Military Drone Market Analysis North America,APAC,Europe,Middle East and Africa,South America - US,Turkey,China,India,UK - Size and Forecast 2023-2027

Military Drone Market Forecast 2023-2027

The Military Drone Market size is forecasted to increase by USD 7.43 billion, at a CAGR of 11.83% between 2022 and 2027. The market is experiencing substantial growth, fueled by recent advancements in military drone technology and the increasing prevalence of security threats worldwide. With the changing nature of advanced warfare, military drones have become indispensable tools for surveillance, reconnaissance, and combat missions. Governments and defense agencies are heavily investing in military drone programs to enhance their capabilities and maintain strategic superiority in modern warfare scenarios. This market research report also includes an in-depth analysis of drivers, market trends and analysis, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Military Drone Market During the Forecast Period?

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The market is witnessing significant growth driven by factors such as increased military spending, rising tensions in cross-border conflicts and border disputes, and the demand for advanced technologies like guided bomb units, avionics systems, and modern sensors. With the advent of strike drones equipped with high-tech propulsion systems and advanced flight management technology, defense forces are increasingly relying on military drones for surveillance, reconnaissance, and combat operations, both in fixed-wing and rotary-wing configurations.  Autonomous flight systems enable drones to operate independently or semi-autonomously, performing predefined tasks without human intervention. These systems leverage artificial intelligence (AI) and advanced technologies to navigate and execute missions with precision and efficiency. High-altitude military drones operate at elevated altitudes, providing long-endurance surveillance and reconnaissance capabilities. Equipped with sophisticated sensor systems and air-to-air missiles, these drones offer persistent surveillance and strike capabilities in contested airspace.

Market Dynamics and Customer Landscape

The Global UAV Market is propelled by diverse applications including surveying, transportation, and combat operations, supported by advanced drone technology and innovative sensor systems. With AI integration and autonomous flight systems, UAVs offer enhanced monitoring capabilities for military and civilian purposes. High-altitude military drones equipped with air-to-air missiles and guided bomb units bolster defense forces in cross-border conflicts and border disputes. Investment in R&D drives the development of high-tech propulsion and avionics systems, ensuring advanced flight management and modern sensor integration. From fixed wing to hybrid and rotary wing drones, these platforms expand operational capabilities, ensuring security and surveillance in complex environments. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The key developments in military drones are the factors driving the global market growth. The market is seeing more and more advancements in this segment. The new additions will push the defense and security industry to buy new types of military drones according to their needs. As the number of advancements increases, so does the competition in the market, which leads to innovation and differentiation. With new advancements, manufacturers are also focusing on developing new products. 

Over the past two decades, the nature of warfare has changed significantly. New technologies and platforms tend towards strategic warfare. This evolving war scenario is driven primarily by large-scale technological conflict resolution. Countries are now focusing on autonomous combat platforms such as drones and unnamed underwater vehicles, which are widely used in war zones. Drones are widely used for counter-terrorism, especially in the Middle East and South Asia. Drones have become extremely important in today's warfare because of their visual superiority, their ability to carry out preemptive strikes, and their ability to monitor specific locations while eliminating threats. Currently, they are in high demand in most developed and developing countries, and UAVs are used as an efficient application for various military missions. Hence, escalating security threats across the globe will increase the demand, driving market growth during the forecast period.  

Significant Market Trends

The development of long-range spy combat drones will fuel the global market growth. UAVs are increasingly being used as an important tool for national security measures. Additionally, these unmanned aerial vehicle platforms will be outfitted with the weaponry and command, control, communications, computing, intelligence, surveillance, and reconnaissance systems that support these operations through rapid technological breakthroughs in the military electronics industry. UCAVs can launch bombs, missile, and precision-guided missiles. As a result, countries are developing UCAVs with long-range strike capabilities more quickly. China is one of the pioneer countries in the development of UCAV. Amid growing territorial disputes between China and its neighbors, the country is investing in research and development to develop drones to carry out various military missions, including on enemy platforms and bases. As the need for autonomous platforms grows, countries are investing heavily in the development and procurement of UAVs, especially combat UAVs, due to their diverse roles. Such developments are likely to drive the growth of the global market during the forecast period.  

