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    Military Surveillance Drones Market

    ID: MRFR/A&D/3006-CR
    140 Pages
    Sejal Akre
    April 2023

    Military Surveillance Drone Market Research Report Information By Drone Type (Fixed Wing Drone, Rotary Blade Drone, Hybrid Drone), By Payload (Electro-Optic/Infrared Sensor, Cameras, Electronic Intelligence, Maritime Patrol Radar, Others), By Technology (Hardware, Software) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2035

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    Military Surveillance Drones Market Infographic
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    Military Surveillance Drones Market Summary

    As per Market Research Future Analysis, the Global Military Surveillance Drone Market was valued at USD 1.23 billion in 2024 and is projected to grow to USD 3.65 billion by 2035, with a CAGR of 10.39% from 2025 to 2035. The market is driven by increased defense budgets and government funding aimed at enhancing military operations through advanced drone technologies. The fixed-wing segment is expected to dominate the market due to its efficiency in long-distance missions, while the rotary-wing segment is anticipated to grow significantly due to the rise of quad-copters. The integration of AI and advanced sensor technologies is further propelling market growth.

    Key Market Trends & Highlights

    Key trends driving the Military Surveillance Drone Market include increased government funding and technological advancements.

    • US Navy's funding for unmanned systems increased by USD 1 billion (38%) in 2019 compared to 2018.
    • The US Department of Defense requested approximately USD 9.39 billion for drones in fiscal year 2019, a 26% increase from 2018.
    • The fixed-wing segment is projected to hold the highest market share due to its capability for long-distance missions.
    • The Asia-Pacific region is expected to grow at the fastest CAGR from 2023 to 2032.

    Market Size & Forecast

    2024 Market Size USD 1.23 billion
    2035 Market Size USD 3.65 billion
    CAGR (2025-2035) 10.39%

    Major Players

    Key players include Boeing, Airbus Corporation, Lockheed Martin, Northrop Grumman Corporation, Thales Group, and Saab Group.

    Military Surveillance Drones Market Trends

    Increasing government funding for military drones is driving market growth.

    The government funding for military drones is increasing to enhance the efficiency of military operations. This will boost demand and increase the production of military drones. According to a report published by the Bard College Center for the Study of the Drone, in 2019, the US Navy's funding for unmanned systems increased by USD 1 billion (38%), and the US Army's funding increased by USD 719 million (73%) when compared to 2018.

    The US Department of Defense (DOD) also requested approximately USD 9.39 billion for drones and associated technologies in the fiscal year 2019, representing a significant expansion of 26% in drone spending over the 2018 budget, which was USD 7.5 billion. The DOD has been allocated about USD 7.5 billion in the fiscal year 2021 for a variety of robotic platforms and related technologies, according to a recent study by the Association for Unmanned Vehicle Systems International. Most of the global defense spending is attributed to the development and procurement of drones.

    For instance, in September 2021, BAE Systems and Malloy Aeronautics announced plans to explore developing an all-electric 'heavy lift' unmanned air system (UAS) as a potential new solution to deliver cost-effective, sustainable rapid response capability to military, security, and civilian customers. Moreover, the security of key institutions has been greatly enhanced with advanced video surveillance and access control systems. Unmanned Aerial Vehicles are used for tactical planning and surveillance of major events or gatherings in large cities. Such factors are expected to fuel the growth of the global military drone market during the forecast period.

    Additionally,Drone technology has witnessed strong growth in the past years due to continuous research & development and innovation enhancing its capabilities. The drones are incorporated with modern sensors, LiDAR, GNSS, high-tech cameras, and thermal and infrared imaging systems. The most advanced drones have multiple sensor systems, such as communication intelligence sensors, air-to-air missiles, and global mobile communication (GSM) systems. Nowadays, the most advanced unmanned aerial vehicles can carry several payloads attached to large sensors and internal weapons bays. Artificial intelligence (AI) is being adopted commercially for autonomous flight systems for high-altitude military UAVS.

    This is expected to predict well for the global military drone market growth in the forthcoming years. The weapon payload includes missile and guided bomb units.Thus, driving the Military Surveillance Drone market revenue.

    The increasing reliance on unmanned aerial systems for intelligence, surveillance, and reconnaissance missions underscores a transformative shift in military operations, reflecting a broader trend towards automation and enhanced situational awareness.

    U.S. Department of Defense

    Military Surveillance Drones Market Drivers

    Market Growth Projections

    Rising Defense Budgets Globally

    The Global Military Surveillance Drone Market Industry is experiencing growth due to rising defense budgets across various countries. Governments are prioritizing national security and defense modernization, leading to increased funding for advanced military technologies, including surveillance drones. Countries such as India and Russia are significantly boosting their defense expenditures, which in turn fuels demand for sophisticated drone systems. This trend is expected to sustain the market's upward trajectory, as nations seek to enhance their surveillance capabilities. The financial commitment to defense modernization is likely to result in a more competitive landscape for military drone manufacturers.

