The underwater acoustic communication market encompasses technologies and systems that enable the transmission of data, commands, and telemetry through acoustic waves in underwater environments.
These systems are vital for military operations, oil & gas exploration, scientific research, environmental monitoring, and autonomous underwater vehicles (AUVs). Compared to radio or optical communication, acoustic waves offer superior propagation over long distances underwater, despite limitations in bandwidth and latency.
In 2025, the global underwater acoustic communication market is projected to reach approximately USD 3,418.8 million, and is expected to grow to around USD 8,867.6 million by 2035, reflecting a Compound Annual Growth Rate (CAGR) of 10.0% during the forecast period.
Key Market Metrics
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 3,418.8 Million |
| Projected Market Size in 2035 | USD 8,867.6 Million |
| CAGR (2025 to 2035) | 10.0% |
The market's expansion is fueled by the increasing deployment of underwater surveillance systems, rise in offshore energy activities, and growth in unmanned underwater systems (UUVs and AUVs) acrossdefense and commercial sectors.
The underwater acoustic communication market shares the highest market size in North America due to advanced developments in naval capabilities, robust offshore energy infrastructure, and continued investment in maritime surveillance technologies. One of the main drives for tactical acoustic modem development, sonar interoperability, and secure communications for UUVs and undersea networks is the USA Department of Defense.
Europe focuses on technology and sustainability-focused market, with high marine research, offshore wind facilities, and NATO-led underwater security systems demand in Norway, the UK, France, and Germany. The market also supports underwater acoustic technology for ecological surveillance, underwater archaeology, and aquaculture system management.
Asia-Pacific is the fastest-growing region, driven by coastal security needs, deep-sea exploration plans and submarine modernization programs, led by China, Japan, India and Australia. Additionally, territorial activity in the South China Sea, initiatives in offshore gas exploration, and preparedness for maritime disasters are driving investments in underwater acoustic modems, beacons, and communication relays in the region.
Signal Attenuation, Low Bandwidth, and Environmental Interference
The major challenge type for underwater acoustic communication industry comes from the fundamental physical limitations of sound wave propagation in water. These constraints lower the usability of real-time data transfer due to limited bandwidth, signal attenuation, multipath fading, and high latency.
Unlike electromagnetic waves, acoustic waves are extremely susceptible to salinity, pressure, temperature and noise caused by natural marine life or ships, leading long-distance humans communicating is considered credible for a long time. This hampers universal adoption in remote sensing missions and AUVs, due to no universal standard protocol in place and the power-intensive nature of the underwater modem.
Maritime Security, Oceanographic Data Collection, and Smart Underwater Systems
This market is poised for explosive growth as the demand for monitoring the oceans, underwater unmanned vehicles (UUV), offshore oil field operations, and defense systems becomes critical. “Investment in marine infrastructure, seabed surveillance, and deep-sea exploration around the world is driving the need for advanced underwater communication,” he explains.
Next-generation adaptations of new methods like adaptive modulation schemes, artificial-intelligence approaches to signal processing, MIMO systems, and delay-tolerant networking are creating resilience in underwater acoustic communication.
Incremental adoption in the mid-range of the market was seen between 2020 and 2024 across military sonar systems, offshore oil exploration, and oceanographic studies, however it was hindered due to high deployment costs, niche vendor concentration, and interoperability concerns.
By 2025 to 2035, the market is expected to change over to modular, AI-optimized, software-defined communication (SDC) platforms that are able to adapt to various sea conditions. During this period, acoustic systems will also become increasingly integrated with optical and RF technology to create hybrid underwater communication architectures for autonomous deployment and real-time environmental awareness.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Compliance with ITU regulations and national marine environmental guidelines |
| Technology Innovations | Use of narrowband modems, frequency-shift keying, and limited range networking |
| Market Adoption | High use in military, offshore drilling, and oceanographic institutions |
| Sustainability Trends | Focus on low-power acoustic pingers and reduced sonar impact on marine ecosystems |
| Market Competition | Led by Teledyne Marine, Kongsberg Gruppen, Sonardyne, Ultra Electronics, EvoLogics |
| Consumer Trends | Demand for durable, compact, and deep-water rated modems |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Emergence of global interoperability standards, spectrum allocation for acoustic channels, and defense -driven mandates |
| Technology Innovations | Adoption of OFDM, MIMO, adaptive beamforming, and software-defined acoustic networks |
| Market Adoption | Expansion into aquaculture, deep-sea mining, underwater autonomous networks, and real-time marine life tracking |
| Sustainability Trends | Growth of green acoustics, passive communication, and marine-safe transmission protocols |
| Market Competition | Entry of startups offering acoustic + optical hybrid systems, sensor-communication integration firms, and ocean data cloud service providers |
| Consumer Trends | Preference for plug-and-play, multi-node, AI-optimized underwater mesh systems for industrial and environmental use |
There is also a significant increase in the growth of underwater acoustic communication market in the United States due to robust defense and naval spending, offshore oil & gas exploration, and environmental monitoring initiatives. The United States Navy’s deployment of underwater drones, autonomous underwater vehicles (AUVs), and sonar networks requires secure long-range acoustic communication.
