According to the Market Statsville Group (MSG), the global military drone market size is expected to grow from USD 12,209.4 million in 2022 to USD 25,966.4 million by 2033, at a CAGR of 7.1% from 2023 to 2033.

Military drones operate autonomously, by remote control, or both, and are equipped with various sensors, electronic receivers and transmitters, and offensive weaponry. They can be used for strategic and combat zone reconnaissance, but they can also intervene on the front lines by marking targets for precision-guided weapons dropped or fired from human systems or by dropping or firing these missiles directly. The first UAVs were referred to as remotely piloted vehicles (RPVs) or drones. They were miniature radio-controlled aircraft that were first employed for target training for fighters and antiaircraft guns during WWII. Today, all major military powers, as well as certain militia groups, use battlefield observation UAVs to increase the reach and accuracy of ground and naval forces.

Unmanned Aerial Vehicles (UAVs) are increasingly being used in the defense and security industries for various applications such as surveying, mapping, transportation, combat operations, and monitoring, which will drive demand for military UAVs in the future years. The increased defense spending by various countries to acquire updated and technologically sophisticated military drones/UAVs for enhanced combat capabilities is likely to support market expansion globally. Artificial intelligence (AI) is used to modernize military drone technologies by automatically and precisely identifying targets.

COVID-19 Impact on the Global Military Drone Market

The influence of COVID-19 on the global economy is projected to be significant in the following years. The COVID-19 pandemic ravaged the global economy in December 2019. The COVID-19 had a considerable impact on the market in 2020 and 2021. Due to a lack of confidence in the market, the acquisition of defense equipment-related services has been hampered, resulting in fewer military drone business contracts. Several drone deliveries were pushed back due to the COVID-19 pandemic. Defense budget decreases have been witnessed in a number of countries, including the United States, France, India, and Israel.

Global Military Drone Market Dynamics

Drivers: Increasing Procurement and Spending  for Military Drones from Military & Defense Forces

Following Russia's invasion of Ukraine in February 2022, numerous countries have promised to increase military spending and strengthen their armed forces. Poland, for instance, intends to increase spending from 2.1 percent of GDP to 3.0 percent beginning in 2023. This trend has seen global military spending reach an all-time high of US$2.1 trillion in 2021. As more expenditures are directed toward military activities, the demand for military drones has significantly increased. China, the world's second-largest spender, is expected to allocate $293 billion to its military in 2021, a 4.7% increase over 2020. China's military budget has increased over the past 27 years. The Chinese budget for 2021 was the first under the 14th Five-Year Plan, which continues through 2025.

Following the initial ratification of its 2021 budget, the Japanese government increased military spending by $7.0 billion. As a result, spending is expected to climb by 7.3% to $54.1 billion in 2021, the biggest annual increase since 1972. Military spending in Australia will rise by 4.0% in 2021 to $31.8 billion. Thus, the exponential rise in military and denfense spending drives the demand for military drones in the aforementioned economies.

Restraints: Lack of Skilled Workforce and High Cost of Advanced Electronics and Systems

UAVs are outfitted with cutting-edge propulsion systems, avionics systems, advanced flight management technology, cutting-edge sensors, and payloads. Depending on the severity of the processes, these characteristics are coupled with complex software and high-quality hardware systems. Drones can fly at various altitudes and must be controlled and operated by professional pilots. There are not many pilots available for high-precision missions. Increased drone use in military drone verticals contributes to the increased demand for qualified drone pilots. The navy, army, and air force have diverse product portfolios for deploying military UAVs, owing to different applications affecting the overall cost of products. These variables raise the overall cost of military drones around the world. The high product and maintenance costs are projected to limit future expansion. Further, the demand is projected to be limited by restrictions on UAV deployment in numerous nations and limited use in aerial spaces.

