The globalmilitary drone market demandis anticipated to hit USD 30.86 billion in 2029 and exhibit a CAGR of 14.82% during the forecast period. The rising military drone procurement by defense forces and expanding military budgets are expected to foster growth for the market.Fortune Business InsightsTMhas presented this information in its report titled,Military Drone Market, 2022-2029.The market size stood at USD 10.25 billion in 2021 and USD 11.73 billion in 2022.
Additionally, the increasing incorporation of artificial intelligence (AI) with autonomous flight systems is estimated to be a key trend stimulating the market growth.
On the basis of product type, the market is fragmented into rotary wing, hybrid wing, and fixed wing. On the basis of technology, the market is trifurcated into autonomous drones, semi-autonomous drones, and remotely operated drones. On the basis of range, the market is divided into Beyond Line of Sight (BLOS), Extended Visual Line of Sight (EVLOS), and Visual Line of Sight (VLOS). On the basis of system, the market is categorized into software, payloads, propulsion, avionics, airframe, and others. On the basis of applications, the market is segregated into logistics transportation, battle damage management, combat operations, Intelligence, Surveillance Reconnaissance and Targeting (ISRT), and others. Geographically, the market is classified into North America, Asia Pacific, Europe, and the rest of the world.
Expanding Military Spending to Fuel Market Growth
The swelling defense expenditures by several countries, such as Saudi Arabia, Russia, India, and China, to purchase and upgrade their defense systems are expected to boost the global military drone market growth. In 2020, the U.K., the U.S., Russia, India, and China accounted as the top five nations with the largest defense budgets standing at USD 59.2 billion, USD 778 billion, USD 61.7 billion, USD 72.9 billion, and USD 252 billion, respectively.
The escalating cross-border issues amongst various nations over land ownership and other such reasons are expected to augment the demand for drones and foster the market growth. Additionally, the growing terrorism and territorial issues amongst Syria, Israel, Pakistan, China, India, and others are likely to fuel drone procurement and complement the market growth.
However, high costs of modern systems and advanced electronics equipped in military drone may restrain the market growth.
North America to Dominate Global Market to Presence of Key Players
North America is projected to gain the largest military drone market share. The key players present in the region, such as General Atomics Aeronautical Systems Inc., Northrop Grumman Corporation, and others, are expected to flourish in market growth. The growing technological developments due to extensive RD activities and increasing investments are expected to fuel the regions market growth.
Europe is projected to witness substantial growth in the global market. The growing procurement of small, tactical drones by Germany, France, and the U.K. is expected to amplify the market growth in Europe.
Asia Pacific is estimated to expand rapidly due to the swelling defense budgets by India and China. Moreover, the increasing investments by major key players are anticipated to magnify the market growth in Asia Pacific.