Anti-drone Market Latest Trends and Business Opportunities 2026

The Anti-drone market is estimated to reach about USD 1 billion in 2026, and it is expected to register a CAGR of more than 17% during the forecast period (2021-2026).

The global GDP witnessed a decline by more than 4% in 2020 due to the economic impacts of the COVID-19 pandemic. However, according to the Stockholm International Peace Research Institute (SIPRI), global military spending increased by 2.6% to reach USD 1981 billion in 2020. Nevertheless, defense spending may come down in the future, due to the global economic crisis triggered by the pandemic. This factor is expected to challenge the growth of the anti-drone market during the forecast period.

The demand for anti-drone systems is primarily due to the growing use of drones in different applications. Incidents of security breaches by unidentified drones and the use of drones by terrorist groups are further propelling the demand for counter-drone technologies. Apart from the defense sector, the counter-drone systems are also being procured by homeland securities and law enforcement agencies to counter unidentified drones entering critical infrastructures.

Counter-drone systems come with their set of challenges at the level of performance, practicality, legality, and policy. The use of anti-drone jammers or unauthorized UAS detection and countermeasure deployments can result in electromagnetic and radio frequency (RF) interference, especially at airports, which can affect the safety of flight and air traffic management issues. These limitations are expected to challenge the growth of the market during the forecast period.

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Key Market Trends

Military Segment Held the Largest Market Share in 2020

The military segment of the market accounted for a major share of the revenues in 2020. This is primarily due to increased demand for anti-drone systems by global armed forces. UAVs are increasingly being used to spy on military infrastructure and borders. They are also being used to attack military bases by adversaries and insurgent groups. For instance, drone attacks on US forces in Iraq have been rapidly increasing over the years. In the first half of 2021, there are about 45 attacks on US forces in Iraq, and around seven of them have involved drones. In June 2021, a bomb-laden drone attacked US forces at a base near Baghdad International Airport.

Such incidents are expected to force the militaries to deploy counter-UAS systems near military installations. Likewise,drones are also posing threats to border security and can be used as means of intelligence gathering by adversaries. Hence, several armed forces are now focusing on enhancing their counter-drone capabilities. For instance, in December 2019, Kongsberg Defence & Aerospace received a contract to provide a counter unmanned aerial system (C-UAS) solution to the German Armed Forces. Kongsberg may supply a C-UAS based on the Protector Remote Weapon Station. Likewise, in December 2020, the Indian Navy finalized a contract for procurement of a batch of counter-drone weapon systems capable of bringing down high-speed enemy drones. The delivery of the SMASH 2000 fire control systems, manufactured by the Israeli firm Smart Shooter, is expected to begin in 2021.The SMASH 2000 is a combat-proven Fire Control System that can be installed in various types of small arms and can be used to shoot down enemy drones. Such developments are expected to drive market growth during the forecast period.

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