Target Drones Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By End Use Type (Defense, Commercial), By Target Type (Aerial Target, Ground Target, Marine Target), By Mode of Operation Type (Autonomous, Remotely Piloted), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.13 Billion
CAGR (2026-2031)	7.99%
Fastest Growing Segment	Defense
Largest Market	North America
Market Size (2031)	USD 9.72 Billion

Market Overview

The Global Target Drones Market will grow from USD 6.13 Billion in 2025 to USD 9.72 Billion by 2031 at a 7.99% CAGR. Target drones are specialized unmanned aerial vehicles utilized by defense forces to simulate enemy threats, such as fighter aircraft and cruise missiles, for the purpose of training air defense crews and testing weapon systems. The primary driver supporting market growth is the escalation of global defense expenditures, which facilitates the procurement of advanced simulation systems necessary for realistic combat preparation. According to the AeroSpace and Defence Industries Association of Europe, in 2024, defense sector turnover in Europe increased by 13.8 percent to €183.4 billion, reflecting the heightened financial prioritization of military readiness that underpins demand for these support assets.

However, the market faces a significant challenge regarding the high development and operational costs associated with high-speed, maneuvering targets required to replicate modern aerial threats. These financial barriers can restrict procurement volumes for cost-sensitive defense programs and impede the widespread adoption of advanced target systems, potentially slowing the overall expansion of the sector.

Key Market Drivers

Escalation in global defense budgets and military spending is the primary engine driving the Global Target Drones Market. As geopolitical tensions rise, nations are significantly increasing their financial commitments to strengthen military readiness and modernize air defense capabilities. This surge in funding directly facilitates the procurement of expendable aerial targets, which are critical for validating new weapon systems and ensuring force preparedness. According to the Stockholm International Peace Research Institute (SIPRI), April 2025, in the 'Trends in World Military Expenditure, 2024' fact sheet, global military expenditure reached an all-time high of $2,718 billion in 2024. This record-breaking financial allocation provides the necessary capital for defense agencies to sustain long-term procurement programs for both basic and high-performance target drones to support continuous training cycles.

A parallel driver is the growing emphasis on realistic combat training and threat simulation, necessitating targets that can accurately replicate the flight characteristics of advanced anti-ship missiles and enemy aircraft. Defense forces require high-fidelity systems to conduct complex interception scenarios, pushing manufacturers to deliver solutions that offer higher speeds and maneuverability. Supporting this demand, according to Kratos Defense & Security Solutions, March 2025, in the press release 'Naval Air Systems Command Awards Kratos Additional $59.3 Million for BQM-177A Subsonic Aerial Target Systems', the company received a $59.3 million contract to supply high-performance targets to the U.S. Navy. Additionally, the market sees robust activity in operational support; according to ASDNews, January 2025, in the article 'QinetiQ Awarded a Prime Framework Contract for the US Government', QinetiQ Target Systems secured a $13.3 million contract to provide uncrewed aerial target support services, illustrating the sector's broadening scope beyond hardware manufacturing.

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Key Market Challenges

The high development and operational costs associated with advanced maneuvering targets represent a significant impediment to the expansion of the Global Target Drones Market. As modern aerial threats become faster and more stealthy, defense forces require target drones that can accurately replicate supersonic cruise missiles and fifth-generation fighter aircraft. Producing these high-performance surrogates involves integrating expensive propulsion systems and complex avionics, which drastically increases the price per unit. These elevated costs create a barrier for cost-sensitive defense programs, forcing them to limit procurement volumes or rely on obsolete simulation systems that do not adequately prepare crews for contemporary combat scenarios.

This financial burden is evident in the massive capital investments required to sustain such programs. According to the Association for Uncrewed Vehicle Systems International, in 2024, the U.S. Department of Defense requested an estimated $10.95 billion to support uncrewed vehicle acquisition and development. This figure underscores the immense funding necessary to procure and operate advanced unmanned systems. For nations or agencies unable to match such substantial financial commitments, the high cost of entry restricts market access and slows the widespread adoption of necessary high-speed target platforms.

Key Market Trends

The Adoption of Swarming Technology for Multi-Vector Threat Simulation is reshaping market requirements as defense forces seek to replicate saturated attacks. Military planners are prioritizing experiments utilizing large numbers of low-cost unmanned systems operating collaboratively to overwhelm air defense radars. This operational shift necessitates target drones capable of networked behaviors and distributed electromagnetic attacks. Validating this focus, according to Inside Defense, September 2024, in the article 'Navy solicits electromagnetic warfare proposals for Silent Swarm 2025', the U.S. Navy successfully tested 50 different technologies during its Silent Swarm 2024 exercise to evaluate distributed electromagnetic attack and deceptive swarming capabilities.

