Loitering Munition Market Size – By Loitering platform type, By range, By end use - global forecast, 2025 – 2034

Loitering Munition Market Size

The global loitering munition market currently accounts for USD 542.9 million with a volume of 4,003 units in 2024 and is projected to grow at a CAGR of 9.1% from 2025 to 2034, driven by Cost-effectiveness as compared to traditional systems, rapid deployment & higher efficiency, and growing emphasis on military modernization.
 

Loitering munitions are a cost-effective alternative to traditional missile systems where precision strike capabilities can be effectively used for much lower costs which seems to appeal especially to countries looking to modernize their military arsenal, but not ready to deal with the high costs. For instance, the U.S. Department of Defense's invested USD 54.9 million in AeroVironment's switchblade drone systems, which are said to be more efficient and cost-effective as compared to a traditional missile system. According to a 2023 U.S. Congressional Research Service report, the unit cost for a switchblade 300 was around USD 6000, which is much lower than most of the guided missiles. The cost-effectiveness and efficiency of systems such as switchblade drones have created a huge demand for loitering munitions systems.
 

Loitering munitions are lightweight and compact, making them easy to deploy quickly and providing high mobility and tactical flexibility in a fluid theatre of operations. For instance, the loitering drone systems employed by the Ukrainian military, such as the warmate loitering munition, can be quickly launched by individual soldiers, making them react quickly against threats that may emerge by surprise. The U.S. Army Field Manual on Unmanned Aerial Systems highlights, the capabilities of the loitering munitions systems like enhancing situational awareness and the ability to target and attack fast-moving or time-sensitive threats to achieve decisive results on the battlefield. The ease of deployment and the ability to manoeuvre loitering munitions to respond to immediate threats has significantly influenced the global adoption of loitering munitions systems.
 

Global powers such as the United States, China, Russia, India and others are strongly emphasising on defence modernization efforts and are focusing on deploying loitering munitions systems as part of the contemporary warfare concepts for reconnaissance and surveillance. For instance, India's HAL Combat Air Teaming System (CATS) incorporates loitering munitions into a larger manned-unmanned teaming framework to increase combat effectiveness and enhance operational range. In a 2024 report by the Indian Ministry of Defence, the CATS program aims to develop autonomous systems, such as loitering munitions, to modernize India's defence capabilities. Such factors will support the growth of the loitering munition industry during the forecast period.
 

Loitering Munition Market Trends

The integration of artificial intelligence (AI) into loitering munitions has significantly enhanced their operational capabilities. This advancement allows for autonomous target identification and engagement, which substantially reduces the need for human intervention and shortens response times. A joint military exercise was held by the U.S. in 2024 in partnership with the AUKUS. As part of the exercise, the AI was used to detect enemy vehicles and engage them in real-time, proving the effectiveness of AI in combat environments. Such, technological advancements in AI are increasing the accuracy and effectiveness of loitering munitions in ever-changing battlefield environments. As AI technology continues to progress, the incorporation of AI into loitering munitions will have a massive impact on market growth in the development of more advanced autonomous capabilities. 

 
Advancements in sensor technology relating to electro optical, infrared, and LiDAR systems have improved situational awareness and targeting accuracy making loitering munitions more capable than in the past. An industry report from 2025 states these advancements allow real-time intelligence, surveillance, and reconnaissance (ISR), which allow for engagements with precision and effectiveness. The improved sensors integrate ISR capabilities and improve data fusion and decision-scale processes increasing the operational capability of loitering munitions. As sensor technology improves, this will be an important area in the expanding applications of loitering munitions and demand in future warfare applications.
 

The addition of advanced radar capabilities to loitering munitions improves their detection and tracking ability and increases their precision and tracking capabilities in order to mitigate the dislocation factor of the environment. The European Defence Fund 2024 Call for Proposals signalized the importance of developing miniaturized radars for small unmanned systems (including loitering munitions) to ensure that their precision munitions only hit their intended target. The evolution of radar and miniaturized technology will enable loitering munitions to properly function in a GPS-denied or electronically contested environment, whilst providing the user with increased options and enhanced reliability. These technologies are seen to decrease both the size and weight of radar sensors, thereby increasing the expected incorporation of these systems into loitering munitions development, which has the potential to drive revenue and impact operations.
 

