Military Drones Market Report 2026

The military drones market size has grown rapidly in recent years. It will grow from $17.26 billion in 2025 to $19.25 billion in 2026 at a compound annual growth rate (CAGR) of 11.5%. The growth in the historic period can be attributed to rising military adoption of uavs for border surveillance and reconnaissance missions, increased deployment of drones for combat operations and precision strikes, advancements in communication and navigation systems enhancing drone effectiveness, expansion of drone use for battle damage assessment and mapping, growth in payload integration enabling equipment delivery in conflict zones.

The military drones market size is expected to see rapid growth in the next few years. It will grow to $29.57 billion in 2030 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to rising demand for autonomous and semi-autonomous drones to support multi-domain operations, advancements in long-endurance propulsion systems expanding mission range, increasing integration of advanced sensors and ai-driven analytics for real-time intelligence, development of swarming drone capabilities for coordinated military missions, expanding defense budgets supporting large-scale procurement of next-generation military drones. Major trends in the forecast period include rising deployment of long-endurance surveillance drones, increasing use of drones for precision strike capabilities, growth in drone-assisted border security and reconnaissance, expansion of multi-mission tactical uav programs, higher adoption of uavs for remote battlefield communication support.

The rise in terrorism is expected to support the growth of the military drone market. Terrorism refers to acts of violence that endanger others and demonstrate a disregard for the harm caused. Governments and military organizations frequently rely on military drones in counter-terrorism operations. These drones provide essential intelligence, surveillance, and reconnaissance (ISR) capabilities used to observe and track terrorist activities. The need for real-time data and actionable intelligence in counter-terrorism missions increases the demand for military drones. For example, in February 2024, the Institute for Economics & Peace, an Australia-based think tank, reported that terrorism-related deaths outside Afghanistan rose by 4% in 2023 compared to 2022. Therefore, increasing terrorism is contributing to the growth of the military drone market.

Major companies in the military drone market are developing new products, such as hybrid unmanned aerial systems, to reach a broader customer base, increase sales, and boost revenue. A hybrid unmanned aerial system (UAS) is a drone that uses multiple propulsion systems or energy sources to improve operational capabilities. For instance, in February 2023, BAE Systems PLC, a UK-based aerospace company, introduced STRIX, a drone designed to perform air-to-ground strikes, surveillance, and reconnaissance missions in high-risk environments. The drone measures 2.6 meters by 4.5 meters (8.5 feet by 14.8 feet). According to its developer, the tandem-wing, multi-domain system can travel up to 800 kilometers (497 miles) with a payload capacity of 160 kilograms (352 pounds). It can also carry a variety of weapons, including those already used by the Australian military.

In January 2023, Highlander Partners L.P., a US-based investment firm, acquired Black Sage Technologies for an undisclosed amount. This acquisition represents Highlander’s third Counter-Unmanned Aircraft Systems (C-UAS) and Unmanned Aircraft Systems (UAS) investment, reinforcing its strategy of targeting technological leaders in high-growth defense sectors. Black Sage’s advanced technologies are expected to support Highlander’s goal of developing innovative solutions to protect military forces, allies, and critical infrastructure. Black Sage Technologies is a US-based manufacturer of military drones.

Major companies operating in the military drones market are Lockheed Martin Corporation, Northrop Grumman Corp, Thales Group, The Boeing Company, Raytheon Technologies, General Atomics Aeronautical Systems, Inc, Aerovironment, Inc, Elbit Systems Ltd, Israel Aerospace Industries Ltd, Textron Inc, Babcock International, BAE Systems, Państwowe Wytwórnie Uzbrojenia, Państwowe Zakłady Inżynierii, Polish Armaments Group, Gyrofly Innovations, Drone Livre, Santos Lab, Alexandria Shipyard, Arab Organization for Industrialization.

Asia-Pacific was the largest region in military drones’ market in 2025. Western Europe is expected to be the fastest-growing region in the global military drones market share during the forecast period. The regions covered in the military drones 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 are impacting the military drone market by increasing the cost of importing critical components such as avionics, sensors, semiconductors, and propulsion systems, leading to higher manufacturing and procurement costs for UAV programs. Segments most affected include MALE and HALE drones, which rely heavily on advanced electronics, with strong impacts seen in regions such as Asia-Pacific and Europe where cross-border supply chains are essential. However, tariffs are also encouraging domestic production capabilities and stimulating investment in localized drone manufacturing and defense technology ecosystems.

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

A military drone refers to an unmanned aerial vehicle specifically designed for military applications, including tasks such as border surveillance, battle damage assessment, combat operations, communication, delivery, and anti-terrorism weaponry.

The primary types of military drones are fixed-wing, rotary-wing, and hybrid. Fixed-wing drones are unmanned planes that operate without a human pilot on board. These UAVs can be remotely controlled by a human operator or operate autonomously through onboard systems. Various categories of military drones include MALE (Medium Altitude Long Endurance), HALE (High Altitude Long Endurance), TUAV (Tactical Unmanned Aerial Vehicle), UCAV (Unmanned Combat Aerial Vehicle), SUAV (Small Unmanned Aerial Vehicle), and involve technologies ranging from remotely operated to semi-autonomous and fully autonomous. Military drones find applications in search and rescue operations, national defense, military exercises, and other strategic activities.

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

The military drone market consists of sales of military drones for purposes such as operations, surveillance, mapping, communication, and equipment delivery in military. 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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