The Development of Supersonic and Hypersonic Aerial Targets has become a critical priority to address high-speed missile threats. As adversaries deploy hypersonic glide vehicles exceeding Mach 5, existing targets are insufficient for validating next-generation interception systems. Manufacturers are accelerating the production of testbeds that can sustain hypersonic velocities to stress-test missile defense architectures. Highlighting this trend, according to Design and Development Today, January 2025, in the article 'Stratolaunch Awarded $24.7M Agreement by Missile Defense Agency for Hypersonic Flight Tests Campaign', Stratolaunch secured a $24.7 million agreement to utilize its Talon-A vehicle to demonstrate critical capabilities for testing advanced missile defense systems against hypersonic weapons.

Segmental Insights

The defense segment is witnessing the most rapid expansion within the global target drones market due to an escalating requirement for realistic aerial threat simulation. Military organizations and Ministries of Defense worldwide are increasingly procuring these systems to replicate incoming hostile aircraft and missiles during live-fire training exercises. This surge is primarily driven by the necessity to validate the accuracy and reliability of air defense units and counter-drone technologies. Consequently, the focus on enhancing combat readiness amidst geopolitical instability continues to propel the significant demand for target drones in the defense sector.

Regional Insights

North America holds a dominant position in the global target drones market due to substantial investments in defense modernization and military training programs. The United States Department of Defense allocates significant resources for aerial target systems to simulate enemy threats during combat readiness exercises. Furthermore, the region benefits from the presence of major industry manufacturers and a well-established aerospace infrastructure. The Federal Aviation Administration supports this ecosystem by providing clear guidelines for unmanned aerial system operations, thereby fostering an environment conducive to continuous testing and development of aerial targets.

Recent Developments

• In March 2025, Airbus unveiled a new counter-drone system concept known as "LOAD" (Low-Cost Air Defence) during a trade exhibition in Bonn, Germany. The system is derived from the company's existing Do-DT25 aerial target drone platform and was modified to carry guided missiles for intercepting hostile unmanned aerial vehicles. Designed to operate autonomously under human supervision, the drone aims to provide a cost-effective solution for neutralizing drone swarms, complementing traditional ground-based air defenses. The company announced that the system would undergo flight testing later in the year to validate its capabilities in engaging aerial threats.
• In October 2024, QinetiQ US secured a significant contract with a ceiling of $95 million from the U.S. Army to deliver advanced aerial target systems. Under the Aerial Target Systems 3 (ATS-3) indefinite-delivery/indefinite-quantity agreement, the company was selected to provide a comprehensive range of target platforms, including the MQM-185B Banshee Jet 80+, to simulate various airborne threats. This award represented the company's first major prime contract for target systems in the United States market. The scope of work also encompasses systems engineering, payload integration, and software development to improve autonomous capabilities for training and testing exercises.
• In September 2024, Kratos Defense & Security Solutions received a firm fixed-price order valued at approximately $79.8 million to supply 60 BQM-167A Air Force Subscale Aerial Target (AFSAT) aircraft. This order was issued as part of a larger five-year contract and included the provision of mission kits, flight consumables, and technical data to the U.S. Air Force. The BQM-167A is a high-performance, remotely controlled target drone constructed from carbon fiber materials, capable of reaching speeds up to Mach 0.92. These systems are essential for the Air-to-Air Weapon System Evaluation Program, allowing military forces to verify weapon systems against realistic subscale threats.
• In April 2024, the U.S. Department of Defense awarded a contract modification valued at approximately $52 million to Northrop Grumman for the production of GQM-163A Coyote supersonic sea-skimming targets. This agreement facilitated the procurement and delivery of 16 aerial target systems to support the U.S. Navy's full-rate production requirements. The GQM-163A Coyote is designed to replicate advanced supersonic anti-ship cruise missile threats, capable of achieving speeds exceeding Mach 3.5 during high-altitude dives. The system is utilized extensively for naval fleet training and the testing of shipboard defense systems, providing a realistic simulation of high-speed aerial adversaries.

Key Market Players

• Kratos Defense & Security Solutions, Inc.
• AeroTargets International LLC
• Northrop Grumman Corporation
• QinetiQ Group
• Airbus SE
• The Boeing Company
• Lockheed Martin Corporation
• Leonardo S.p.A.
• Textron Inc.
• BAE Systems plc

By End Use Type	By Target Type	By Mode of Operation Type	By Region
Defense Commercial	Aerial Target Ground Target Marine Target	Autonomous Remotely Piloted	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Target Drones Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Target Drones Market, By End Use Type:

• Defense
• Commercial

• Target Drones Market, By Target Type:

• Aerial Target
• Ground Target
• Marine Target

• Target Drones Market, By Mode of Operation Type:

• Autonomous
• Remotely Piloted

• Target Drones Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE