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Study Period | 2020 - 2030 |
Market Size (2025) | USD 9.77 Billion |
Market Size (2030) | USD 17.64 Billion |
CAGR (2025 - 2030) | 12.24 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Military Unmanned Aerial Vehicles Market Analysis
The Military Unmanned Aerial Vehicles Market size is estimated at USD 9.77 billion in 2025, and is expected to reach USD 17.64 billion by 2030, at a CAGR of 12.24% during the forecast period (2025-2030).
The past decade has seen a significant surge in the adoption of military UAVs. End-users now deploy various models for tasks ranging from combat operations to surveillance, border patrolling, and inspections. Notably, advancements in next-gen military UAVs show no signs of slowing down. They are poised for accelerated growth. Real-time information is increasingly becoming the cornerstone of success in critical military missions. It equips warfighters, commanders, and troops with the necessary intelligence to safeguard themselves. As a result, there is a rising emphasis on superior tactical intelligence, surveillance, and reconnaissance, driving global armed forces to ramp up their UAV acquisitions.
While the drone market is growing, it faces significant hurdles. Safety concerns, airspace congestion, and stringent manufacturing standards set by many nations are key challenges. These standards not only impact local operations but also affect the global export of UAVs and their components. Despite these challenges, the drone industry is witnessing consolidation and attracting substantial investments. Industrial conglomerates, IT consultancies, and prominent industrialists are increasingly recognizing the potential of UAVs in defense. These factors and a growing awareness of UAV capabilities are set to propel the market studied during the forecast period.
Military Unmanned Aerial Vehicles Market Trends
Combat UAVs Expected to Exhibit Fastest Growth
Unmanned Combat Aerial Vehicles (UCAVs), commonly called combat drones, are revolutionizing modern warfare. Their ascent in the military UAV arena is fueled by technological advancements, shifting military strategies, and a quest for cost-effective, precise, and adaptable solutions. Drones offer a significant cost advantage: they're cheaper to produce, operate, and maintain than traditional manned aircraft. Combat drones boast modular payload bays, enabling operators to tailor them for diverse missions, precision strikes, electronic warfare, or ISR operations.
Escalating political tensions and the growing need for enhanced aerial strength amplify the demand for UAVs. For instance, in October 2024, Teledyne FLIR Defense, a division of Teledyne Technologies Incorporated, clinched a contract worth USD 91 million to provide the US Army with its Black Hornet 4 nano-unmanned aerial systems (UAS). Spanning five years, this contract aligns with Phase II of the Soldier Borne Sensor (SBS) program. Kicking off with an initial order of USD 25 million, the deal encompasses the first batch of Black Hornet 4 drones, controllers, spare parts, and training for the Army. Lightweight and portable, the Black Hornet 4 is crafted for swift deployment, ensuring soldiers have real-time situational awareness. Notable upgrades include an extended endurance of 35 minutes, an altitude capability soaring to 20,000 feet, and a boosted speed of 36 km/h, making it adept in challenging conditions, especially in gusty winds.
In July 2024, the Defence Ministery in the Defence Acquisition Council (DAC) approved amendments to a contract with General Atomics, a US firm, to procure 31 MQ-9B High Altitude Long Endurance (HALE) UAVs. India is set to acquire 31 MQ-9B UAVs, comprising 15 Sea Guardians for the Navy and 16 Sky Guardians – with eight designated for both the Army and Air Force – at an estimated cost of USD 3.99 billion. The deal also includes provisions for General Atomics to set up a Global Maintenance, Repair, and Overhaul (MRO) facility in India, contributing to offset obligations.
Asia-Pacific to Witness Highest Growth During the Forecast Period
Throughout the forecast period, Asia-Pacific is set to take the lead in procurement initiatives and subsequent orders. Rising tensions surrounding the South China Sea dispute are prompting neighboring nations to enhance their military capabilities, with a strong focus on acquiring military UAVs. Countries like China, India, South Korea, and Japan consistently increase their defense budgets to bolster national security. This has sparked an evident arms race, with China and India notably escalating their defense expenditures.
In 2023, these nations allocated substantial budgets: China at USD 296 billion, India at USD 83.6 billion, Japan at USD 50.2 billion, and South Korea at USD 47.9 billion. In January 2025, Boeing Japan Co., Ltd. secured a contract with the Acquisition, Technology & Logistics Agency (ATLA) for the "research and development of unmanned aerial vehicles [UAV] capable of combat in collaboration with manned aircraft," as recently announced. Signed in October 2024, the contract is valued at JPY 15.18 million (approximately USD 1 million) and tasks the Japanese subsidiary of the U.S.-based aerospace giant with conducting simulation tests for the new UAV. ATLA highlighted that Boeing Japan uniquely possesses the simulation software essential for these tests and the qualified personnel and equipment to execute the research.
Given their significant defense spending, these nations actively engage in various procurement and development programs, a trend expected to fuel market demand. For example, China is heavily investing in R&D, notably unveiling the KVD002 surveillance and precision strike UAV in September 2023. This UAV, equipped with two AR-1 air-to-surface missiles and reconnaissance devices, holds strategic importance, especially in potential conflicts over Taiwan. Similarly, in June 2023, India's Ministry of Defense approved the procurement of 31 MQ-9B UAVs from General Atomics, with an estimated cost of USD 3.07 billion, earmarked for the Indian Army, Air Force, and Navy.
