The loitering munition market was valued at US$ 972.44 million in 2022 and is expected to reach US$ 1,539.02 million by 2028; it is anticipated to register a CAGR of 8.4% from 2023 to 2028.
In order to cope with the growing demand for loitering munition, various loitering munition market players are focusing on enhancing their offerings through strategic alliances such as collaborations, partnerships, and agreements. The loitering munition market is still in its initial phases and is expected to grow at a higher rate in the coming years. Thus, various loitering munition market players are expanding market presence to enhance customer reach through strategic alliances. For instance, in September 2022, German manufacturers Rheinmetall and UVision jointly bagged the first order to provide Hero loitering munitions to a NATO military force in Europe. Due to the customer's secrecy clauses, the company did not disclose any other details of the agreement, including the number of munitions ordered.
Furthermore, countries are involved in multiple defense agreements to enhance their allies' defense capabilities. For instance, in February 2023, Serbia agreed to buy loitering munitions from the UAE. The Serbian government did not disclose the manufacturer, price, and number of loitering munitions involved in the contract. Similarly, in July 2022, the DoD of the US announced a package of US$ 175 million in equipment pulled from existing US military stocks through Presidential Drawdown Authority and US$ 95 million in equipment from the Ukraine Security Assistance Initiative. This package includes additional High Mobility Artillery Rocket Systems, ammunition, and an undisclosed number of Phoenix Ghost unmanned aerial systems. Such rising defense expenditure is stimulating the growth of defense sector and is catalyzing the loitering munition market size across different regions.
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Loitering Munition Market: Strategic Insights
Market Size Value in US$ 972.44 million in 2022 Market Size Value by US$ 1,539.02 million by 2028 Growth rate CAGR of 8.4% from 2023 to 2028 Forecast Period 2023-2028 Base Year 2022
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Loitering Munition Market: Strategic Insights
| Market Size Value in | US$ 972.44 million in 2022 |
| Market Size Value by | US$ 1,539.02 million by 2028 |
| Growth rate | CAGR of 8.4% from 2023 to 2028 |
| Forecast Period | 2023-2028 |
| Base Year | 2022 |
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Impact of COVID-19 Pandemic on Loitering Munition Market
The COVID-19 crisis hampered operations in military manufacturing industries due to reforms made in these facilities to ensure the safety of workers and prevent the spread of COVID-19, which directly impacted the import and export of loitering munitions. Companies operating in the loitering munitions market had to make tough decisions to sustain during the pandemic and the post-pandemic recovery period.
In North America, the US is the most technologically advanced country, followed by Canada and Mexico, respectively. Amid the COVID-19 pandemic, these countries temporarily stopped investments in the development and adoption of new loitering munitions technologies. There was a complete halt in military loitering munitions production, manufacturing, and supply chain due to longer lockdowns implemented by governments in their respective countries during the COVID-19 pandemic. Also, disruptions in supply chains resulted in delays in the delivery of various orders placed by customers and contractors, which led to revenue loss among key market players. However, in North America, the countries restarted the procurement of loitering munitions in the COVID-19 recovery period as the companies were able to sign contracts and agreements for the supply of loitering munition and their respective accessories. For instance, in March 2021, the US Department of Defense awarded a US$ 44.96 million contract to AeroVironment Inc. for the procurement of Switchblade loitering munition units for the US Army. Such developments have helped the loitering munition market growth to recover from the losses occurred during the COVID-19 pandemic.
Lucrative Regions: Loitering Munition Market Share
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Market Insight – Loitering Munition Market
The loitering munition market is segmented into five major regions—North America, Europe, Asia Pacific, and Middle East and Africa (MEA), and South America. In 2022, MEA led the market with a substantial revenue share in the loitering munition market, followed by North America and Europe.
The rise in the procurement of loitering munitions by the US Navy is a major factor driving the loitering munition market growth North America. In January 2023, the US Navy signed a US$ 15 million contract with Kratos Defense & Security Solutions, Inc. to procure two XQ-58A Valkyrie drones. These loitering munitions are equipped with sensors and weapon system payloads to carry out attacks when needed. Furthermore, governments in the region are focusing on buying loitering munitions. In March 2023, the Canadian government drafted the Request for Information to select loitering munitions for Canadian Armed Forces (CAF) as per their requirements. Thus, such strategic procurements of loitering munitions by the regional government will trigger its demand in North America.
In MEA, there is a notable growth in the manufacturing of loitering munitions to provide reliable solutions to the end users. Under the Saudi Vision 2030, the country will focus on developing loitering munitions locally to decrease its imports. This will strengthen local players and attract contracts for loitering munitions from other countries. For instance, in January 2023, Israel Aerospace Industries Ltd announced that they had bagged a multi-million-dollar contract to build and launch loitering munition for the US Department of Defense. The company will develop a loitering munition named ‘Point Blank’ with vertical takeoff and landing capabilities. Thus, such contracts won by the region’s market players are propelling the loitering munition market in the MEA.
Players operating in the loitering munition market are focusing on the adoption of merger & acquisition and product launch strategies to remain competitive in the market.
- In 2022, RAFAEL acquires U.S. based PVP AEO to expand in United States. The acquisition took place under the stock purchase agreement. transferring 100% of stock to Rafael and it was approved under CFIUS review authorization, governed by a national security agreement (NSA).
- In 2023, South Africa-based Paramount Aerospace Systems (PAS), started producing N-Raven loitering munition in April 2023, and will deliver it in October 2023 to armed forces around the world.
Lockheed Martin Corporation, WB Group, IAI, UVision Air Ltd, Elbit Systems Ltd, STM Savunma Teknolojileri Mühendislik ve Ticaret AŞ, AVision Systems Pvt Ltd, Aeronautics Ltd, Rafael Advanced Defense Systems, and AeroVironment are a few of the key loitering munition market players operating in the market. The loitering munition market report provides detailed market insights, which help the key loitering munition market players strategize their growth for the coming years.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, and Platform
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The loitering munitions market is expected to reach US$ 1,539.02 Mn by 2028.
The key players, holding majority shares, in global loitering munitions includes Israel Aerospace Industries, UVision, Elbit Systems, AeroVironment, and Rheinmetall AG.
1. Rise in Number of Contracts for Supply of Loitering Munition
2. Continuous Growth of Defense Sectors Worldwide
The global loitering munition market was estimated to be US$ 972.44 million in 2022 and is expected to grow at a CAGR of 8.4 %, during the forecast period 2023 - 2028.
The incremental growth, expected to be recorded for the loitering munitions market during the forecast period, is US$ 513.09 million.
Rising Deployment of Smart Loitering Munition
The List of Companies - Loitering Munition Market
- STM AS
- Innovaero Pty Ltd
- AVision Sytems Pvt Ltd
- Rafael Advanced Defense Systems Ltd
- AeroVironment Inc
- Lockheed Martin Corp
- WB Electronics SA
- Israel Aerospace Industries Ltd
- UVision Air Ltd
- Elbit Systems Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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