Loitering Munition System Market Report 2026

The loitering munition system market size has grown strongly in recent years. It will grow from $2.02 billion in 2025 to $2.22 billion in 2026 at a compound annual growth rate (CAGR) of 9.9%. The growth in the historic period can be attributed to development of mini loitering munitions, initial deployment of tactical loitering systems, adoption in military operations for high-value target engagement, integration of eo/ir systems, ground-based platform launches for early reconnaissance.

The loitering munition system market size is expected to see strong growth in the next few years. It will grow to $3.22 billion in 2030 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to rising demand for strategic long-endurance systems, expansion in naval and aerial platform launches, adoption by paramilitary organizations for precision operations, advancements in gps/ins guidance technologies, integration with homeland security surveillance systems. Major trends in the forecast period include extended loitering time and endurance, precision strike capabilities with minimal collateral damage, integration with multi-domain platforms, enhanced real-time surveillance and targeting, lightweight and portable loitering munition designs.

The loitering munition system market size is expected to see strong growth in the next few years. It will grow to $2.94 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to the expansion of military modernization programs, rising demand for multi-role loitering munitions, growth in counterterrorism operations requiring precision and rapid-response capabilities, increasing use of loitering munitions in naval and aerial platforms, and rising geopolitical tensions. Major trends in the forecast period include turbojet-powered high-speed munitions, expansion of artificial intelligence (AI)-enabled autonomy and swarm operations, miniaturization and modular design, and real-time intelligence and surveillance.

The rising geopolitical tensions are expected to drive growth in the loitering munition system market. These tensions, stemming from political, economic, territorial, or strategic disputes, are increasingly triggered by territorial conflicts that jeopardize national sovereignty and control over strategically important regions. Loitering munition systems play a key role in responding to these tensions by offering rapid, accurate strike capabilities with minimal collateral damage, thereby enhancing military preparedness in unstable areas. These systems provide real-time surveillance and offensive capabilities, improving strategic deterrence and operational effectiveness. For example, in October 2024, the U.S. Department of Homeland Security reported over 181,000 migrant encounters at the US-Canada border, reflecting a 6.5% increase from 170,000 in 2023. This rise in cross-border pressures underscores the growing need for advanced defense systems like loitering munitions.

Leading companies in the loitering munition system sector are developing innovative solutions, such as air-launched platforms, to improve operational range, targeting precision, and flexibility in contested environments. Air-launched platforms allow loitering munitions to be deployed from airborne vehicles like drones or helicopters, facilitating rapid response and extended reach without requiring major system integration. For instance, in June 2025, UVision Air Ltd., an Israel-based defense firm, introduced a modular launch rack for its Hero-120 loitering munition. This upgrade enables deployment from combat helicopters, significantly enhancing tactical flexibility and lethality. The Hero-120, a medium-range anti-armor system, now offers a strike range of 40-60 kilometers and endurance of up to one hour with rapid, low-signature deployment capability.

In April 2025, UVision USA Corporation, a subsidiary of UVision Air Ltd., acquired Trim Robotics Ltd. for an undisclosed sum. This acquisition aims to expand UVision’s loitering munition capabilities by integrating Trim Robotics’ advanced technologies, including the dual-fuselage Quadikaze missile. The deal is expected to boost the performance, precision, and adaptability of UVision’s systems in complex operational environments and accelerate the development of next-generation autonomous solutions. Trim Robotics Ltd. is an Israel-based defense tech company known for its innovation in loitering munition design.

Major companies operating in the loitering munition system market report are Lockheed Martin Corporation, Airbus SE, RTX Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Rheinmetall AG, Elbit Systems Ltd., Teledyne Technologies Incorporated, Edge PJSC Group, Israel Aerospace Industries Ltd., MBDA Missile Systems, KNDS N.V., Rafael Advanced Defense Systems Ltd, Solar Industries India Limited, Paramount Group, AeroVironment Inc., Anduril Industries, STM Savuma Teknolojileri Muhendislik Ve Ticaret A.S, WB Group Sp. z o.o., UVision Air Ltd., Embention Sistemas Inteligentes S.L., AVision Systems Pvt. Ltd., ZALA Aero Group.

North America was the largest region in the loitering munition system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the loitering munition system market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the loitering munition system market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The loitering munition system market consists of revenues earned by entities by providing services such as target acquisition, real-time surveillance and reconnaissance, mission planning and control, system integration, maintenance and support, and training for operational deployment. The market value includes the value of related goods sold by the service provider or included within the service offering. The loitering munition system market also includes sales of launch platforms, ground control stations, communication systems, guidance modules, and associated payloads and sensors. 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.

This product will be delivered within 1-3 business days.