Many countries are modernizing their defensive and offensive airborne forces by further strengthening existing and future UCAVs. Increasing the number of these assets will simultaneously enable advanced weapons integration, carry out effective military missions, and increase the country's dominance over the skies. Attack UAVs can launch small guided bombs that are much cheaper than large air-to-ground missiles. At the same time, some air-to-ground missiles lack range and lethal force. Small bombs integrated into UCAVs increase operational flexibility, allowing commanders to use them against soft targets such as enemy ground forces and unarmored military trucks. Recently, the priority has been to rapidly deploy laser-powered UCAVs to engage in asymmetric conflicts, allowing combat forces to take advantage of superior synergies between components to achieve operational efficiencies. 

Major Market Challenges

The rapid development of anti-drone technology can majorly impede the growth of the market. To keep up with UAV development, countries around the world are simultaneously developing defense systems and mechanisms against drones. Drones deployed by one country are always a threat to other countries. To build an effective defense system, countries are focusing on developing anti-drone technology. Boeing recently tested its 10kW anti-drone laser cannon that can shoot down drones. The company plans to increase laser power from 10 kW to 60 kW for military use. Newer innovations such as the latest lasers and lithium-ion battery technology aim to increase energy storage as power density increases. According to the New American Foundation, lithium-powered lasers can be used to deter small missiles and mortars and provide non-lethal warnings. Additionally, precision weapons with unlimited ammunition are being developed, such as high-energy lasers (HEL) that can be used against drones. Developing a strategic platform like UCAV can be difficult for other countries. Therefore, countries have developed anti-drone technology to a considerable extent for defense purposes. Such developments in anti-drone technology will hamper the growth of the global market during the forecast period. 

Along with all this, UAVs use advanced sensors and other supporting devices and require a high degree of technical expertise to operate. The rise of cyberattacks against intelligence and surveillance systems remains a major obstacle for global defense organizations. Military communications architectures require innovative security measures such as multi-factor authentication, biometrics, and strategic security planning and training. An estimated 400 million cyberattacks disrupt the US Department of Defense and government networks each year. This increased the chances of sensitive military data being lost or stolen, increasing the chances of UAV platforms malfunctioning. As such, the US Department of Defense plans to use advanced sensors and related systems to enhance the integrated network environment to ensure superior protection against cyberattacks. 

Customer Landscape

The market growth and trends research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Global Military Drone Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AeroVironment Inc.: The company offers various military drones such as SWITCHBLADE 300 and specializes in the Unmanned Aircraft Systems (UAS) business segment, which focuses on the design, development, production, delivery, and support of technologically advanced robotic systems and related services for government agencies, and businesses.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market players, including:

• Anduril Industries Inc.
• Animal Dynamics Ltd.
• Asteria Aerospace Ltd.
• BAE Systems Plc
• EDGE Group PJSC
• Elbit Systems Ltd.
• General Atomics
• Israel Aerospace Industries Ltd.
• Leonardo Spa
• Lockheed Martin Corp.
• Northrop Grumman Systems Corp.
• Rafael Advanced Defense Systems Ltd.
• Raytheon Technologies Corp.
• Red Cat Holdings Inc.
• Saab AB
• Shield AI
• Teledyne Technologies Inc.
• Textron Inc.
• Thales Group
• The Boeing Co.

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business, which can help a client make the best decision. 

Market Segmentation

The type segment of the Global Military Drone Market encompasses various categories of unmanned aerial vehicles (UAVs) with diverse applications and functionalities. Surveying and mapping drones are extensively used for aerial reconnaissance and mapping missions, providing real-time data for military planning and operations. These drones play a crucial role in gathering intelligence and enhancing situational awareness on the battlefield. Transportation drones are designed for logistical purposes, including the delivery of supplies, equipment, and medical aid to remote or inaccessible areas. They offer a cost-effective and efficient means of transporting cargo, reducing the risk to human personnel in hazardous environments. Combat drones, also known as armed UAVs, are equipped with weapons systems and sensors for conducting offensive and defensive operations. They are employed in combat operations to engage enemy targets, perform airstrikes, and provide close air support to ground forces. Monitoring drones are utilized for surveillance and reconnaissance missions, monitoring enemy movements, and gathering intelligence. Equipped with advanced sensor systems and communication intelligence sensors, these drones can collect and analyze data in real-time, enhancing situational awareness and decision-making capabilities.

Type Analysis

The rotary blade segment will contribute a major share of the market, as this technology is important for military operations where drones can be used for a variety of tasks such as reconnaissance, surveillance, and combat. The rotary blade segments showed a gradual increase in the market share with USD 5.15 billion in 2017 and continued to grow by 2021. Rotating blades are a key component. This technology allows drones to take off from the ground, hover in the air, and gain and lose altitude. Rotating blades are an integral part of a drone's maneuverability, allowing it to turn and operate effectively in tight spaces. This technology is important for military operations where drones can be used for a variety of tasks such as reconnaissance, surveillance, and combat.

