Counter Unmanned Aerial Vehicle (UAV) Defense System Market Report 2025

The counter unmanned aerial vehicle (UAV) defense system market size has grown exponentially in recent years. It will grow from $2.03 billion in 2024 to $2.46 billion in 2025 at a compound annual growth rate (CAGR) of 21.3%. The growth during the historic period is due to the increased use of drones by terrorist groups, a rise in airspace intrusion incidents, growing government funding for border security, escalating drone threats to critical infrastructure, and heightened investments in advanced border surveillance technologies.

The counter unmanned aerial vehicle (UAV) defense system market size is expected to see exponential growth in the next few years. It will grow to $5.28 billion in 2029 at a compound annual growth rate (CAGR) of 21%. The anticipated growth during the forecast period can be linked to the increasing demand for portable and mobile counter-UAV solutions, the rise in commercial drone traffic within urban areas, greater use of drones for smuggling and espionage, growing concerns about UAV-based cyber and electronic warfare, and the expanding deployment of drone swarms in both military and non-state operations. Key trends expected in this period include advancements in directed energy weapons, the development of affordable modular defense systems, integration with existing air defense networks, the incorporation of cloud-based data analysis and reporting, and innovations in autonomous interceptor drones.

The increase in defense security investments is expected to drive the growth of the counter unmanned aerial vehicle (UAV) defense system market in the future. Defense security investments involve the allocation of funds by governments or private organizations to develop, improve, and sustain military technologies, infrastructure, and capabilities aimed at national security and defense. These investments are largely fueled by rising geopolitical tensions, which push countries to bolster their military strength and safeguard national security. Counter UAV defense systems play a vital role in these investments by providing essential protection against aerial threats, thereby enhancing national security infrastructure and supporting funding for advanced technologies. For example, in February 2025, the International Institute for Strategic Studies (IISS), a UK-based research organization, reported that global defense spending reached a record $2.46 trillion in 2024, representing a 7.4% increase from $2.24 trillion in 2023. Hence, the rising defense security investments are fostering growth in the counter UAV defense system market.

Leading companies in the counter UAV defense system market are prioritizing the development of sophisticated technologies, such as layered defense architecture, to improve the detection, tracking, and neutralization of drone threats. Layered defense architecture is a strategy that employs multiple sensor and interceptor layers at various ranges and altitudes to detect and counter UAVs. For instance, in February 2025, Lockheed Martin Corporation, a U.S.-based aerospace and defense firm, unveiled a scalable counter-unmanned aerial system solution. This system integrates diverse sensors including radar, electro-optical/infrared (EO/IR), and radio frequency (RF) detection to enhance situational awareness. It combines kinetic and non-kinetic effectors like electronic warfare and directed energy systems, providing flexible engagement options across different operational environments. Designed for fixed, mobile, or expeditionary deployment, the platform supports various mission types. Its open architecture allows seamless integration with existing command and control systems, enabling real-time data fusion and cooperative threat response, while facilitating easy deployment and future scalability.

In May 2025, AeroVironment Inc., a U.S.-based defense contractor, acquired BlueHalo LLC for $4.1 billion. This acquisition aims to expand AeroVironment’s capabilities in counter-unmanned aerial systems and integrated defense solutions by leveraging BlueHalo’s expertise in directed energy, RF detection, and layered defense technologies. BlueHalo LLC is a U.S.-based company specializing in counter-unmanned aerial vehicle (C-UAV) defense systems.

Major players in the counter unmanned aerial vehicle (uav) defense system market are Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales S.A., Leonardo SpA, Textron Inc., Airbus Defence and Space GmbH, Elbit Systems Ltd., Israel Aerospace Industries Ltd., Saab AB, Rohde And Schwarz GmbH And Co. KG, Baykar Teknoloji A.Ş, Anduril Industries Inc., Kratos Defense And Security Solutions Inc., UVision Air Ltd., Blighter Surveillance Systems Ltd., ZALA Aero Group LLC, KVERTUS LLC.

North America was the largest region in the counter unmanned aerial vehicle (UAV) defense system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in counter unmanned aerial vehicle (UAV) defense system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the counter unmanned aerial vehicle (UAV) defense system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

A counter-unmanned aerial vehicle (UAV) defense system is a specialized technology developed to detect, track, and neutralize unauthorized or hostile drones. It employs a combination of sensors, radar, electronic jamming, and kinetic methods to stop UAVs from breaching restricted airspace or executing harmful actions. These systems play a vital role in safeguarding critical infrastructure, military installations, and public gatherings from potential drone-related threats.

The primary categories of counter-UAV defense systems include detection systems and combined detection and disruption systems. Detection systems are technologies designed to identify, pinpoint, and monitor potential threats such as drones through sensors like radar, radio frequency, and optical devices. These systems utilize various control technologies, including electronic, mechanical, hydraulic-pneumatic, hybrid, and active pneumatic suspension mechanisms. Their key components include hardware, software, services, integration solutions, and maintenance support. They are utilized by a broad spectrum of end users, including government and defense agencies, private security providers, corporate entities, agricultural sectors, and research institutions.

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

The counter unmanned aerial vehicle (UAV) defense system market consists of revenues earned by entities by providing services such as detection, tracking, identification, and neutralization. The market value includes the value of related goods sold by the service provider or included within the service offering. The counter unmanned aerial vehicle (UAV) defense system market also includes sales of radar detection systems, radio frequency (RF) jammers, laser-based defense systems, electro-optical systems, and kinetic interceptors. 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.