In a seismic shift driven by the Russo-Ukrainian conflict, the loitering munitions market is poised for an unprecedented 525% explosion in growth between 2020 and 2024, with annual spending set to exceed $600 million in the coming years, according to a new report. Loitering munitions are strategically beneficial due to their versatility and economic efficiency, as seen by both participants of the Russo-Ukrainian War utilising the low-cost capability to strike high-cost targets at the local and national levels.
The report commissioned by Paramount highlights multiple, often interlocking, revelations. On the back of these advantages, the loitering munition market is forecasted to expand by 525% between 2020 and 2024, with yearly spending on the capability expected to surpass $600 million in 2023, 2024 and 2025. This growth made loitering munitions the third-largest UAV market in 2021 and 2022 and is forecasted to maintain its over 8% market share of the entire UAV market until 2025. Paramount is a leading global defence company with a 29-year track record of developing solutions in challenging environments.
Regionally, North America is expected to contribute the most expenditure over the decade, but Europe’s expenditure on loitering munitions is forecasted to increase by over 2000%, rising from 1.39% to 36% between 2021 and 2023. Most of the continent’s spending can be traced to the Russo-Ukrainian War, with many nations taking short- or long-term measures to arm themselves for any possible future conflict.
However, evidence is emerging that some customers are moving to longer-term acquisitions, programmes more often awarded to domestically produced systems, the producers of which are taking market share of incumbent suppliers. This situation is forecast to occur in Spain, Germany, and France and has already happened in Taiwan, India, and the UAE.
“This growth, especially in the European sector, aligns perfectly with our strategic direction. Paramount has decades of experience in asymmetrical warfare, and we’ve been shaping the solutions the world is looking for today. We’re at DSEI because we’re more than a manufacturer; we’re focused on IP licensing and global partnerships. Our eyes are set on Europe and the UK for pioneering these partnerships,” commented Ivor Ichikowitz, Founder of Paramount.
Lt Col Stuart Crawford is a defence analyst and former army officer. Sign up for his podcasts and newsletters at www.DefenceReview.uk
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