    Increasing Geopolitical Tensions

    The Global Military Surveillance Drone Market Industry appears to be driven by escalating geopolitical tensions across various regions. Nations are increasingly investing in advanced surveillance technologies to enhance their defense capabilities. For instance, countries like the United States and China are ramping up their drone programs to monitor potential threats. This trend is likely to contribute to the market's growth, with projections indicating a market value of 1.23 USD Billion in 2024. As nations seek to maintain strategic advantages, the demand for military surveillance drones is expected to rise significantly.

    Emerging Markets and Regional Developments

    Emerging markets are increasingly becoming pivotal players in the Global Military Surveillance Drone Market Industry. Countries in regions such as Asia-Pacific and the Middle East are investing in drone technology to bolster their defense capabilities. This trend is driven by the need for enhanced surveillance and reconnaissance in response to regional security challenges. As these nations develop their military infrastructure, the demand for surveillance drones is expected to rise. The market's expansion in these regions may lead to new opportunities for manufacturers and suppliers, contributing to a more diversified global market.

    Technological Advancements in Drone Capabilities

    Technological innovations play a crucial role in shaping the Global Military Surveillance Drone Market Industry. Recent advancements in artificial intelligence, machine learning, and sensor technologies have enhanced the operational capabilities of drones. These developments enable drones to conduct real-time surveillance, gather intelligence, and perform reconnaissance missions with greater efficiency. As a result, military organizations are increasingly adopting these advanced systems. The market is projected to expand, with an anticipated value of 3.65 USD Billion by 2035, reflecting a compound annual growth rate (CAGR) of 10.39% from 2025 to 2035.

    Growing Demand for Intelligence, Surveillance, and Reconnaissance (ISR)

    The demand for Intelligence, Surveillance, and Reconnaissance (ISR) capabilities is a significant driver of the Global Military Surveillance Drone Market Industry. Military forces worldwide are recognizing the importance of ISR in modern warfare, leading to increased investments in drone technology. Drones equipped with advanced imaging systems and data analytics tools provide critical situational awareness, enabling timely decision-making. This trend is likely to bolster market growth, as military budgets allocate more resources towards ISR capabilities. The anticipated growth trajectory suggests a robust market expansion, aligning with the increasing focus on enhancing national security.

    Market Segment Insights

    Military Surveillance Drone MarketSegment Insights

    Figure1: Military Surveillance Drone Market, byDrone Type, 2022&2032(USD billion)

    Based on drone type, the Military Surveillance Drone Market segmentation includes fixed wing drone, rotary blades, and hybrid drones. The fixed-wing segment is estimated to hold the highest military drone market share in 2021 and continue its dominance throughout the forecast period. Fixed-wing aerial vehicles can typically carry greater payloads for longer distances and flying times while using less power than VTOL (Vertical Takeoff and Landing) UAVs. This makes them ideal for long-distance missions like mapping, surveillance, and defense, in which lengthy endurance is critical and hence is significantly used in the defense sector by various armed forces worldwide.

    These factors are predicted to propel the segment growth through the projection period.The rotary-wing segment is anticipated to showcase significant growth worldwide in the coming years, owing to the increasing development of quad-copters. Quad-copters are heavy load carriers widely used for transportation and logistics applications across the globe. Rotary wing drones are also used in tactical operations for Intelligence, Surveillance, and Reconnaissance (ISR) missions.

    Figure1: Military Surveillance Drone Market, byDrone Type, 2022&2032(USD billion)

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Military Surveillance Drone Payload Insights

    Based on Payload, the Military Surveillance Drone Market segmentation includes electro-optic/infrared sensor, cameras, electronic intelligence, maritime patrol radar, and others. The electro-Optic/Infrared Sensorsegment dominated the market. The growth of the segment is attributed to the growing incorporation of infrared sensors and Advanced long-range communication systems.For Instance, March 2022 Gambit is an Autonomous Collaborative Platform (ACP) designed through digital engineering to speed its time to market and lower acquisition costs. The jet-powered platform is being built for air dominance and will heavily leverage artificial intelligence and autonomous systems advances.

    For Instance, December 2021 the Mojave is an unmanned aerial vehicle (UAV) capable of short takeoff and landing (STOL). Mojave takes a Gray Eagle fuselage and adds enlarged wings with high-lift devices and a Rolls Royce 450-horsepower turboprop engine. The UAS is based on the avionics and flight control systems of the MQ-9 Reaper and the MQ-1C Gray Eagle- Extended Range.

