Global Military Drone Market Assessment, By Application [Intelligence, Surveillance and Reconnaissance, Combat Operations, Logistics and Transport, Battle Damage Management], By Technology [Remotely Operated, Semi-Autonomous, Fully Autonomous], By Product Type [Fixed Wing, Rotary Wing, Hybrid], By Region, Opportunities and Forecast, 2018-2032F

Global Military Drone Market is projected to witness a CAGR of 14.41% during the forecast period 2025-2032, growing from USD 25.19 billion in 2024 to USD 73.95 billion in 2032. A military drone, also known as an unmanned combat aerial vehicle (UCAV), is used for intelligence surveillance, target acquisition, and reconnaissance. These drones are often used to carry aircraft ordnances such as missiles, anti-tank guided missiles, etc. These drones are remotely controllable, which signifies that there is no need for any physical/onboard pilot, which helps decrease the drone's overall weight. 

Report Attribute	Details
Base Year	2024
Forecast Period	2025-2032
Historical Period	2018-2023
Projected Growth Rate	CAGR of 14.41% between 2024 and 2032
Revenue Forecast in 2032	USD 73.95 billion

The military drone market is experiencing growth due to the rising demand for minimizing human risk in combat. The rise of artificial intelligence and machine learning in drones is enhancing their market growth as they are making advanced detection technologies and thermal imaging, making these drones a perfect choice for surveillance and security for a country.

Nowadays, drones can operate on global navigation satellite systems and non-satellite modes. These navigational systems help create 3D maps and perform search and rescue tasks while flying.  Many countries have adopted military drones for various purposes and have made them essential for their country’s growth in defense. These drones are not only used for war but also carry necessary things like medicines, blood, food, and laboratory blood samples for checkups. Many drone companies are pushing their limits to create more advanced drones that can carry more payloads, with more accurate precision and surveillance.

For example, in January 2025, Elbit Systems Ltd. introduced two new military drones, the Hermes 900 and the Hermes 450 UCAVs, known for their multi-role capabilities, offering surveillance, reconnaissance, and intelligence gathering. Many countries use these drones and have earned a reputation for providing durable and high-end performance.

Expanding Role of Military Drones in Professional Workloads

The use of military drones for professional workloads is critical for the expansion of the military drone market. Surveillance, 3D mapping, and thermal imaging necessitate a significant amount of stability and control system and battery backup. As these sectors improve and expand, experts will require more powerful batteries and acceleration to speed up their work processes. Drone makers are responding by developing high-performance battery backups that are lightweight and cheap. This market sector accounts for a sizable and growing portion of military drone sales, propelling innovation and growth in the sector.

For example, in February 2025, ideaForge Technology Pvt. Ltd. developed a drone named Netra5, which is five steps ahead in innovation. This drone has GNSS-denied operations and Hops frequency and can operate under any condition.

AI Revolution Propels the Military Drone Market Growth

Incorporating UCAV drones into AI and machine learning processes has propelled the expansion of these drone markets globally.  AI and machine learning necessitate vast parallel computing capacity of drones. As these technologies gain traction in fields of armory, thermal imaging, healthcare, surveillance, and 3D mapping. Drone manufacturers have taken advantage by developing stealth and low detectable technology that uses radar-absorbing material and reduces thermal signatures. Some drones use AI to identify enemies and engage without direct human control.

For example, in October 2023, Baykar Defense Industry and Technology Inc. developed Bayraktar TB2, which has key features such as folded-wing design, increased payload capacity up to 1.5 tons, AI-assisted targeting, and longer endurance flight.

Economic and Industrial Growth

Technological advancements in drone technologies have captured the eyes of buyers. With increased demand for these drones, the market capital also increases, providing opportunities for other manufacturers to come to compete and tackle the market. The market is still struggling with the shortage of these drones as buyers are paying higher prices for increased demand for drones.