Moreover, as outlined in strategic documents, Japan's Ministry of Defense is prioritizing investments in a diverse range of UAV platforms and capabilities. In alignment with this focus, in June 2023, Japan's MoD announced a planned investment of JPY1 trillion (USD 7.1 billion) over the next five years. This investment aims to replace some manned units in the Japan Self-Defense Forces with advanced unmanned systems, facilitating the early deployment of multiple unmanned assets. Such strategic moves are anticipated to boost the market’s growth further.
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Military Unmanned Aerial Vehicles Industry Overview
The military UAV market is semi-consolidated due to the presence of many local players funded by the governments of the respective countries for the indigenous developments of UAVs for the military sector. Some prominent market players are Israel Aerospace Industries Ltd, General Atomics, Northrop Grumman Corporation, AeroVironment Inc., and Teledyne FLIR LLC.
Players in the UAV sector are bolstering their market shares through strategic investments and market expansions. The focus is on enhancing drone capabilities, with a notable emphasis on developing advanced payloads. These next-gen military UAVs are tailored for various missions, spanning combat and non-combat scenarios. Collaborations between industry players are on the rise, fostering technology exchange and streamlining development timelines.
Military Unmanned Aerial Vehicles Market Leaders
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Israel Aerospace Industries Ltd.
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General Atomics
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AeroVironment, Inc.
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Northrop Grumman Corporation
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Teledyne FLIR LLC
- *Disclaimer: Major Players sorted in no particular order
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Military Unmanned Aerial Vehicles Market News
- October 2024: Teledyne Technologies Incorporated's division, Teledyne FLIR Defense, clinched a contract potentially worth USD 91 million to provide the US Army with its Black Hornet 4 nano-unmanned aerial systems (UAS). Spanning five years, this contract aligns with Phase II of the Soldier Borne Sensor (SBS) program. The initial order, backed by a USD 25 million allocation, encompasses the first batch of Black Hornet 4 drones, controllers, spare parts, and training for the Army. Deliveries commenced in September 2024.
- October 2024: Red Cat Holdings, Inc., a drone technology specialist, clinched a USD 1 million contract with the US Army Communications-Electronics Command (CECOM) for its Edge 130 Blue drones. This deal signifies a pivotal moment for Red Cat, heralding a deeper partnership with the US Army.
- October 2023: General Atomics Aeronautical Systems Inc. delivered more than twelve Protector RG Mk1 Combat UAVs to the Royal Air Force. These UAVs, a variant of GA-ASI’s MQ-9B, boast an impressive wingspan of nearly 80 feet and carry a payload of up to 500 pounds. This payload includes advanced weaponry like Paveway IV laser-guided bombs and Brimstone 3 missiles. The Royal Air Force plans to deploy these long-endurance UAVs for operational use in 2024.
- October 2023: Germany inked a USD 210 million deal with Rheinmetall for real-time reconnaissance UAVs. As part of this agreement, Rheinmetall is gearing up to supply the German Army with 13 Luna NG reconnaissance UAV systems, with deliveries scheduled to kick off in the second quarter of 2025.
Military Unmanned Aerial Vehicles Industry Segmentation
An unmanned aerial vehicle (UAV), commonly known as a drone, is a military aircraft that can operate autonomously, remotely, or via a blend of both methods. Outfitted with sensors, target designators, offensive ordnance, and electronic transmitters, these drones are designed primarily for engaging and neutralizing enemy targets.
The military unmanned aerial vehicles market is segmented by type, application, and geography. By type, the market is segmented into fixed-wing and VTOL. By application, the market is classified as combat and non-combat. The report also covers the market sizes and forecasts for the military unmanned aerial vehicles market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
By Type | Fixed-wing | ||
VTOL | |||
By Application | Combat | ||
Non-combat | |||
By Geography | North America | United States | |
Canada | |||
Europe | United Kingdom | ||
France | |||
Germany | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Rest of Asia-Pacific | |||
Latin America | Brazil | ||
Rest of Latin America | |||
Middle East and Africa | United Arab Emirates | ||
Saudi Arabia | |||
Turkey | |||
Rest of Middle East and Africa |
Military Unmanned Aerial Vehicles Market Research FAQs
How big is the Military Unmanned Aerial Vehicles Market?
The Military Unmanned Aerial Vehicles Market size is expected to reach USD 9.77 billion in 2025 and grow at a CAGR of 12.24% to reach USD 17.64 billion by 2030.
What is the current Military Unmanned Aerial Vehicles Market size?
In 2025, the Military Unmanned Aerial Vehicles Market size is expected to reach USD 9.77 billion.
Who are the key players in Military Unmanned Aerial Vehicles Market?
Israel Aerospace Industries Ltd., General Atomics, AeroVironment, Inc., Northrop Grumman Corporation and Teledyne FLIR LLC are the major companies operating in the Military Unmanned Aerial Vehicles Market.
Which is the fastest growing region in Military Unmanned Aerial Vehicles Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Military Unmanned Aerial Vehicles Market?
In 2025, the North America accounts for the largest market share in Military Unmanned Aerial Vehicles Market.
What years does this Military Unmanned Aerial Vehicles Market cover, and what was the market size in 2024?
In 2024, the Military Unmanned Aerial Vehicles Market size was estimated at USD 8.57 billion. The report covers the Military Unmanned Aerial Vehicles Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Military Unmanned Aerial Vehicles Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Military Unmanned Aerial Vehicles Industry Report
Statistics for the 2025 Military Unmanned Aerial Vehicles market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Military Unmanned Aerial Vehicles analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.