Military Drone Market

[353 Pages Report] The military drone market is poised to experience growth, advancing from USD 13.0 billion in 2023 to reach USD 18.2 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 7.0% during the period from 2023 to 2028. Military drones, operated autonomously, through remote control, or a combination of both, are equipped with sensors, electronic receivers and transmitters, and offensive ordnance. These drones play a crucial role in strategic and combat zone reconnaissance, intervening on the front lines by designating targets for precision-guided munitions or directly deploying these munitions themselves. Originating as remotely piloted vehicles (RPVs) or drones, they were initially small radio-controlled aircraft utilized in World War II for target training. Presently, major military powers and even some militia groups employ battlefield surveillance UAVs to extend the observation capabilities of ground and naval forces, enhancing the reach and accuracy of supporting fire.

Military Drone Market Forecast to 2028

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Military drone market Dynamics:

Driver: Emergence of non-traditional adversaries and asymmetric warfare

The global race among nations to invest in drone technology has sparked a competitive environment. This competition is propelling significant advancements in drone capabilities as countries aim to outpace each other. The growing demand for military drones stems from the evolving nature of conflicts, where non-traditional adversaries and asymmetric warfare tactics pose challenges. Drones offer a strategic advantage by providing precision in strikes and real-time intelligence, making them essential in countering these modern threats. This demand for more sophisticated drone capabilities is a key factor stimulating the expansion of the military drone market.

Restraint: Limited flight time of military drones due to battery life

Military drones have a finite endurance, typically ranging from a few hours to a day, depending on the type and model. This limitation can impact their effectiveness in prolonged missions, such as surveillance or reconnaissance, and may require additional resources for deployment and maintenance. Factors such as adverse weather conditions, payload weight, and regulatory constraints can further restrict the flight time and range of military drones. While technological advancements are continuously pushing the boundaries of drone flight capabilities, the current limitations in endurance and range remain a significant challenge for the military drone market.

Opportunity: State policies aimed at boosting domestic manufacturers

The favorable state policies of many countries are encouraging domestic manufacturers to acquire military drone technology independent of foreign suppliers. Spain’s RAPAZ program, for example, seeks to encourage the local industry by acquiring small drones for evaluation by the Spanish military exclusively from domestic producers. Likewise, most of Ukraine’s fleet of small drones is provided by domestic manufacturers like Athlon Avia that responded to a need — sometimes in creative ways — for drones following Russia’s invasion of Crimea and the Donbas region. Partnerships between countries like Ukraine and Turkey, Spain and Colombia, and South Africa and the United Arab Emirates have led to joint projects to develop uncrewed aircraft as well as subsystems and munitions for drones. These collaborations offer manufacturers ways to build local capacity, gain access to new markets and technology, and overcome export restrictions.

Challenge: Defining secure identification for safety

The challenge of ensuring safety and security in military drone operations is a significant concern due to the potential risks posed by drones. Drones are small, quick, and difficult to spot, making them a potential threat to public safety, particularly when used intentionally near critical infrastructure such as airports and nuclear power plants. To address these concerns, an identifying system for drones and their operators is required to strike a balance between security and privacy.

One of the key challenges in ensuring safety and security in military drone operations is the vulnerability of drones to hacking attempts, which can compromise their performance or enable adversaries to access sensitive information.

Military Drone Market Ecosystem

Prominent companies and start-ups that provide military drones and their services, distributors/suppliers/retailers, industrial sectors, and end customers are the key stakeholders in the military drone market ecosystem. Investors, funders, academic researchers, distributors, service providers, and industries using military drones serve as the major influencers in the market.

Based on type, the fixed wing military drone segment is projected to grow at the highest CAGR during the forecast period.

The military drone market has been segmented based on type into fixed wing, rotary wing, and hybrid. The fixed-wing segment has been further divided into conventional take-off and landing (CTOL) and vertical take-off and landing (VTOL), while the rotary wing segment has been classified into single rotor and multirotor.

Fixed-wing drones make use of wings to move upward from the ground during take-off, just like airplanes. They require engines to offer them a forward thrust, while wings offer them the required vertical lift to fly. Fixed-wing UAVs can fly longer than rotary-wing drones. They are most distinct in terms of their payloads, endurance ranges, and applications. The drawback of fixed-wing drones is the requirement of runways for their landing or take-off. Some examples of fixed-wing UAVs are MQ-9 Reaper and MQ-1 Predator from General Atomics (US) and RQ-4 Global Hawk from Northrop Grumman Corporation (US). Fixed-wing drones are further classified into conventional take-off and landing (CTOL) UAVs and vertical take-off and landing (VTOL) UAVs.

Based on operation mode, remotely piloted segment is estimated to account for the largest share in 2023

Based on operation mode, The military drone market is divided into remotely piloted, optionally piloted, and fully autonomous categories. The remotely piloted segment is expected to experience significant growth in the forecast period, driven by the cost-effective utilization of these drones across various applications, from defense operations to surveys. Optionally piloted drones, known for their high maneuverability and advanced technologies, come with relatively low maintenance costs. However, there is an anticipated shift towards fully autonomous drones in the future. This transition is attributed to the latter's high payload capacity, enhanced propulsion power, extended endurance, and the capability to operate without human involvement.

Military Drone Market by Region

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The North America region is projected to Grow at highest market share during the forecast period

The North American military drone market, encompassing the US and Canada, exhibited the largest share in 2022. This dominance can be attributed to the presence of major military UAV manufacturers such as General Atomics, Lockheed Martin Corporation, Raytheon Technologies Corporation, and Northrop Grumman in the US. Technological advancements in armed UAVs have further propelled market growth. The substantial allocation of defense budgets by the US government, amounting to USD 801.0 billion in 2021, has played a crucial role in enhancing the capabilities of armed forces in air, land, and naval domains.

Key Market Players

The major players in the military drone companies are Northrop Grumman Corporation (US), Raytheon Technologies Corporation (US), Israel Aerospace Industries Ltd. (Israel), General Atomics Aeronautical Systems (GA-ASI) (US), and Teledyne FLIR LLC (US). These players have adopted various growth strategies such as contracts, joint ventures, partnerships & agreements, acquisitions, and new product launches to further expand their presence in the military drone market.

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Scope of the Report

Military Drone Market Highlights

This research report categorizes the Military Drones markets based on platform, application, MTOW, speed, type, operation mode, launching mode, propulsion, and region.

Recent Developments

• In December 2023, General Atomics Aeronautical Systems, a business unit of General Atomics, has been awarded a USD 389 million contract to deliver MQ-1C-25M Gray Eagle Modernized Extended Range systems to the U.S. Army. The contract, a fixed-price incentive award, is expected to be completed by November 29, 2024.
• In October 2023, Both Ukrainian and Russian forces heavily utilize remotely piloted drones like the MQ-9 Reaper and Orlan-10 for reconnaissance, targeting, and launching attacks, highlighting their continued importance in modern warfare.
• In June 2023, The US Air Force successfully tested the Boeing Phantom Express, a hypersonic prototype exceeding Mach 5, demonstrating significant progress in supersonic drone technology.
• In June 2023, Northrop Grumman secured a USD 1.4 billion contract to deliver six additional MQ-4C Triton HALE UAVs to the Royal Australian Air Force (RAAF). This expands Australia's existing fleet of three Tritons, bolstering its maritime surveillance and capabilities.

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