Drone-Launched Precision Grenade Market Report 2025

The drone-launched precision grenade market size has grown rapidly in recent years. It will grow from $1.26 billion in 2024 to $1.43 billion in 2025 at a compound annual growth rate (CAGR) of 13.6%. The growth during the historic period is driven by rising demand for precision targeting, greater adoption of remote combat systems, an increasing need for standoff weaponry, expansion of tactical strike operations, more counterterrorism missions, and heightened use in military training exercises.

The drone-launched precision grenade market size is expected to see rapid growth in the next few years. It will grow to $2.35 billion in 2029 at a compound annual growth rate (CAGR) of 13.2%. The growth projected for the forecast period is driven by an increasing focus on lightweight grenade systems, greater integration with smart drones, rising demand for rapid deployment weapons, expansion of high-accuracy targeting programs, and growing investment in autonomous strike capabilities. Key trends during this period include advancements in guidance technology, innovations in aerial grenade delivery, ongoing research and development in precision munitions, improvements in stabilization mechanisms, and enhanced payload integration technologies.

Growing attention to counterterrorism efforts is expected to drive the expansion of the drone-launched precision grenade market in the coming years. These operations involve coordinated actions by governments and military forces to prevent and respond to terrorist threats. The focus has intensified due to rising concerns about homegrown extremism, often fueled by online radicalization. Drone-launched precision grenades enhance counterterrorism missions by allowing precise strikes on high-risk targets, reducing collateral damage in crowded areas. They also lower the risk to personnel by enabling remote attacks, increasing mission success and tactical efficiency. For example, in November 2023, the European Country of Origin Information Network, an Austrian government agency, reported that the UK’s Prevent Counterterrorism program saw 6,406 referrals in 2022, a 30% increase from 4,915 referrals in 2021. As a result, the heightened emphasis on counterterrorism is boosting the drone-launched precision grenade market.

The growing use of unmanned aerial vehicles (UAVs) is expected to boost the drone-launched precision grenade market in the future. UAVs are aircraft operated without an onboard human pilot, controlled remotely or autonomously. Their popularity is increasing because they offer real-time surveillance and precise strike capabilities while reducing the risk to personnel. UAVs serve as remote and autonomous platforms for deploying drone-launched precision grenades, enabling accurate targeting in dangerous or hard-to-reach locations. By combining mobility with precision, they improve operational efficiency, enhance mission success, and lower personnel risk. For example, in March 2024, the State Council of the People's Republic of China, a government agency, reported that nearly 1.27 million UAVs were registered across the country in 2023, a 32.2% rise from 2022. Consequently, the expanding adoption of UAVs is driving growth in the drone-launched precision grenade market.

Key players in the drone-launched precision grenade market are prioritizing the development of advanced technologies such as semi-automatic grenade launchers to boost accuracy, reduce operator fatigue, and allow quicker targeting of multiple enemies. A semi-automatic grenade launcher is a firearm that automatically reloads after each shot, enabling the user to fire consecutive rounds with a separate trigger pull for each grenade. For example, in August 2025, Barrett Firearms, an American sniper rifle manufacturer, introduced the Squad Support Rifle System (SSRS), a 30 mm semi-automatic grenade launcher designed for the U.S. Army’s Precision Grenadier System program. This modern weapon uses a magazine-fed mechanism to fire 30×42 mm high-velocity rounds, allowing faster follow-up shots and better accuracy compared to traditional single-shot launchers. It is equipped with advanced fire control optics featuring a digital display and laser rangefinder, and supports programmable munitions such as airburst and counter-drone rounds. The SSRS aims to increase infantry firepower, engage targets hiding behind cover, and counter aerial threats, marking a significant improvement in soldier capability and flexibility.

Major players in the drone-launched precision grenade market are China North Industries Group Corporation, Northrop Grumman Corporation, Israel Aerospace Indsutries Ltd., General Atomics Aeronautical Systems Inc., Turkish Aerospace Industries Inc., Hanwha Systems Co Ltd., AeroVironment Inc., Wild Hornets Ltd., Skydio Inc., Helsing Technologies Ltd., Barrett Firearms Manufacturing Inc., STARK Aerospace Inc., DefendTex Pty Ltd., Milrem Robotics, Granta Autonomy Ltd., Integrated Dynamics Pty Ltd., 3DTech Ltd., Skyborne Technologies Pty Ltd., WB Electronics S.A., and Stratim Technologies Inc.

North America was the largest region in the drone-launched precision grenade market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in drone-launched precision grenade report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the drone-launched precision grenade 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 drone-launched precision grenade is a compact, guided explosive device deployed from unmanned aerial vehicles (UAVs) to precisely target enemy positions or equipment. It features precision guidance systems such as GPS or laser targeting to deliver highly accurate strikes. Its main goal is to offer tactical firepower while minimizing collateral damage and reducing risks to personnel by enabling remote engagement of threats.

The primary types of drone-launched precision grenades are single-use and reusable. Single-use grenades are designed for one-time deployment from drones to accurately hit specific targets. They come in various payload sizes, including lightweight, medium, and heavy, and can be launched from different drone platforms such as fixed-wing, rotary-wing, and hybrid drones. These devices are utilized in military, law enforcement, homeland security, and other sectors, serving end users such as defense forces, special operations units, police forces, and more.

The drone-launched precision grenade market research report is one of a series of new reports that provides drone-launched precision grenade market statistics, including drone-launched precision grenade industry global market size, regional shares, competitors with a drone-launched precision grenade market share, detailed drone-launched precision grenade market segments, market trends and opportunities, and any further data you may need to thrive in the drone-launched precision grenade industry. This drone-launched precision grenade 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 drone-launched precision grenade market consists of sales of guided grenade munitions, suicide drones, drone-mounted grenade launchers, swarming drone systems, and grenade tear gas launcher 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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