Loitering munition market seen reaching $6.4B by 2035

By AI, Created 12:20 PM UTC, May 22, 2026, /AGP/ – The loitering munition system market is projected to nearly triple from 2025 to 2035 as armed forces expand use of precision-strike drones. North America is expected to lead growth, driven by defense spending, contract activity and rising demand for manual and autonomous systems.

Why it matters: - Loitering munitions are moving from niche battlefield tools to a broader precision-strike capability for modern militaries. - The market’s growth reflects rising defense spending on systems that can loiter, identify targets and strike with reduced risk to personnel. - The forecast points to sustained procurement momentum through 2035, especially in North America.

What happened: - The loitering munition system market was valued at $2.1 billion in 2025. - Allied Market Research estimates the market will reach $6.4 billion by 2035. - The forecast implies a compound annual growth rate of 11.3% from 2026 to 2035. - The report was published May 22, 2026.

The details: - Loitering munitions are unmanned aerial vehicles designed for military reconnaissance, surveillance and precision ground strikes. - The systems can remain in a designated area for extended periods before engaging a target. - The platforms combine features of UAVs and guided missiles. - Operators can control the systems remotely or set them to autonomous operation with preset parameters. - The market is being supported by government investment in research and development. - A growing emphasis on precision-strike capability is also expanding demand. - The systems can engage targets at ranges of up to 50 km without putting personnel at risk, according to the report. - In April 2023, AeroVironment secured a $64.5 million U.S. Army contract for Switchblade 300 loitering systems destined for the French military. - The exact quantity covered by that contract was not disclosed. - In September 2024, AeroVironment won a $20.3 million firm-fixed-price contract from U.S. Special Operations Command for the Switchblade 600 Tactical Missile System. - The report says the contract improves operational flexibility across fixed and mobile platforms in sea, land and air domains. - The market is segmented by operation type, platform, type, launch mode, range and region. - Autonomous systems and manual systems are the operation types covered in the study. - Land, air and navy are the platform categories in the report. - Recoverable and expendable are the type categories in the report. - Launch modes include air-launched effect, vertical take-off, catapult-launched, canister-launched and hand-launched. - Range categories include short, medium and long.

Between the lines: - The report shows defense buyers favoring systems that can be deployed quickly and adapted to different battlefield conditions. - Manual positioning remains important because operators are used to reduce the risk of inaccurate strikes. - Counter-drone and antiballistic missile systems could slow market growth over the forecast period. - North America is expected to grow fastest, helped by U.S., Canada and other regional investments in suicide drone programs. - The report also points to increased contracts tied to border tensions and operational cost control. - The competitive set includes Rheinmetall AG, AeroVironment, WB Group, Israel Aerospace Industries, UVision Air, Elbit Systems, STM Savunma Teknolojileri and ZALA Aero Group.

What’s next: - North America is expected to remain the dominant regional market through 2035. - The autonomous segment is expected to stay dominant over the forecast period. - The land platform category led in 2025 and is expected to remain the largest segment. - Canister-launched systems led in 2025 and are projected to remain the top launch mode. - Short-range systems led in 2025 and are expected to stay the largest range segment. - The report provides regional coverage across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. - Request the sample PDF. - Purchase enquiry.