Low-Cost Electronic Warfare Drone Market Report 2025

The low-cost electronic warfare drone market size has grown rapidly in recent years. It will grow from $1.19 billion in 2024 to $1.4 billion in 2025 at a compound annual growth rate (CAGR) of 17.1%. The growth during the historic period was driven by rising demand for affordable unmanned defense solutions, increased use of drones for intelligence, surveillance, and reconnaissance, escalating geopolitical tensions, wider adoption of drones for electronic signal interception, and a growing focus on rapid-deployment aerial systems.

The low-cost electronic warfare drone market size is expected to see rapid growth in the next few years. It will grow to $2.6 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. The growth expected in the forecast period is driven by increasing demand for swarm drone capabilities, rising investment in autonomous combat drones, expanding use in electronic countermeasure missions, growing preference for modular drone designs, and wider adoption of unmanned systems in modern warfare. Key trends during this period include innovations in miniaturized electronic warfare payloads, development of autonomous mission planning, integration with satellite communications, connection with ground-based systems, and advancements in precision-guided munitions.

Increasing military spending is expected to drive the growth of the low-cost electronic warfare drone market in the coming years. Military spending includes the financial resources governments allocate to maintain and improve their armed forces, covering personnel, equipment, research and development, and operational expenses. This rise in spending is largely due to escalating geopolitical tensions, prompting nations to boost their defense capabilities and protect strategic interests in a volatile environment. Higher military budgets support investment in affordable, scalable, and technologically advanced electronic warfare drones for attack and defense purposes. For example, in April 2024, the Stockholm International Peace Research Institute (SIPRI), a Sweden-based non-government organization, reported that global military spending reached $2.443 trillion, a 6.8 percent increase from 2022. Consequently, increasing military expenditure is fueling growth in the low-cost electronic warfare drone market.

Energy-efficient systems are improving signal jamming capabilities in the low-cost electronic warfare drone market. Leading companies are developing lightweight, energy-saving payloads that consume minimal power while performing tasks like electronic jamming and surveillance. These compact components enable drones to fly longer and complete missions more effectively. For example, in June 2025, Thales Group, a France-based aerospace company, introduced a lightweight, remotely controlled electronic warfare payload for small drones that detects and locates radio signals. Weighing less than 5 kilograms (11 pounds) and using under 40 watts of power, it can be integrated with free-flying, autonomous, or tethered drones. The system operates passively by detecting and geolocating enemy radio frequency signals from tens of kilometers away without emitting signals, helping avoid detection in contested environments. It is easy to use for personnel without specialized training and offers real-time electromagnetic intelligence, supporting dedicated electronic warfare assets and improving situational awareness for land and naval forces.

In July 2025, Terma Group, a defense technology company based in Denmark, partnered with Odd Systems to jointly develop a low-cost, AI-powered autonomous drone interceptor. This collaboration seeks to improve battlefield defense by delivering affordable and intelligent counter-drone solutions that can effectively detect, track, and neutralize hostile drones. Odd Systems, based in Ukraine, specializes in low-cost electronic warfare drones.

Major players in the low-cost electronic warfare drone market are Raytheon Technologies Corporation, BAE Systems plc, Thales Group, Leonardo S.p.A., Elbit Systems Ltd., Saab AB, Aselsan A.S., General Atomics Aeronautical Systems Inc., QinetiQ Group plc, Kratos Defense And Security Solutions Inc., Anduril Industries Inc., AeroVironment Inc., Shield AI, DroneShield Ltd., Red Cat Holdings Inc., Parrot SA, Zuppa Geo Navigation Technologies Private Limited., Teal Drones Inc., Firestorm Labs Inc., and TAF Industries.

North America was the largest region in the low-cost electronic warfare drone market in 2024. The regions covered in low-cost electronic warfare drone report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the low-cost electronic warfare drone 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 low-cost electronic warfare drone is an unmanned aerial system built to deliver affordable electronic attack, protection, and surveillance capabilities. Its main function is to jam, deceive, or disrupt enemy communications, radars, and sensors while safeguarding friendly forces. These drones can be deployed in swarms to provide broad battlefield coverage with less risk to valuable assets.

The primary types of low-cost electronic warfare drones include fixed-wing, rotary-wing, and hybrid drones. A fixed-wing drone is an unmanned aerial vehicle featuring fixed wings, designed to carry out electronic warfare tasks such as jamming, disrupting, or deceiving enemy communications and radar systems, while remaining cost-effective to produce and operate. These drones come in short-range, medium-range, and long-range versions and are used across aerial, ground, and naval platforms. They support applications like military surveillance, electronic attack, signal intelligence, and jamming, serving various end-users including defense forces, homeland security, law enforcement, and others.

The low-cost electronic warfare drone market research report is one of a series of new reports that provides low-cost electronic warfare drone market statistics, including low-cost electronic warfare drone industry global market size, regional shares, competitors with a low-cost electronic warfare drone market share, detailed low-cost electronic warfare drone market segments, market trends and opportunities, and any further data you may need to thrive in the low-cost electronic warfare drone industry. This low-cost electronic warfare drone 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 low-cost electronic warfare drone market consists of sales of jamming devices, radar deception modules, signal intelligence sensors, communication disruption devices, and swarm-enabled platforms. 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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