The emerging domain of Electronic Warfare (EW) and offensive and defensive EW capabilities have led to the introduction of EW capabilities or anti-jamming capabilities into loitering munitions, to support their operations in electronically contested environments. The EDA report raised the level of command to emphasize the need for cooperative programs to develop portable EW systems and signals intelligence systems for commanders to use against emerging threats. These capabilities enhance the user's operational integrity in electronically contested environments by ensuring a degree of resistance against jamming and deception to maximize reliability. Electronic warfare continues to cause serious issues for conventional operations, but the inclusion of EW capabilities into loitering munitions is likely to be an important driver of its wider application and effectiveness.
 

The advancements of swarm capabilities allow multiple loitering munitions to be employed in an all-encompassing manner, overcoming adversary defences and increasing mission success. The United States's Air Force Research Laboratory has introduced swarming drones, capable of communicating and autonomously coordinating attacks, a priority in 2024. The advances in swarm capabilities demonstrated the ability of swarm technology to improve lethality in combat. These capabilities harness the superior speed of loitering munitions to conduct more complex missions, exhibiting increased efficiency and adaptability. As swarm sides improves, there are few limitations as to what will expand operational requirements and demand for loitering munitions in war.
 

Loitering Munition Market Analysis

Based on loitering platform type, the market is segmented into fixed-wing, rotary-wing, and hybrid (VTOL). The fixed-wing segment accounts for the highest market share of 66.3%, and the hybrid (VTOL) segment is the fastest-growing segment with a CAGR of 12.6% during the forecast period.
 

• The fixed-wing segment accounts for USD 360.1 million in 2024 and is expected to grow with a CAGR of 8.9%. Fixed-wing loitering munitions are increasingly popular because they have long ranges and endurance that allow them to operate strategically. A key innovation we have seen recently is MBDA's RD-120 Raijin. The RD-120 has a rhomboidal wing outline that will improve aerodynamic efficiency and payload. This design choice demonstrates the trend of designing fixed-wing vehicles and loitering munitions to maximize performance. As these capabilities increase, the amount of fixed-wing loitering munitions will undoubtedly increase to meet market demand for flexibility.
   
• The hybrid (VTOL) segment accounts for USD 66.1 million in 2024 and is the fastest-growing segment in the market, compounding at an annual growth rate of 12.6%. Hybrid vertical take-off and landing (VTOL) loitering munitions are developing, converging the benefits of fixed-wing endurance and rotary-wing flexibility. The hybrid VTOL Uncrewed Aerial System offered by BAE Systems called STRIX, is a recent example of innovation in this space. It is a hybrid VTOL vehicle with multi-domain operational capabilities. The STRIX is designed to complete missions in a range of operating environments and adapt to the environment on the fly. As defense forces seek flexible, multi-domain systems, hybrid VTOL is expected to be a growing segment within the loitering munitions market.
   

Based on range, the loitering munition market is segmented into short-range 50 km, medium-range 50–200 km, and long-range > 200 km. The Medium-Range 50–200 km segment accounts for the highest market share of 46.3%, and the short-range 50 km segment is the fastest-growing segment with a CAGR of 10.1% during the forecast period.
 

• The medium-range 50–200 km segment accounts for USD 251.4 million in 2024 and is expected to grow with a CAGR of 8.8%. Medium-range loitering munitions are gaining popularity due to cost-per-effects, range (and payload), and capabilities to perform various missions. The UK Ministry of Defence's issuance to procure a medium-range precision strike solution demonstrates the strategic direction of responsible militaries. These movements suggest an increased maturity in the landscape of munitions that fit a variety of applications capable of engaging objects over greater distances. It is anticipated that further investments and developments will be made into medium-range loitering munitions.
   