    Military Surveillance Drone By Technology Insights

    Based on Technology, the Military Surveillance Drone Market segmentation includes hardware, software. The Hardware sensor segment dominated the market. The Hardware operated drone segment is projected to have the highest share of the market during the forecast period. Most commissioned UAVS are operated by Hardware worldwide due to rigorous government requirements for long-range autonomous flying. For Command & control (C&C) and other telemetry systems, as well as radio communications.

    The Software segment is projected to grow at the fastest CAGR during the forecast period. Several growing economies are focused on innovating and developing autonomous unmanned aerial vehicles to provide tactical and strategic services.

    Get more detailed insights about Military Surveillance Drone Market Research Report Information - Global Forecast to 2034

    Regional Insights

    By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American military surveillance drone market area will dominate this market. Their rapidly improving economic conditions and the growing need to strengthen national security by acquiring technologically advanced equipment like Military Drones for surveillance will boost the market growth in this Region.

    Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    Figure2: GLOBALMILITARY SURVEILLANCE DRONE MARKET SHARE BY REGION 2022 (%)

    GLOBALMILITARY SURVEILLANCE DRONE MARKET SHARE BY REGION 2022 (%)

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Europe's Military Surveillance Drone market accounts for the second-largest market share due to theflow of increased defense budget into the research and development of UAVs and drones. Further, the German Military Surveillance Drone market held the largest market share, and the UK Military Surveillance Drone market was the fastest-growing market in the European Region.

    The Asia-Pacific Military Surveillance Drone Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness of a healthy lifestyle and nutrition and rising per capita disposable income. Moreover, China’s Military Surveillance Drone market held the largest market share, and the IndianMilitary Surveillance Drone market was the fastest-growing market in the Asia-Pacific region.

    For instance, Americans are actively pursuing a physically active lifestyle and becoming more health-prone. An increase has aided the expansion and growth of the industry in the number of health clubs and fitness facilities across the nation.

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development to expand their product lines, which will help the military surveillance drone market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The military surveillance drone industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

    Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Military Surveillance Drone industry to benefit clients and increase the market sector. In recent years, the Military Surveillance Drone industry has offered some of the most significant advantages to the military. Major players in the Military Surveillance Drone market, including Boeing, Airbus Corporation,Lockheed Martin,Northrop Grumman Corporation,Thales Group,Saab Group, and others, are attempting to increase market demand by investing in research and development operations.

    MacOS Mojave is the fifteenth major release of macOS, Apple Inc.'s desktop operating system for Macintosh computers. Mojave was announced at Apple's Worldwide Developers Conference on June 4, 2018, and was released to the public on September 24, 2018. The Mojave is an unmanned aerial vehicle (UAV) capable of short takeoff and landing (STOL). Mojave takes a Gray Eagle fuselage and adds enlarged wings with high-lift devices and a Rolls Royce 450-horsepower turboprop engine. The UAS is based on the avionics and flight control systems of the MQ-9 Reaper and the MQ-1C Gray Eagle- Extended Range.

    Teledyne FLIR LLC, formerly FLIR Systems Inc, a subsidiary of Teledyne Technologies, specializes in designing and producing thermal imaging cameras and sensors. Its main customers are governments, and in 2020, approximately 31% of its revenues were from the federal government of the United States and its agencies.Teledyne FLIR Defense, a part of Teledyne FLIR LLC, announced the launch of the ION M640x tactical Unmanned Aerial System (UAS). The UAS builds on the capabilities of the ION M440 (a Blue sUAS) and will provide military and other government customers with best-in-class capabilities for their unique missions.

