Loitering Munition Swarm Market Report 2025

The loitering munition swarm market size has grown rapidly in recent years. It will grow from $1.6 billion in 2024 to $1.84 billion in 2025 at a compound annual growth rate (CAGR) of 15.1%.The growth in the historic period can be attributed to increasing cross-border insurgencies, greater reliance on tactical battlefield support, expanding deployment in asymmetric warfare, heightened focus on minimizing troop casualties, and wider adoption of rapid-deployment strike systems.

The loitering munition swarm market size is expected to see rapid growth in the next few years. It will grow to $3.18 billion in 2029 at a compound annual growth rate (CAGR) of 14.7%. The growth in the forecast period can be attributed to the increasing integration of swarm systems with electronic warfare, rising demand for autonomous collaborative missions, greater use in naval and littoral operations, growing emphasis on AI-enabled real-time decision-making, and expanding adoption in counter-drone operations. Major trends expected during this period include advancements in swarm communication protocols, progress in cooperative navigation systems, the development of energy-efficient propulsion technologies, innovations in real-time threat assessment, and the creation of scalable swarm deployment strategies.

The increasing defense budgets are expected to propel the growth of the loitering munition swarm market going forward. Rising geopolitical tensions are driving governments to boost defense spending to strengthen deterrence and security, with significant investments directed toward advanced military technologies. Loitering munition swarms, which enable precision strikes and can overwhelm enemy systems, are gaining adoption as defense budgets fund their development and large-scale deployment. For instance, in December 2023, according to the House of Commons Library, the UK secured defense orders worth $16.04 billion (£12 billion) in 2022, marking a $6.15 billion (£4.6 billion) increase from 2021, highlighting greater investment in advanced military capabilities. Therefore, the rising defense budgets are fueling the growth of the loitering munition swarm market.

Major companies operating in the loitering munition swarm market are focusing on advancing autonomous swarm coordination systems to improve mission adaptability, precision, and operational efficiency for modern defense forces. Autonomous swarm coordination systems allow multiple loitering munitions to communicate, collaborate, and carry out coordinated strikes with minimal human oversight. For instance, in July 2025, Artemon Aerospace, an India-based drone manufacturing company, successfully conducted demonstration trials of its canister-launched loitering munition with the Indian Army under the iDEX initiative, showcasing progress in indigenous unmanned systems. The medium-class UAV integrates VTOL capability, advanced EO/IR sensors, GNSS-denied navigation, a 1-1.5 kg warhead, and over 170 km range with 1.5 hours of endurance, supporting both ISR and precision strike roles. With ~63% indigenous content and flexible propulsion options, the system highlights operational versatility and self-reliance, reinforcing Artemon’s role in India’s defense modernization and the broader adoption of autonomous swarm coordination technologies.

In May 2025, AeroVironment Inc., a US-based defense contractor, acquired BlueHalo LLC for $4.1 billion. This acquisition expands AeroVironment’s scale and technological depth, enhancing its ability to deliver integrated defense solutions across multiple domains while driving innovation in advanced autonomy, cyber, space, and directed energy capabilities. The deal also strengthens AeroVironment’s position in emerging defense technologies, particularly in loitering munition swarm and counter-drone systems. BlueHalo LLC, a US-based company, specializes in manufacturing loitering munition swarm and counter-drone technology, making it a strategic fit to bolster AeroVironment’s defense portfolio and better support evolving military mission requirements.

Major players in the loitering munition swarm market are Raytheon Technologies Corporation, Lockheed Martin Corporation, China Aerospace Science and Technology Corporation (CASC), Northrop Grumman Corporation, BAE Systems plc, L3 Technologies Inc., STM Savunma Teknolojileri Mühendislik ve Ticaret A.Ş., Leonardo S.p.A., Elbit Systems Ltd., Israel Aerospace Industries (IAI), EDGE Group (HALCON), Saab AB, Rafael Advanced Defense Systems Ltd., Thales Group, General Atomics Aeronautical Systems, Inc., Hanwha Group, AeroVironment, Inc., WB Group, Baykar Technologies, UVision Air Ltd.

North America was the largest region in the loitering munition swarm market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in loitering munition swarm report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the loitering munition swarm 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 loitering munition swarm refers to a group of loitering munitions deployed simultaneously and capable of coordinated operations. These swarms are designed to conduct surveillance, track targets, and strike multiple or high-value objectives while overwhelming enemy defenses. Their main purpose is to increase battlefield effectiveness by saturating defenses and ensuring successful target engagement.

The primary types of loitering munition swarms include fixed-wing, rotary-wing, and hybrid platforms. Fixed-wing systems use stationary wings that generate lift through forward motion, with examples including fighter aircraft, bombers, and reconnaissance planes. Loitering munition swarms can be deployed across air, land, and naval platforms and operate at varying ranges, including short, medium, and long range. They are applied in areas such as defense, homeland security, and other missions, with end users including military forces, law enforcement agencies, and additional security organizations.

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

The loitering munition swarm market consists of sales of swarm-capable loitering munitions, control systems, and communication modules. 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 such as training, maintenance, and system integration provided 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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