The anti-drone market is estimated to be valued at USD 1.72 Billion in 2024, exhibiting a CAGR of 25.7% over the forecast period (2024-2031). Growing concerns regarding unauthorized surveillance and rising instances of misuse of drones for illegal activities are significantly propelling the demand for anti-drone systems. Furthermore, increasing allocation of defense budgets across countries is also fueling the market growth.
Market Dynamics:
The primary drivers for the anti-drone market include rising concerns over public security and increasing defense budget allocations by governments. Security threats posed by unlawful drones have heightened significantly in recent times. Various terrorist groups have explored the potential of deploying rogue unmanned aircraft for damaging critical infrastructure. This has prompted defense agencies and commercial establishments to invest heavily in counter-drone technologies. Additionally, modern anti-drone solutions assist defense agencies to detect and intercept suspicious drones used for spying or smuggling of illegal goods across borders. Major countries like the U.S. and China have increased their annual military spending on securing airspaces which is positively impacting the market growth. With continued innovation, anti-drone systems are becoming more effective and affordable.
Market Drivers:
Increasing safety and security concerns drive the demand for anti-drone systems
The growing threat of unauthorized drone usages has become a major safety and security concern worldwide. Rogue drones pose risks of breaching restricted airspaces, conducting surveillance activities and smuggling contraband goods. Additionally, there have been incidents of drones crashing into critical infrastructure and disrupting airport operations. To address these issues, governments and law enforcement agencies across the globe are significantly investing in counter-drone technologies. Advanced anti-drone systems provide effective perimeter protection to airports, military bases, energy plants, and other vital assets against malicious drone activities. The rising need to monitor sensitive areas and detect rogue drones is a primary driver propelling the anti-drone market growth.
Regulatory compliance pushes organizations to deploy counter-drone solutions
With the proliferation of drones in both commercial and recreational domains, governing authorities have formulated strict regulations regarding drone operations. Players have to obtain necessary flight permissions and follow No-Fly zone restrictions. However, there still exist risks of drones flying unauthorized into restricted zones. To ensure regulatory compliance and take preventive actions against rule violations, various companies and sectors are compelled to use anti-drone technologies within their premises. The evolving regulatory landscape worldwide has made counter-drone systems an essential compliance requirement. This compulsory factor is positively impacting the increasing adoption of anti-drone systems across industries.
Market Restraints:
High production and procurement costs restrain market expansion
Developing effective counter-drone solutions requires cutting-edge technologies like radar, electro-optical/infrared sensors, RF detectors, etc. Incorporating these sophisticated components leads to significantly high manufacturing costs for suppliers. Similarly, the procurement cost of complete anti-drone systems is also substantial, ranging from hundreds of thousands to millions of dollars based on system capabilities. The high upfront capital involvement poses a major restraint, limiting the large-scale adoption of anti-drone technologies especially for price-sensitive end users. Additionally, the associated high operating costs for system maintenance and upgrades further negatively impact the market growth.
Lack of skilled operators hinders operational effectiveness
Using advanced counter-drone systems to their full potential requires highly skilled personnel who are properly trained to operate such complex equipment. However, there is a severe shortage of adequately qualified operators with the right technical expertise to handle anti-drone solutions effectively. Without proper handling, counter-drone technologies may not yield desired results even after expensive installation. The critical lack of trained operators proves an obstacle for organizations in maximizing returns from their counter-drone investments. It also decreases motivation for further procurements and restrains wider service acceptance as an additional deployment challenge.
Market Opportunities:
Commercial drone growth presents opportunities in non-military domain
With projections of the global commercial drone market reaching billions of dollars in the coming years, there exists vast potential for tapping growth opportunities. Rapid commercial drone adoption across various industries like agriculture, infrastructure, energy, transportation, etc. simultaneously increases vulnerabilities of critical non-military assets. This leads to rising needs for monitoring such regions and securing perimeter areas. Counter-drone system providers can benefit immensely by catering customized solutions for private sectors as well. It presents a lucrative avenue to expand business beyond traditional military/government clientele into new commercial domains. Suppliers proactively satisfying civilian demands will experience amplified market access and revenues.
Demand from smart city initiatives offers profitable prospects
Modern megacities worldwide are increasingly implementing smart infrastructure upgrades to enhance public services and management. Various smart city projects involve deploying drones for activities like surveillance, delivery, inspections, etc. However, unauthorized drones can sabotage such operations and cause disruptions. In order to ensure smooth functioning of smart city systems, protecting critical areas, and assets becomes essential using robust counter-drone measures. This emerging requirement from smart urban development provides significant opportunities for anti-drone solution vendors to capture new business opportunities. Tapping into smart city projects can boost profitable sales and help augment market presence globally.
*Link: https://www.coherentmarketinsights.com/market-insight/anti-drone-market-5303
Key Developments:
- In July 2023, DroneShield secured a USD 33 million contract from a U.S. government agency, encompassing equipment provision and service delivery over multiple years
- Also in July 2023, Dedrone unveiled Version 6.0 of its DedroneTracker.AI, incorporating feedback from security experts, military personnel, and law enforcement. This version offers advanced AI/ML-driven threat assessment, sensor integration, and autonomous drone identification and classification.
- In April 2023, Liteye Systems announced its attainment of a General Services Administration (GSA) schedule contract, expanding its government contract portfolio and facilitating direct service provision to U.S. government entities
Key Market Players:
Key companies covered as a part of this study include Advanced Radar Technologies S.A., Airbus Group SE, Blighter Surveillance Systems, Dedrone, DeTect, Inc., Droneshield LLC, Enterprise Control Systems, Israel Aerospace Industries Ltd. (IAI), Liteye Systems, Inc., Lockheed Martin Corporation, Orelia, Prime Consulting and technologies, Raytheon Company, Saab Ab, Selex Es Inc., Thales Group, and The Boeing Company.
