Drone-Launched Precision Grenade Market Report 2026

The drone-launched precision grenade market size has grown rapidly in recent years. It will grow from $1.43 billion in 2025 to $1.62 billion in 2026 at a compound annual growth rate (CAGR) of 13.3%. The growth in the historic period can be attributed to advancements in miniaturized guidance and targeting systems, increasing military interest in precision munitions for urban and tactical operations, development of drone-mounted grenade deployment platforms, rising demand for remote engagement capabilities to reduce soldier risk, improvements in grenade lethality and payload accuracy.

The drone-launched precision grenade market size is expected to see rapid growth in the next few years. It will grow to $2.66 billion in 2030 at a compound annual growth rate (CAGR) of 13.2%. The growth in the forecast period can be attributed to expansion of swarming drone systems for coordinated precision strikes, adoption of ai-enabled targeting and guidance for enhanced accuracy, integration of non-lethal grenade variants for crowd control and tactical flexibility, increasing procurement by defense forces for modernized combat strategies, collaborations between drone manufacturers and munitions developers for customized deployment solutions. Major trends in the forecast period include rising adoption of precision-guided micro-munitions, increasing deployment of drone-launched grenades in urban warfare, growth in demand for low-collateral-damage tactical weapons, advancements in miniaturized explosive payload technologies, expanding use of drone-based riot-control and tear-gas systems.

The increasing focus on counterterrorism operations is expected to propel the growth of the drone-launched precision grenade market going forward. Counterterrorism operations refer to coordinated efforts by governments and military forces to prevent and respond to terrorist activities. The focus on counterterrorism operations is rising as governments address the growing threat of homegrown extremism driven by online radicalization. Drone-launched precision grenades support counterterrorism operations by enabling accurate strikes on high-risk targets while minimizing collateral damage in densely populated areas. They reduce operational risk for personnel by allowing remote engagement, thereby improving mission effectiveness and tactical efficiency. For instance, in March 2024, Gov.UK, a UK-based government agency, reported that in 2024, the Prevent counterterrorism program recorded 6,922 referrals in England and Wales, a 1.5% increase from the 6,817 referrals in 2023. Therefore, the increasing focus on counterterrorism operations is driving the growth of 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 companies operating in the drone-launched precision grenade market are China North Industries Group Corporation (NORINCO), Northrop Grumman Corporation, Israel Aerospace Industries Ltd. (IAI), General Atomics Aeronautical Systems Inc., Turkish Aerospace Industries Inc., Hanwha Systems Co. Ltd., AeroVironment Inc., Wild Hornets Ltd., Helsing Technologies Ltd., 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., Stratim Technologies Inc., Elbit Systems Ltd., Rafael Advanced Defense Systems Ltd., Baykar Technology, Anduril Industries, Shield AI, Paramount Group, Teledyne FLIR Defense.

North America was the largest region in the drone-launched precision grenade market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the drone-launched precision grenade market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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.

Tariffs are increasing the production costs of drone-launched precision grenades by raising prices on imported guidance chips, explosive materials, and drone components, particularly affecting lightweight and medium-payload categories. Regions dependent on Asia-Pacific electronics supply chains and European defense components are experiencing higher procurement delays. While tariffs challenge manufacturers and defense forces through cost escalation, they also encourage domestic production, localization of munition assembly, and accelerated development of cost-efficient precision grenade systems.

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.

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 countries covered in the drone-launched precision grenade market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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