Opportunities: Surging Adoption of Advanced Military Drone Technologies

The advancements of fully autonomous aircraft that use AI and machine learning focus on combat systems and infrastructure and development environments such as networks and cloud servers to improve total aircraft effectiveness. The players must develop sophisticated semiconductors in order for drones to operate on wireless airwaves. Drone technology advancements will necessitate smaller, less expensive, more powerful, and more efficient technologies than are currently available. At the University of Michigan, researchers are printing nanowires onto flexible substrates using graphene and other thin layers to create semiconductors of this type. Nanowires, which are far smaller than contemporary electronics, could be utilised to replace other semiconductor components. As they operate at high speeds, they might be used to mimic the capabilities of modern wireless technologies.  

Scope of the Global Military Drone Market

The study categorizes the military drone market based on platform, type, operating mode, launching mode, and application at the regional and global levels.

By Platform Outlook (Sales, USD Million, 2019-2033)

• Small
  • Nano
  • Micro
  • Mini
• Tactical
  • Close Range
  • Short Range
  • Medium Range
  • Long Range
• Strategic
  • High Altitude Long Endurance (HALE)
  • Medium Altitude Long Endurance (MALE)

By Type Outlook (Sales, USD Million, 2019-2033)

• Fixed Wing
• Rotary Wing
• Hybrid

By Operating Mode Outlook (Sales, USD Million, 2019-2033)

• Remotely Piloted
• Optionally Piloted
• Fully Autonomous

By Launching Mode Outlook (Sales, USD Million, 2019-2033)

• Vertical Take-off
• Automatic Take-off and Landing
• Catapult Launcher
• Hand Launched

By Application Outlook (Sales, USD Million, 2019-2033)

• Unmanned Combat Aerial Vehicles (UCAVs)
• Lethal
• Stealth
• Target
• Intelligence, Surveillance, and Reconnaissance (ISR)
• Delivery

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Fixed wing segment accounts for the largest market share during the forecast period by type

Based on the type, the market is bifurcated into fixed wing, rotary wing, and hybrid. The fixed-wing segment accounts for a larger revenue share in 2022. Fixed-wing aerial vehicles can often carry larger payloads over longer distances and with less power than Vertical Take-off and Landing (VTOL) UAVs. This makes them suitable for long-distance missions such as mapping, surveillance, and defense, where long endurance is vital. Thus, numerous military forces widely utilize them in the defense industry. These factors are expected to drive segment growth throughout the forecast period.

Asia Pacific is projected to account for the largest CAGR by Region

Based on the regions, the global military drone market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. During the forecast period, Asia Pacific will grow at the fastest CAGR in the global military drone market. Countries' increase in military spending to improve their defense capabilities can be attributed to market growth in this region. Political tensions in Asia Pacific countries have resulted in the deployment of drones to protect national borders. This is one of the most important elements driving the market's expansion in this area. China is developing novel technology to produce low-cost drones. Various strategies have been opted by market players and the government to capture the high growth potential in the market. For instance, the Indian Army was hoping to buy the Firefly loitering munition UAV in July 2020, which can be deployed against numerous hostiles in entrenched positions.

Key Market Players in the Global Military Drone Market

The military drone market is extremely cutthroat, and significant competitors in the sector are using tactics including product development, collaborations, acquisitions, agreements, and growth to bolster their market positions. Most sector businesses focus on growing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global military drone market are:

• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Israel Aerospace Industries Ltd.
• General Atomics Aeronautical Systems
• Teledyne Flir Llc
• Aerovironment, Inc.
• The Boeing Company
• Airbus
• Textron Inc.
• Lockheed Martin Corporation
• Elbit Systems Ltd.
• Dassault Aviation
• Bae Systems
• Thales Group

Recent Developments

• In September 2021, The Boeing is expainding its production facility of military drones in Australia. Its first time for the company to move out of North American facilities. Boeing Australia is currently working on six aircrafts in collaboration with the Royal Australian Air Force.
• In April 2022, Thales Group has invested approximately USD 1.2 billion in India. A large portion of this projected huge investment will go toward the company's drone offerings, which span from manufacturing to traffic management and fighting rogue drones.  

Key Issues Addressed

• What is the market size by various segmentation of the military drone by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the military drone market?
• What are the key opportunities and trends for manufacturers involved in the military drone supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of military drone in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.