• The short-range 50 km segment accounts for USD 210.1 million in 2024 and is the fastest-growing segment in the market, compounding at an annual growth rate of 10.1%. The short-range loitering munition category is experiencing a rise in adoption for tactical operations that require disruptive assets to be deployed rapidly with precision in constrained spaces. For example, KNDS France is developing the MT-10 and MX-10 drones with vertical take-off capabilities and intended for short-range operations. These systems provide more flexibility and are suited for urban warfare. As militaries are looking for agile solutions to close-quarter combat, the number of short-range loitering munitions used is expected to increase, leading to innovation and expansion in the market.

Based on end-user, the loitering munition market is segmented into military and homeland security. The military segment accounts for the highest market share of 92.9% and is the fastest-growing segment with a CAGR of 9.2% during the forecast period.
 

• The military segment accounts for USD 504.5 million in 2024 and is the fastest-growing segment expected to grow with a CAGR of 9.2%. The military sector is increasingly pursuing the integration of loitering munitions into its arsenal, as it looks to improve precision strike capabilities as well as mitigate personnel risk. An interesting case is the acceleration of the U.S. Army low altitude stalking and strike ordnance (LASSO) program to increase loitering munitions in the Army's loitering munitions inventory. The armed forces are looking to incorporate more advanced unmanned systems into their conduct of operations. As military forces around the globe continue to modernize, demand for loitering munitions will increase, thereby facilitating the growth of the loitering munitions segment.
   
• The homeland security segment accounts for USD 38.4 million in 2024 and is growing with a compounding annual growth rate of 6.1%. Homeland security agencies are considering the use of loitering munitions for applications designated for border surveillance and reconnaissance. The U.S. Department of Defense has engaged with XTEND to provide AI-driven loitering munitions for the Irregular Warfare Technical Support Directorate, which can enable capabilities in complex operational environments. As these security challenges develop and change, the utility of these kinds of technologies can expect to grow in the application of homeland security operations, thereby contributing to growth in the loitering munitions segment.

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and MEA. In 2024, the North American region accounted for the largest market share with over 34.2% of the total market share, and Europe is the fastest-growing region, growing at a CAGR of 10.3%.
 

• The market loitering munition market has been expanding steadily in the United States, achieving a CAGR of 8.5% and reaching a valuation of USD 151.9 million in 2024. The United States has recently ramped up its attention on loitering munitions as part of military modernization, emphasizing an increase in autonomy and uncrewed systems to improve effectiveness on the battlefield. For instance, the selection of the Switchblade-600 loitering munition by the Pentagon highlights the U.S. commitment to develop its drone capabilities, particularly in the Indo-Pacific region. These programs are likely to increase future loitering munition development and demand within the U.S. defence industry.
   
• In Germany market has been expanding significantly, achieving a CAGR of 10.4% and reaching a valuation of USD 19.2 million in 2024. Germany is making a strategic shift toward acquiring loitering munitions for their defence capabilities for the first time, reflecting concerns over adapting to the latest security challenges in Europe. The German military's initial decision to buy loitering munitions which are often called "exploding drones is an important shift from the previously held views of armed drone deployment. This change demonstrates that Germany is moving to modernize its defence technology, and as a result, is expected to positively impact the loitering munition industry.
   
• In China, the loitering munition market has been expanding, achieving a CAGR of 8.5% and reaching a valuation of USD 55.9 million in 2024. China is committed to enhancing its military-technological capacity, specifically in developing and integrating loitering munitions into its defense strategy. Furthermore, the Department of Defense's 2024 report indicates that China is increasing its unmanned systems, including loitering munitions, as part of its military modernization initiatives. Such developments are expected to raise China's profile in the global loitering munition industry, potentially affecting regional security dynamics and leading to further investment in the industry.
   
