The Loitering Munitions Market size is projected to reach US$ 2.02 billion by 2031 from US$ 1.01 billion in 2023. The market is expected to register a CAGR of 9.0% in 2023–2031. In 2023, fixed wing segment dominated the loitering munition market. Fixed-wing loitering munition can be used for longer range applications than rotary-wing loitering munition as it has greater endurance, higher speed, and larger payload capacity. Fixed- and rotary-wing loitering munitions can be equipped with missiles or bombs to strike targets from a safe distance to reduce the risk of collateral damage. It provides a high degree of accuracy with the ability to precisely engage the target.
The key stakeholders in the loitering munition market are raw material suppliers, component suppliers, loitering munition manufacturers & software integrators, and end users. The raw material suppliers faced several supply chain challenges in procuring transportation services, internal production operations were largely interrupted due to factors such as lack of manpower and other resources, along with several remote operational challenges, since the past few years. All these factors increased the demand and supply gap between raw material suppliers and loitering munition manufacturers worldwide in 2020.
Israel Aerospace Industries, UVision, Elbit Systems, AeroVironment, and Rheinmetall AG are the five key market players operating in the loitering munition market. The listing of key players is derived by considering multiple parameters such as overall revenue, brand image, loitering munition contracts, current loitering munition portfolio in terms of number of models, technology integration & product enhancements, geographic reach, new product/feature launches, market initiatives, mergers & acquisitions, and other market-related activities. In addition to these players, multiple other leading global and regional market players, emerging companies, market disruptors and niche market players operating in the market ecosystem were also studied and analyzed during this study.
The change in the modern warfare system has been urging governments across the globe to allocate higher funds toward respective military forces. The military budget allocation enables military forces to procure advanced technologies and equipment from domestic or international manufacturers. On the same lines, soldier and military vehicle modernization practices are on the rise across numerous countries. With the demand to strengthen military forces with advanced technologies, armaments, artilleries, and vehicles, among others, defense forces across the globe are investing substantial amounts in the products mentioned above. The continuous urge to procure new technologies for combat and non-combat operations by defense forces is further boosting defense spending across geographies.
The utilization of artificial intelligence (AI) in the military produces new and smart systems that redefine how the combat force is projected on a battlefield. Weapon systems are increasingly getting smaller, more flexible, more precise, more intelligent, and more robust. Autonomous weapon systems have several operational advantages, including speed and agility. They can make decisions faster than human operators, and they do not need to constantly communicate with human operators to function. As smart loitering munition does not involve human operators’ cognitive and physical limitations, it becomes more accurate and resilient than those operators. As a result, the defense industry is witnessing a rising trend of autonomous weapon systems.
Key segments that contributed to the derivation of the Loitering Munitions Market analysis are type, platform, application, and geography.
The geographic scope of the Loitering Munitions Market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Middle East & Africa (MEA) has dominated the Loitering Munitions Market in 2023, and it is likely to retain its dominance during the forecast period as well. Moreover, in 2023, North America accounted for the second largest share followed by Europe. In MEA, there is a notable growth in the manufacturing of loitering munitions to provide reliable solutions to the end users. Under the Saudi Vision 2030, the country will focus on developing loitering munitions locally to decrease its imports. This will strengthen local players and attract contracts for loitering munitions from other countries. For instance, in January 2023, Israel Aerospace Industries Ltd announced that they had bagged a multi-million-dollar contract to build and launch loitering munition for the US Department of Defense. The company will develop a loitering munition named ‘Point Blank’ with vertical takeoff and landing capabilities. Thus, such contracts won by the region’s market players are propelling the loitering munition market in the MEA.
The regional trends and factors influencing the Loitering Munitions Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Loitering Munitions Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.01 Billion |
| Market Size by 2031 | US$ 2.02 Billion |
| Global CAGR (2023 - 2031) | 9.0% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Loitering Munitions Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Loitering Munitions Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Loitering Munitions Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for loitering munitions market and strategies:
The “Loitering Munitions Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas: