Target Drone Market

Market Definition

The market involves the production and sale of unmanned aerial vehicles designed to simulate enemy threats for military training and weapon testing. These drones help improve defense readiness by serving as practice targets. 

Used by armed forces, defense contractors, and research agencies, they support missile testing, radar calibration, and pilot training in realistic combat scenarios. This report outlines the major trends, driving factors, and challenges that are set to impact the market evolution.

Target Drone Market Overview

The global target drone market size was valued at USD 5.23 billion in 2024 and is projected to grow from USD 5.55 billion in 2025 to USD 8.88 billion by 2032, exhibiting a CAGR of 6.96% during the forecast period. 

The market is witnessing growth with the rapid adoption of autonomous systems in military operations for improving training accuracy and safety. Innovations in AI, sensors, and resilient communications has enabled target drones to support effective operations in contested environments, driving their demand and multi-domain applications in the defense sector.

Major companies operating in the target drone industry are QinetiQ, Kratos Defense & Security Solutions, Inc., AIRBUS, Northrop Grumman, Boeing, AeroVironment, Inc., Lockheed Martin Corporation, BAE Systems, GRIFFON AEROSPACE, Leonardo S.p.A., Safran Group, Kadet Defence Systems, Denel Dynamics, Thales, and Saab AB.

The market is primarily driven by an increase in global defense budgets for procuring advanced training equipment. As military spending rises, armed forces prioritize investments in advanced and cost-effective training solutions to enhance combat readiness. The shift from basic training tools to sophisticated unmanned systems is facilitating more efficient and safer exercises. 

Enhanced funding also supports the adoption of autonomous and software-defined drones, allowing militaries to simulate complex threat environments and improve operational effectiveness, thereby accelerating market growth and technology adoption.

• According to the Stockholm International Peace Research Institute, the global military spending reached USD 2.7 trillion in 2024, after witnessing the largest annual rise of 9.4% since the Cold War. Europe and the Middle East saw rapid growth, with the U.S., China, Russia, Germany, and India accounting for 60% (USD 1.64 trillion) of total expenditure.

Key Highlights:

1. The target drone industry size was recorded at USD 5.23 billion in 2024.
2. The market is projected to grow at a CAGR of 6.96% from 2025 to 2032.
3. North America held a market share of 39.80% in 2024, with a valuation of USD 2.08 billion.
4. The turboprop segment garnered USD 1.85 billion in revenue in 2024.
5. The fixed-wing segment is expected to reach USD 3.72 billion by 2032.
6. The marine segment is anticipated to witness a CAGR of 8.57% during the forecast period.
7. The combat training segment is estimated to grow at a share of 57.46% in 2032.
8. The autonomous segment held a market share of 54.80% in 2024.
9. The defense segment is expected to reach USD 7.08 billion by 2032.
10. Europe is anticipated to grow at a CAGR of 7.04% during the forecast period.

Market Driver

Rising Adoption of Unmanned Systems for Military Operations

The target drone market is growing due to the increasing use of unmanned systems in military operations, as armed forces prioritize safer and more cost-effective training and mission solutions. Transitioning from manually operated drones to advanced autonomous platforms enhances mission precision and reduces personnel risk. 

Unmanned systems allow for more frequent and realistic training exercises, while technological improvements in autonomy and communication resilience support their expanded use in complex environments. This growing adoption accelerates market demand and innovation across defense sectors.

• In May 2025, AeroVironment launched Red Dragon, a fully autonomous, software-defined unmanned aircraft system (UAS) designed for one-way attack missions in GPS-denied and communication-degraded environments. Powered by AVACORE software and equipped with the SPOTR-Edge perception system, the UAS delivers high autonomy, electronic warfare resilience, and mission flexibility. Red Dragon is built for mass production, rapid deployment, and can be used across air, land, and sea for fast and efficient operations in high-threat scenarios.

