Military Drone Market Growth Report - Size & Forecast 2028

Military Drone Market Forecast to 2028 - Global Analysis By Type (Group 1, Group 2, Group 3, Group 4, and Group 5), Application (ISR, Warfare, and Others), Range (Short Range, Medium Range, and Long Range), Technology (Fixed Wing and Rotary Wing)

Publication Month : May 2023

  • Report Code : TIPRE00029692
  • Category : Aerospace and Defense
  • Status : Published
  • No. of Pages : 190
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[Research Report] The global military drone 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 expected to register a CAGR of 8.6% from 2023 to 2028.

Strong military assets are necessary to enhance the security of any country. Several companies have been working with various military forces and different country governments to understand their specific drone requirements and cater to their needs by providing them with reliable solutions. Therefore, companies in the military drone market are procuring contracts from various armed forces of different countries which is propelling the military drone market growth across different regions. Some of the major contracts are mentioned below: 

  • In March 2022, ideaForge, a drone manufacturer, won a contract to deliver 200 drones to the Indian Army. Per the contract, ideaForge delivered 100 SWITCH UAV systems in 2022, with a plant to deliver the remaining 100 in 2023. These drones are capable of vertical takeoff and landing (VTOL), which helps army forces in enhancing their surveillance capabilities.
  • In February 2022, Skydio, a US-based drone manufacturer, bagged a contract worth US$ 20.2 million annually to supply X2D UAVs to the US army for Short-Range Reconnaissance Program (SRR).
  • In October 2022, BAE Systems bagged a contract worth US$ 400 million for the development of a robotic combat drone that can be combined with piloted warplanes.
  • In December 2022, Lockheed Martin Corporation won a contract worth US$ 157.5 million from the British Army to provide 105 fixed-wing Stalker VXE30 drones and 159 rotary-wing Indago 4 uncrewed devices over the duration of 10 years.

Companies in the military drone market continuously engage in new product launched to cater to the demand from military authorities of different countries. For instance, in January 2023, Israel Aerospace Industries (IAI) launched ‘Point Blank’, a loitering munition drone, for US military under a multimillion-dollar contract between the US Department of Defense (DoD) and Israel government owned IAI. Such product launches by military drone market players will trigger a number of contracts from the different countries, thereby boosting the market growth in the forecasted period.

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Military Drone Market: Strategic Insights

Market Size Value inUS$ 12,186.42 million in 2022
Market Size Value byUS$ 19,559.50 million by 2028
Growth rateCAGR of 8.6% from 2023 to 2028
Forecast Period2023-2028
Base Year2022
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Impact of COVID-19 Pandemic on Military Drone Market 

The COVID-19 crisis hampered operations in military manufacturing industries due to reforms made in these facilities for ensuring the safety of workers and preventing the spread of the disease, which directly impacted the import and export of military drones. Companies operating in the military drone market had to make tough choices to sustain during the pandemic and the post-pandemic recovery period. Travel and transportation restrictions led to disruptions in raw material supply, which resulted in a further slowdown in production in different industries.

In North America, the US is the most technologically advanced country, followed by Canada and Mexico, respectively. Amid the COVID-19 pandemic, countries in the region held back investments in the development and adoption of new military drone technologies. There was a complete halt in military drone production, manufacturing, and supply chain due to longer lockdowns implemented by various 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 resulted in revenue loss among key military drone market players.

Lucrative Regions: Military Drone Market Share

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Market Insight – Military Drone Market

Changes in the modern warfare system have been urging governments across the globe to allocate higher funds for respective military forces. Budget allocation enables military forces to procure advanced technologies and equipment from domestic or international manufacturers. On the same lines, soldier and military vehicle modernization practices are also on the rise across numerous countries. With the growing need to strengthen military forces with advanced technologies, armaments, artilleries, and vehicles, among others, defense forces across the world are investing substantial amounts in the aforementioned products. A continuous urge to deploy new technologies in combat and non-combat operations by the defense forces is further boosting defense spending worldwide.

