Small Unmanned Aerial Vehicles Market Report 2025

The small unmanned aerial vehicles market size has grown rapidly in recent years. It will grow from $5.18 billion in 2024 to $5.84 billion in 2025 at a compound annual growth rate (CAGR) of 12.8%. The growth in the historic period can be attributed to expansion of drone-based delivery services, increasing use in agriculture for crop monitoring and spraying, growth in infrastructure inspection, growth of real estate marketing via aerial imaging, and growing availability of drone-as-a-service models.

The small unmanned aerial vehicles market size is expected to see rapid growth in the next few years. It will grow to $9.34 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. This anticipated growth will be supported by a rise in defense budgets, wider utilization in surveillance and reconnaissance operations, a surge in counter-terror efforts, expanding deployment among paramilitary groups, and growing demand in aerial imaging for film and photography. Prominent trends forecasted during this period include smaller and more efficient sensor components, advanced autonomous GPS navigation, AI-driven flight control advancements, integration of technologies like LiDAR and thermal/multispectral imaging, and enhanced battery performance and energy management.

The rising military expenditure is expected to propel the growth of the small unmanned aerial vehicles market going forward. Military expenditure is the government's money to support and develop its armed forces, covering personnel, equipment, and operations. Military expenditure is rising due to increasing geopolitical tensions as nations invest more in defense to strengthen their strategic position and respond to emerging security threats. Small UAVs are affordable, flexible, and provide real-time intelligence while minimizing risks to personnel, making them essential for modern combat and border monitoring. The rise in defense investments will focus on expanding and upgrading small UAV fleets to enhance situational awareness, target detection, and operational versatility, fueling growth in this sector. For instance, in April 2025, according to the Stockholm International Peace Research Institute, a Sweden-based international institute, global military spending reached 2.71 trillion dollars in 2024, showing a 9.4% increase in real terms compared to the previous year. Therefore, the rising military expenditure drives the growth of the small unmanned aerial vehicles market.

Leading players in the small unmanned aerial vehicles market are emphasizing innovation in nano drones to deliver budget-friendly and low-maintenance surveillance tools. These compact drones are designed for agile operation in tight environments thanks to their small size and lightweight structure. In September 2024, Vantage Robotics, a U.S.-based UAV developer, introduced Trace, a nano drone built to support defense, law enforcement, and essential infrastructure monitoring. Weighing just 153 grams, the drone complies with FAA safety standards while delivering the imaging and flight capabilities typically found in larger UAVs. Its quiet operation and integrated high-resolution visual and thermal cameras with 24x zoom make it suitable for covert missions, both indoors and outdoors.

In April 2024, TCOM, a U.S.-based provider of intelligence, surveillance, and reconnaissance (ISR) solutions, acquired Equinox Innovative Systems for an undisclosed sum. The acquisition allows TCOM to diversify its UAV offerings and expand specialized product lines tailored for military and high-stakes mission requirements. This strategic move consolidates advanced technologies under one company, enhancing the protection and surveillance capacity in vital international regions. Equinox Innovative Systems, also based in the U.S., manufactures small unmanned aerial vehicles.

Major players in the small unmanned aerial vehicles market are RTX Corporation, Lockheed Martin Corporation, Airbus SE, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Textron Inc., Elbit Systems Ltd., Israel Aerospace Industries Ltd., Saab AB, DJI Technology Co. Ltd., General Atomics Aeronautical Systems Inc., Kratos Defense & Security Solutions Inc., Teledyne FLIR LLC, AeroVironment Inc., Yuneec International Co. Ltd., Insitu Inc., Parrot SA, Baykar Makina Sanayi ve Ticaret A.Ş., 3D Robotics Inc.

North America was the largest region in the small unmanned aerial vehicles market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in small unmanned aerial vehicles report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the small unmanned aerial vehicles 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.

Small unmanned aerial vehicles are airborne systems that are either remotely piloted or autonomously navigated and are built to operate without a human pilot onboard. These systems are known for being lightweight, aerodynamically optimized, and capable of executing precise and controlled maneuvers.

The primary categories of small unmanned aerial vehicles include helicopters, multi-rotors, and quadcopters. Helicopters in this context are UAVs that achieve lift using rotating blades and can take off vertically and hover in place. These vehicles can operate on both fuel and battery power and come in several size variations such as micro, mini, and nano. They serve a wide range of uses, including military, commercial, government and law enforcement, border security, and personal consumer applications.

The small unmanned aerial vehicles market research report is one of a series of new reports that provides small unmanned aerial vehicles market statistics, including small unmanned aerial vehicles industry global market size, regional shares, competitors with a small unmanned aerial vehicles market share, detailed small unmanned aerial vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the small unmanned aerial vehicles industry. This small unmanned aerial vehicles 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 small unmanned aerial vehicles market consists of sales of flight control systems, radio transmitters, onboard cameras, payload integration kits, and cooling systems. 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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