Market Challenge

Regulatory Restrictions on Drone Usage and Airspace Access

The target drone market faces significant challenges due to regulatory restrictions on drone usage and airspace access. Strict government regulations and complex approval processes limit where and how drones can operate, affecting training schedules and operational flexibility. These restrictions aim to ensure safety and prevent interference with commercial and civilian air traffic, but they create barriers to widespread drone deployment.

To address this, companies are working closely with regulatory bodies to develop standardized protocols and obtain necessary clearances. Additionally, some companies are investing in technology to enhance drone detectability and communication, enabling safer integration into controlled airspaces and compliance with evolving regulations.

Market Trend

Technological Upgrades in Target Drones

The target drone market is witnessing rapid technological advancements, transitioning from basic remotely controlled devices to sophisticated autonomous systems. Enhanced sensor integration, AI-driven navigation, and resilient communication technologies now allow drones to operate effectively in GPS-denied, remote environments. These innovations improve mission accuracy, operational flexibility, and survivability. 

The trend favoring modular, software-defined platforms supports scalable manufacturing and multi-domain applications, enabling more realistic training scenarios and expanding the strategic utility of target drones across defense operations.

• In October 2023, Target Arm launched Tular v3.5, an advanced mobile drone launch and recovery system with precision sensors, Sensor FusionEngine, and autonomous operation up to 65+ mph. Optimized for GPS-denied, silent environments, it enables hands-free, on-the-move drone deployment, supporting defense R&D and expanding commercial uses in autonomous delivery and remote combat vehicles.

Target Drone Market Report Snapshot

Segmentation	Details
By Engine Type	Turboprop, Turbojet, Piston, Wankel
By Type	Fixed-Wing, Rotary-Wing, Hybrid
By Target	Aerial, Ground, Marine
By Application	Combat Training, Aerospace Testing, Scientific Research, Others
By Mode of Operation	Autonomous, Remotely Piloted
By End-use	Defense, Commercial
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

 Market Segmentation

• By Engine Type (Turboprop, Turbojet, Piston, and Wankel): The turboprop segment earned USD 1.85 billion in 2024 due to its superior fuel efficiency and reliability, making it a preferred choice for cost-effective target drone operations.
• By Type (Fixed-Wing, Rotary-Wing, and Hybrid): The fixed-wing segment held 45.30% of the market in 2024, due to its longer flight endurance and higher speed , which enhance training realism and operational efficiency.
• By Target (Aerial, Ground, and Marine): The aerial segment is projected to reach USD 3.39 billion by 2032, due to increased demand for advanced airborne threat simulation in military training and missile defense systems
• By Application (Combat Training, Aerospace Testing, Scientific Research, and Others): The scientific research segment is anticipated to grow at a CAGR of 8.52% due to rising investments in drone technology innovation and expanding applications in environmental and atmospheric studies.
• By Mode of Operation (Autonomous and Remotely Piloted): The autonomous segment held a market share of 54.80% in 2024 due to advancements in AI-driven navigation systems that enable precise, efficient, and scalable target drone operations without constant human intervention.
• By End-use (Defense and Commercial): The defense segment is expected to reach USD 7.08 billion by 2032, due to escalating military modernization programs and increased demand for realistic training and missile testing solutions.

Target Drone Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America target drone market share stood at around 39.80% in 2024, with a valuation of USD 2.08 billion. North America's dominance in the market is driven by its strong focus on advanced defense technologies and increasing investments in autonomous uncrewed systems. The region offers scalable, cost-effective solutions to enhance combat readiness, reduce human risk, and support multi-domain operations. 

With a strategic push toward integrating AI, swarming capabilities, and interoperability with allied systems, North America remains at the forefront of deploying high-performance, reusable or disposable UAS platforms tailored for realistic training, threat simulation, and electronic warfare scenarios.

