# Torpedo Market

> Torpedo Market Size, Share, Industry Trend & Analysis Research Report Information By Type (Heavyweight Torpedoes, Lightweight Torpedoes), By Propulsion (Electric Propulsion, Thermal Propulsion), By Guidance Method (Active Homing, Wire-Guided, Passive Homing), By Launch Platform (Submarines, Surface Ships, Rotary-Wing Aircraft, Fixed-Wing Aircraft) – Forecast Till 2035

- **Forecast Period:** 2026-2035
- **CAGR:** 4.5%
- **2025:** USD 2.10 Billion
- **2035:** USD 3.26 Billion
- **Key Players:** RTX (Raytheon), Leonardo, BAE Systems, Atlas Elektronik (thyssenkrupp), Saab, Naval Group, Bharat Dynamics Ltd., Hanwha Ocean

**Report ID:** MRFR/AD/5487-HCR · **Pages:** 100 · **Author:** Shubham Munde & Sejal Akre · **Last Updated:** July 02, 2026

**URL:** https://www.marketresearchfuture.com/reports/torpedo-market-6952

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## Market Summary

As per Market Research Future analysis, the Torpedo Market Size was estimated at 1.245 USD Billion in 2024. The Torpedo industry is projected to grow from USD 1.325 Billion in 2025 to USD 2.464 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.4% during the forecast period 2025 - 2035. North America holds the largest share of the global Torpedo Market at approximately 40%, primarily due to substantial U.S. defense spending and ongoing naval modernization programs focused on advanced submarine and surface warfare capabilities. The United States is the leading country within North America, capturing approximately 35% of the global Torpedo Market share, underpinned by the U.S. Navy's continuous investment in next-generation underwater weapons systems and long-term contracts with leading defense contractors. The Guided Torpedo segment dominates the Torpedo Market as the largest type segment, accounting for an estimated 53% of the global market share in 2025, driven by the military's increasing preference for precision-guided underwater weapons for anti-submarine and anti-surface warfare operations.

## Market Drivers

## Driver Impact Analysis

| Driver | ~% Impact on CAGR | Geographic Relevance | Impact Timeline | Ref |
| --- | --- | --- | --- | --- |
| Submarine fleet expansion programs | +1.4% | Global | Long-term (≥4 yr) | [1] |
| Geopolitical tensions in Indo-Pacific | +0.9% | Asia-Pacific, North America | Short-term (≤2 yr) | [4] |
| AUKUS Pillar II technology transfer | +0.7% | Australia, UK, US | Medium-term (2–4 yr) | [5] |
| Lightweight torpedo refresh cycles | +0.5% | NATO Europe, Asia-Pacific | Medium-term (2–4 yr) | [11] |
| UUV-torpedo integration demand | +0.4% | North America, Europe | Long-term (≥4 yr) | [12] |
| Emerging Navy torpedo acquisition | +0.4% | Middle East, Southeast Asia | Medium-term (2–4 yr) | [13] |
| Counter-mine / multi-role torpedo variants | +0.2% | Global | Long-term (≥4 yr) | [14] |

### Submarine Fleet Expansion Programs

Global submarine construction is experiencing its highest tempo since the Cold War. The US Navy’s Columbia-class program represents a total projected procurement cost of approximately $132 billion, while the Virginia-class Block V program continues at a high production cadence. This sustained fleet expansion, coupled with international naval modernization efforts, creates a long-term, multi-decade demand for torpedo production and system integration.

### Geopolitical Tensions in the Indo-Pacific

Rising regional tensions have accelerated undersea warfare readiness. Japan’s 2026 defense budget reflects a strategic shift, with military expenditure reaching $62.2 billion—roughly 1.4% of GDP—to counter regional threats. Simultaneously, Australia’s 2026-27 Federal Budget provides significant investment for submarine sustainment, including an $11 billion AUD (approximately $7.8 billion USD) commitment for the Collins-class life-extension program to ensure operational capability.

### AUKUS Pillar II Technology Transfer

The AUKUS security pact’s Pillar II framework facilitates advanced undersea technology sharing among Australia, the United Kingdom, and the United States. Recent implementation arrangements emphasize establishing interoperability and industrial feasibility. This partnership serves as a critical catalyst for the market, specifically by creating a standardized, long-term procurement pipeline for the upcoming SSN-AUKUS submarine fleets and their associated weapon systems.