According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure rose to US$ 2,075.48 billion in 2021, which represents a 6.7% increase from 2020. The top five spenders in 2021, which accounted for 65% of the global expenditure, include the US, China, India, the UK, and Russia.

The Indian government rolled out the Drone Shakti initiative in the budget for the fiscal year 2022. Under this initiative, the government aimed to promote drone services through startups. Government production-linked initiative (PLI) schemes will help startups to boost drone production. In addition, the Indian government’s “Aatmanirbhar Bharat” drive is aimed to boost the local production of drones. These efforts, cumulatively, are likely propel to the total value of drone production to US$ 30 billion by 2023 and US$ 4.2 billion by 2025.

Range - Based Insights

Based on range, the military drone market is segmented into short range, medium range, and long range. The medium range segment accounted for a larger military drone market share in 2022. Medium-range military drones cover an altitude range of 3,500–5,500 m. Medium-altitude and long-endurance (MALE) drones come under this segment. These drones are widely used for ISR, warfare, and logistics applications. Medium-range drones can have a payload of 100–500 kg, and hence, they can carry additional cameras, sensors, and devices. The ability to carry higher payloads improves the efficiency of military drones. Moreover, medium-range drones benefit military forces through greater endurance levels and operation for longer hours, and these characteristics boost their performance in surveillance operations.

In October 2021, Turkish Aerospace Industries (TAI) supplied its first developed Aksungur, a MALE UAV, to the Turkish Navy. This drone has a good payload capacity of 750 kg and can fly for at least 50 hours. In addition, governments of different countries are investing to acquire medium-range drones. For instance, Spain signed a contract worth US$ 3.5 million with Airbus, Dassault Aviation, and Leonardo to develop MALE drones.

Players operating in the military drone market are focusing on the adoption of merger & acquisition strategies to remain competitive in the market.

  • In 2021, Aerovironment, Inc. completed acquisition of Arcturus UAV and expands portfolio with medium unmanned aircraft systems.
  • In 2020, IAI acquired 50% of the equity of BlueBird Aero Systems. As part of the transaction, IAI acquired the holdings of Piramal Technologies SA from India, as well as additional shares from Fiberless Access and Ronen Nadir.

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 are a few of the key military drone market players operating in the market. The military drone market report provides detailed market insights, which help the key military drone market players strategize their growth for the coming years.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, Application, Range, and Technology

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Australia, Canada, China, France, Germany, India, Italy, Japan, Mexico, Middle East & Africa, Russian Federation, South America, South Korea, United Kingdom, United States

Frequently Asked Questions

Which are the key players holding the major market share of global military drones market?

The key players, holding majority shares, in military drones market includes North Grumman Corporation, General Atomics, The Boeing Co., Elbit Systems Ltd, and Raytheon Technologies Corporation

What is the estimated global market size for the global military drones market in 2022?

The global military drones market was estimated to be US$ 12,186.42 Mn million in 2022 and is expected to grow at a CAGR of 8.6 %, during the forecast period 2023 - 2028.

What are the driving factors impacting the global military drones market?

Increasing number of contracts for military drones and surge in global defense sector are the major factors that propel the military drones market growth.

What will be the global market size for military drones market by 2028?

The military drones market is expected to reach US$ 19,559.50 Mn by 2028.

Which is the fastest growing regional market?

Asia Pacific is anticipated to grow with the highest CAGR over the forecast period.

What are the future trends of the global military drones market?

Facial recognition, mid-air aircraft refuelling ability, and other technological advancements is anticipated to play a significant role in conducting military drones in the coming years.

The List of Companies - Military Drone Market

  1. Lockheed Martin Corp
  2. Northrop Grumman Corp
  3. Thales SA
  4. Boeing Co
  5. Elbit Systems Ltd
  6. General Atomics
  7. Textron Systems Corp
  8. BAE Systems Plc
  9. AeroVironment Inc
  10. Israel Aerospace Industries Ltd.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. 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.

  1. 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:

Research Methodology

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.

  1. 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.

  1. 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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