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They are equipped with rotating blades also have the advantage of versatility and adaptability. It can be used in various terrains such as urban areas, hills, and mountains. Rotating blade technology allows the drone to take off and land in tight locations, making it highly effective for specialized operations. The rotor blade configuration used is unique and designed to withstand high-load conditions. Rotating blades are an integral part of a drone's maneuverability, allowing it to turn and operate effectively in tight spaces. Such factors are anticipated to drive the growth of the rotating blade segment of the global market during the forecast period. 

Regional Analysis

North America is estimated to contribute 35% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.

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North America will be the largest geographic segment in 2022 and will remain so throughout the forecast period. North America dominates the global market, with the United States leading the development of attack drones. The demand for the market has skyrocketed as countries seek to minimize military casualties in high-risk missions. The country also looks forward to developing low-cost UAVs that can be easily used for a variety of high-risk missions. US Air Force Composite Engineering Inc. amid growing demand for low-cost attack drones. The Unmanned Systems Division in Sacramento, California, USA, develops low-cost UAV technology capable of effectively conducting air strikes in remote areas where forward bases are difficult to reach. 

Market Analyst Overview

The market is experiencing rapid growth, driven by the increasing adoption of Unmanned Aerial Vehicles (UAVs) for various applications such as surveying, mapping, transportation, and combat operations. Advanced technologies, including Artificial Intelligence (AI) and sensor systems, are enhancing the capabilities of military drones, leading to significant investments in research & development. These drones are equipped with air-to-air missiles, guided bomb units, and communication intelligence sensors for monitoring and strike missions. Military spending on defense forces is fueling the development of high-tech propulsion systems, avionics systems, and advanced flight management technology. In regions with cross-border conflicts and border disputes, military drones play a crucial role in surveillance and reconnaissance, supported by extended Visual Line of Sight (EVLOS) and Visual Line of Sight (VLOS) capabilities.

The market is witnessing significant advancements in technology and capabilities, driven by factors such as Global System for Mobile (GSM) communications and the integration of autonomous flight systems. High-altitude military drones equipped with a weapon payload and modern sensors are revolutionizing both offensive and defensive operations. Strike drones, featuring hybrid wing and rotary wing, are enhancing military capabilities in combating terrorist activities and addressing logistical challenges. With the rise of swarm drones, there's a growing emphasis on cybersecurity measures and access controls to prevent unauthorized access. Integration with Artificial Intelligence (AI) and Machine Learning (ML) is enabling drone-based logistics, transportation, and medical evacuation (medevac) operations, even beyond the line of sight, ensuring efficient delivery and transportation in various scenarios.

In the market, payloads play a crucial role in enhancing the capabilities of both remotely operated and autonomous drones. These drones, including semi-autonomous variants, are designed to operate beyond line of sight (BLOS), expanding their range and applicability in various scenarios. Battle damage management becomes more efficient with the integration of electronic receivers, allowing for real-time data collection and analysis. The versatility of drones in reconnaissance, surveillance, and combat missions is further amplified by their ability to operate autonomously or under remote control. With advancements in technology, military drones continue to evolve, offering increased effectiveness and adaptability on the modern battlefield.

Segment Overview

This market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Rotary blade
  • Fixed Wing
  • Hybrid

• Technology Outlook 
  • Remotely operated
  • Semi-autonomous
  • Autonomous

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America 
    • Argentina 
    • Brazil 
    • Chile 
    • Columbia 
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Military Drone Market Scope
Report Coverage	Details
Page number	178
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 11.83%
Market growth 2023-2027	USD 7.42 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	10.05
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 35%
Key countries	US, Turkey, China, India, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	AeroVironment Inc., Airbus SE, Anduril Industries Inc., Animal Dynamics Ltd., Asteria Aerospace Ltd., BAE Systems Plc, EDGE Group PJSC, Elbit Systems Ltd., General Atomics, Israel Aerospace Industries Ltd., Leonardo Spa, Lockheed Martin Corp., Northrop Grumman Systems Corp., Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., Red Cat Holdings Inc., Saab AB, Shield AI, Teledyne Technologies Inc., Textron Inc., Thales Group, and The Boeing Co.
Market dynamics	Market growth, market growth analysis,market report, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market forecasting between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, APAC, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of key companies in the market

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