### Lightweight Torpedo Refresh Cycles

NATO navies are systematically refreshing legacy lightweight torpedo inventories. The US Navy continues to invest heavily in the Mk 54 program, evidenced by recent contract modifications exceeding $116 million for sonar assembly kits and hardware sustainment. These ongoing maintenance and upgrade cycles confirm a global shift toward maintaining high-readiness lightweight torpedo stockpiles across modern naval forces.

## Restraints

## Restraints Impact Analysis

| Restraint | ~% Impact on CAGR | Geographic Relevance | Impact Timeline | Ref |
| --- | --- | --- | --- | --- |
| High unit cost and budget competition | –0.6% | Global | Short-term (≤2 yr) | [16] |
| Export control and technology-transfer barriers | –0.5% | Global | Long-term (≥4 yr) | [17] |
| Extended development and qualification cycles | –0.4% | Europe, Asia-Pacific | Medium-term (2–4 yr) | [9] |
| Limited industrial base and sole-source dependencies | –0.3% | North America, Europe | Long-term (≥4 yr) | [18] |
| Environmental regulations on propellant chemicals | –0.2% | Europe | Medium-term (2–4 yr) | [19] |

### High Unit Cost and Budget Competition

Heavyweight torpedoes remain among the most expensive naval munitions, with unit costs for advanced variants reaching approximately $5.4 million. Defense departments face significant budgetary pressure as they balance procurement against other modernization priorities like nuclear deterrents and space-based systems. For instance, the US Navy’s FY26 budget request for Mk 48 torpedo procurement is $268.3 million, highlighting the difficult fiscal trade-offs required to sustain inventory levels.

### Export Control and Technology-Transfer Barriers

Naval weapon systems remain subject to stringent export control regimes, including the International Traffic in Arms Regulations (ITAR) and the Wassenaar Arrangement. These frameworks are designed to protect national security, but often complicate international sales and interoperability. Navies requiring advanced undersea capabilities frequently face years of government-to-government negotiations, which limit market access and slow revenue realization for manufacturers.

### Limited Industrial Base and Sole-Source Dependencies

The global torpedo market is characterized by high supply-chain concentration, with few prime manufacturers managing complex, sole-source programs. Recent assessments, including studies from the National Defense Industrial Association, identify an "unsatisfactory" grade for defense industrial base resilience. Workforce shortages and raw material volatility, such as fluctuating metal prices, create significant risks to meeting production timelines and fleet-wide readiness.

## Opportunities

## Torpedo Market Opportunities

### Unmanned Underwater Vehicle (UUV)–Torpedo Convergence

The integration of torpedo-class payloads into large-diameter UUVs is fundamentally altering undersea strike tactics. Platforms like the US Navy’s MEDUSA program, which recently concluded prototype development, utilize standard 533mm torpedo tubes to deploy expendable mine-delivery assets. Companies capable of miniaturizing propulsion and guidance for these autonomous form factors are capturing significant interest, especially as contract values for such specialized unmanned undersea assets continue to scale.

### Torpedo Countermeasure and Multi-Role Variants

Navies are increasingly prioritizing dual-role torpedoes capable of both anti-submarine and anti-surface warfare. The German SeaHake mod 4 ER remains a benchmark for this shift, featuring advanced digital architectures and fiber-optic guidance for real-time control. Such flexibility allows operators to maximize existing inventories, effectively lowering the barrier for integration into diverse, multi-mission naval surface combatants globally.

### Emerging-Navy Procurement in Southeast Asia and the Middle East

Regional navies are rapidly modernizing their fleets, driving new demand for torpedo integration. For example, Indonesia’s recent naval-industrial partnerships focus on local submarine construction, such as the two Scorpène-class submarines ordered for the Indonesian Navy. As these nations expand their reach, they require reliable, export-compliant weapon systems, opening sustainable long-term revenue streams for international defense suppliers.

