Unmanned Defense Aerial Vehicle Market Report 2026

The unmanned defense aerial vehicle market size has grown strongly in recent years. It will grow from $17.91 billion in 2025 to $19.52 billion in 2026 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to early adoption of unmanned aerial vehicles (UAVs) for reconnaissance and surveillance, development of armed drones for targeted military strikes, technological advancements in flight control and navigation systems, growth in defense contracts for tactical drone deployment, integration of sensors and electronic warfare systems in defense UAVs.

The unmanned defense aerial vehicle market size is expected to see strong growth in the next few years. It will grow to $27.73 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to increasing deployment of autonomous uavs for combat and intelligence missions, advancements in AI-driven target recognition and mission planning, growth in long-endurance and stealth unmanned defense aircraft, rising investment in swarm and coordinated drone operations, integration of real-time data analytics and secure communication systems in defense UAVs. Major trends in the forecast period include integration of advanced weapon systems on uavs, development of long-endurance tactical and strategic uavs, miniaturization of uav payloads for reconnaissance and mapping, expansion of retrofit and upgrade services for legacy uavs, enhanced secure communication and real-time data transfer systems.

The rise in military spending is expected to significantly drive the growth of the unmanned defense aerial vehicle (UAV) market. Military spending refers to the total financial resources that governments allocate to maintain and modernize armed forces, including procurement, operations, and research and development. As nations respond to increasing geopolitical tensions, global military expenditures are rising, with governments investing heavily in advanced warfare technologies to strengthen national defense capabilities. The unmanned defense aerial vehicle market benefits from this trend because advanced UAV systems are prioritized for surveillance, reconnaissance, and precision strike operations. For instance, in April 2025, according to the Stockholm International Peace Research Institute (SIPRI), global military expenditure increased by 9.4% in real terms to USD 2.718 trillion in 2024, marking the highest total ever recorded. Therefore, increasing military spending is fueling growth in the unmanned defense aerial vehicle market.

Major companies in the unmanned defense aerial vehicle market are focusing on developing sustainable and eco-friendly UAV solutions, including carbon-neutral drones and hybrid-electric propulsion systems that reduce lifecycle greenhouse gas emissions and lower reliance on conventional fuels. Carbon-neutral drones are airframes whose operational emissions and embodied carbon are offset to net zero through low-emission propulsion, use of sustainable aviation fuels or biofuels, modular rechargeable energy packs, and verified carbon offset or sequestration programs across the product lifecycle. For example, in 2023, Garuda Aerospace, an India-based aerospace company, introduced a carbon-neutral drone at the World Economic Forum, featuring modular battery systems, compatibility with low-carbon fuels, and lifecycle carbon accounting. These technologies align with defense buyers’ focus on predictable operational costs and supply resilience, as hybrid and electric systems shift expenditure from volatile fuel markets to manageable battery and power-system supply chains.

In July 2025, Indra Group, a Spain-based technology company specializing in defense, aerospace, air traffic, and digital transformation solutions, acquired Aertec Defence & Aerial Systems (DAS) for an undisclosed amount. The acquisition strengthens Indra’s leadership in the medium-sized UAS segment and enhances its Weapons & Ammunition division, which focuses on anti-drone systems, precision-guided munitions, directed-energy weapons, and unmanned systems. Aertec Defence & Aerial Systems (DAS) is a Spain-based manufacturer of unmanned aerial systems (UAS).

Major companies operating in the unmanned defense aerial vehicle market are The Boeing Company, Northrop Grumman Corporation, General Atomics Aeronautical Systems Inc., Israel Aerospace Industries Ltd. (IAI), Elbit Systems Ltd., Textron Inc., AeroVironment Inc., Turkish Aerospace Industries Inc. (TAI), BAE Systems plc, Lockheed Martin Corporation, Thales Group, Airbus SE, Insitu, Shield AI Inc., Delair, Aurora Flight Sciences, Prox Dynamics AS / FLIR Systems, Vayu Inc., Raytheon Technologies Corporation, Science Applications International Corporation (SAIC).

Asia-Pacific was the largest region in unmanned defense aerial vehicle market in 2025. Western Europe is expected to be the fastest-growing region in the unmanned defense aerial vehicle market during the forecast period. The regions covered in the unmanned defense aerial vehicle market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the unmanned defense aerial vehicle market by increasing costs for imported components such as sensors, propulsion systems, and avionics, particularly affecting segments like fixed-wing and hybrid VTOL UAVs. Regions including North America, Europe, and Asia-Pacific that rely heavily on imports are most affected. Positive effects include stimulation of domestic UAV manufacturing, promotion of local R&D in autonomous systems, and faster adoption of innovative, cost-efficient UAV technologies.

The unmanned defense aerial vehicle market research report is one of a series of new reports that provides unmanned defense aerial vehicle market statistics, including unmanned defense aerial vehicle industry global market size, regional shares, competitors with an unmanned defense aerial vehicle market share, detailed unmanned defense aerial vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the unmanned defense aerial vehicle industry. This unmanned defense aerial vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Unmanned defense aerial vehicles, commonly referred to as drones and aircraft without onboard human operators, are employed in autonomous defense operations. These UAVs are equipped with sensors, target designators, and various munitions like ATGMs, missiles, bombs, or electronic transmitters, designed for the destruction of enemy targets in military and defense applications.

The primary categories of UAVs used in unmanned defense aerial vehicles include multi-rotor, single rotor, fixed-wing, and fixed-wing hybrid VTOL (Vertical Takeoff and Landing) drones. Fixed-wing drones are aircraft without human pilots onboard, and they can be controlled remotely by a human operator or autonomously by onboard systems. These UAVs are used in different operational ranges, including visual line of sight (VLOS), extended visual line of sight (EVLOS), and beyond the line of sight (BLOS). They also employ various technologies, ranging from remotely operated to semi-autonomous and fully autonomous systems.

The countries covered in the unmanned defense aerial vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The unmanned defense aerial vehicle market consists of sales of remotely piloted and unpiloted aerial vehicles for defense purposes such as carry weapons, mapping, communication, and destroy targets. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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