Europe target drone industry is poised for significant growth at a CAGR of 7.04% over the forecast period. The region's market growth is driven by increasing demand for advanced training solutions that address evolving aerial threats, including one-way drones. The region focuses on deploying adaptable, high-performance target drones to support ground-based air defense systems and enhance operational preparedness. 

Continuous platform updates and integration across land and naval domains improve training realism and threat simulation. This strategic emphasis on modernizing defense capabilities through innovative uncrewed aerial systems strengthens Europe’s position in the evolving market.

• In November 2024, QinetiQ Germany launched uncrewed aerial training services for the German Armed Forces with the successful flight of the Delta B15 target drone. Designed to meet NATO and European Sky Shield Initiative (ESSI) standards, the system enhances Ground-Based Air Defence (GBAD) training by addressing evolving aerial threats, including SHAHED-type drones, ensuring readiness for modern defense scenarios.

Regulatory Frameworks

• In the U.S., target drones are primarily regulated by the Federal Aviation Administration (FAA) for airspace and safety compliance, while the Department of Defense oversees their military use, ensuring operational standards, security, and adherence to defense-specific regulations.
• In India, target drones are regulated by the Directorate General of Civil Aviation (DGCA) under the Ministry of Civil Aviation. The DGCA oversees registration, certification, and operational guidelines, ensuring compliance with the Drone Rules, 2021, to maintain safe and controlled use within Indian airspace.
• In Europe, the European Union Aviation Safety Agency (EASA) governs drone operations by establishing standardized regulations and certifications. EASA ensures the safe integration of drones into European airspace through unified rules, promoting consistent compliance and operational safety across member states.

Competitive Landscape

Key players in the target drone industry are actively employing strategies such as mergers and acquisitions, strategic partnerships, and new product launches to strengthen their market position. Companies are also expanding their portfolios and technological capabilities through acquisitions and collaborations, while simultaneously introducing innovative drone features to address evolving defense needs. 

These strategies aim to enhance competitive advantage, broaden customer bases, and accelerate market penetration in response to the increasing demand and technological advancements across the defense sector.

• In June 2024, Safran Electronics & Defense introduced Skyjacker, a counter-drone system that neutralizes threats by spoofing GNSS signals to divert drones from targets. Equipped with radar and optronic sensors, it effectively detects and disrupts both individual drones and swarms in land and naval environments within a range of 1 to 10 kilometers.

List of Key Companies in Target Drone Market:

• QinetiQ
• Kratos Defense & Security Solutions, Inc.
• AIRBUS
• Northrop Grumman
• Boeing
• AeroVironment, Inc.
• Lockheed Martin Corporation
• BAE Systems
• GRIFFON AEROSPACE
• Leonardo S.p.A.
• Safran Group
• Kadet Defence Systems
• Denel Dynamics
• Thales
• Saab AB

Recent Developments (M&A/Partnerships/New Product Launch)

• In May 2025, Diehl Defence expanded its collaboration with Thailand’s RV Connex to supply JRV-01 target drones and related services. This partnership supports live firing tests and certification processes for the IRIS-T missile, strengthening defense capabilities and advancing joint efforts in missile testing and system validation.
• In January 2024, Airbus Helicopters acquired Aerovel and its Flexrotor UAS to enhance its tactical unmanned portfolio. Flexrotor, a 25 kg Vertical Takeoff and Landing (VTOL) drone designed for ISTAR missions, offers 12-14 hours’ endurance and autonomous launch and recovery from land or sea. Supported by the US Department of Defense (DoD), it is used in maritime security and GPS-denied environments and also serves parapublic roles like fire surveillance and Arctic ice navigation.
• In September 2023, QinetiQ launched Jackdaw, a low-cost, high-performance disposable Unmanned Aerial System (UAS) for swarming and autonomous operations. Capable of reconnaissance, electronic warfare, and decoy roles, Jackdaw enhances combat mass and reduces risk. Integrating with NATO systems, it supports crewed-uncrewed teaming and offers flexibility through reusability or sacrifice in air, land, and maritime missions.