Loitering Munition Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Loitering Munition Market size was estimated at USD 539.9 million in 2024 and is projected to reach USD 1,036.1 million in 2031 at a CAGR of 9.76 % during the forecast period 2025-2031.

The loitering munition market involves the development and deployment of advanced weapon systems designed to remain airborne for extended periods while searching for and engaging targets. These munitions, often referred to as "suicide drones" or "kamikaze drones," are equipped with sensors and guidance systems to identify and strike specific targets. Unlike traditional missiles, which are launched and then guided to their targets, loitering munitions are capable of hovering over an area for a prolonged time, waiting for a target to appear. This unique capability makes them highly effective for precision strikes, particularly in complex, fast-moving battlefield scenarios.

The market scope of loitering munitions is expanding, with increasing demand across both military and defense sectors. Countries around the world are investing heavily in these advanced systems to enhance their strategic capabilities and improve operational efficiency in combat zones. The growing focus on countering threats from adversaries in urban warfare, counter-terrorism operations, and border security is also driving the need for loitering munitions. These weapons are seen as a more cost-effective and precise alternative to traditional airstrikes, especially in regions where the risk of collateral damage is high.

One of the key trends in the loitering munition market is the integration of artificial intelligence (AI) and machine learning algorithms. These technologies enable loitering munitions to autonomously identify and engage targets, reducing the need for human intervention and increasing the speed and accuracy of strikes. Another trend is the miniaturization of loitering munitions, making them more portable and versatile. Additionally, advancements in communication and sensor technology have enhanced the operational range and effectiveness of these systems, further contributing to their growing popularity.

The main drivers of the loitering munition market include the increasing demand for more precise, cost-effective, and flexible weaponry in modern warfare. As defense budgets grow and nations prioritize national security, the adoption of loitering munitions offers a strategic advantage by providing greater operational capabilities at a lower cost. Additionally, the evolving nature of warfare, characterized by asymmetric threats and the need for rapid deployment in varied environments, is pushing the development and use of loitering munitions. Increasing investments in unmanned aerial systems (UAS) and drone technologies are also fueling market growth, as these munitions become a critical component of modern military arsenals.

Delvens Industry Expert's Standpoint

Experts in the Loitering Munition Market highlight several key trends driving growth and innovation. The loitering munition market is growing rapidly as these advanced weapons, often referred to as "suicide drones," provide precise, cost-effective, and flexible solutions for modern warfare. Capable of staying airborne for extended periods to identify and strike targets, loitering munitions are gaining popularity in military and defense sectors, driven by their ability to minimize collateral damage and provide greater operational efficiency. Trends such as the integration of AI for autonomous targeting, miniaturization for portability, and advancements in sensor technology are further enhancing their effectiveness. The market is fueled by increasing defense investments, the need for more precise weaponry, and the evolving nature of warfare, with loitering munitions offering strategic advantages in counter-terrorism, urban warfare, and border security.

Market Portfolio

Key Findings

• The expendable segment of the loitering munition market is expected to hold the largest market share due to its affordability and operational advantages. Expendable loitering munitions, often known as "kamikaze drones," are single-use, making them ideal for targeting high-value assets without the need for recovery or reuse. This feature is especially attractive in modern warfare, where rapid deployment and accurate strikes are crucial. As military forces increasingly focus on asymmetric warfare, the demand for these munitions is growing, as traditional combat methods may not be as effective. The need for cost-effective solutions within defense budgets is also driving higher adoption rates of expendable loitering munitions. The expendable category is divided into fixed-wing and rotary-wing systems, with fixed-wing systems currently leading due to their superior range and endurance, essential for surveillance and strike missions. As defense forces modernize their arsenals to meet evolving battle dynamics, the reliance on expendable loitering munitions is expected to rise, with many military departments investing in these systems to enhance readiness and operational effectiveness.

• The air-launched effect segment in the loitering munition market is projected to experience strong growth in the coming years, driven by its increasing use in modern military operations. Air-launched effects, which are deployed from platforms like UAVs, fighter jets, and helicopters, provide advantages such as longer operational range, higher altitudes, and better safety for both the munition and the platform. These systems are particularly effective for precision strikes, suppressing enemy air defenses (SEAD), and intelligence, surveillance, and reconnaissance (ISR) missions. The demand for long-range, accurate weapons capable of operating in contested environments is driving growth in this segment. Defense modernization efforts and rising geopolitical tensions are pushing countries to strengthen their military capabilities, including the integration of advanced technologies in air-launched loitering munitions. Furthermore, these systems act as force multipliers, improving flexibility and reducing operational risks, further contributing to the segment's rapid expansion.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as Increasing defense budgets, growing demand for precision strikes, modernization of military arsenals, rising geopolitical tensions, asymmetric warfare and evolving threats, advancements in drone and loitering munition technology, enhanced operational flexibility and rapid response capabilities, focus on cost-effective, versatile combat solutions, rising demand for versatile deployment methods, increasing focus on urban warfare and precision targeting have triggered the Loitering Munition Market in the region.

