United States Loitering Munition Market: Supply Chain & Domestic Production Needs By 2025-2032 | Top Most Keyplayers - AeroVironment, Inc., Thales S.A., Elbit Systems Ltd., Rheinmetall AG

Global Loitering Munition Market reached US$ 529.90 million in 2024 and is expected to reach US$ 1056.63 million by 2032, growing with a CAGR of 9.01% during the forecast period 2025-2032.

According to DataM Intelligence Comprehensive Report has released its latest report on the "Loitering Munition Market Size 2025," providing a detailed analysis of market trends, key growth drivers, competitive landscape, and regional insights. The report includes market size (value and volume), CAGR projections, and emerging opportunities that help businesses identify growth areas and build effective strategies. Backed by data-driven insights and future outlook, this study serves as a valuable resource for companies looking to stay competitive and capitalize on market potential.

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Industry Developments:

USA:

The U.S. loitering munition market is growing rapidly due to increased defense spending, modernization programs, and focus on autonomous weapon systems. The FY2025 National Defense Authorization Act includes significant investments in unmanned loitering munitions.

Key innovations include AI-driven target recognition, swarm coordination, modular payloads, extended endurance, and enhanced battlefield adaptability.

Major defense contractors like AeroVironment and Raytheon are advancing combat-proven systems such as the Switchblade series and developing next-generation swarm and autonomous loitering munitions.

Programs emphasize precision strikes, minimizing collateral damage, and multi-domain integration involving air, ground, and maritime operations.

Japan:

Japan is gradually adopting loitering munitions to enhance its self-defense capabilities amid regional security concerns.

Efforts focus on integrating advanced technologies such as AI and modular payload configurations for operational flexibility.

Domestic defense firms, supported by government initiatives, are innovating to meet regional security demands and interoperability standards with allied forces.

Latest M & A:

AeroVironment secured a significant $288 million delivery order from the U.S. defense sector in February 2025 for its Switchblade loitering munition systems, highlighting strong military adoption for precision strike and flexible deployment.​

The Asia-Pacific region is experiencing the fastest growth in loitering munitions, with a CAGR of approximately 11.5%, driven by rising defense budgets and modernization efforts in China, India, Japan, and other countries.​

European and Asia-Pacific markets are expanding due to increasing cross-border conflicts and demand for AI-enabled autonomous targeting systems, with Europe expected to grow substantially.​

Product segments such as catapult-launched loitering munitions accounted for over 30% of market share in 2024 due to operational flexibility and cost-effectiveness.​

Market challenges include regulatory and ethical concerns surrounding autonomous weapon systems, though demand persists due to increasing focus on reducing collateral damage and enhancing battlefield situational awareness.​

Key market players include AeroVironment, Inc., Israel Aerospace Industries Ltd., Elbit Systems Ltd., UVision Group, and several defense contractors focusing on technology development and strategic partnerships.​

Major Key Player:

The major global players in the market include AeroVironment, Inc., Thales S.A., Elbit Systems Ltd., Rheinmetall AG, Uvision Air Ltd., WB Group, Paramount Group, EDGE Group, Israel Aerospace Industries, AEVEX Aerospace.

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Key Segments:

➥ By Type: Recoverable, Expandable

➥ By Launch Mode: Air-launched Effect, Vertical Take-off, Canister Launched, Hand Launched, Others

➥ By Range: Short Range (50 km)

➥ By Application: Army, Navy, Air Force

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