Funding from both DARPA and NOAA for research efforts is stimulating high-frequency modem, anti-jamming protocols, and hybrid communications architecture solutions that greatly enhance the quality of transmission over the worst oceanic conditions.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 10.4% |
The UK underwater acoustic communication market is also witnessing progressive growth due to naval modernization programs, subsea surveillance activities and offshore renewable energy projects. In addition, both the Royal Navy and private sector are spending increasingly on underwater communication technology for autonomous maritime security missions.
Additionally, acoustic modems are being used by research labs and educational institutions for oceanographic data transfer and real-time underwater sensor networks.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 9.7% |
The EU underwater acoustic communication market considerably advances due to measures on tracking marine biodiversity, inspection of undersea infrastructure, and subsea robotics. Germany, Norway and France are some of the early movers, especially in defense and offshore energy uses.
That cycle includes reforms in acoustic telemetry, broadband underwater networks and noise-reduction technologies made under EU-funded projects related to Horizon Europe.
| Region | CAGR (2025 to 2035) |
|---|---|
| EU | 9.5% |
Strategic maritime focus, deep-sea research operations, and growing use of autonomous underwater vehicles (AUVs) for disaster recovery and seabed mapping applications contributes to the growth of underwater acoustic communication market Japan. Acoustic networks are being used by the Japan Coast Guard and research organizations for tsunami warning systems, pipeline monitoring, and underwater positioning.
Building on existing sea-based networks to improve signal fidelity will be possible through technological advances in compact modems, wave-adaptive technology, and signal processing.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 10.0% |
The South Korea underwater acoustic communication market has been growing significantly as the country increases its naval spending, advances smart port development, and engages in ocean exploration and mining activities. The country is using underwater sensor grids and autonomous underwater vehicles (AUVs) to monitor maritime borders, oceanic ecosystems, and industrial activities sub-sea.
Real-time acoustic telemetry systems with improved bandwidth and signal strength are being developed thanks to cooperation between defense companies, universities, and electronics companies.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 10.2% |
| By Interface Platform | Market Share (2025) |
|---|---|
| Acoustic Modem | 65.0% |
Acoustic modems will spearhead the market for UAC, accounting for 65.0% of the total demand. This is motivated by their superior ability to transport data as high and do so in a fool proof high manner over long ranges underwater.
Acoustic modems are used to convert digital data to acoustic and allow the exchange of information from submerged equipment, AUVs and surface platforms. That technology is crucial to applications that require real-time data interchange, including subsea exploration, military use and environmental observation.
Through its accoustic modem developments over the yearsmanufactory has provided forward ideas to meet the new needs of underwater communications. Higher bandwidth efficiency, advanced signal processing algorithms, and lower power consumption are all crucial to prolonged operations underwater, an area in which strides have been made.
Deployment of acoustic modems with ROVs and AUVs became a breakthrough that enabled the subsea operations to obtain higher data throughput rates in harsh conditions underwater.
| By Application | Market Share (2025) |
|---|---|
| Environmental Monitoring | 40.0% |
By application, the UAC market is segmented into environmental monitoring, research, laboratory, and classroom, among others, and it is projected that the environmental monitoring segment would grow at a massive rate to account for a market share of 40.0%. This is attributed to a growing international interest in the health of marine ecosystems and the impact of human activities on oceanic environments.
In particular, underwater acoustic communication systems play an essential role in the gathering and transmission of valuable information regarding water quality, marine habitats, and ecological trends. These systems enable scientists and environmental organizations to observe conditions below the water's surface in real-time and make data-driven decisions to implement conservation.
