AI in Drone Market Size, Share & Industry Analysis, By UAV Class (Micro, Mini & Small UAVs, and Tactical UAVs (MALE & HALE)), By Technology (Computer Vision, ML, Deep Learning, and Others), By Operation (Visual Line of Sight, Extended Visual Line of Sight, Beyond Visual Line of Sight, and Others), By Autonomy Level (Remotely Controlled using AI, Semi & Fully Autonomous), By Application (Defense & Security, Infrastructure & Industrial Inspection, Agriculture & Forestry, Logistics & Delivery, Public Safety & Emergency Response, and Others), By End User, and Regional Forecast, 2025-2032

The global AI in drone market size was valued at USD 17,828.4 million in 2024. The market is projected to grow from USD 20,204.9 million in 2025 to USD 61,647.9 million by 2032, exhibiting a CAGR of 17.3% during the forecast period.

Artificial intelligence (AI) is transforming the drone industry by enabling autonomous operations, intelligent navigation, and data-driven decision-making across a variety of applications. The integration of AI technologies such as computer vision, real-time object detection, and machine learning allows drones to analyze surroundings, recognize obstacles, flight paths, and perform complex tasks without constant human intervention. The AI in drone market is witnessing strong growth globally owing to these AI-enhanced capabilities, which are essential in fields such as agriculture, surveillance, delivery, infrastructure inspection, and disaster response.

The market encompasses several major players, with DJI, Shield AI, Teledyne FLIR, and Parrot Inc. at the forefront. This highly dynamic market is anticipated to witness technological advancements from both large multinationals and agile startups.

MARKET DYNAMICS

MARKET DRIVERS

Rapid Adoption of AI in Drones in Various Domains to Impel Market Growth

The rapid increase in the usage of AI technologies in drones is mostly driven by technological advancements in machine learning, computer vision, and real-time data analytics, which enable drones to function independently and manage complicated tasks across various industries.

Industries such as agriculture, infrastructure inspection, defense, logistics, and disaster management are increasingly leveraging AI-powered drones to improve precision, reduce operational risks, and streamline decision-making. The operational efficiency, scalability, and adaptability that AI brings to drone operations make it a strategic asset for organizations seeking to automate data collection and enhance mission reliability.

MARKET RESTRAINTS

Complexity and Cost of Embedding Advanced Autonomous Capabilities to Restrict Market Expansion

Integrating sophisticated autonomous capabilities into AI-powered drones brings technological complexity in integrating sensors and machine learning algorithms. High-performance sensors, processors, and AI software raise development and operational expenses, creating barriers for small to mid-sized enterprises and curtailing accessibility in emerging economies. The excessive price of these cutting-edge technologies serves as a major impediment to further market development.

 Each layer of complexity, whether in hardware, software development, system integration, and continuous maintenance, translates into increased investment requirements, both in terms of initial cost and running costs.

MARKET OPPORTUNITIES

Surge in digital transformation Across Industries Presents Significant Opportunities for AI Drones

The rise in digital transformation across various sectors has created opportunities for the use of AI-powered drones, providing new approaches to improve data-driven decision-making, operational efficiency, and safety. These drones are being adopted in domains such as agriculture, defense, environment, and logistics.

AI in drones provides aerial perspectives and cutting-edge sensing technology to aid thorough inspections, quality assurance, and maintenance procedures, allowing businesses to spot problems early and minimize downtime.

AI IN DRONE MARKET TRENDS

Growing Adoption of AI-based Drone Swarms is Emerging as a Key Trend in the Market

In recent years, unlike conventional drones that are operated or flown by a single pilot, drone swarms employ complex AI algorithms to facilitate real-time communication, coordination, and decision-making between them. The large number of drones that work together as a cohesive whole, replicating biological systems such as insect swarms or bird flocks. This collective behavior enables drones to dynamically respond to shifting circumstances, avoid obstacles, and effectively reassign mission responsibilities.

MARKET CHALLENGES

Rising Cyberattacks to Hamper Market Growth

Cyberattacks present a serious threat to the development of AI in drone industry by targeting drone systems in ways that could risk operations, data protection, and system integrity. The attack surface increases as drones become more dependent on AI for autonomous navigation, data processing, and communication, making them vulnerable to complex cyberattacks such as GPS spoofing, firmware tampering, and denial-of-service attacks.

These dangers might result in drone hijacking, data manipulation, mission failures, and other critical consequences. Moreover, AI-enabled drones are inherently complex and connected, making them appealing targets for cybercriminals and foes. This necessitates the development of robust, AI-driven cybersecurity measures.

Russia-Ukraine War Impact

The conflict between Russia and Ukraine has accelerated the adoption of artificial intelligence within the drone market, altering both military strategies and technological advancements. As the war has underlined the importance of autonomous systems, especially for tasks such as surveillance, targeting, and real-time data analysis, there has been a notable increase in the demand for AI-driven drones that can function effectively in complex and contested environments. This has driven swift progress in areas such as computer vision, navigation algorithms, and decision-making capabilities, compelling both defense sectors and private developers to focus on creating smarter and more versatile unmanned systems.

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Segmentation Analysis

By UAV Class

Tactical UAVs (MALE & HALE) Segment Led the Market due to their Ability to Function across Various Terrains

On the basis of the segmentation of UAV Class, the market is classified into micro UAVs (Below 2 Kg), mini UAVs (2-20 Kg), small UAVs (20-50 Kg), and tactical UAVs (MALE & HALE).

The tactical UAVs (MALE & HALE) segment accounted for the largest AI in drone market share in 2024, driven by their ability to operate across various terrains with minimal ground risk, a capability which is critical for achieving military objectives.

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By Technology

Machine Learning Segment Dominated due to its Ability to Identify Threats

In terms of technology, the market is categorized into computer vision, Machine Learning (ML), Deep Learning (DL), and others.

The machine learning segment captured the largest share of the market in 2024. In 2025, the segment is anticipated to dominate with a 36.49% share. ML enables real-time data processing and pattern recognition, allowing UAVs to autonomously identify threats, anomalies, or targets without human intervention. Furthermore, its wide applicability from defense targeting systems to industrial inspections positions ML as the core enabling technology across multiple domains.

The computer vision segment is expected to grow at a CAGR of 17.8% over the forecast period.  

By Operation

Beyond Visual Line of Sight (BVLOS) Segment Dominated owing to its Various Capabilities

Based on operation, the market is segmented into Visual Line of Sight (VLOS), Extended Visual Line of Sight (EVLOS), Beyond Visual Line of Sight (BVLOS), and others.

The Beyond Visual Line of Sight (BVLOS) segment held a dominant position in 2024, holding a 33.11% share in the same year. BVLOS allows UAVs to cover much larger areas without needing to remain within the operator’s visual range, thereby vastly expanding mission potential. Moreover, infrastructure inspection, border monitoring, and wide-area search and rescue depend heavily on BVLOS capabilities.

The VLOS segment is set to flourish and is growing at a CAGR of 17.7% during the forecast period.

By Autonomy Level

Remotely Controlled using AI Segment Led due to its Ability to take Better Control Over Strategic Decisions

Based on autonomy level, the market is segmented into remotely controlled using AI, semi-autonomous, and fully autonomous.

The remotely controlled using AI segment held a dominant position in 2024. Remotely controlled AI systems allow humans to retain control over strategic decisions while leveraging AI for real-time analysis and decision support.

The segment of Semi-Autonomous is set to flourish with a growth rate of 17.4% growth across the forecast period.

By Application

Military Modernization Boosted the Defense & Security Segment Growth

Based on application, the market is segmented into Defense & Security, infrastructure & industrial inspection, agriculture & forestry, logistics & delivery, public safety & emergency response, environmental monitoring & conservation, smart cities & urban management, healthcare & humanitarian aid, and others.

The defense & Security segment held a dominant position in 2024. The advancement and integration of AI into drone defense applications are mostly driven by military modernization, since AI allows drones to become more autonomous, capable of executing complicated tasks such as precision targeting and swarm intelligence. 

The infrastructure & industrial inspection segment is set to flourish with a growth rate of 17.7% during the forecast period.

By End User

Government & Defense Segment Dominates Due to Strong Demand for Military UAVs

Based on end-user, the market is segmented into government & defense, energy, power, oil & gas, construction & mining, agriculture, forestry & wild life conservation, public infrastructure & homeland security, hospitals & emergency medical services, transportation & logistics, media, events & entertainment, and others.

