Military Drone Market Comprehensive Research Report with Insights and Forecast 2025–2032
The global military drone market was valued at USD 14.14 billion in 2023 and is projected to expand from USD 16.07 billion in 2024 to USD 47.16 billion by 2032, registering a CAGR of 13.15% during the forecast period. North America led the market with a 36.1% share in 2023, supported by high defense spending, advanced R&D investments, and strong presence of leading OEMs such as General Atomics and Northrop Grumman. Within the region, the U.S. market is forecast to reach USD 10.71 billion by 2030, driven by continuous modernization initiatives and the widespread deployment of ISR and combat drones by the armed forces.
Textron Systems (U.S.)
BAE Systems (U.K.)
Thales Group (France)
AeroVironment, Inc. (U.S.)
Elbit Systems Ltd. (Israel)
General Atomics Aeronautical Systems, Inc. (U.S.)
SAAB Group (Sweden)
Boeing (U.S.)
Lockheed Martin Corporation (U.S.)
Israel Aerospace Industries Ltd. (Israel)
Northrop Grumman Corporation (U.S.)
Information Source:
https://www.fortunebusinessinsights.com/military-drone-market-102181
North America dominated the market with a 36.1% share in 2023 , fueled by robust defense spending and extensive drone adoption for ISR and combat operations.
Fixed-wing drones accounted for the largest market share in 2023, owing to their long endurance, higher payload capacity, and effectiveness in strategic missions such as mapping, surveillance, and precision strikes.
Country-level highlights :
U.S. : Awarded General Atomics a USD 389 million contract for MQ-1C Gray Eagle drones in 2023; remains the leading exporter of HALE and MALE UAVs.
Ukraine : Deployed over 700 kamikaze drones including DJI Mavic 3T and Switchblade, crucial for ISR and tactical strikes in the Russia-Ukraine conflict.
Russia : Operated Shahed-136 (Geranium-2) drones of Iranian origin and signed a USD 12 million procurement deal with China.
China : Exported more than 48 GJ-2 MALE drones to Pakistan, each capable of carrying 12 missiles or bombs.
Israel : Continued dominance in drone exports with Elbit Systems and IAI supplying advanced ISR and combat UAVs globally.
United Kingdom : Scaling tactical and small drones to enhance ISR capabilities under its defense modernization agenda.
By Product Type : Fixed-Wing, Rotary-Wing, Hybrid
By Technology : Remotely Operated, Semi-Autonomous, Fully Autonomous
By Range : Visual Line of Sight (VLOS), Extended Visual Line of Sight (EVLOS), Beyond Line of Sight (BLOS)
By System : Airframe, Avionics, Propulsion (Electric, Turboprop, Turboshaft), Payload (Cameras, CBRN Sensors, EO/IR, Radar, LiDAR, Others), Software, Other Components
By Application : Intelligence, Surveillance, Reconnaissance & Targeting (ISRT), Combat Operations, Battle Damage Management, Logistics & Transportation, Others
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Market Size in 2024 : USD 16.07 Billion
Market Size in 2032 : USD 47.16 Billion
CAGR (2024–2032) : 13.15%
Study Period : 2019–2032
Base Year : 2023
Historical Data : 2019–2022
Report Length : ~200 Pages
Promising Advancements in Autonomous UAVs to Accelerate Growth
Artificial Intelligence (AI) integration is revolutionizing UAV capabilities. AI and machine learning (ML)-powered autonomous systems are enabling drones to chart independent flight paths, enhance ISR efficiency, and reduce operator dependency. For instance, Lockheed Martin’s Desert Hawk III can autonomously plan flight routes while training its operator in real time. Similarly, AeroVironment’s Raven series leverages GPS and computer vision to execute autonomous missions. Such innovations are intensifying defense technology races globally and fueling demand for advanced military drones.
Massive Investments in Drone Technology to Drive North America’s Growth
North America’s military drone market was valued at USD 3.8 billion in 2019 and is expected to retain its leadership throughout the forecast period. Growth is driven by extensive defense budgets, government contracts, and R&D investments by U.S. and Canadian OEMs.
Europe : Strong adoption of tactical drones for surveillance, reinforced by heightened counter-terrorism requirements.
Asia Pacific : Market expansion supported by rising military expenditures in China and India .
Core Competitors Focus on Strategic Investments to Expand Horizons
Leading defense companies including Boeing and Textron Systems are investing heavily in R&D to diversify drone portfolios. Partnerships with governments and defense contractors remain central to their strategy, aimed at expanding operational reach and strengthening global presence.
February 2023 – The Indian Army announced plans to procure 850 indigenous nano drones for counter-terrorism and surveillance operations.
February 2023 – The U.S. Air Force completed testing of facial recognition technology in UAVs, enabling autonomous drones to identify and neutralize targets independently. These drones will be deployed in special operations for intelligence gathering and mission support.