Regional Analysis

North America to Dominate the Market

• North America held the largest market share for loitering munition systems, driven by significant advancements in research, development, and the growing use of these systems across various battlefield scenarios. The preference for manual positioning systems to reduce errors and enhance precision has further supported the market. For example, in September 2021, the United States Special Operations Command (USSOCOM) awarded AeroVironment Inc. a USD 20.3 million contract for the delivery of the Switchblade 600 Tactical Missile System, scheduled for delivery in 2023. This system will provide operational flexibility across fixed and mobile platforms on land, sea, and in the air.

• The Asia Pacific region is expected to experience the fastest growth during the forecast period, with countries like India, China, and Japan significantly increasing their investment in suicide drone projects. The demand for manual positioning systems in the region is also contributing to market growth, as many nations sign contracts to address border security and reduce operational costs.

• The European market for loitering munitions is expected to show consistent growth throughout the forecast period. A significant portion of the demand in this region is attributed to manual positioning systems, which are increasingly being adopted by armed forces such as the French Armed Forces, the Royal Army, and the Polish Army. These systems are valued for their ability to minimize the risk of erroneous strikes. The rise in border conflicts and the heightened risk of terrorist attacks have also contributed to the growing demand for loitering munition systems in Europe.

Competitive Landscape

• AeroVironment
• Thales
• Elbit Systems
• Rheinmetall
• Israel Aerospace Industries
• Uvision
• WB Group
• AEVEX Aerospace
• STM Savunma Teknolojileri Mühendislik ve Ticaret A.S.
• KNDS
• Paramount Group
• EDGE PJSC Group
• MBDA
• Teledyne FLIR Defense
• RTX
• Solar Group
• Northrop Grumman
• Anduril Industries

Recent Developments

• In August 2023, AeroVironment secured a five-year, sole-source contract valued at up to USD 990 million from the U.S. Army for its Switchblade loitering munitions. This contract aims to meet the Army's need for organic, stand-off capabilities to support dismounted infantry formations in engaging a variety of targets, including tanks and light armored vehicles. The agreement underscores the increasing reliance on loitering munitions as part of the Army's Low Altitude Stalking and Strike Ordnance (LASSO) program, designed to enhance infantry combat effectiveness.

• In April 2024, Teledyne FLIR was awarded a USD 12 million contract to supply loitering munitions for the U.S. Marine Corps' Organic Precision Fires-Light (OPF-L) program. This contract involves the delivery of 127 loitering munition systems, aimed at protecting dismounted infantry against beyond-line-of-sight threats. It reflects the Marine Corps' focus on improving small unit lethality and operational flexibility through advanced loitering munition technologies.

• In early 2024, Israel Aerospace Industries (IAI) secured two major contracts worth USD 145 million to provide long-range loitering munitions to two different countries. These agreements underscore the growing global demand for IAI's cutting-edge systems, such as the Harpy NG and Harop models. IAI's President highlighted that these orders emphasize the strategic role of loitering munitions in achieving battlefield success.

• At AUSA 2023, UVision introduced its new lightweight Hero-90 tactical loitering munition, designed for urban warfare and rapid reaction missions. This system is tailored to enhance the capabilities of special forces and mobile units operating with armored vehicles. The launch of the Hero-90 demonstrates UVision's commitment to providing innovative solutions for modern combat scenarios, further driving demand in the loitering munition market.

• In September 2024, Artemon Aerospace announced a strategic partnership with Munitions India Limited (MIL) to develop advanced loitering munition solutions for the Indian Armed Forces. This collaboration is part of India's Atmanirbhar Bharat initiative, which aims to promote self-reliance in defense manufacturing. The partnership seeks to combine indigenous expertise and cutting-edge technology to create loitering munitions that meet the evolving needs of modern warfare, strengthening India's defense capabilities.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
• Gain authentic and granular data access for the Loitering Munition Market to understand the trends and the factors involved in changing market situations.
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope