Rising Defense Spending Driving The Market Growth Due To Escalating Geopolitical Tensions: Strategic Insights Driving Surveillance Unmanned Aerial Vehicles (UAVs) Market Momentum in 2025

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How Large Will the Surveillance Unmanned Aerial Vehicles (UAVs) Market Size By 2025?
There has been significant growth in the surveillance unmanned aerial vehicles (UAVs) market size in the past few years. This market, which was valued at $5.76 billion in 2024, is projected to expand to $6.31 billion in 2025, representing a compound annual growth rate (CAGR) of 9.5%. The historic period growth is due to a variety of factors, including an increase in usage for wildlife observation and environmental preservation, a surge in demand for inspecting infrastructure, rising implementation by government entities, expanding commercial applications such as agriculture monitoring, and an increased use in maritime surveillance and security.

How Big Is the Surveillance Unmanned Aerial Vehicles (UAVs) Market Size Expected to Grow by 2029?
Anticipations for a sturdy enlargement of the surveillance unmanned aerial vehicles (UAVs) market are high, with its value predicted to reach $8.95 billion by 2029. This highlights a potent compound annual growth rate (CAGR) of 9.1%. The forecasted expansion during this period is due to various factors, including the escalating requirement for real-time aerial monitoring, surged global defense financial plans, increasing issues over border security, enlargement of public safety roles and law enforcement applications, and a rise in disaster management and emergency response usage. Some prevalent trends projected for this period include demand for cost-efficient surveillance alternatives, improved capabilities in artificial intelligence and machine learning for UAVs, consolidation of high-end sensors and imaging tech, the evolution of lightweight and transportable UAV platforms, and superior data analytics and processing capabilities embedded in UAVs.

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Which Key Market Drivers Powering Surveillance Unmanned Aerial Vehicles (UAVs) Market Expansion and Growth?
The expected rise in defense expenditure is set to propel the surveillance UAVs market's expansion in the following years. Defense expenditure refers to the funds government allocates toward supporting military forces, operations and related defense activities to protect their national interests. The increasing geopolitical tension has led to an elevation in defense spending as nations enhance their military budgets to fortify their defense capabilities amidst growing regional disputes and global power competition. This rise in defense expenditure positively impacts the surveillance unmanned aerial vehicles (UAVs) market by advancing their technological abilities, expanding their fleets and improving their operational efficacy. Larger budgets also facilitate advanced research and development, resulting in the emergence of more refined sensors, AI-powered systems, and stealth characteristics. For example, in April 2025, the Stockholm International Peace Research Institute, an international institute based in Sweden, reported that global military expenditure hit 2,718 billion dollars in 2024, marking a 9.4% increase in real terms compared to the prior year. Consequently, the escalation in defense expenditure will stimulate the growth of the surveillance UAVs market.

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Which Fast-Growing Trends Are Poised to Disrupt the Surveillance Unmanned Aerial Vehicles (UAVs) Market?
Major players in the surveillance Unmanned Aerial Vehicles (UAVs) market are focusing on creating advanced solutions, such as drones powered by artificial intelligence, for rapid processing of large data volumes. These AI-driven drones are unmanned aerial systems integrated with AI capabilities, allowing them to carry out independent operations like navigation, data scrutinizing, and decision making with no human interference. For example, Helsing, a Germany-based defense firm, initiated the launch of Fathom, an underwater surveillance drone in May 2025. This underwater monitoring system employs artificial intelligence to locate enemy submarines and vessels during long sea voyages. The AI-driven tool, Lura, interprets data collected from SG-1 Fathom drones. Lura has the ability to correctly identify and differentiate underwater threats through a comprehensive acoustic model based on their sound signatures. Moreover, the Fathom drones encompass the ability to swarm, ensuring the deployment of hundreds of units for continuous underwater area surveillance for a duration of up to three months.

What Are the Emerging Segments in the Surveillance Unmanned Aerial Vehicles (UAVs) Market?
The surveillance unmanned aerial vehicles (UAVs) market covered in this report is segmented -

1) By Type: Rotary Airfoil, Fixed-Wing, Other Types
2) By Technology: Electro-Optical Or Infrared Systems, Radar Systems, Signal Intelligence (SIGINT), Acoustic Sensors, Multispectral Sensors
3) By End-User: Government And Defense, Agriculture, Commercial Enterprises, Research Institutions, Non-Governmental Organizations (NGOs)

Subsegments:
1) By Rotary Airfoil: Single Rotor, Multi-Rotor, Helicopters, Quadcopters
2) By Fixed-Wing: Conventional Fixed-Wing, Flying Wing, Blended Wing Body
3) By Other Types: Hybrid VTOL, Tethered UAVs, Solar-Powered UAVs

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Who Are the Global Leaders in the Surveillance Unmanned Aerial Vehicles (UAVs) Market?
Major Companies operating in the surveillance unmanned aerial vehicles (UAVs) market are Lockheed Martin Corporation, Airbus SE, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Textron Inc., Elbit Systems Ltd., Israel Aerospace Industries Ltd., Saab AB, DJI Service LLC, General Atomics Aeronautical Systems Inc., Anduril Industries, AeroVironment Inc., Yuneec International Co. Ltd., Autel Robotics Co., Skydio Inc., Parrot SA, Baykar Makina Sanayi ve Ticaret A.S., AgEagle Aerial Systems Inc., Teal Drones Inc.

Which are the Top Profitable Regional Markets for the Surveillance Unmanned Aerial Vehicles (UAVs) Industry?
North America was the largest region in the surveillance unmanned aerial vehicles (UAVs) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the surveillance unmanned aerial vehicles (UAVs) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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