### Digital-Twin Simulation and Training-as-a-Service

High costs associated with live-fire testing are driving a shift toward digital-twin simulations and hardware-in-the-loop training environments. By utilizing sophisticated modeling, navies can maintain high readiness levels without the excessive expenses of physical sea trials. This transition allows manufacturers to move toward "Training-as-a-Service" models, providing recurring subscription-based revenue streams that supplement traditional hardware sales.

### Battery Technology Advancements for Extended Range

Advancements in energy density are critical for next-generation torpedo performance. Current research focuses on modular battery configurations, such as the silver-zinc and lithium-ion systems utilized in modern heavyweight platforms, to achieve ranges exceeding 50 kilometers. By adapting these energy storage innovations, manufacturers can deliver the necessary endurance and speed upgrades required for modern littoral and open-ocean operations.

## Future Outlook

## Torpedo Market Future Outlook

### Autonomous Engagement and AI-Enabled Guidance

Artificial intelligence is increasingly integrated into onboard torpedo processors to accelerate decision-making cycles. Research initiatives, such as those within the DARPA Advanced Technology Development program, prioritize autonomous targeting and system unification across naval services. By enabling autonomous target classification and re-attack logic, AI-equipped systems will reduce human-in-the-loop requirements, significantly enhancing kill-chain efficiency for modern, high-intensity maritime operations.

### Hypersonic and Supercavitating Torpedo Development

Navies continue to investigate supercavitating technologies to achieve underwater speeds exceeding 200 knots, challenging traditional passive evasion tactics. While operational deployment of hypersonic undersea munitions remains a long-term goal, current R&D focuses on managing high-pressure hydrodynamics and guidance stability. Global naval modernization, as evidenced by active procurement of advanced anti-torpedo systems, forces a continuous evaluation of these high-speed weapon concepts.

### Electrification and Solid-State Battery Integration

The shift toward higher energy-density storage, supported by Department of Energy initiatives, is transforming torpedo propulsion. Solid-state batteries, targeting energy densities between 300–500 Wh/kg, offer the potential to extend operational range while significantly enhancing safety through non-flammable electrolytes. This electrification transition is shifting industrial focus, prioritizing suppliers who can deliver stable, high-performance power modules for extended-range autonomous undersea applications.

### Sustainment-Centric Business Models and Digital Twins

Defense OEMs are increasingly adopting performance-based logistics to ensure fleet readiness and weapon availability. By utilizing digital-twin simulations for maintenance and crew training, manufacturers can transition from transactional sales to recurring "as-a-service" models. This shift aligns with broader trends in the global [defense logistics market](https://www.marketresearchfuture.com/reports/defense-logistic-market-28920)—projected to grow significantly through 2030—by prioritizing long-term asset lifecycle management over one-time procurement.

## Segment Insights

## Torpedo Market Segmentation

### By Type

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Heavyweight Torpedoes | ~62% share (2025) | Submarine-launched anti-ship / ASW primary missions |
| Lightweight Torpedoes | CAGR 5.1% | Surface combatant and helicopter ASW expansion |

Heavyweight torpedoes dominate the Torpedo Market in value terms because of their substantially higher unit cost (USD 3.5–5 million) and their role as the primary weapon aboard every modern submarine. Procurement volumes track submarine fleet growth almost linearly, making heavyweight demand highly predictable over multi-decade defense planning horizons. The Mk 48 ADCAP family alone has generated cumulative program value exceeding USD 12 billion since its introduction [[1]](https://defense.gov/budget).

Lightweight torpedoes represent the faster-growing segment within the Torpedo Market as navies expand ASW capability aboard frigates, corvettes, and maritime patrol helicopters. The proliferation of smaller surface combatants in Asia-Pacific and Middle Eastern fleets, many of which integrate torpedo tubes for the first time, is accelerating lightweight torpedo adoption. Unit costs in the USD 1–2 million range make lightweight variants accessible to navies with constrained procurement budgets.