    Key Companies in the Military Surveillance Drones Market market include

    Industry Developments

    • Q2 2024: Northrop Grumman wins $8.8 billion U.S. Army contract for next-generation surveillance drones Northrop Grumman was awarded a multi-year contract by the U.S. Army to develop and supply advanced surveillance drones, focusing on enhanced ISR (Intelligence, Surveillance, Reconnaissance) capabilities for battlefield operations.
    • Q2 2024: Elbit Systems secures $180 million contract to supply tactical surveillance drones to European defense ministry Elbit Systems announced a major contract win to deliver tactical surveillance drones to a European country, with deliveries scheduled to begin in late 2024.
    • Q2 2024: AeroVironment launches new Puma V4 military surveillance drone with extended endurance AeroVironment unveiled the Puma V4, a next-generation surveillance drone designed for military applications, featuring improved flight time and advanced sensor payloads.
    • Q3 2024: General Atomics partners with South Korean defense firm for co-development of surveillance UAVs General Atomics signed a strategic partnership agreement with a South Korean defense company to jointly develop and manufacture surveillance UAVs for regional and export markets.
    • Q3 2024: BAE Systems opens new drone manufacturing facility in the UK to meet rising military surveillance demand BAE Systems inaugurated a state-of-the-art facility dedicated to the production of military surveillance drones, aiming to support increased orders from European and Middle Eastern clients.
    • Q4 2024: Lockheed Martin unveils AI-powered surveillance drone for U.S. Air Force trials Lockheed Martin announced the launch of a new AI-enabled surveillance drone, set to undergo operational testing with the U.S. Air Force in early 2025.
    • Q4 2024: Turkey’s Baykar wins major export contract for military surveillance drones to African nation Baykar, a leading Turkish drone manufacturer, secured a significant export deal to supply military surveillance drones to an African government, expanding its international footprint.
    • Q1 2025: Israel Aerospace Industries announces $250 million contract for long-range surveillance drones Israel Aerospace Industries revealed a new contract to deliver long-range surveillance drones to a foreign defense customer, with deliveries planned through 2026.
    • Q1 2025: Teledyne FLIR launches Black Hornet 4 nano surveillance drone for military reconnaissance Teledyne FLIR introduced the Black Hornet 4, a nano drone designed for covert military surveillance and reconnaissance missions, featuring enhanced imaging and flight capabilities.
    • Q2 2025: U.S. Department of Defense awards $500 million contract to Boeing for next-gen surveillance UAVs Boeing received a substantial contract from the U.S. Department of Defense to develop and deliver next-generation surveillance UAVs, focusing on improved autonomy and sensor integration.
    • Q2 2025: Leonardo partners with Italian Ministry of Defense for new surveillance drone program Leonardo announced a partnership with the Italian Ministry of Defense to co-develop a new line of surveillance drones tailored for European military requirements.
    • Q3 2025: Saab secures contract to supply surveillance drones to Nordic defense alliance Saab won a contract to provide advanced surveillance drones to a coalition of Nordic countries, supporting joint defense and border monitoring initiatives.

    Future Outlook

    Military Surveillance Drones Market Future Outlook

    The Military Surveillance Drone Market is poised for growth at a 10.39% CAGR from 2025 to 2035, driven by technological advancements, increasing defense budgets, and rising demand for intelligence, surveillance, and reconnaissance capabilities.

    New opportunities lie in:

    • Invest in AI-driven analytics for enhanced data processing and decision-making capabilities.
    • Develop hybrid drones that combine surveillance with combat capabilities for multi-role applications.
    • Expand partnerships with defense agencies to tailor solutions for specific operational needs.

    By 2035, the Military Surveillance Drone Market is expected to achieve substantial growth, reflecting evolving defense strategies and technological innovations.

    Market Segmentation

    Military surveillance drone Type Outlook

    • Fixed Wing Drone
    • Rotary Blade Drone
    • Hybrid Drone

    Military surveillance drone Payload Outlook

    • Electro-Optic/Infrared Sensor
    • Cameras
    • Electronic Intelligence
    • Maritime Patrol Radar
    • Others

    Military surveillance drone Regional Outlook

    North America
    • US
    • Canada
    Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Rest of Europe
    Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    Rest of the World
    • Middle East
    • Africa
    • Latin America

    Military surveillance drone Technology Outlook

    • Hardware
    • Software

    Report Scope

    Attribute/Metric Details
    Market Size 2024  USD 1.23156  billion
    Market Size 2025 USD 1.35954401327693  billion
    Market Size 2035 3.65 (Value (USD Billion))
    Compound Annual Growth Rate (CAGR) 10.39% (2025 - 2035)
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019- 2022
    Market Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Drone Type, Payload, Technology, and Region
    Geographies Covered North America, Europe, AsiaPacific, and the Rest of the World
    Countries Covered The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled  Boeing Airbus Corporation,Lockheed Martin,Northrop Grumman Corporation,Thales Group,Saab Group.
    Key Market Opportunities Using drones in surveillance and neutralizing such threats increases the use of drones in the defense sector.
    Key Market Dynamics The flow of increased defense budget into the research and development of UAVs and drones

    Market Highlights

    Author
    Sejal Akre
    Senior Research Analyst

    She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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    FAQs

    How much is the Military Surveillance Drone market?

    The Military Surveillance Drone Market size was valued at USD 1.11562407600485 Billion in 2023.

    What is the growth rate of the Military Surveillance Drone market?

    The global market is projected to grow at a CAGR of 10.4% from 2025 to 2034.

    Which Region held the largest market share in the Military Surveillance Drone market?

    North America had the largest share of the global market

    Who are the key players in the Military Surveillance Drone market?

    The key players in the market areBoeing Airbus Corporation,Lockheed Martin,Northrop Grumman Corporation,Thales Group,and Saab Group.

    Which Drone Type led the Military Surveillance Drone market?

    The Fixed Wing Drone Surveillance Drone category dominated the market in 2023.

    Which Technology had the largest market share in the Military Surveillance Drone market?

    The Hardwarehad the largest share in the global market.

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