manufacturing scale, certification credentials, and established customer relationships.
• Atlas Elektronik (Germany), LIG Nex1 (South Korea), Thales Group (France) are expanding presence through regional focus and specialized product development.

Competitive Benchmarking: Torpedo Market

Company	Torpedo Technology	Guidance Systems	Defense Contracts	Geographic Reach
Raytheon Technologies	High	High	Strong	Global
Leonardo S.p.A.	High	High	Strong	Europe, Global
BAE Systems	High	High	Strong	Global
Saab AB	High	High	Strong	Europe, Global
Lockheed Martin	High	High	Strong	Global
Atlas Elektronik	High	High	Strong	Europe
LIG Nex1	High	High	Strong	Asia
Thales Group	High	High	Strong	Europe, Global

Source: Future Market Insights competitive analysis, 2026.

Key Players in the Torpedo Market

Major Global Players

• Raytheon Technologies (USA)
• Leonardo S.p.A. (Italy)
• BAE Systems (UK)
• Saab AB (Sweden)
• Lockheed Martin Corporation (USA)

Emerging Players/Startups

• Atlas Elektronik (Germany)
• LIG Nex1 (South Korea)
• Thales Group (France)

Report Scope and Coverage

Parameter	Details
Quantitative Units	USD Billion 1.05 to USD Billion 1.71, at a CAGR of 5.0%
Market Definition	The torpedo market covers self-propelled underwater munitions designed for anti-submarine warfare, anti-surface warfare, and tactical naval engagement. Products include heavyweight torpedoes launched from submarines and surface ships, and lightweight torpedoes deployed from aircraft, helicopters, and surface vessels. Propulsion systems include electric and thermal variants with guidance systems spanning wire-guided, acoustic homing, wake-homing, INS, and hybrid configurations.
Regions Covered	North America, Latin America, Europe, East Asia, South Asia and Pacific, Middle East and Africa
Countries Covered	China, India, Germany, France, UK, USA, Brazil, and 30 plus countries
Key Companies Profiled	Raytheon Technologies, Leonardo S.p.A., BAE Systems, Saab AB, Lockheed Martin Corporation, Atlas Elektronik, LIG Nex1, Thales Group
Forecast Period	2026 to 2036
Approach	Hybrid bottom up and top down methodology starting with verified transaction data, projecting adoption velocity across segments and regions.

Segmentation

Torpedo Market Segmented by Type:

• Heavyweight torpedoes
• Lightweight torpedoes

Torpedo Market Segmented by Propulsion:

• Electric propulsion
• Thermal propulsion

Torpedo Market Segmented by Guidance System:

• Wire-guided
• Autonomous (acoustic) homing
• Wake-homing
• Inertial navigation system (INS)
• Optical/Infrared homing
• Magnetic homing
• Hybrid guidance systems

Torpedo Market Segmented by Launch Platform:

• Submarines
• Attack submarines
• Ballistic missile submarines
• Surface ships
• Aircraft
• Maritime patrol aircraft
• Helicopters
• Unmanned underwater vehicles (UUVs)
• Autonomous UUVs
• Remotely operated UUVs

Torpedo Market Segmented by Applications:

• Anti-submarine warfare
• Submarine warfare
• Anti-surface warfare
• Stealth operations
• Tactical scenarios
• Versatile engagements

Torpedo Market by Region:

• North America
  • USA
  • Canada
  • Mexico
• Latin America
  • Brazil
  • Chile
  • Rest of Latin America
• Western Europe
  • Germany
  • UK
  • Italy
  • Spain
  • France
  • Nordic
  • BENELUX
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • Hungary
  • Balkan & Baltic
  • Rest of Eastern Europe
• East Asia
  • China
  • Japan
  • South Korea
• South Asia and Pacific
  • India
  • ASEAN
  • Australia & New Zealand
  • Rest of South Asia and Pacific
• Middle East & Africa
  • Kingdom of Saudi Arabia
  • Other GCC Countries
  • Turkiye
  • South Africa
  • Other African Union
  • Rest of Middle East & Africa

Research Sources and Bibliography

• 1. Jane's Defence. (2025). Jane's Underwater Warfare Systems: Global Torpedo Market Assessment. Jane's.
• 2. USA Department of Defense. (2024). DoD Annual Report on Naval Weapons Systems and Procurement. DoD.
• 3. NATO. (2025). NATO Allied Maritime Strategy: Underwater Warfare Capability Requirements. NATO.
• 4. International Institute for Strategic Studies. (2024). IISS Military Balance: Naval Force Structure and Weapon Inventories. IISS.
• 5. Royal United Services Institute. (2025). RUSI Report: Submarine Warfare and Torpedo Technology Development. RUSI.

This bibliography is provided for reader reference. The full Future Market Insights report contains the complete reference list.

This Report Answers

• Estimating the size of the market and projected revenue from 2026 to 2036.
• Segmentation by type, propulsion, guidance system, launch platform, application, and region.
• Insights across more than 30 country markets.
• Analysis of propulsion, guidance, and countermeasure technology trends.
• Assessment of the competitive landscape and defense contractor positioning.
• Identification of investment opportunities in submarine programs, ASW capability, and UUV integration.
• Tracking naval modernization programs and their impact on torpedo procurement.
• Delivery of data in PDF and Excel formats.