### By Propulsion

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Electric Propulsion | ~55% share (2025) | Low acoustic signature, battery technology advances |
| Thermal Propulsion | USD 0.95 B (2025) | Legacy fleet compatibility, high-speed dash capability |

Electric propulsion holds the majority of the Torpedo Market, with virtually all new-development torpedo programs selecting electric drive trains. Lithium-polymer and aluminum-silver oxide battery technologies deliver sufficient range for most engagement scenarios while providing a critical tactical advantage through reduced acoustic detectability. The ongoing transition from thermal to electric propulsion within the Torpedo Market reflects a broader defense preference for stealth over raw speed.

Thermal propulsion maintains relevance in programs where maximum sprint speed remains a non-negotiable requirement, particularly for heavyweight torpedoes designed to prosecute fast nuclear submarines. Otto-fuel and HAP/hydroxyl-ammonium perchlorate variants remain in production for legacy platforms across 30+ navies. However, the long-term Torpedo Market trajectory favors electric systems as battery energy density continues to improve.

### By Guidance Method

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Active Homing | CAGR 4.9% | Autonomous engagement demand, AI-enhanced onboard processing |
| Wire-Guided | ~38% share (2025) | Operator control, complex littoral environments |
| Passive Homing | USD 0.31 B (2025) | Cost-sensitive navies, legacy system compatibility |

Active homing represents the fastest-growing guidance segment in the Torpedo Market, driven by the operational requirement for fire-and-forget engagement against maneuvering targets. Modern active-sonar seekers incorporate digital signal processing capable of discriminating targets from decoys in dense acoustic environments. Wire-guided systems remain prevalent because they allow submarine commanders to update targeting data post-launch — a critical advantage in contested littoral waters where the tactical picture evolves rapidly.

### By Launch Platform

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Submarines | ~58% share (2025) | Primary offensive ASW platform globally |
| Surface Ships | CAGR 4.7% | Frigate and corvette fleet proliferation |
| Rotary-Wing Aircraft | USD 0.27 B (2025) | Maritime patrol helicopter ASW mission sets |
| Fixed-Wing Aircraft | CAGR 4.2% | P-8A Poseidon global fleet expansion |

Submarines account for the largest platform share of the Torpedo Market, reflecting their role as the premier undersea warfare asset. Every submarine class commissioned worldwide carries torpedoes as a primary armament, ensuring baseline demand tied directly to fleet size. Surface ships represent the fastest-growing platform segment, driven by the global frigate and corvette construction boom — over 60 new surface combatants with torpedo capability are under construction or on order as of 2025 [[8]](https://dapa.go.kr).

## Regional Market Share Analysis

## Regional Market Share Analysis

| Region | Key Metric | Primary Investment Themes |
| --- | --- | --- |
| North America | ~38% share (2025) | Mk 48 sustainment, Columbia-class loadout, UUV integration |
| Europe | ~28% share (2025) | Spearfish Mod 1, DM2A4 production, PESCO undersea defense |
| Asia-Pacific | CAGR 5.8% (2026–2035) | Submarine fleet expansion, indigenous development programs |
| Middle East & Africa | ~8% share (2025) | First-time submarine acquisition, corvette torpedo suites |
| South America | CAGR 3.9% (2026–2035) | Brazilian Riachuelo-class, fleet modernization |
| Total | USD 2.10 B (2025) | — |

The Torpedo Market exhibits a regionally concentrated structure shaped by submarine fleet sizes, defense-industrial capabilities, and alliance procurement frameworks. North America and Europe together account for roughly two-thirds of global revenues, but Asia-Pacific's rapid fleet expansion is steadily shifting the geographic center of demand.

### North America

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| United States | ~88% of regional share | Mk 48 ADCAP production, Virginia-class expansion |
| Canada | ~12% of regional share | P-8A integration, Halifax-class torpedo upgrade |

The United States dominates the North American Torpedo Market through sustained multi-billion-dollar contracts with RTX for Mk 48 Mod 7/8 heavyweight torpedoes. The FY2025 defense budget included USD 872 million specifically for torpedo procurement and sustainment [[1]](https://defense.gov/budget). Canada's contribution centers on interoperability requirements tied to NORAD and NATO ASW commitments, with planned torpedo system upgrades aboard the Canadian Surface Combatant program extending demand into the 2030s.

