Loitering Munition System Market to Grow at a CAGR of 23.8% During the Forecast Period; Increasing Adoption of Swarm Technology and Artificial Intelligence Propels Market Expansion

The global loitering munition system market size was valued at USD 2.62 billion in 2024. The market is projected to grow from USD 4.00 billion in 2025 to USD 17.82 billion by 2032, exhibiting a CAGR of 23.8% during the forecast period.

Fortune Business Insights™ presents this information in its report titled, “Loitering Munition System Market Size, Share & Industry Analysis, By Type (Autonomous Identification System and Manual Positioning System), By Component (Propulsion System, Navigation System, Warhead, Guidance and Flight Control System, Reconnaissance and Surveillance System, and Others), By Range (Short Range (Upto 150km), Medium Range (150km to 650km), Long Range (650km to 1200km), and Very Long Range (Above 1200km)), and Regional Forecast, 2025-2032”. 

Loitering munitions are advanced weapon system that integrates the features of missiles and drones and are designed to operate independently or with fewer interventions from humans. These munitions loiter over a particular area and search for engaging targets with increased accuracy. The market is noticing significant growth due to advancements in technology, evolving military strategies, and growing budgets of defense budgets. Additionally, the trend of adopting artificial intelligence and swarm technology promotes the market expansion.

Russia-Ukraine War Led to Increased Demand and Adoption of LMS 

The Russia-Ukraine war had a significant influence on the market as it led to the growth in demand for the system and increased its adoption. This underlined the effectiveness of Loitering Munition Systems (LMS) in targeting infrastructure, engaging different threats, and disrupting logistics.

U.S. Army and Marine Corps Entered into New Contract with AeroVironment, Fueling the Market Development

In February 2023, the U.S. Army and Marine Corps offered a contract to AeroVironment to supply Switchblade loitering munitions. These loitering drones were delivered to the two services by the end of April 2023 with a total value of USD 76 million.

Various Features and Advantages of the LMS Contributes to Its Market Growth

The increasing need for operational flexibility, accurate strikes, and versatile deployment options in the military sector drives the loitering munition system market growth. The capability to conduct accurate strikes is highly crucial in the current defense infrastructure, as it aids in minimizing the collateral damage and neutralize threats. Loitering munitions systems help in getting real-time intelligence, surveillance, and reconnaissance prior to the execution, which helps in asymmetric warfare situations.

Conversely, the substantial cost of development and complexity in operations is hindering the market growth.

Top Players Emphasize Acquisitions and Mergers to Strengthen Their Market Presence

The global market is characterized by a wide array of manufacturers that are actively implementing different strategies to enhance their market reach. Companies are focusing on business expansion through advancements in technology, gaining new contracts, mergers, and acquisitions.

Notable Industry Development

• April 2023 - The Government of India’s Ministry of Defense offered a contract to Solar Industries India, a subsidiary of Economic Explosives, for the supply of loitering munitions. The contract was completed in one year and had a value of USD 2020 million.

List of the Companies Profiled in the Report

• Israel Aerospace Industries Ltd. (IAI) (Israel)
• UVision Air Ltd. (Israel)
• WB Group (Poland)
• AeroVironment, Inc. (U.S.)
• BAE Systems plc (U.K.)
• EDGE Group PJSC (UAE)
• Elbit Systems Ltd. (Israel)
• Kalashnikov Group (Russia)
• KNDS N.V. (Netherlands)
• Paramount Group (U.S.)
• RAFAEL Advanced Defense Systems Ltd. (Israel)
• Rheinmetall AG (Germany)
• STM Savunma Teknolojileri Mühendislik ve Ticaret A.Ş. (Turkey)
• Tata Advanced Systems Limited (India)
• Thales S.A. (France)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/loitering-munition-system-market-107013

Further Report Findings

• North America held the highest loitering munition system market share, attributed to the growing investments in research and development and the integration of loitering munitions in different warfare situations.
• Market growth in Europe is due to growing defense investments and government initiatives for modernization, particularly by NATO countries, and other factors.
• Market expansion in the Asia Pacific is propelled by the growing demand for manual positioning systems and growing number of agreements across different countries in the region.
• In terms of type, the autonomous identification segment led the market in 2024, due to growing emphasis and investments in different autonomous targeting systems.

Table of Segmentation