Target Drone Market By Type (Aerial Target Drones, Marine Target Drones, Ground Target Drones); By Mode of Operation (Remotely Piloted, Autonomous, Optionally Piloted); By Application (Combat Training, Target & Decoy, Reconnaissance, Surveillance, Testing & Evaluation of Air Defense Systems); By End-User (Defense, Air Force, Navy, Army, Commercial, Aerospace companies, Drone training institutes, Research organizations); By Geography, Segment Revenue Estimation, Forecast, 2024–2032.

Target Drone Market Size & Overview

The Global Target Drone Market was valued at USD 5.83 billion in 2024 and is projected to reach USD 9.34 billion by 2030, growing at a CAGR of 8.2%. The market is driven by rising defense budgets, demand for realistic combat training, and advancements in autonomous drone technology.

 

Target Drone Market Dynamics:

Market Drivers

The growth of the target drone market is primarily driven by the increasing demand for realistic combat training and simulation exercises among defense forces worldwide. As modern warfare becomes more technologically advanced, military organizations are investing in cost-effective and reusable aerial targets to train personnel, test missile systems, and evaluate air defense capabilities under near-real conditions. The U.S. military has revived a program aimed at acquiring a fighter-sized stealth target drone designed to simulate advanced adversary combat aircraft, such as China’s J-20 and Russia’s Su-57. The drone will specifically mimic the electronic warfare capabilities of these jets. The rise in global defense budgets, particularly in countries like the United States, China, Russia & India, is significantly boosting procurement and R&D in unmanned target systems. Global military spending surged to $2,718 billion, reflecting the sharpest increase since the Cold War, according to the latest study by the Stockholm International Peace Research Institute. Russia has increased its defense spending by 227% since 2000, and China’s military expenditures have soared by 566% over the same period. Growing geopolitical tensions & the need for enhanced preparedness further accelerate the adoption of these drones as essential tools for both training and tactical deception.

 

Market Restraints

The target drone market faces several key restraints that may limit its growth. One major challenge is the limited endurance & operational range of many drones, which can hinder their effectiveness in extended training missions. In the US, drone manufacturers must ensure their drones comply with the National Airspace System regulations.  Regulatory hurdles, including strict airspace & cybersecurity regulations, can delay deployments and add to compliance costs. Furthermore, high development & maintenance expenses can be prohibitive, especially for countries with constrained defense budgets, making adoption more difficult in certain regions.

 

Market Opportunities

The target drone market presents significant growth opportunities driven by increasing global defense modernization & the rising need for advanced training & testing systems. As nations upgrade their missile defense capabilities, there is growing demand for realistic, cost-effective target drones that can simulate various threats, including high-speed & stealth aircraft. Emerging technologies such as artificial intelligence, swarming capabilities & autonomous navigation are opening up new avenues for innovation, allowing manufacturers to develop next-generation drones with enhanced performance & adaptability. Expanding defense budgets in developing countries & rising investments in drone-based training programs provide fertile ground for market expansion. The growing interest in electronic warfare, coupled with the integration of advanced sensors & countermeasure testing, further broadens the scope of target drone applications beyond traditional training roles.

 

Target Drone Market: Recent Developments

• On September 24, 2024, Kratos Defense & Security Solutions secured a contract to supply additional BQM-167A Subscale Aerial Targets to the US Air Force. Valued at $79.8 million, the agreement includes 60 target drones, mission kits, flight consumables & technical data. This follows a previous contract from March 2023, in which Kratos was tasked with delivering 17 BQM-167A units to the Air Force.

 

• On September 12, 2024, the US Army revealed its selection of two companies to develop a compact drone for company-level intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) operations. Anduril Industries and Performance Drone Works have both been awarded 10-year contracts to supply their respective drones—the Ghost X and C-100—to fulfill the Army’s ISTAR needs.

 

• In October 2024, Beijing imposed sanctions on several US firms involved in military sales, causing supply chain disruptions for Skydio, the largest US drone manufacturer supplying drones to the Ukrainian military. Skydio stated that its X-10 drone, equipped with onboard artificial intelligence (AI), was the first US-made drone to successfully pass Ukraine’s electronic warfare (EW) tests, prompting Kyiv to place an order for thousands of units. On October 10, Beijing enacted sanctions against three US military-affiliated companies, including Skydio, along with 10 senior executives, in response to American weapons sales to Taiwan.