### Europe

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| United Kingdom | ~31% of regional share | Spearfish Mod 1, Astute-class integration |
| Germany | CAGR 4.8% | DM2A4 export success, Type 212CD program |
| France | ~22% of regional share | F21 heavyweight torpedo for Suffren-class |
| Italy | CAGR 4.6% | Black Shark Advanced production ramp |

Europe's Torpedo Market revolves around three industrial clusters: UK-based BAE Systems (Spearfish), the Franco-Italian Leonardo/Naval Group axis (F21, Black Shark), and Germany's Atlas Elektronik (DM2A4). The EU's PESCO framework has channeled EUR 1.2 billion toward undersea defense projects since 2021, with torpedo interoperability identified as a strategic priority [[9]](https://eda.europa.eu). Germany's Type 212CD submarine cooperation with Norway will sustain DM2A4 production beyond 2034.

### Asia-Pacific

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| India | CAGR 6.3% | Varunastra production, Project-75I submarine program |
| South Korea | ~24% of regional share | Blue Shark lightweight, KSS-III heavyweight integration |
| Australia | CAGR 6.1% | AUKUS SSN torpedo loadout requirement |
| Japan | ~21% of regional share | Type 12 torpedo evolution, Taigei-class fleet growth |

Asia-Pacific represents the most dynamic growth corridor for the Torpedo Market. India's Bharat Dynamics Limited has entered serial production of the Varunastra heavyweight torpedo, with export variants under negotiation [[6]](https://mod.gov.in). South Korea's Hanwha Ocean is developing next-generation acoustic homing torpedo systems for the KSS-III submarine class. Australia's commitment to SSN-AUKUS will require establishing an entirely new heavyweight torpedo inventory valued at multiple billions of dollars over the program's lifecycle [[5]](https://defence.gov.au).

### Middle East & Africa

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| UAE | ~35% of regional share | Submarine acquisition plans, Gowind corvette integration |
| Saudi Arabia | CAGR 5.2% | Multi-mission surface combatant torpedo requirements |
| Egypt | ~20% of regional share | Type 209 submarine fleet torpedo sustainment |

The Middle East and Africa segment of the Torpedo Market is nascent but expanding as Gulf navies transition from coastal defense to blue-water ambitions. The UAE's reported interest in submarine procurement would create first-time torpedo demand in a region previously without sub-surface strike capability [[13]](https://janes.com). Egyptian Navy operations with its German-built Type 209 fleet sustain a smaller but steady torpedo sustainment and training revenue base.

### South America

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| Brazil | ~72% of regional share | Riachuelo-class (Scorpène) submarine torpedoes |
| Rest of South America | CAGR 3.4% | Chilean and Colombian fleet sustainment |

Brazil drives the South American Torpedo Market through its Riachuelo-class submarine program, built in cooperation with Naval Group. The Brazilian Navy plans to commission all four Scorpène-variant boats by 2029, each armed with F21-derived heavyweight torpedoes and Black Shark variants for the export-cleared configuration [[21]](https://naval-group.com). Chilean and Colombian navies contribute smaller but recurring torpedo procurement volumes tied to aging submarine fleet sustainment.

## Competitive Benchmarking

## Competitive Benchmarking

The Torpedo Market exhibits moderate-to-high concentration, with the top five manufacturers accounting for an estimated 68–72% of global revenues. The Herfindahl-Hirschman Index (HHI) for the market is estimated at approximately 1,350–1,500, indicating a moderately concentrated competitive structure. Barriers to entry are exceptionally high due to classified technology requirements, decades-long qualification cycles, and the necessity for government-sponsored test ranges.

