Military Drone Market is expected to reach US$ 19,559.50 million by 2028

Use of Drones in Military Cargo Operations to Provide Growth Opportunities for Military Drone Market During 2023–2028

According to our latest study on "Military Drone Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Application, Range, and Technology," the market was valued at US$ 12,186.42 million in 2022 and is expected to reach US$ 19,559.50 million by 2028; it is anticipated to register a CAGR of 8.6% from 2023 to 2028.

The demand for military drones is expected to grow during the forecasted period due to an increase in the use of electronic warfare technologies across military applications. Also, advancements in artificial intelligence and machine learning, and their integration with drone systems allow drone manufacturers to glorify their portfolios. Their state-of-the-art products enable real-time, data-driven decision-making by enabling high-speed data capture and processing.

Military Drone Market — by Region, 2022

Source: The Insight Partners Analysis

In the military sector, drones are used in applications such as intelligence, surveillance, and reconnaissance (ISR); electronic warfare; coordination and transportation; and research and surveying. Drones can be remotely operated, and equipped with various sensors and weapons, which has added to their popularity in military applications. Moreover, their remote operations lead to the increased safety of personnel operating them; they are not exposed to risks associated with traditional warfare. In addition, the use of drones reduces the need for ground troops, which can significantly reduce the number of casualties and related expenses.

The need for unmanned electronic warfare systems and the rising military expenditure are a few of the major factors driving the military drone market growth. With the growing influence of an electronic warfare system on governments, the higher budget allocations from governments enable military forces to procure advanced technologies and equipment, which boosts the demand and increases the production of military drones. According to Stockholm International Peace Research Institute (SIPRI), global military expenditure rose to 6.7% from 2020 to 2021. Countries such as the US, China, India, the UK, and Russia are the top five countries in terms of spending. Military spending by the US was US$ 800.7 billion in 2021. Further, China spent US$ 293.3 billion, India spent US$ 76.6 billion, the UK spent US$ 68.4 billion, and Russia spent US$ 65.9 billion in military budgets.

The military drone market analysis is segmented on the basis of type, application, range, and technology. Based on type, the military drone market is divided into group 1, group 2, group 3, group 4, and group 5. The group 3 segment held a larger military drone market share in 2022. Based on application, the military drone market is segmented into ISR, warfare, and others. The ISR segment contributed the largest military drone market share in 2022. Based on range, the military drone market is segmented into short range, medium range, and long range. The medium range segment contributed the largest revenue share in 2022. Based on technology, the military drone market is segmented into fixed wing and rotary wing. In 2022, the fixed wing segment led the market with largest military drone market share.

By geography, the military drone market is segmented into four key regions—North America, Europe, Asia Pacific, and the Rest of the World. North America held the largest revenue share in 2022, followed by Europe and Asia Pacific. Asia Pacific is projected to be the fastest growing region and is expected to register the highest CAGR of 10.1% from 2023 to 2028. 

A few major military drone market players are Lockheed Martin Corp, Northrop Grumman Corp, Thales SA, Boeing Co, Elbit Systems Ltd, General Atomics, Textron Systems Corp, BAE Systems Plc, AeroVironment Inc, and Israel Aerospace Industries Ltd.