Target Drones Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Target Drones Market is projected to experience substantial growth, expanding from USD 6.13 Billion in 2025 to USD 9.72 Billion by 2031 at a CAGR of 7.99%. Target drones are specialized unmanned aerial vehicles deployed by defense forces to simulate hostile threats, such as fighter jets and cruise missiles, thereby facilitating the training of air defense crews and the testing of weapon systems. A key factor driving this market expansion is the global increase in defense spending, which supports the procurement of sophisticated simulation systems needed for realistic combat preparation. According to the AeroSpace and Defence Industries Association of Europe, defense sector turnover in Europe rose by 13.8 percent to €183.4 billion in 2024, reflecting a strong financial commitment to military readiness that underpins the demand for these support assets.

However, the industry faces a major obstacle regarding the high development and operational costs associated with the high-speed, maneuvering targets needed to replicate modern aerial threats. These financial hurdles can limit procurement volumes for defense programs operating under strict budget constraints and hinder the widespread adoption of advanced target systems. Consequently, these cost barriers may impede the overall expansion of the sector by making it difficult for some agencies to access the most capable simulation technologies required for contemporary threat replication.

Market Drivers

The primary engine propelling the Global Target Drones Market is the escalation in global defense budgets and military spending. As geopolitical tensions intensify, nations are significantly increasing their financial commitments to bolster military readiness and modernize air defense capabilities. This surge in funding directly enables the procurement of expendable aerial targets, which are essential for validating new weapon systems and ensuring force preparedness. According to a fact sheet from the Stockholm International Peace Research Institute (SIPRI) released in April 2025, global military expenditure hit a record high of $2.71 trillion in 2024, providing the necessary capital for defense agencies to sustain long-term procurement programs for both basic and high-performance target drones.

A parallel driver is the increasing emphasis on realistic combat training and threat simulation, which necessitates targets capable of accurately mimicking the flight characteristics of advanced anti-ship missiles and enemy aircraft. Defense forces require high-fidelity systems to conduct complex interception scenarios, pushing manufacturers to deliver solutions with enhanced speeds and maneuverability. This demand is evidenced by Kratos Defense & Security Solutions, which announced in March 2025 that it received a $59.3 million contract modification to supply high-performance targets to the U.S. Navy. Additionally, the market is seeing robust activity in operational support, as illustrated by QinetiQ Target Systems securing a $13.3 million contract in January 2025 to provide uncrewed aerial target support services, demonstrating the sector's broadening scope beyond hardware manufacturing.

Market Challenges

A significant impediment to the expansion of the Global Target Drones Market is the high development and operational costs associated with advanced maneuvering targets. As modern aerial threats become faster and more stealthy, defense forces require target drones that can accurately replicate supersonic cruise missiles and fifth-generation fighter aircraft. Producing these high-performance surrogates involves integrating expensive propulsion systems and complex avionics, which drastically increases the price per unit. These elevated costs create a barrier for cost-sensitive defense programs, forcing them to limit procurement volumes or rely on obsolete simulation systems that do not adequately prepare crews for contemporary combat scenarios.

This financial burden is evident in the massive capital investments required to sustain such programs. In 2024, the Association for Uncrewed Vehicle Systems International noted that the U.S. Department of Defense requested an estimated $10.95 billion to support uncrewed vehicle acquisition and development. This figure underscores the immense funding necessary to procure and operate advanced unmanned systems. For nations or agencies unable to match such substantial financial commitments, the high cost of entry restricts market access and slows the widespread adoption of necessary high-speed target platforms.

Market Trends

The market is being reshaped by the adoption of swarming technology for multi-vector threat simulation, as defense forces seek to replicate saturated attacks. Military planners are prioritizing experiments utilizing large numbers of low-cost unmanned systems operating collaboratively to overwhelm air defense radars. This operational shift necessitates target drones capable of networked behaviors and distributed electromagnetic attacks. Validating this focus, Inside Defense reported in September 2024 that the U.S. Navy successfully tested 50 different technologies during its Silent Swarm 2024 exercise to evaluate distributed electromagnetic attack and deceptive swarming capabilities.

Simultaneously, the development of supersonic and hypersonic aerial targets has become a critical priority to address high-speed missile threats. As adversaries deploy hypersonic glide vehicles exceeding Mach 5, existing targets are insufficient for validating next-generation interception systems. Manufacturers are accelerating the production of testbeds that can sustain hypersonic velocities to stress-test missile defense architectures. Highlighting this trend, Design and Development Today reported in January 2025 that Stratolaunch secured a $24.7 million agreement to utilize its Talon-A vehicle to demonstrate critical capabilities for testing advanced missile defense systems against hypersonic weapons.

Key Players Profiled in the Target Drones Market

• Kratos Defense & Security Solutions, Inc.
• AeroTargets International LLC
• Northrop Grumman Corporation
• QinetiQ Group
• Airbus SE
• The Boeing Company
• Lockheed Martin Corporation
• Leonardo S.p.A.
• Textron Inc.
• BAE Systems PLC

Report Scope

In this report, the Global Target Drones Market has been segmented into the following categories:

Target Drones Market, by End Use Type:

• Defense
• Commercial

Target Drones Market, by Target Type:

• Aerial Target
• Ground Target
• Marine Target

Target Drones Market, by Mode of Operation Type:

• Autonomous
• Remotely Piloted

Target Drones Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Target Drones Market.

Available Customization

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• Detailed analysis and profiling of additional market players (up to five).

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