For example, in November 2024, Wing Aviation LLC, an autonomous smart plane manufacturer based in St. Louis, Missouri, announced a collaboration with RTX Corporation, an RTX business known for its defense technology. This collaboration aims to advance capabilities in threat detection and operational flexibility for defense and civil applications.

Dominance of Intelligence, Surveillance and Reconnaissance in Military Drone

Military drones are primarily used for surveillance, intelligence, and reconnaissance as they offer no human casualties, intercept enemy radar systems, High-resolution images for target identification, real-time troop movement, and tracking of their armed forces. Market data states a growing need for high-performance drones, as sales continuously increase. Major countries like America, China and many others are mainly focusing on developing the advanced drones for their military and well as for trade. As the military becomes more reliant on these drones to save its armed personnel.

For instance, in December 2024, Rheinmetall AG and Auterion LLC are working together on drone technology and developing standard operating systems for the military industry. Their expertise is to create a military industry standard for controlling and operating unmanned aerial, land, and naval drone systems.

North America Dominates the Military Drone Market

North America, particularly the U.S., dominates the global military drone market due to its defense and armed forces spending. With the largest defense budget globally, the U.S. invests heavily in next-generation drones, including stealthy loyal wingman systems like the XQ-58 Valkyrie and carrier-based MQ-25 Stingray. The US is a global leader in drone technology, particularly in areas like autonomous flight, artificial intelligence, and cybersecurity.

For instance, in November 2024, Parrot Drones SAS made the first ever 4G drone, which is used for Intelligence, Surveillance, Reconnaissance, and is also lightweight and compact. This drone has the ability to see beyond visual line of sight (BVLoS), always connected, and provide real-time streaming with 12 Mbps video bitrate/low latency 1080p streaming.

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Impact of U.S. Tariffs on Global Military Drone Market

Boost domestic Drone Manufacturing: Encourages U.S. defense contractors to produce more drones locally, reducing reliance on foreign suppliers.

Strengthens National Security: Reduces dependence on potentially risky foreign suppliers (e.g., China) for critical drone components (chips, sensors, AI tech).

Higher Costs for U.S. Military and Allies: Tariffs increase prices for drone components, raising procurement costs and could slow down drone fleet modernization efforts.

Report Scope

“Military Drone Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global military drone market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Application, Technology, Product Type
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	General Atomic Inc., Northrop Grumman CorporationElbit Systems ltd., Israel Aerospace Industries Ltd, AeroVironment, Inc, Lockheed Martin Corporation, Thales Group, BAE Systems plc, Saab, The Boeing Company
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the global military drone market has been segmented into the following categories: 

• By Type
  • Fixed Wing
  • Rotary Wing
  • Hybrid
• By Application
  • Intelligence, Surveillance, Reconnaissance (ISR)
  • Combat Operations
  • Logistics and Transport
  • Battle Damage Management
• By Technology
  • Remotely Operated
  • Semi-Autonomous
  • Fully Autonomous
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Key global players in the global military drone market excel their innovations, provide cheaper rates and excellent quality, combat proven reliability, strategic partnerships and scalable production. Leading companies such as General Atomic Inc., Northrop Grumman Corporation, Elbit Systems ltd., Israel Aerospace Industries Ltd, dominate by developing cutting edge drones with advanced autonomy, AI driven targeting, and multi-role capabilities.

For instance, in May 2025, Patria and ACC Innovation signed an agreement to develop militarized quadcopter drones for NATO member countries. The initial phase of the partnership will focus on creating a military version of ACC Innovation's Thunder Wasp GT quadcopter, which has a maximum take-off weight of approximately 800 kg.

Key Players Operating in Global Military Drone Market are:

• General Atomic Inc.
• Northrop Grumman Corporation
• Elbit Systems ltd.
• Israel Aerospace Industries Ltd
• AeroVironment, Inc
• Lockheed Martin Corporation
• Thales Group
• BAE Systems plc
• Saab
• The Boeing Company

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