 

Target Drone Market Segmentation: A Comprehensive Overview

By Type

• Aerial Target Drones

• Marine Target Drones

• Ground Target Drones

 

By Mode of Operation

• Remotely Piloted

• Autonomous

• Optionally Piloted

 

By Application

• Combat Training

• Target & Decoy

• Reconnaissance

• Surveillance

• Testing & Evaluation of Air Defense Systems

 

By End-User

• Defense

• Air Force

• Navy

• Army

• Commercial

• Aerospace companies

• Drone training institutes

• Research organizations

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

 

Segmentation Analysis – Target Drone Market

By Type:

Aerial Target Drones dominate the market due to their extensive use in air defense training and missile system testing. These drones simulate real aerial threats and are crucial for air force training programs. On January 17, 2025, experts in high-performance target drones at Kratos Defense & Security Solutions Inc. secured a contract to produce an additional 65 subsonic unmanned aerial targets. These full-rate-production units are designed to aid Navy aircraft and surface warships in training to counter enemy cruise missiles. The U.S. Naval Air Systems Command at Patuxent River Naval Air Station, Maryland, announced a $59.3 million order for 65 Lot-6 BQM-177A surface-launched aerial targets from Kratos Unmanned Systems in Sacramento, California. Marine Target Drones are used mainly by navies for anti-ship missile testing and naval training exercises. This segment is smaller but growing with rising naval modernization. Ground Target Drones are used in ground combat training scenarios and for testing land-based weapon systems. Growth here is moderate, driven by increased investments in armored vehicle and anti-tank systems.

 

By Mode of Operation:

Remotely Piloted drones currently lead the market, as they offer controllable & reusable solutions for training and testing. The supersonic QF-4, derived from the F-4 Phantom, is a reusable, full-scale aerial target operated remotely. It serves as an authentic training platform for air-to-air weapons system evaluation, development, and testing at Tyndall Air Force Base in Florida & Holloman Air Force Base in New Mexico. Autonomous drones are gaining traction with advancements in AI and navigation systems, offering realistic, unpredictable threat simulation. Optionally Piloted drones provide flexibility but are niche, primarily used for specific tactical simulations or high-value training operations.

 

By Application:

Combat Training is the largest application segment, driven by the growing need for realistic & cost-effective military training solutions. Boresight's aerial target drones play a crucial role in pre-deployment training & readiness exercises, helping personnel refine their skills and deepen their equipment knowledge before entering operational environments. Utilizing Boresight's Mission Planning software, training can be tailored to specific scenarios, addressing known, anticipated, probable, and emerging threat vectors. Target & Decoy drones are widely used to simulate enemy aircraft/missiles and confuse enemy defense systems—this segment is expected to see fast growth with increasing focus on electronic warfare. Reconnaissance and Surveillance applications are niche in this market but growing with enhanced sensor integration in target drones. Testing & Evaluation of Air Defense Systems is a key driver, especially in regions modernizing their missile & radar defense capabilities.

 

By End-User:

• Defense Sector

Air Force is the primary consumer, using aerial target drones for combat simulation and pilot training. Navy uses marine drones for naval drills and ship defense system testing. Army utilizes ground drones for infantry and armored vehicle training.

• Commercial Sector

Aerospace Companies use target drones in weapons testing and simulation. Drone Training Institutes employ drones for instructional purposes. Research Organizations focus on drone technology development and testing.

 

By Region:

North America holds the largest market share, led by significant U.S. defense spending and advanced military infrastructure. According to recent data from the Stockholm International Peace Research Institute, U.S. defense spending made up nearly 40 percent of global military expenditures in 2024. The United States allocated $997 billion to defense, surpassing the combined military budgets of the next nine highest-spending nations.

Europe is growing steadily, driven by NATO exercises and increased defense modernization. By 2024, NATO has grown to include thirty-two member nations, encompassing 16.63 percent of the world's habitable land & 12.13 percent of the global population. To uphold stability, the alliance must maintain strong deterrence, strengthen its capabilities, optimize resource usage, and stay prepared for combat operations.

Asia Pacific is the fastest-growing region due to rising military budgets in China, India, and South Korea. The Indian Ministry of Defence announced a significant 9.53% increase in its 2025-2026 defence budget, aiming to modernize the armed forces and strengthen domestic defence production in response to rising geopolitical challenges.

Latin America and Middle East & Africa have smaller markets, but rising geopolitical tensions and security concerns are driving interest in target drone procurement.

 

Key Players in the Target Drone Market

• Kratos Defense & Security Solutions, Inc.

• AeroTargets International, LLC

• Northrop Grumman Corporation

• QinetiQ Group plc

• Airbus SE

• The Boeing Company

• Lockheed Martin Corporation

• Leonardo S.p.A.

• Raytheon Technologies Corporation

• Textron Inc.

 

Target Drone Market Report Coverage

Report Attribute	Details
Forecast Period	2024 – 2032
Market Size Value in 2024	USD 5.83 Billion
Revenue Forecast by 2030	USD 9.34 Billion
Overall Growth Rate	CAGR of 8.2% (2024 – 2030)
Base Year for Estimation	2023
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2024 – 2030)
Segmentation	By Type, By Mode of Operation, By Application, By End-User, By Geography
By Type	Aerial Target Drones, Marine Target Drones, Ground Target Drones
By Mode of Operation	Remotely Piloted, Autonomous, Optionally Piloted
By Application	Combat Training, Target & Decoy, Reconnaissance, Surveillance, Testing & Evaluation of Air Defense Systems
By End-User	Defense, Air Force, Navy, Army, Commercial, Aerospace Companies, Drone Training Institutes, Research Organizations
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, France, Russia, China, India, Japan, South Korea, Australia, Brazil, UAE, etc.
Market Drivers	Increasing defense spending, growing adoption of UAVs for military training, advancements in drone technologies
Customization Option	Available upon request