SONAR System Market Outlook:
SONAR System Market size was valued at USD 5.6 billion in 2025 and is projected to reach USD 8.4 billion by the end of 2035, rising at a CAGR of 4.2% during the forecast period, i.e., 2026-2035. In 2026, the industry size of SONAR system is assessed at USD 5.8 billion.
The global SONAR system market is primarily driven by the sustained public sector investment. The global procurement of the SONAR system is expanding in line with the naval fleet modernization and increased investment in the maritime domain awareness by defense ministries and intergovernmental agencies. According to the U.S. Congressional Research Service report in April 2023, the Navy’s proposed 2024 budget request for USD 32.8 billion in shipbuilding, including the new submarines and ASW-capable surface ships, which is directly related to the market, as each of these platforms requires advanced hull-mounted towed and submarine-integrated sonar suites as a part of their core operational capability. Further, the investments in submarine acoustic superiority and surface ship SONAR upgrades are anchored by the procurement for Virginia-class and Columbia-class platforms.
Governments and organizations around the globe allocate a significant budget to enhance the underwater detection capabilities, with the U.S. Department of Defense reporting that expenditures are high on the acoustic technologies as part of broader fleet modernization efforts. These investments support the procurement contracts that benefit suppliers via long-term agreements, boosting reliable revenue streams for the manufacturers. According to the UK Government of UK July 2025 data, the UK plans to raise its defense spending to 2.5% of the GDP by 2027, to reach 3%. This data highlights that the increased budgets typically expand the procurement for naval modernization, anti-submarine warfare assets, and underwater surveillance capabilities, all of which are highly dependent on the advanced sonar systems. This clear fiscal trajectory underscores a stable and growing demand horizon for sonar system manufacturers within the defense sector.
