Proliferation of UAVs and Drones Boosts US and Europe Military GNSS Chip Market Growth
According to our latest market study on "US and Europe Military GNSS Chip Market Size and Forecast (2021–2031), Regional Share, Trend, and Growth Opportunity Analysis — by Type, Platform, and Application," the market was valued at US$ 539.91 million in 2024 and is anticipated to reach US$ 825.29 million by 2031. It is estimated to register a CAGR of 6.4% during 2025–2031. The report also includes growth prospects in light of current US and Europe Military GNSS Chip Market trends.
In May 2025, the US House and Senate Armed Services Committees introduced a US$150 billion defense reconciliation proposal. It marks a significant investment in drone technology and uncrewed systems across all operational domains. This legislative initiative underscores a strong commitment to strengthening the US defense industrial base. It strategically focuses on capabilities critical to the Indo-Pacific region.
US and Europe Military GNSS Chip Market Analysis – by Geography
US and Europe Military GNSS Chip Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (GPS, GLONASS, and Galileo), Platform [Ground (Handheld and Portable, Mounted System and Infrastructure Based), Air (UAVs and Aircrafts), Maritime (Surface Vessels, Submarine, and Unmanned Maritime Systems), and Precision Guided Munitions (PGM) (Missiles and Artillery)], Application (Navigation, Target Tracking, Missile and Projectile Guidance, Search and Rescue, Reconnaissance, Nuclear Detonation Detectors, and Asset Tracking (GNSS + GPRS)), and Geography
US & Europe Military GNSS Chip Market Forecast 2025–2031
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Source: The Insight Partners Analysis
The European Defence Fund (EDF) dedicates 4%- 8% of its annual budget to emerging defense technologies (EDTs), including the development and deployment of drones. Since 2015, the EU has supported the research and development of military uncrewed systems through the EDF and its predecessor programs. In 2021, approximately €100 million (US$118 million) was allocated to support the development of the Eurodrone. Under the EDF’s 2023 work program, an additional €68 million (US$73.5 million) was dedicated to counter-drone systems, with more than €200 million (US$216.3 million) earmarked for 2024 to fund drone technologies across various sizes and operational domains. The EU launched the EU Defence Innovation Scheme (EUDIS), featuring a financial envelope of €2 billion (US$2.1 billion). It includes contributions from the EDF, Member States, and other sources to bolster innovation and entrepreneurship in essential defense technologies.
In January 2024, on behalf of the European Commission’s Directorate-General for Defence Industry and Space (DEFIS), the €175 million (US$181.8 million) Defence Equity Facility (DEF) was established under InvestEU. The European Investment Fund manages it. This facility supports venture capital and private equity funds investing in EU companies that develop innovative defense technologies with dual-use potential. Financed by €100 million (US$103.9 million) from the EDF and an additional €75 million (US$77.9 million) from the EIF, the DEF aims to attract up to €500 million (US$519.3 million) in total investments by 2027. Uncrewed aerial vehicles (UAVs), drones, and autonomous systems depend on precise, reliable, and secure GNSS chipsets for navigation, targeting, communication, and operational control. The funding and focus on drone capabilities are accelerating demand for high-performance GNSS chips featuring multi-constellation support, anti-jamming, and enhanced accuracy. Initiatives such as EUDIS and the DEF catalyze innovation within GNSS chip technologies, fostering the development of next-generation chips tailored for defense applications and beyond. Defense sectors in the US and Europe prioritize unmanned systems, driven by the need for enhanced positioning, navigation, and timing solutions critical to modern military operations, thus boosting the US and Europe Military GNSS Chip Market growth.
The scope of the US and Europe Military GNSS Chip Market report focuses on the US and Europe (UK, Germany, France, Italy, Russia, and Rest of Europe). In Europe, Italy held a significant US and Europe Military GNSS Chip Market share in 2024. Italy plays a central role in the Multinational Space-based Imaging System (MUSIS) program, working in partnership with France, Germany, Belgium, Greece, and Spain. This initiative facilitates shared access to military satellite imagery. It also strengthens joint defense capabilities across participating nations. In March 2025, Leonardo (an Italian aerospace and defense firm) unveiled plans to deploy a constellation of nearly 40 satellites by 2028. Among those, 18 are dedicated to military applications and 20 to multi-sensor satellites for civilian use. Launched in response to rising defense expenditures across Europe, the initiative aims to establish a strategic alternative to commercial satellite services. The project is estimated at approximately US$1.45 billion (€1.35 billion). Substantial funding is committed by the Italian Ministry of Defence and Leonardo (through its internal capital provision). Thus, the emphasis on military satellite deployment is likely to impact the Military GNSS Chip Market forecast in Italy.
France holds a significant US and Europe Military GNSS Chip Market share in 2024. The French government emphasizes strategic autonomy in its defense procurement strategy. It promotes domestic innovation and collaboration with European defense partners. This approach is fueling the demand for GNSS chips and modules, incorporating advanced capabilities such as anti-jamming, encryption, and multi-constellation compatibility. The country's defense modernization initiatives, coupled with increased budget allocations, are driving consistent growth in demand for military-grade GNSS technology. Its active involvement in NATO and EU defense programs enhances collaboration and standardization of GNSS solutions. It also ensures seamless interoperability with allied forces. In June 2023, Safran Electronics & Defense took the lead in the ACHILE consortium, focused on developing next-generation soldier systems featuring advanced GNSS capabilities. The project secured a €40 million (US$42.8 million) grant from the European Commission, positioning it as one of the flagship initiatives under the European Defense Fund 2021. Thus, focusing on the development of GNSS capabilities creates favorable conditions for the growth of the Europe GNSS chip market.
Thales SA, BAE Systems Plc, General Dynamics Mission Systems Inc, Leonardo S.p.A., Northrop Grumman Corp, L3Harris Technologies Inc, Hertz Systems Ltd Sp. z o. o., Hexagon AB, Juniper Systems Inc, Safran SA, and RTX CORPORATION are among the key players profiled in the US and Europe Military GNSS Chip Market report. Other players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The market study provides detailed market insights, which help the key players strategize their growth.
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