In 2024, the government & defense segment dominated the market in terms of end-user. The growing use of UAVs by the defense and security sector sustained the strong need for military UAVs in real-time analytics for surveillance, mapping, transportation, warfare, and monitoring. Furthermore, the segment is set to hold a 47.44% share in 2025.

In addition, agriculture, forestry & wild life conservation segments are projected to grow at a CAGR of 20.4% during the study period.

AI in Drone Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, the Middle East & Africa, and Latin America.

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North America held the dominant share in 2023, valued at USD 5,373.2 million, and continued to lead in 2024 with USD 6,127.6 million. This dominance is due to the growing use of drones for surveillance and espionage in the region, especially in the U.S. The growing use of Government rules mandating the use of drones in the construction business for regular site inspections also contributes to this dominance. In 2025, the U.S. market is estimated to reach USD 6,592.0 million.

Other regions, such as Europe and the Asia Pacific region, are anticipated to witness a notable AI in Drone market growth in the coming years. During the forecast period, the Asia Pacific region is projected to record a growth rate of 18.6%, which is the highest amongst all the regions. This is primarily due to the higher investment in AI integration in drones for military and commercial applications. Backed by these factors, China is anticipated to record the valuation of USD 2,117.2 million, Japan USD 838.1 million, and India USD 1,263.7 million in 2025. After Asia Pacific, Europe is estimated to reach USD 4,762.3 million in 2025 and secure the position of the third-largest region in the market. Within the region, the U.K. and Germany are estimated to reach USD 1,037.2 million and 742.4 million, respectively, in 2025.

Over the forecast period, the Middle East, Africa, and Latin America regions would witness a moderate growth in this market during the study period. By 2025, the Middle East market is set to record a valuation of USD 810.2 million, while Africa and Latin America are set to reach USD 1,046.6 million and 551.6 million, respectively.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Companies Opt for Research & Development Activities to Boost Their Market Position

The global AI in drone market shows a semi-concentrated structure, with numerous small-to-mid-size companies actively operating across the globe.  Top players in the AI-enabled drone market include DJI, Skydio, Parrot, Northrop Grumman, AeroVironment, Anduril Industries, Shield AI, DroneDeploy, Pix4D, Percepto, and Flytrex. Leading the global market is DJI, which leverages its scale, proprietary R&D, and integrated AI features such as obstacle avoidance and intelligent tracking.

Furthermore, these companies are undertaking various strategic initiatives such as investments in R&D and partnerships to enhance their market presence.

LIST OF KEY AI IN DRONES COMPANIES PROFILED

• DJI (China)
• DroneDeploy (U.S.)
• Teledyne FLIR LLC (U.S.)
• Skydio Inc. (U.S.)
• Draganfly (Canada)
• Honeywell International Inc. (U.S.)
• ShieldAI (U.S.)
• Aerovironment Inc. (U.S.)
• Parrot SA (France)

KEY INDUSTRY DEVELOPMENTS

• July 2024: Shield AI’s V‑BAT drones secured a USD 198 million U.S. Coast Guard contract to provide maritime Intelligence, Surveillance, and Reconnaissance (ISR) services under a contractor-operated model.
• December 2024: Xtend Defense secured a USD 8.8 million contract from the U.S. Department of Defense’s Irregular Warfare Technical Support Directorate to supply AI-driven "Precision Strike Indoor & Outdoor" (PSIO) small UAV systems.
• October 2024- Granta Autonomy won a USD 1.17 million contract from the Lithuanian Ministry of National Defence to supply GA‑10FPV‑AI drones—2,300 to Lithuania and nearly 5,000 to Ukraine.
• November 2024: Shield AI signed a joint venture with JSW Defense & Aerospace to produce and test V‑BAT drones in India, backed by an investment of USD 65 million within the first year and reaching USD 90 million over two years.
• July 2025: Auterion landed a USD 50 million contract from the U.S. Pentagon to deliver 33,000 AI-powered drone “strike kits” (Skynode) to Ukraine by the end of 2025.

REPORT COVERAGE

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Report Scope & Segmentation