Loitering Munition Market: Current Analysis and Forecast (2024-2032)

Loitering Munition Market Size & Forecast

The loitering munition market was valued at approximately USD 862.01 million in 2023 and is expected to grow at a substantial CAGR of around 12.90% during the forecast period (2024-2032). The growth is primarily driven by the rising geopolitical tension and asymmetric warfare along with the technological advancement in AI and autonomous systems.

Loitering Munition Market Analysis

The Loitering Munition Market is witnessing a robust growth rate within the forecast period. Loitering munitions or remotely controlled aerial precision strike weapons combine the benefits of unmanned aircraft systems and guided munitions. Modern warfare has been driven primarily by advancements in precision strike capabilities and the growing demand for low-cost, high-precision weapon systems. The growth in this sector is mainly driven by the need for the new age for asymmetric warfare solutions, where loitering munitions give an unusual proposition of surveillance and strike capabilities. Loitering munitions have integrated cutting-edge technologies into their systems so that they can apply artificial intelligence (AI), machine learning, and real-time data processing to improve operation efficiency. Therefore, these systems have advanced features such as enhanced target recognition and autonomous decision-making, with swarm capabilities for enabling coordinated attacks on multiple targets. Additionally, advances in propulsion systems, battery life, and lightweight materials have extended the range, time, and portability of the weapon systems into highly adaptable applications within different combat environments.

Loitering Munition Market Trends

This section discusses the key market trends influencing the various segments of the loitering munition market as identified by our research experts.

Introduction of Artificial Intelligence (AI) and Swarm Technology

One of the major changes happening in the global loitering munition market is the introduction of Artificial Intelligence (AI) and swarm technology. These technologies are transforming modern warfare by making loitering munitions more precise, independent, and efficient. AI allows these systems to find, track, and attack targets with very little human help, speeding up decisions and improving accuracy in fast-changing combat situations. This innovative technology allowed loitering munitions to team up and overwhelm enemy defenses, attacking multiple targets at once. In fact, swarm technology and AI are increasingly being used because they are cheap and highly accurate, which will "help minimize collateral damage, extending the range of options available during battle". For instance, the Switchblade 600, developed by AeroVironment in 2024, uses AI to recognize targets on its own and make decisions instantly, making it very effective in modern military operations. These advancements are changing military strategies and setting new standards for future autonomous weapon systems. As global tensions rise, the demand for AI-powered loitering munitions is expected to increase, making this technology an essential part of the market.

Loitering Munition Industry Segmentation

This section provides an analysis of the key trends in each segment of the global loitering munition market report, along with forecasts at the global, regional, and country levels for 2024-2032.

The Autonomous Identification and Positioning Loitering Munition Market Dominates the Global Loitering Munition Market

Based on type, the loitering munition market is segmented into Autonomous Identification and Positioning Loitering Munition System and Manual Positioning Loitering Munition System. In 2023, the Autonomous Identification and Positioning Loitering Munition System segment dominated the market and is expected to maintain its leading position throughout the forecast period. The segment is primarily driven by the growing target recognition and positioning elements as these systems are AI-driven, allowing for greater engagement efficiency with little human intervention. Autonomous warfare is ever-increasing in demand, therefore pushing greater acceptance of this system in the arms of defense all over the world. The integration of technologies such as AI-assisted target recognition, swarm coordination, and extended loitering capabilities can shape evolving strategies in modern warfare. On top of that, loitering munitions are being explored by defense agencies for asymmetrical warfare scenarios instead of conventional missiles. The network-centric war-fighting environment coupled with real-time data-sharing capability helps to boost the operational effectiveness of these systems. Furthermore, manufacturers operating in the sector are considering new developments such as endurance, with modular payload capacities and assumed low radar cross-section for survivability in contested environments. As a result, loitering munition development is fueled by the need for electronic warfare (EW) countermeasures and improved integration on the battlefield with existing combat systems. Therefore, autonomous systems for loitering munitions are forecasted to witness an immense boom.

The short-range segment dominates the loitering munition market

Based on range, the loitering munition market is segmented into Short-Range, Medium-Range, and Long-Range. The short-range segment continues to dominate the loitering munitions market due to its compact design, affordability, and tactical flexibility. Extensively, these systems are valued for their close-air support, urban operations, and counter-insurgency missions in which time-critical deployment and precision strikes mean everything. Their lightweight form and ease of operation make it practically possible for ground forces to engage hostile targets with minimum logistical overhead within modern warfare situations. Additionally, short-range loitering munitions can be put to effective use for reconnaissance and surveillance missions since they can be seen in action giving real-time intelligence before hitting enemy positions. Such requirements have turned up demands for precision attack systems operated by troops as decentralized entities, and all of these munitions are constantly evolving, whether for advanced target recognition, AI-guided munitions, or loitering for longer periods. Innovations in battery efficiency, payload miniaturization, and secure communication networks will also support short-range loitering munitions significantly. The growing demand for cost-efficient ways to optimize operations under low-intensity conflict and special operations will add value to the market. In addition, with current global efforts of military forces to arm themselves with enhanced asymmetric warfare capabilities, there would be no end to the demand for short-range loitering munitions in the future, and that would keep them reigning strong in the market. For instance, in 2024, Thales developed a revolutionary loitering munition product specially designed for high-intensity operations called TOUTATIS. In its short-range variant, TOUTATIS offers a range of 10 km and a 45-minute endurance. It boasts a state-of-the-art warhead capable of neutralizing light armored vehicles. The system can be operated in GPS-denied environments with disrupted communications. TOUTATIS offers interoperability with Thales ISR drones Spy'Ranger, Noctua, and Grizzly for coordinated operations.

North America Dominated the Loitering Munition Market

The North American region remains the largest market for loitering munitions due to factors such as the advanced defense industry, substantial military budget, and increasing adoption of autonomous weaponry. Funds supported by the U.S. defense establishment are aimed at furthering precise strikes and making the battlefield more efficient. For instance, in October 2024, AeroVironment (US) was awarded a delivery order worth USD 54.9 million by the U.S. Army to produce the Switchblade loitering munition systems, which represents an initial ordering under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract that withholds an additional ceiling of USD 743 million. Northrop Grumman and Lockheed Martin are also engaged in developing advanced loitering munitions with AI-guided targeting and extended operational range, increasing their revenues in this defense segment. Faster demand for these weapons due to the Ukraine-Russian War aided by heavy supplies from America to Ukraine, thereby enhancing their utility on the battlefield. The loitering munitions program remains essential for the U.S. Army's Long Range Precision Fires (LRPF), keeping its market ahead in the race. Similar collaborations among the concerned defense firms and government agencies have lent themselves to innovation, as exemplified by DARPA's looming investments in swarm-capable next-generation loitering munitions. For example, in June 2023, UVision USA, the U.S. subsidiary of UVision Air, a global leader in aerial loitering systems, announced the successful launch of its Hero 120 loitering munition systems from an airborne helicopter in partnership with Axxeum, a full-service aviation integration facility.

Loitering Munition Industry Competitive Landscape  

The loitering munition market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations,  geographical expansions, and mergers and acquisitions.

Top Loitering Munition Manufacturing Companies

Some of the major players operating in the market are AeroVironment, Inc., WB Group, Elbit Systems Ltd., Aerospace CH UAV Co, Thales, Rheinmetall AG, Israel Aerospace Industries, Uvision, AEVEX Aerospace, and Teledyne FLIR LLC.

Recent Developments in the Loitering Munition Market

• In October 2024 – AeroVironment (the US) received a delivery order totaling USD 54.9 million, for Switchblade loitering munition systems, supported under an ongoing indefinite-delivery/indefinite-quantity (IDIQ) contract with a ceiling of an additional USD 743 million from the US Army.

• In September 2023 – Elbit Systems unveiled an exciting development in UAS, the Find-And-Strike (FAST) Capsule, combining Skylark III and SkyStriker Loitering Munition (LM). The Skylark III is a leading Small-Tactical Intelligence UAS, equipped with the most advanced intelligence-gathering sensors and with extensive endurance of up to 18 hours, it is designed to support ISTAR missions in GPS-denied environments. The Skylark III can integrate a range of payloads, including high-resolution Electro-Optical gimbaled payload, SIGINT sensors, laser designators, and more.

• In July 2023 – MBDA (France) and Israel Aerospace Industries (IAI) (Israel) signed a cooperation agreement to produce, integrate, and market IAI's loitering munition systems in Germany, aiming to address the capability gaps of the German Armed Forces across the country Air Force, Navy, and Army.

Loitering Munition Market Report Coverage

Reasons to buy loitering munition market report:

• The loitering munition market analysis includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report presents a quick review of overall industry performance at one glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional level analysis of the industry.

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