Market Trends of Anti-Drone Industry
Defense Segment Dominates the Market During the Forecast Period
The rising investments in improving defense capabilities and adoption of next-generation weapons boost the market growth. An increase in illegal and terrorist activities, such as unlawful border crossings and smuggling, leads to increased adoption of anti-UAV programs by international security forces. An increase in costs in R&D by defense contractors, coupled with the growing number of anti-UAV programs by different military forces to protect against the invaders, play a vital role in the segment's growth.
The global defense sector has witnessed tremendous growth in recent years due to increasing warfare situations, rising cross-border conflicts, and political disputes among neighboring countries. The ongoing war between Russia- and Ukraine, Israel-Palestine, and disputes between China-Taiwan and China-India leads to growing security concerns. It led to increasing defense spending from various countries. According to SIPRI, the global defense expenditure reached USD 2.4 trillion in 2022. The US Department of Defense planned to spend nearly USD 668 million on research into new drone defense technologies and about USD 78 million to procure such technology by the next year.
The Ukrainian military operates thousands of advanced Lithuanian counter-unmanned aircraft systems (C- UASs), bolstering their defense capabilities against Russian drones. Since Russia's invasion of Ukraine in February 2022, Lithuania provided Ukraine with numerous anti-drone weapons, in addition to howitzers, helicopters, and various other weapon systems. Furthermore, in August 2021, the Indian armed forces gave orders to Indian firms for counter-drone technologies worth USD 1.5 billion. Also, the Indian Navy awarded contract to Bharat Electronics Limited (BEL) for an indigenous anti-drone naval system.
Thus, increasing investment in advanced military weapons to enhance defense capabilities and a rising focus on developing next-generation anti-drone systems drive market growth.
North America Expected to Dominate the Market During the Forecast Period
The US is the largest defense spender in the world. In 2022, the US government spent USD 877 billion on its defense sector. The ongoing war between Russia and Ukraine, growing security threats from Russia to the NATO countries, and political disputes in the Middle Eastern region lead to a growing focus on strengthening defense forces. The US government is highly investing in enhancing its defense capabilities due to increasing security threats and rising political tension worldwide. The US Army is procuring and continuing to develop a new maneuver, the short-range air defense system or M-SHORAD. Legacy SHORAD ADA systems include the FIM-92 Stinger missile, the Land-Based Phalanx Weapons System (LPWS), and the Avenger system employed against drones.
For instance, in October 2023, General Dynamics Land Systems (GDLS) launched the TRX SHORAD at the US Army Annual Meeting and Expo. This uncrewed vehicle is an anti-drone solution based on GDLS' TRX robotic platform. It has a weapons station with a 30mm automatic cannon and stinger surface-to-air missile launchers. Additionally, growing expenditure on procuring advanced defense systems is expected to boost market growth.
The US focuses on upgrading its existing air defense systems fleet and corresponding capabilities. The US FY2023 defense budget prioritizes upgrading military systems to compete with Russia and China globally while emphasizing day-to-day operations for ongoing conflicts, crisis response, and allied engagement. In October 2022, the US Army created a guide air and missile-defense modernization program focusing on countering drone threats. Developments such as these are projected to drive the market growth.
