Maritime defence capabilities are rapidly becoming a focal point for global defence companies as they seek to strengthen their positions in a market driven by evolving security challenges beneath the world’s oceans. Recent acquisition moves underscore the strategic importance of protecting underwater assets amid growing geopolitical tensions and technological advancements.
French defence firm Thales announced a plan to acquire a controlling stake in Exail, a maker of unmanned sea drones and communications systems, with a €3.9 billion offer following the end of Safran’s takeover discussions. This move highlights increased investment in unmanned maritime systems, which are seen as critical to countering new underwater threats. Meanwhile, U.S. defence giant Lockheed Martin recently secured a $3.5 billion deal to acquire Ultra Maritime, a naval technology group, outbidding competitors such as Thales.
European companies are also intensifying their efforts in this sector. Italy’s Fincantieri has committed €600 million toward four underwater defence firms, while German firms TKMS and Rheinmetall are competing to acquire German Naval Yards Kiel, indicating significant consolidation activity in the underwater defence market.
The rising emphasis on maritime security stems from the continued importance of shipping to global supply chains and the emergence of new vulnerabilities on the seabed. The recent brief closure of the Strait of Hormuz highlighted the strategic significance of maritime chokepoints. Additionally, the undersea infrastructure—particularly subsea telecommunications cables—has become a critical asset. In the United Kingdom, for example, subsea cables support £1.4 trillion in daily financial transactions. This has raised concerns over covert submarine operations, such as those disclosed earlier this year by the UK Ministry of Defence.
Naval warfare strategies are extending beyond traditional platforms like sensors and submarines. Countries are increasingly acquiring advanced navigation technologies designed to counteract jamming, as well as unmanned surface and underwater vehicles—colloquially known as sea drones. These assets rely on sophisticated software systems to effectively coordinate operations, adding complexity and value to defence offerings.
Market projections reflect a surging demand for these technologies. Thales estimates that the unmanned anti-submarine warfare segment, valued at €858 million in 2023, could grow to more than €700 billion by 2030. Analysts also anticipate that Exail’s revenues may increase by roughly 20% annually through the end of the decade, supported by expanding capabilities and rising defence budgets.
Despite the promising outlook, the costs of developing underwater defence capabilities remain high. Thales’ proposed €3.9 billion acquisition price for Exail equates to approximately 40 times the company’s current operating profit, though this multiple is expected to decline to 27 by 2027 after accounting for projected growth and efficiency gains.
Industry observers note that offering integrated maritime defence solutions could provide competitive advantages. Defence contractors able to supply comprehensive underwater ecosystems—rather than standalone products—may strengthen customer relationships and leverage cross-selling opportunities, potentially justifying elevated valuations in this burgeoning field.