Armed Drone Market Report 2025

The armed drone market size has grown rapidly in recent years. It will grow from $27.65 billion in 2024 to $31.6 billion in 2025 at a compound annual growth rate (CAGR) of 14.3%. The growth during the historic period was driven by several key factors, including the expanded military use of drones for surveillance missions, heightened demand for border security operations, increased deployment in counterterrorism efforts, rising defense expenditures in developed countries, and a greater dependence on unmanned aerial systems for reconnaissance tasks.

The armed drone market size is expected to see rapid growth in the next few years. It will grow to $53.25 billion in 2029 at a compound annual growth rate (CAGR) of 13.9%. The anticipated growth in the forecast period is expected to be driven by the rising demand for autonomous strike capabilities, expanded use of drones in counter-terrorism operations, the growing need for long-endurance unmanned systems, increased deployment in urban warfare settings, and heightened focus on border security and counter-terror activities. Key trends projected for this period include the advancement of swarm drone technologies, the development of autonomous mission planning systems, integration with satellite communication networks, coordination with ground-based systems, and innovations in precision-guided weaponry.

Rising military spending is playing a key role in driving the growth of the armed drone market. This spending refers to the financial resources allocated by governments to support and enhance their military forces, covering areas such as personnel, equipment, research and development, and operational activities. The increase in defense budgets is largely a response to escalating geopolitical tensions, prompting nations to reinforce their military capabilities and protect strategic interests in an increasingly uncertain global landscape. Higher military expenditure supports the advancement of armed drones by improving their combat effectiveness, precision, surveillance capabilities, and strike efficiency, ultimately enhancing overall military readiness. For example, in April 2024, the Stockholm International Peace Research Institute (SIPRI) reported that global military spending rose to $2.443 trillion, a 6.8% increase from 2022. This growing investment in defense is significantly contributing to the expansion of the armed drone market.

Leading companies in the armed drone market are prioritizing the development of advanced technologies like hybrid vertical take-off and landing (VTOL) systems to improve operational flexibility, extend range, and enable rapid deployment. These systems blend the vertical lift capabilities of helicopters with the speed and endurance of fixed-wing aircraft, allowing drones to take off and land without the need for traditional runways. An example of this innovation is the STRIX Hybrid VTOL Uncrewed Air System, introduced by BAE Systems plc in February 2023. Designed as a multi-role, tandem-wing UAV, the STRIX features hybrid electric propulsion and VTOL functionality, making it suitable for operations in areas without runway access and easily transportable in standard shipping containers. It is built for a variety of missions across domains, including air-to-ground strikes and intelligence, surveillance, and reconnaissance (ISR) tasks in high-threat environments. The system can carry payloads up to 160 kilograms and operate over distances of up to 800 kilometers, offering autonomous operation supported by advanced sensors and electronic warfare capabilities.

In September 2023, Anduril Industries Inc., a U.S.-based defense technology company, acquired Blue Force Technologies Inc. for an undisclosed sum. This acquisition is intended to enhance Anduril's autonomous combat systems by incorporating the Fury unmanned fighter jet, supporting the development of manned-unmanned teaming and advancing next-generation military capabilities. Blue Force Technologies Inc., also based in the U.S., focuses on the development of armed drones and aerospace solutions.

Major players in the armed drone market are The Boeing Company, Lockheed Martin Corporation, Airbus SE, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Elbit Systems Ltd., Israel Aerospace Industries Ltd., General Atomics Aeronautical Systems Inc., Turkish Aerospace Industries, Kratos Defense And Security Solution, Denel SOC Ltd., AeroVironment Inc., Stark Unternehmensgruppe GmbH, Raphe mPhibr Pvt. Ltd., Garuda Aerospace Pvt. Ltd., Anduril Industries Inc., Apollyon Dynamics Pvt. Ltd., Baykar Defense Inc., and Wild Hornets Defense Technologies Inc.

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

An armed drone is an unmanned aerial vehicle (UAV) equipped with weaponry such as missiles, bombs, or machine guns, designed for use in military operations. Its main function is to carry out targeted attacks, intelligence gathering, and reconnaissance missions without putting human pilots at risk. By enabling remote and real-time engagement of targets, these drones increase operational effectiveness while reducing costs and danger to personnel.

Armed drones come in various forms, including those dedicated to reconnaissance, electronic warfare, communication support, and direct combat roles. A reconnaissance drone is tailored to gather intelligence, monitor specific areas, and transmit live data for both military and surveillance purposes. These UAVs are utilized across air, land, and sea forces and are employed by a range of users, including homeland security and border agencies, intelligence services, counter-terrorism and special forces units, as well as private security and defense firms.

The armed drone market research report is one of a series of new reports that provides armed drone market statistics, including armed drone industry global market size, regional shares, competitors with a armed drone market share, detailed armed drone market segments, market trends and opportunities, and any further data you may need to thrive in the armed drone industry. This armed 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 armed drone market consists of sales of target drones, surveillance drones, resupply drones, swarming drones, and decoy drones. 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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