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The market is experiencing rapid development, driven by advancements in technology and shifting global security dynamics. One of the key trends is the increasing adoption of AI and autonomous systems, which are transforming UAVs into more capable and intelligent machines. AI integration allows UAVs to process vast amounts of data in real-time, perform complex tasks such as object detection, thermal imaging, and surveillance, and make decisions without human intervention.
The U.S. utilizes tactical UAVs (Unmanned Aerial Vehicles) for surveillance, reconnaissance, and precision strikes. They enhance battlefield awareness, provide real-time intelligence, and reduce risks to personnel in complex combat environments. In September 2024, the U.S. Army selected Anduril and Performance Drone Works to supply new uncrewed aerial vehicles (UAVs) for supporting tactical-level ground troops in combat. Both companies won the Army's Company Level Small Uncrewed Aircraft System contract, which includes a 10-year indefinite-quantity contract worth up to $14.7 million.
The global tactical unmanned aerial vehicle industry was valued at USD 5.7 billion in 2024 and is estimated to grow at a 14.2% CAGR from 2025 to 2034, driven by increasing defense budgets worldwide.
The electric segment accounted for the largest market share with 42.5% in 2024 due to its efficiency, reduced operational costs, and environmental advantages.
North America tactical UAV market held over 35% share in 2024 and is expected to maintain its dominant position throughout the forecast period, supported by substantial defense budgets and ongoing technological advancements.
Major players in the industry include Aeronautics Ltd, AeroVironment, Inc., BAYKAR TECH, BlueBird Aero Systems, Elbit Systems Ltd., General Atomics, Israel Aerospace Industries Ltd., Leonardo S.p.A., Lockheed Martin Corporation, Northrop Grumman Corporation, Saab AB, and Safran.