Visiongain has published a new report entitled Loitering Munitions Market Report 2025–2035 (Including Impact of U.S. Trade Tariffs): Forecasts by Data Link (Line-of-Sight Digital Link, BLOS/SATCOM), by Weight Class (Man-portable: <10 kg, Tactical: 10–50 kg, Strategic: >50 kg), by Sensor Suite (EO/IR Day–Night, Multi-sensor (EO/IR + SAL/MMW/RF), Semi-active Laser (SAL), RF/Anti-Radiation (ARM)), by Mission Application (Close Support & Counter-Armour, SEAD/DEAD (Anti-radiation), ISR/Strike Enablement, Littoral Strike & Ship Defence, Other), by Warhead Type (Fragmentation/Blast, Anti-Armour/HEAT/EFP, Multi/Selectable Effects, Thermobaric, Electronic Warfare, ISR-only) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global loitering munitions market is estimated at US$618.9 million in 2025 and is projected to grow at a CAGR of 9.9% during the forecast period 2025-2035.

Impact of US Trade Tariffs on the Global Loitering Munitions Market   

The imposition of U.S. tariffs on defence components and critical technologies, including those used in loitering munitions, has created significant disruptions in the global supply chain. These tariffs have increased production costs for manufacturers dependent on U.S.-origin subsystems, sensors, and propulsion technologies, while also prompting nations to invest in domestic manufacturing and alternative suppliers. The impact of these tariffs on the global market largely depends on the duration, severity, and the ability of market players to adapt through supply chain diversification and strategic partnerships.

V-shaped Recovery

A V-shaped recovery scenario suggests that the market experiences a short-term disruption due to tariffs, with quick adaptation by global players. Manufacturers respond by accelerating localization efforts, forming joint ventures, and sourcing components from non-U.S. suppliers. Rapid technological innovation, combined with strong defence spending by major nations, enables a swift rebound in production and exports, restoring market momentum within a short timeframe.

Rapid Advances In Autonomy, Sensor Fusion And AI Increase Mission Capability

Sensor miniaturization, edge AI, and improved sensor-fusion (EO/IR, radar, RF) have increased the autonomy and target-discrimination abilities of loitering munitions without requiring large platforms. Vendors such as UVision and Kratos have focused R&D on improved loiter time, automated target cueing and shared C2 interfaces that let these systems operate more effectively in contested environments. These technology advances raise the value proposition for armed forces seeking networked, autonomous strike options integrated into broader C4ISR stacks — a major positive tailwind for the loitering munitions market.

How will this Report Benefit you?

Visiongain’s 417-page report provides 128 tables and 201 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the loitering munitions market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for loitering munitions. Get financial analysis of the overall market and different segments including data link, weight class, sensor suite, mission application, and warhead type, and capture higher market share. We believe that there are strong opportunities in this fast-growing loitering munitions market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Geopolitical Tensions and Asymmetric Conflict Increase Demand from a Broad Set of Buyers

Recent conflicts and grey-zone engagements have made expeditionary, low-footprint strike options attractive not only to advanced militaries but also to middle-tier states and non-state-aligned forces. The market has broadened beyond prime defense buyers into customers seeking scalable, lower-cost loitering solutions. This demand diversity is visible in multiple vendors’ global deals (IAI reported significant contracts for long-range loitering systems), and in the proliferation of lower-cost designs in regional markets. The result is widening addressable demand for both tactical and extended-range loitering systems.

Industrial Consolidation and Prime-Player Verticalization Accelerate Scale and Supply

Large defense primes are vertically integrating or consolidating capabilities to offer complete loitering munition suites — from sensors and warheads to C2 and sustainment. AeroVironment’s strategic moves (including acquisitions and large delivery orders) illustrate how primes are securing scale, production throughput and aftermarket support to meet surge requirements. This consolidation improves supplier reliability and supports longer-term procurement contracts, reducing per-unit costs and improving lifecycle margins across the market.

Where are the Market Opportunities?

Fleet-Scale Manufacturing and “Attritable” Weapon Concepts Open Large-Volume Defence Programmes

Governments that emphasize massed, attritable systems (e.g., the U.S. Replicator initiative and similar rapid-procurement efforts) create large, multi-year buy windows for suppliers who can scale production and offer resilient supply chains. Companies that secure manufacturing scale, flexible assembly lines and dual-source suppliers can win large framework contracts and recurring aftermarket revenue — a reliable route to rapid market share growth for established OEMs and high-capability mid-tier firms. AeroVironment’s multi-order wins are emblematic of this opportunity.

Integration Into Layered C4ISR And Multi-Domain Effects Enhances Product Value

Loitering munitions that plug into broader C4ISR, sensor-shares, and networked fires deliver greater operational value than stand-alone systems. Vendors that provide open APIs, NATO-aligned data links, and seamless integration with ISR platforms and strike planning tools can command premium pricing and win larger, integrated programmes. This is a chance for software-led companies and primes to upsell lifecycle services, AI-enabled analytics, and mission-planning ecosystems alongside hardware.

Competitive Landscape

The major players operating in the loitering munitions market are AeroVironment, Inc, AEVEX Aerospace, Anduril Industries, Elbit Systems Ltd, Israel Aerospace Industries Ltd. (IAI), KMW+Nexter Defence Systems, MBDA, Northrop Grumman Corporation, Paramount Group, Raytheon Technologies (RTX), Solar Industries India Limited, Teledyne FLIR LLC, Thales SA, Uvision, WB Group, These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• 22-Aug-25, The Army awarded contracts to AeroVironment (AV) and Edge Autonomy for rapid delivery of Long-Range Reconnaissance (LRR) systems. Systems include AV P550 and Edge Stalker Block 35X (Group 2 UAS). These provide RSTA for manoeuvre battalions with an open systems architecture for quick integration at the Battalion level.
• 20-Aug-25, AV delivered multiple P550 sUAS to the U.S. Army for the LRR program, including training and master trainer support. The P550 features a Modular Open Systems Approach (MOSA) with multiple payload, radio, and power options. It enhances adaptability, counters emerging threats, and improves lethality for TiC brigades.
• 07-Aug-25, AV and SNC formed a strategic partnership for the Golden Dome for America (GDA) initiative. The collaboration will develop integrated, open architecture air & missile defence capabilities, focusing on multi-domain operations across air, land, sea, space, and cyber.

Notes for Editors

If you are interested in a more detailed overview of this report, please send an e-mail to contactus@visiongain.com or call +44 207 336 6100.

About Visiongain

Visiongain is one of the fastest-growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.

Visiongain publishes reports produced by analysts who are qualified experts in their field. Visiongain has firmly established itself as the first port of call for the business professional who needs independent, high-quality, original material to rely and depend on.