The Autonomous Underwater Vehicle (AUV) Manufacturing industry has generated robust growth over the past five years. Over the period, industry revenue has posted double-digit gains, growing at an average annual rate of 12.7% to an estimated $174.2 million. First developed in the 1960s, AUVs are underwater vessels programmed to perform a set task; AUVs can travel independently with their own power source. The industry generates the majority of its revenue from military and security markets given that AUVs can be used for surveillance, reconnaissance, mine countermeasures and antisubmarine warfare. AUV's potential for these applications has increased spending on Autonomous Underwater Vehicle Manufacturing industry programs, despite federal funding for defense declining at an expected annualized rate of 3.0% to $620.6 billion in the five years to 2014.
According to IBISWorld Industry Analyst Maksim Soshkin, “The industry has also generated some of its fastest growth from rising usage of AUVs by oil and gas companies for mapping the ocean floor and performing pipeline inspections.”
Increasingly, AUVs are being used in place of remotely operated vehicles (ROVs) given that they are more costeffective, have higher resolution capabilities and can better operate at deeper levels. Consequently, expanding commercial applications of AUVs has driven robust industry growth over the past five years. In 2014, IBISWorld projects that the industry will continue expanding, with revenue expected to rise 8.1%.
Over the next five years, the AUV Manufacturing industry is expected to continue its double-digit growth. “Expanded usage of AUVs for commercial purposes will underpin the industry's growth over the next five years,” says Soshkin. In particular, oil and gas companies are expected to increasingly invest in deepwater drilling and offshore platforms, which will raise demand for AUVs to perform pipeline inspections and map the ocean floor. The military is also projected to continue to expand its AUV spending, however, continued defense budget cuts can potentially put this spending at risk.
For more information, visit IBISWorld’s Autonomous Water Vehicle Manufacturing in the US industry report page.