Artificial Intelligence (AI)-Enabled Counter-Drone System Market Global Report 2026

The artificial intelligence (AI)-enabled counter-drone system market size has grown exponentially in recent years. It will grow from $0.62 billion in 2025 to $0.75 billion in 2026 at a compound annual growth rate (CAGR) of 21.7%. The growth in the historic period can be attributed to increasing incidents of unauthorized drone intrusions, rising military investment in perimeter security systems, early adoption of radar-based aerial surveillance systems, growth in airport security modernization programs, increasing use of electro-optical surveillance technologies.

The artificial intelligence (AI)-enabled counter-drone system market size is expected to see exponential growth in the next few years. It will grow to $1.66 billion in 2030 at a compound annual growth rate (CAGR) of 21.9%. The growth in the forecast period can be attributed to rising geopolitical tensions driving defense modernization programs, increasing demand for automated border security solutions, expansion of critical infrastructure protection requirements, growing adoption of autonomous threat neutralization systems, increasing integration of AI-driven defense command and control systems. Major trends in the forecast period include increasing deployment of multi-sensor fusion systems for enhanced drone detection accuracy, rising adoption of real-time airborne threat identification using AI-based analytics, growing integration of radio frequency signal intelligence for drone tracking and classification, expansion of automated counter-drone response systems in critical infrastructure protection, increasing use of edge AI computing for low-latency drone detection and neutralization.

The increasing incidence of hostile drone activities is expected to propel the growth of the artificial intelligence (AI)-enabled counter-drone system market going forward. Hostile drone activities refer to the use or operation of drones in a malicious or threatening manner that may harm people, property or security systems. Drone activities are rising due to the growing adoption of drones in commercial delivery and logistics, which enables faster, cost-efficient last-mile transportation and improves operational efficiency for businesses. Artificial intelligence (AI)-enabled counter-drone systems help counter hostile drone activities by allowing the detection, tracking and neutralization of unauthorized or dangerous drones. For instance, in January 2025, according to the New Voice of Ukraine, a Ukraine-based media outlet, the number of drone attacks rose to 26,327 compared with 15,955 in 2024, representing an increase of 10,372 attacks, or approximately 65% year-over-year. Therefore, the increasing incidence of hostile drone activities is driving the growth of artificial intelligence (AI)-enabled counter-drone system market.

Major companies operating in the artificial intelligence (AI)-enabled counter-drone system market are focusing on developing advanced solutions, such as artificial intelligence-based guidance system to enable accurate interception of fast and manoeuvring aerial threats in global positioning system (GPS)-denied or electronically contested environments. Artificial intelligence-based guidance system refers to a system that uses artificial intelligence algorithms to control and direct the movement of a platform by processing sensor data and making real-time navigation decisions and independently analyse data and steer a platform toward a desired target or path in real time. For instance, in March 2026, Rheinmetall AG, a Germany-based defence technology company specializing in advanced military systems, unveils the RV-005 anti-aircraft interceptor drone, an artificial intelligence-enabled counter-unmanned aerial system featuring an artificial intelligence-based guidance subsystem that enables real-time target detection, trajectory prediction, autonomous flight correction and precision kinetic interception of hostile drones even in global positioning system (GPS)-denied and electronically contested environments. Additionally, it also offers high-speed short-range interception capability with an operational range of around 15 kilometres by enabling rapid response against low-altitude aerial threats while integrating seamlessly into broader command-and-control networks for coordinated multi-layer air defence operations.

In October 2024, Axon Enterprise Inc, a US-based public safety technology company specializing in body cameras, cloud software and law enforcement solutions, acquired Dedrone Holdings Inc. for an undisclosed amount. Through this acquisition, Axon Enterprise aims to strengthen its capabilities in artificial intelligence-enabled counter-drone and airspace security systems by integrating Dedrone’s sensor fusion, machine learning and real-time drone detection technologies into its broader public safety ecosystem, including drone-as-first-responder initiatives. Dedrone Holdings Inc. is a US-based company specializing in AI or ML-enabled counter-drone (C-UAS) systems.

Major companies operating in the artificial intelligence (ai)-enabled counter-drone system market are Lockheed Martin Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Rheinmetall AG, Elbit Systems Ltd., Rohde & Schwarz GmbH & Co. KG, Anduril Industries Inc., Kratos Defense & Security Solutions Inc., Shield AI Inc., XTEND Reality Inc., DeTect Inc., DroneShield Limited, Echodyne Corp., Fortem Technologies Inc., Hidden Level Inc., D-Fend Solutions Ltd., Osprey Counter-Unmanned Aerial Systems, RAFAEL Advanced Defense Systems Ltd., Sentrycs Ltd.

North America was the largest region in the artificial intelligence (AI)-enabled counter-drone system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI)-enabled counter-drone system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI)-enabled counter-drone system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI)-enabled counter-drone system market includes of revenues earned by entities by providing services such as drone detection service, drone tracking service, airspace monitoring and surveillance, threat assessment service, and swarm detection and defence service. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The artificial intelligence (AI)-enabled counter-drone system market also consists of sales of radar systems, radio frequency scanners, acoustic sensors, drone model recognition systems, and interceptor 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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