Autonomous Aircraft Market Skyrockets 19.51% CAGR by 2034

Autonomous Aircraft Market Strategic Growth, Innovation and Investment Trends

Projections indicate that, autonomous aircraft industry is projected to rise from USD 9.75 billion in 2024 to USD 57.95 billion by 2034, reflecting a CAGR of 19.51% over the next decade. North America dominates the autonomous aircraft market, driven by key industry players, while Asia Pacific is set for the fastest growth due to rising air travel demand. Rotary-wing aircraft lead due to precise vertical takeoff and landing, with hardware thriving on sensor and transponder use.

Last Updated: 31 March 2025 Category: Multi-modal Transport Insight Code: 1677 Format: PDF / PPT / Excel

Senior Research Analyst

Dr. Arjun Patel

Reviewed By

Aditi Shivarkar

Autonomous Aircraft Market Transformative Technologies and Growth Dynamics

The autonomous aircraft market is projected to reach USD 57.95 billion by 2034, growing from USD 11.65 billion in 2025, at a CAGR of 19.51% during the forecast period from 2025 to 2034.

Autonomous Aircraft Market Size 2023 - 2034

Introduction

The autonomous aircraft market is a prominent branch of the aerospace and defense industry. This industry deals in manufacturing and distribution of autonomous aircrafts around the world. There are different types of aircrafts developed in this sector comprising of fixed-wing aircraft and rotary-wing aircraft. These aircraft use various components including radars & transponders, propulsion systems, cameras, sensors, actuation system, air data inertial reference units, flight management computers, software and some others. The end-user of this sector includes air medical service, commercial aircraft, combat & ISR, passenger air vehicle, personal air vehicle, cargo & delivery aircraft and some others. The rising air traffic movement in different parts of the world has boosted the market expansion. This market is projected to rise significantly with the growth of the airlines sector across the globe.

India Air Traffic Movement in Million (2022-23)

  • According to the India Brand Equity Foundation, the Indian air traffic movement in 2022 was around 188.89 million that increased to 327.28 million in 2023.

Highlights of the Autonomous Aircraft Market

  • North America held the largest share of the autonomous aircraft market due to the presence of several market players in this region.
  • Asia Pacific is expected to grow with the highest CAGR due to the rising adoption of air travelling in this region.
  • The rotary wing segment held the largest share of the market due to its ability to vertically taking off and land accurately.
  • The hardware segment led the industry due to the growing use of sensors and transponders in autonomous aircrafts.

Key Metrics and Overview

Metric Details
Market Size in 2024 USD 9.75 Billion
Projected Market Size in 2034 USD 57.95 Billion
CAGR (2025 - 2034) 19.51%
Leading Region North America
Market Segmentation By Aircraft Type, By Component, By Technology, By End User and By Region
Top Key Players AeroVironment, Inc., Saab AB, Airbus S.A.S, Raytheon Company
  • Several aircraft companies are partnering with each other to develop autonomous aircrafts for enhancing flight experience. For instance, in October 2024, Honeywell announced partnership with Leonardo. This partnership is done for developing an autonomous unmanned aircraft.
  • Various market players are acquiring small companies for developing pilotless airplanes in different parts of the world. For instance, in June 2024, Joby aviation acquired Xwing’s Autonomy Division. This acquisition is done for developing self-flying air taxis to solve the problems of road congestions.
  • The government of different countries are investing heavily for deploying autonomous aircrafts for military expeditions. For instance, in October 2024, the Defense Advanced Research Projects Agency (DARPA) announced to invest around US$ 6 million. This investment is done for developing autonomous aircrafts in different parts of the world.

Industry Leader Announcement

In February 2025, Michael Norcia, the CEO of Pyka announced that, “We couldn't be more excited to release Pelican 2, With nearly 5 years of commercial operation under our belt, this aircraft exhibits the reliability, performance, and ease of operation that growers demand. I have no doubt that the features and operating economics of this aircraft will revolutionize aerial application, delivering meaningful cost-savings and spray results for growers."

Geographical Insights

North America held the largest share of the autonomous aircraft market. The rise in number of airlines companies in the U.S. and Canada has boosted the industrial expansion. Also, the rapid investment by government for strengthening the aviation sector coupled with technological advancements in aerospace industry is positively impacting the market. Moreover, the presence of various market players such as Northorp Grumman Corporation, Boeing Company, Lockheed Martin Corporation, Elbit Systems and some others is driving the market growth in this region.

Competitive Landscape

Autonomous Aircraft Market Companies

The autonomous aircraft market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of AeroVironment, Inc., Saab AB, Airbus S.A.S, Raytheon Company, BAE Systems, Northorp Grumman Corporation, Boeing Company and some others. These companies are constantly engaged in developing pilotless aircrafts and adopting numerous strategies to maintain their dominance in this industry.

Northrop Grumman Revenue in USD Billion (2022-23)

  • According to the annual report of Northrop Grumman, the revenue of the company in 2022 was US$ 36.6 billion that increased to US$ 39.3 billion in 2023.

Market Segmentations

By Aircraft Type

  • Rotary Wing
  • Fixed Wing

By Component

  • Radars & Transponders
  • Propulsion Systems
  • Cameras
  • Sensors
  • Actuation System
  • Air Data Inertial Reference Units
  • Flight Management Computers
  • Software
  • Others

By Technology

  • Increasingly Autonomous
  • Fully Autonomous

By End User

  • Air Medical Service
  • Commercial Aircraft
  • Combat & ISR
  • Passenger Air Vehicle
  • Personal Air Vehicle
  • Cargo & Delivery Aircraft
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa
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About The Author

Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.

FAQ's

The autonomous aircraft market was valued at USD 11.65 billion in 2025.

North America dominated this industry.

The growing investment in aviation sector coupled with technological advancements in aerospace sector has boosted the market growth.

Some of the prominent players of this industry consists of BAE Systems, Northorp Grumman Corporation, AeroVironment, Inc., Saab AB, Airbus S.A.S, Raytheon Company and some others.

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