| Company | Est. Revenue Share Range | Key Offerings for Torpedo Market | Strategic Positioning |
| --- | --- | --- | --- |
| RTX (Raytheon) | ~18–22% | Mk 48 ADCAP, Mk 54 Lightweight | Sole-source U.S. heavyweight torpedo prime |
| Leonardo | ~12–16% | Black Shark Advanced, A244/S Mod 3 | Euro-Mediterranean heavyweight and lightweight leader |
| BAE Systems | ~10–13% | Spearfish Mod 1 | UK sovereign torpedo capability provider |
| Atlas Elektronik (thyssenkrupp) | ~8–11% | DM2A4, SeaHake mod 4 | German export heavyweight specialist |
| Saab | ~5–8% | Torpedo 62, Torpedo 47 | Scandinavian lightweight torpedo innovator |
| Naval Group | ~4–7% | F21 Artémis | French nuclear submarine torpedo integrator |
| Bharat Dynamics Ltd. | ~3–5% | Varunastra, Shyena | Indian indigenous torpedo manufacturer |
| Hanwha Ocean | ~2–4% | Blue Shark, Tiger Shark | South Korean lightweight torpedo developer |
| Northrop Grumman | ~2–3% | Very Lightweight Torpedo (VLWT) | US compact torpedo and UUV integration |
| Roketsan | ~1–2% | Akya | Turkish national torpedo program entrant |

## Recent News & Developments

## Recent News & Developments

- [Naval Group](https://www.naval-group.com/en)—(June, 2026)The Dutch Ministry of Defence signed a contract with Naval Group to procure F21 heavyweight torpedoes for its future Orka-class submarines.
- TKMS and Magellan Aerospace—(February, 2026) The companies signed a teaming agreement to collaborate on heavyweight torpedo production and in-service support for the Canadian Patrol Submarine Project.
- SAIC—(May, 2026): Science Applications International Corp. received a contract modification to support the production, engineering, and hardware repair of the Mk 48 heavyweight torpedo program.

## Report Scope

## Torpedo Market Report Scope

| Parameter | Detail |
| --- | --- |
| Market Scope | Global Torpedo Market — production, procurement, sustainment, and integration services |
| Study Period | 2021–2035 |
| CAGR | 4.5% (2026–2035) |
| Market Size — Base Year 2025 | USD 2.10 Billion |
| Market Size — Forecast 2035 | USD 3.26 Billion |
| Fastest Growing Segments | Lightweight torpedoes (by type); Active homing (by guidance); Asia-Pacific (by region) |
| Companies Profiled | RTX, Leonardo, BAE Systems, Atlas Elektronik, Saab, Naval Group, Bharat Dynamics, Hanwha Ocean, Northrop Grumman, Roketsan |
| Valuation Currency | USD (constant 2025 dollars) |

## Frequently Asked Questions

**Q: How long does a typical torpedo remain in naval service before requiring replacement?**
A: Most heavyweight torpedoes have a certified service life of 20–25 years, though mid-life upgrades at the 10–12 year mark are standard practice. Total lifecycle sustainment costs typically equal or exceed the original procurement price [16].

**Q: What differentiates a torpedo countermeasure from a torpedo decoy?**
A: Countermeasures actively jam or confuse incoming torpedo seekers using acoustic emissions, while decoys passively mimic a ship's signature to lure the weapon away. Modern surface combatants deploy both systems simultaneously for layered defense [14].

**Q: Can existing submarines integrate new-generation torpedoes without hull modifications?**
A: Most modern submarines use standardized 533mm or 650mm torpedo tubes that accommodate successive weapon generations. Software and fire-control system updates are typically required, but physical hull cuts are rarely necessary [10].

**Q: How do arms export restrictions affect torpedo procurement timelines for allied nations?**
A: ITAR and Wassenaar compliance reviews add 12–24 months to foreign military sales timelines. Some buyers opt for European alternatives with less restrictive export licensing [17].

**Q: What role do torpedo exercise variants play in fleet readiness?**
A: Exercise torpedoes — recoverable practice rounds without live warheads — account for roughly 30% of annual torpedo production volume. They enable realistic training at a fraction of live-fire cost [20].

**Q: How are navies addressing the challenge of torpedo effectiveness against UUVs?**
A: Navies are developing compact, very-lightweight torpedoes specifically sized for UUV threats. Northrop Grumman's VLWT program targets engagement of small undersea targets that legacy weapons cannot efficiently prosecute [12].

**Q: What is the approximate lead time from torpedo contract award to first delivery?**
A: First-unit delivery typically occurs 18–30 months after contract award for established production lines. New development programs require 6–8 years from design authority to initial operational capability [16].


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*This Markdown endpoint is provided for AI systems and LLM crawlers. For the full interactive report visit https://www.marketresearchfuture.com/reports/torpedo-market-6952*