Aerial Loitering Munitions Market Report 2025

The aerial loitering munitions market size has grown rapidly in recent years. It will grow from $1.86 billion in 2024 to $2.05 billion in 2025 at a compound annual growth rate (CAGR) of 10.5%. During the historic period, growth was driven by the increasing adoption of long-duration surveillance, rising demand for persistent strike capabilities, heightened focus on minimizing collateral damage, expansion of battlefield reconnaissance missions, greater use in tactical operations, and growing interest in mission flexibility.

The aerial loitering munitions market size is expected to see rapid growth in the next few years. It will grow to $3.02 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. During the forecast period, growth is expected to be driven by increased investment in extended-endurance platforms, rising use of high-precision targeting, expanded multi-platform interoperability, greater adoption in special operations, and heightened focus on rapid deployment capabilities. Key trends include advancements in guidance and navigation technologies, improvements in loitering endurance, R&D in sensor-guided munitions, development of modular payload systems, and investment in autonomous strike coordination.

Rising defense budgets are expected to drive growth in the aerial loitering munitions market. Defense budgets are the financial resources governments allocate to military operations, personnel, equipment, and infrastructure. Increased spending is largely driven by escalating geopolitical tensions and regional security challenges. Higher defense budgets enable greater investment in advanced strike technologies, making aerial loitering munitions essential for modern military operations. These investments enhance national security by supporting precision-guided capabilities and improving operational readiness and battlefield effectiveness. For example, in April 2024, the Stockholm International Peace Research Institute (SIPRI) reported that global military spending reached $2.443 trillion, a 6.8% increase from 2022. This trend is fueling the growth of the aerial loitering munitions market.

Leading companies in the aerial loitering munitions market are developing advanced solutions, such as swappable warheads and payloads, to improve mission flexibility and cost-effective adaptability. Swappable warheads and payloads are modular components that allow operators to quickly change the type of explosive or sensor package before a mission. For example, in June 2025, UVision Air Ltd., an Israel-based aerospace and defense firm, introduced an aerial launch capability for its Hero-120 loitering munition, enabling deployment from various utility and attack helicopters without extensive aircraft integration. This modular system supports rapid installation and interchangeable payloads, enhancing operational versatility. The Hero-120 is a precision loitering munition designed for targeted strikes on both armored and soft targets, offering controlled lethality and high accuracy.

In April 2025, UVision Air Ltd., an Israel-based defense technology company, acquired Trim Robotics Ltd. for an undisclosed amount. This acquisition aims to strengthen UVision’s loitering munition portfolio by incorporating advanced rotary-wing technologies, offering greater operational flexibility and supporting a broader range of tactical missions. Trim Robotics Ltd., also based in Israel, specializes in aerial loitering munitions.

Major players in the aerial loitering munitions market are Raytheon Technologies Corporation, Northrop Grumman Corporation, Cummings Aerospace, BAE Systems plc, Thales SA, Rheinmetall AG, Elbit Systems Ltd., Israel Aerospace Industries Ltd., EDGE Group plc, Kalashnikov Group, STM AS, General Atomics Aeronautical Systems Inc., Anduril Industries, Paramount Group, AeroVironment Inc., ADASI LLC, AEVEX Aerospace, UVision Air Ltd., Embention Sistemas Inteligentes S.L., and Rafael Advanced Defense Systems Ltd.

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

Aerial loitering munitions are advanced weapon systems designed to remain airborne over a designated area for extended periods, allowing operators to observe, track, and select the optimal moment to strike a target. They combine the intelligence-gathering capabilities of unmanned aerial vehicles with the precision and destructive power of guided missiles, making them highly effective for engaging critical or time-sensitive targets in dynamic combat scenarios.

Key types of aerial loitering munitions include operational munitions, self-destructing munitions, and surveillance munitions. Operational munitions are fully functional weapons ready for deployment in military operations, featuring various payloads such as explosives, electronics, or non-lethal options. These systems can operate from airborne, ground-based, or naval platforms. Applications include intelligence, surveillance, and reconnaissance (ISR), target acquisition, combat operations, and counter-terrorism, serving end users such as military forces and defense contractors.

The aerial loitering munitions market research report is one of a series of new reports that provides aerial loitering munitions market statistics, including aerial loitering munitions industry global market size, regional shares, competitors with an aerial loitering munitions market share, detailed aerial loitering munitions market segments, market trends and opportunities, and any further data you may need to thrive in the aerial loitering munitions industry. This aerial loitering munitions 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 aerial loitering munitions market consists of sales of short-range loitering munitions, man-portable systems, fixed-wing loitering munitions, anti-armor loitering munitions, and multi-role loitering munitions. 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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