Global Military Drone Market Booms, Valued at $20.21 Billion in 2023
The global military drone market is booming, valued at $20.21 billion in 2023 and projected to grow at a CAGR of 12.21% until 2030. This growth is fueled by advancements in defense technologies and increased demand, particularly in light of recent geopolitical events like the Russia-Ukraine war. AeroVironment, Inc. (NASDAQ:AVAV), a leading drone manufacturer, has seen increased investor interest, with 20 hedge funds holding stakes worth $216.4 million in the first quarter of 2024.
The evolution of drones began with defense advancements, enabling remote piloting of weaponized and non-weaponized systems. Today, the term 'drone' encompasses any remotely piloted aircraft, with the U.S. Department of Defense and Federal Aviation Administration adopting the term 'unmanned aircraft system' (UAS) in 2005. AeroVironment, Inc. (NASDAQ:AVAV) is a key player, designing, developing, and delivering robotic systems and services for governments and businesses worldwide.
AeroVironment's Wildcat drone has been selected by the Defense Advanced Research Projects Agency (DARPA) for further development under its ANCILLARY program. This recognition underscores the company's innovation and potential. Jefferies has raised its price target for AeroVironment, reflecting confidence in its near-term growth. The stock market's optimism is echoed in DroneShield's stock performance, driven by strong revenue growth and political support for drone defense systems.
The future of drones, particularly in military and commercial sectors, looks promising. The U.S. commercial drone market is projected to reach $14.11 billion by 2033, growing at a CAGR of 9.2%. As demand increases, so does investor interest, with AeroVironment, Inc. (NASDAQ:AVAV) seeing significant hedge fund stakes. The company's innovations, like the Wildcat drone, are poised to shape the future of drone technology.
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