• The loitering munition market in Japan has been experiencing steady expansion, achieving a compound annual growth rate of 7.5% and attaining a valuation of USD 11.7 million in 2024. Japan is increasingly improving its defence posture by seeking to incorporate advanced unmanned systems (including loitering munitions) to meet new internal and external security challenges. Although Japan places less emphasis on the military, due to recent developments in the South China Sea have been pushing Japan to prepare its defences. Such developments have led Japan to prioritize the development and deployment of loitering munitions. Japan's defence modernization efforts and investments in unmanned technologies highlight that Japan is gradually considering such systems. Because of this, there are indications that demand for loitering munitions in Japan's defence market will expand over the coming years.
   
• In South Korea, the market is expanding rapidly, achieving a CAGR of 7.2% and reaching a value of USD 4.8 million in 2024. South Korea is increasing its loitering munitions capacity in response to regional tensions and enhancing defence preparedness. Of note is the procurement of upwards of 100 Warmate-3 loitering munitions to South Korea from that's from Poland's WB Group, as South Korea develops its unmanned aerial systems eds. This procurement represents South Korea's focus on incorporating loitering munitions into military activity, which is anticipated to spur the growth of the domestic market.
   

Loitering Munition Market Share

The loitering munition industry is very competitive and can be considered moderately concentrated, with few leading companies possessing significant portions of market shares. Leaders include Israel Aerospace Industries (IAI), AeroVironment, Inc., and BAYKAR TECH. They comprise nearly 43.8% of the worldwide market shares.
 

Israel Aerospace Industries is a leading player in the market with nearly 17.2% of the total market share. The company serves a portfolio of international contracts with NATO to provide them with Rotem loitering munitions. AeroVironment has had its Switchblade series loitering munitions contractually adopted by several countries' defence forces, including recent contracts with the US DoD. Strategic launches of products by these leading companies, combined with technological advancements, are expected to lead to increased growth and concentration in the loitering munition market.
 

Israel Aerospace Industries (IAI) is a global leader in defence and aerospace and produces a variety of loitering munitions, such as the Harpy for suppression of enemy air defenses, the Harop, which can be used against high-value targets, and the Mini Harop for small ground units. IAI sells systems around the world, including Europe, Asia, and the Americas. To maintain its competitive edge, IAI has engaged in several strategic partnerships, such as the ongoing partnership with Korea Aerospace Industries (KAI) to market loitering munitions for the Republic of Korea Army.
 

AeroVironment, Inc. (U.S.) is also one of the major manufacturers of loitering munition systems including the Switchblade 300, Switchblade 600 and Blackwing, which offer impressive capabilities from night operations and low-signature rapid deployment to the precision strike of a larger platform and distance. AeroVironment has sold its systems internationally to customers in North America, Europe and Asia. AeroVironment had also secured major contracts to bolster its market position, spending to invest in production capability for the Switchblade 300 was highlighted in a US$64.6 million contract with the U.S. Army.
 

Loitering Munition Market Companies

The top prominent companies operating in the loitering munition industry include:

• Israel Aerospace Industries
• AeroVironment, Inc.
• BAYKAR TECH
• STM Defense Technologies Engineering and Trading Inc.
   

Loitering Munition Industry News

• At IDEX 2025, KNDS France showcased the MX-10, added to the Mataris family of loitering munitions, to allow for better tactical applications.
   
• In April 2025, UVision completed the acquisition of Trim Robotics, to integrate advanced rotary-wing technology into its HERO series, further enhancing its loitering munition capabilities.
   
• AeroVironment announced a delivery order worth $288 million in the U.S. defense sector in February 2025 for its Switchblade loitering munition systems.
   

The loitering munition market research report includes in-depth coverage of the industry with estimates and forecasts in terms of revenue in (USD) million & volume (units) from 2021 – 2034 for the following segments:

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Market, by loitering platform type

• Fixed-wing
• Rotary-wing
• Hybrid (VTOL)

Market, by range

• Short-range 50 km
• Medium-range 50–200 km
• Long-range > 200 km

Market, by end use

• Military
• Homeland security

The above information is provided for the following regions and countries: 

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • Uk
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE