Autonomous Underwater Vehicles (AUV) Emerging as Fastest-Growing Segment in Naval Defense Tech

Market Forecasts Show AUV Sector Growing Nearly 4x Faster Than Broader Defense Industry Average

Market News Updates News Commentary 

NEW YORK, July 9, 2026 /CNW/ -- Underwater mines have always been a nasty problem. They're cheap to deploy, hard to spot, and clearing them has traditionally meant sending a diver into the water to do it by hand -- which is about as risky as it sounds. That's finally changing. Autonomous underwater vehicles, AUVs for short, are taking over mine detection work for navies around the world, and the money backing that shift is starting to add up fast. The naval mine detection UUV market alone is on track to grow from $1.87 billion this year to $3.03 billion by 2030 -- and that's one of the more conservative numbers out there. Look at the AUV market more broadly and you're talking about a jump from $4.23 billion in 2025 to $14.51 billion by 2033. Some analysts think the AUV slice of the market could grow even faster than that -- as much as 24.4% a year, which would make it one of the hottest corners of the whole defense-tech world. Companies on the move in the AUV/Drone industries include ZenaTech, Inc. (NASDAQ: ZENA), Safe Pro Group Inc. (NASDAQ: SPAI), EVEX Corp. (NYSE: AVEX), Red Cat Holdings, Inc. (NASDAQ: RCAT), and Ondas Inc. (NASDAQ: ONDS).

So why now? A few things are colliding at once. Militaries everywhere are trying to get humans out of harm's way, and AI has finally gotten good enough to make that possible -- these vehicles can navigate, detect, and identify threats largely on their own instead of needing a person steering by joystick. Almost 70% of naval modernization programs happening right now involve some kind of autonomous underwater system, and mine detection is one of the biggest reasons why. It's not just talk, either -- money is actually moving. In April, the Pentagon's Defense Innovation Unit handed HII a contract to build a system that lets Navy submarines launch and recover AUVs straight through torpedo tubes, with no diver needed at all. That's the kind of contract that tends to get investors' attention.

Looking ahead, AUVs are expected to play a much bigger role than just finding mines. Navies are already using them for seabed mapping, intelligence gathering, infrastructure inspections, anti-submarine support, and monitoring underwater communication cables and offshore energy facilities. With defense budgets rising across North America, Europe, Asia-Pacific, and the Middle East, investment in autonomous underwater technology is expected to keep climbing. Companies developing underwater robotics, advanced sonar, autonomous navigation software, and marine sensors could be well positioned as this rapidly growing defense market expands.

ZenaTech (NASDAQ: ZENA) ZenaDrone Moves IQ Aqua Underwater Mine-Detection Drone into U.S. Field Testing in Florida - Company validates performance in real-world marine conditions as it prepares a faster Version 2 platform, targeting a global commercial and defense underwater drone market expected to exceed $16 billion USD by 2034 -  ZenaTech, Inc. ($ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology solution provider specializing in AI (Artificial Intelligence) drone, Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions, announces that its ZenaDrone subsidiary has moved the IQ Aqua autonomous underwater vehicle (AUV) into an active U.S. field testing program. Testing is being conducted in the Pensacola, Florida area near the Company's Drone as a Service office location, marking a key milestone since ZenaTech first unveiled the IQ Aqua prototype in March 2026. The testing program consists of putting the IQ Aqua drone through both controlled aquatic environments and natural, open water bodies, allowing the engineering team to validate the drone's stability, maneuverability, sensors and autonomous navigation across a range of real-world operating conditions ahead of broader testing and next version deployment.

"Moving from prototype to structured field testing in a matter of weeks demonstrates the speed at which our team is executing on the IQ Aqua program," said Shaun Passley, Ph.D., ZenaTech CEO. "Underwater mine detection is one of the most pressing gaps in modern maritime warfare as mines are inexpensive to deploy and dangerous and costly to clear using traditional manned methods, and militaries around the world are actively looking for autonomous alternatives. That urgency translates into real demand, and we believe IQ Aqua positions us to capture a meaningful share of an underwater drone market that is expected to grow to over $16 billion over the next decade. Every test run mission in Pensacola gets us closer to giving global defense forces a platform to fill a need in one of the fastest-growing segments in defense technology."

The IQ Aqua is designed to extend ZenaDrone's IQ series family of autonomous air, land, and water-surface drones into underwater operations, with a primary focus on defense applications, including undersea mine detection and countermeasure support, covert underwater intelligence, surveillance, reconnaissance (ISR), and port and harbor threat detection. The platform is also being developed for commercial use, including autonomous inspection of energy pipelines, bridges, and other maritime infrastructure, offering an alternative to costly and higher-risk diver or manned-vessel deployments.

In parallel with the Pensacola testing program, ZenaDrone is advancing development of the IQ Aqua Version 2, with the team currently ordering components and preparing for assembly at ZenaDrone's manufacturing facility in the United Arab Emirates, with completion targeted in the coming weeks. Version 2 is being engineered to be faster than the current prototype, incorporating a different propulsion system intended to improve speed and operational range designed for future defense and commercial deployments.

The global underwater drone market is projected to exceed $16 billion USD by 2034, according to Global Market Insights, with defense and security applications representing the fastest-growing segment of that market. The Company plans to target U.S. defense customers, NATO partners, and U.S. allied Gulf nations as well as commercial customers. ZenaTech will provide additional updates as new developmental and testing milestones are achieved. Continued…  Read this full release and additional news for ZENA by visiting:  https://www.zenatech.com/newsroom/

Why Drones-as-a-Service for Autonomous Underwater Vehicles Is Gaining Momentum

• Global AUV market projected to exceed $16 billion by 2034, driven by defense modernization and commercial offshore demand.
• Rising geopolitical tensions are increasing investment in underwater mine countermeasure technologies worldwide.
• AI-powered sonar and autonomous navigation are significantly improving mine detection accuracy and mission efficiency.
• Navies are expanding deployment of unmanned underwater systems to protect ports, shipping lanes, offshore energy assets, and critical subsea infrastructure.
• Growing defense budgets are expected to fuel long-term demand for autonomous underwater robotics, advanced sensors, and maritime surveillance technologies.

In other industry recent and current news of note:

Safe Pro Group Inc. (Nasdaq: SPAI), a developer of artificial intelligence (AI)-enabled defense, security, and situational awareness solutions, announced recently that it has been awarded a $1.3 million U.S. Government subcontract under Forterra to integrate the Company's proprietary AI-powered real-time threat detection technology into U.S. Government autonomous Unmanned Ground Vehicles (UGVs). 

Under the award from a leading U.S. Defense Prime Contractor, Forterra, Safe Pro will integrate and test its proprietary advanced computer vision and machine learning AI pipeline onboard autonomous UGVs for real-time detection of explosive threats supporting on-the-move operations.

EVEX Corp. (NYSE: AVEX) recently announced it has been awarded a $17.5 million follow-on contract under its Global Solutions portfolio to continue delivering critical services in support of U.S. national security objectives.

The contract reinforces the company's role in providing mission focused, data-driven services and solutions that help decision makers act with speed and confidence. AEVEX's Global Solutions capabilities integrate technology and multi-domain expertise to transform complex data into actionable insight for time sensitive missions.

Red Cat Holdings, Inc. (Nasdaq: RCAT), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, recently announced that Teal Drones Inc. has advanced to Gauntlet II of the Drone Dominance Program. According to the program's Phase 2 participant list, Teal is among 19 companies invited to participate in Gauntlet II at Fort Carson, Colorado, in August 2026, following the Phase 2 Qualifier.

The Phase 2 Qualifier was held at Camp Grayling, Michigan, where 49 companies were invited to compete and approximately 79 unique drones were tested across Long Range Strike and Tactical Assault in Close Quarters mission areas. Teal's advancement reflects Red Cat's continued focus on delivering trusted, mission-ready drone and robotic solutions that support the warfighter with critical situational awareness and operational advantage.

Ondas Inc. (NASDAQ:ONDS), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, announced recently it has acquired DZYNE Technologies, LLC ("DZYNE"). This acquisition establishes Ondas as a vanguard autonomous defense platform, uniting complementary capabilities across multi-domain ISR, counter-UAS, autonomous effects, aerial security, precision strike, autonomous logistics, and AI-enabled mission orchestration to rapidly meet the complex, evolving requirements of modern warfare. The acquisition is valued at $875.8 million and was financed through a cash and stock structure intended to align the incentives of DZYNE management and investors with Ondas' stockholders. Greater than 50% of the stock consideration is subject to a six-month lock-up.

"The character of warfare is changing rapidly, and military advantage increasingly belongs to organizations capable of deploying autonomous systems at scale," said Eric Brock, Chairman and Chief Executive Officer of Ondas. "DZYNE brings exceptional technology, world-class engineering talent and mission-ready systems across long-endurance ISR, counter-UAS and autonomous effects. The combination with DZYNE accelerates Ondas' build-out of the next-generation autonomous defense platform-not through a single breakthrough product, but by integrating complementary, mission-proven technologies into a scaled operating platform. Importantly, DZYNE significantly strengthens Ondas' financial profile, adding substantial scale and revenue growth. DZYNE is EBITDA positive with a strong and growing margin profile, accelerating Ondas' path towards profitable, long-term growth."

DISCLAIMER: MarketNewsUpdates.com (MNU) is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. MNU is NOT affiliated in any manner with any company mentioned herein. MNU and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. MNU'S market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. MNU is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. This press release was distributed on behalf of ZenaTech, Inc. For current services performed MNU was compensated forty six hundred dollars for news coverage of the current press releases issued by ZenaTech, Inc. by the company. MNU HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MNU undertakes no obligation to update such statements.

Contact Information:

Media Contact email: [email protected] 
[phone]

SOURCE Market News Updates