The market share of pollution monitoring projected to reach 25.0%. As these events seemingly become more frequent think oil spills, chemical releases and plastic pollution the demand for monitoring systems only increases.
It is highly beneficial to detect and track pollutants in a timely manner, which is enabled through UAC technologies and allows rapid responses to stop or slow the movement of environmental toxins. Deploying these sensor networks with acoustic communication capabilities allow for more detailed monitoring of the affected area, which aids in more targetedcleanup and policy regulation.
In conclusion, the Underwater Acoustic Communication Market has not yet reached its full growth potential, with acoustic modems the most superior by interface platform, and environmental monitoring the most relevant by application.
Both trends illustrate a growing reliance on advanced communications technology to enable an ever-expanding range of underwater missions, from environmental protection to scientific inquiry. As the market evolves, subsequent developments of UAC systems will continue to broaden the scope of their functionality, addressing the differing needs of the maritime community worldwide.
The underwater acoustic communication market is flourishing owing to a surge in the use of the technology in military surveillance, offshore oil and gas exploration, oceanography data collection, and in autonomous underwater vehicle (AUV) operations.
Such systems utilize low-frequency acoustic waves to transmit signals in water, where RF and optical methods fail to function. Key market drivers include advancements in real-time signal processing, high-reliability transducers, AI-based modulation techniques, and maritime security investments.
Market Share Analysis by Key Players
| Company/Organization Name | Estimated Market Share (%) |
|---|---|
| Teledyne Technologies Incorporated | 18-22% |
| Kongsberg Gruppen ASA | 14-18% |
| Thales Group | 12-16% |
| EvoLogics GmbH | 10-14% |
| Sonardyne International Ltd. | 8-12% |
| Others | 26-32% |
| Company/Organization Name | Key Offerings/Activities |
|---|---|
| Teledyne Technologies Inc. | In 2025, Teledyne introduced a new Benthos™ underwater modem series with low-latency, adaptive data rates for deep-sea AUV missions and cabled observatories. |
| Kongsberg Gruppen ASA | As of 2024, Kongsberg launched its cNODE ® underwater communication modules, optimized for seabed mapping, naval sonar, and dynamic positioning systems. |
| Thales Group | In 2023, Thales enhanced its BlueGate ™ platform for secure and encrypted submarine communications, aimed at defense and homeland security deployments. |
| EvoLogics GmbH | In 2024, EvoLogics upgraded its S2C (Sweep Spread Carrier) modems for bi-directional, real-time underwater acoustic networks, supporting marine robotics and environmental monitoring. |
| Sonardyne International Ltd. | As of 2023, Sonardyne expanded its BlueComm and AvTrak ranges, enabling hybrid optical-acoustic comms and long-range navigation for ROVs and AUVs. |
Key Market Insights
Teledyne Technologies Inc. (18-22%)
Teledyne leads the underwater acoustic communication market with its robust, depth-rated modem systems, ideal for scientific exploration, long-term subsea deployments, and multi-node AUV operations.
Kongsberg Gruppen ASA (14-18%)
Kongsberg specializes in integrated sonar and communication platforms, enabling multi-vessel synchronization, autonomous operations, and seabed analytics in commercial and defense marine sectors.
Thales Group (12-16%)
Thales is a key player in tactical and encrypted underwater communication, supporting submarine fleets, unmanned naval vehicles, and blue-water defense systems with secure acoustic links.
EvoLogics GmbH (10-14%)
EvoLogics is known for its high-speed, low-power acoustic modem systems, serving marine research institutes, offshore asset monitoring, and robotic swarm communications.
Sonardyne International Ltd. (8-12%)
Sonardyne provides hybrid acoustic-optical data links, enhancing underwater navigation, telemetry, and positioning in complex environments such as subsea construction and oceanographic missions.
Other Key Players (26-32% Combined)
Several emerging and regional players are innovating in low-power, long-range, and AI-enabled underwater communication technologies, including:
The overall market size for underwater acoustic communication market was USD 3,418.8 million in 2025.
The underwater acoustic communication market is expected to reach USD 8,867.6 million in 2035.
Growing need for reliable underwater communication in defense, oil & gas, and oceanographic research, along with advancements in acoustic signal processing, will drive market growth.
The top 5 countries which drives the development of underwater acoustic communication market are USA, European Union, Japan, South Korea and UK.
Acoustic modems expected to grow to command significant share over the assessment period.
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Underwater Acoustic Communication Market
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