(MENAFN- GlobeNewsWire - Nasdaq) Key opportunities in the military drone market include growing demand for autonomous and semi-autonomous drones, advancements in propulsion and sensor systems, expansion of swarming and multi-mission capabilities, increased counter-terrorism applications, and rising defense budgets supporting new procurements, despite trade challenges.Dublin, Jan. 19, 2026 (GLOBE NEWSWIRE) -- The "Military Drones Market Report 2026" has been added to ResearchAndMarkets's offering.
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The military drones market is set to experience substantial growth, projected to climb from $17.26 billion in 2025 to $19.25 billion in 2026, with a robust CAGR of 11.5%. This growth trajectory is primarily driven by increasing military reliance on UAVs for border surveillance, reconnaissance, precision strikes, and enhanced communication systems, boosting drone effectiveness. The market is expected to reach $29.57 billion by 2030, growing at a CAGR of 11.3%, bolstered by rising demands for autonomous drones, advanced sensors, AI-driven analytics, and expanded defense budgets supporting next-gen drone procurement.
Key trends shaping the forecast period include the deployment of long-endurance surveillance drones, precision strike capabilities, and the expansion of tactical UAV programs. The increasing threat of terrorism further catalyzes the market, with drones playing a critical role in counter-terrorism by providing vital intelligence and real-time data crucial for mission success. For instance, terrorism-related fatalities outside Afghanistan increased by 4% in 2023, highlighting the pressing need for effective ISR solutions.
Companies in the drone market are innovating aggressively. BAE Systems PLC recently introduced STRIX, a hybrid UAS designed for challenging environments, capable of air-to-ground missions with a significant payload capacity. Meanwhile, strategic acquisitions like that of Black Sage Technologies by Highlander Partners L.P. illustrate growing investments in advanced C-UAS and UAS technologies.
Some of the prominent players in this space include Lockheed Martin Corporation, Northrop Grumman Corp, Thales Group, The Boeing Company, and Raytheon Technologies, among others. Asian-Pacific is noted as the largest region, with Western Europe anticipated to be the fastest-growing region over the forecast period.
The military drones market faces challenges from global trade dynamics and tariffs, which impact the cost of critical components, thus affecting UAV program costs, especially in Asia-Pacific and Europe. Such challenges have sparked investment in domestic production capabilities, promoting local manufacturing and defense technology ecosystems.
Military drones encompass a variety of UAV types, including fixed-wing, rotary-wing, and hybrids, with applications ranging from national defense to complex military exercises. The market encompasses revenues from the sale of these UAVs, including related services, across several geographies, including major countries like the USA, UK, China, and more.
This comprehensive market research report delivers detailed insights into the current state and future potential of the military drones market, offering critical analysis for stakeholders eager to adapt to the fast-evolving defense sector landscape.
Markets Covered:
Drone Types (MALE, HALE, TUAV, UCAV, SUAV) Technology (Remotely Operated, Semi-Autonomous, Autonomous) Applications (Search and Rescue, National Defense, Military Exercises). Leading Companies: Lockheed Martin, Northrop Grumman, Thales Group, Boeing, Raytheon Technologies
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