The global target drones market is steadily emerging from niche military applications into a broader, more expansive phase of growth. According to a recent report by  (MRFR) the target drones market was valued at USD 3.81 billion in 2024, and is forecast to grow to around USD 7.5 billion by 2035, at a compound annual growth rate (CAGR) of about 6.35 % between 2024 and 2035.
Overview
Target drones refer to unmanned aerial systems (and occasionally ground or marine platforms) that serve as moving or flying targets in training, testing, simulation, and other defence-oriented operations. Historically reserved for military training exercises, target drones are increasingly being adopted because they offer cost-effective, reusable, realistic threat simulation for modern armed forces.
Growth Trends
Defense budgets globally are being ramped up, with focus on realistic training for air, sea and land engagements. The MRFR report notes that as unmanned aerial systems (UAS) become integral to military and security operations, the demand for advanced target drones is ascending.  

Technology Innovation
Significant innovation is underway: AI and automation are being integrated into target drones to enable more sophisticated training.

• MRFR highlights that artificial intelligence, automation, sensor technologies and advanced materials are increasingly influencing target drone design.
• Features such as autonomous flight modes, advanced propulsion materials, modular payloads for variable training missions, and simulation of real threat behaviours (e.g., maneuvering, evasive action) allow more realistic training.

Key Players
Among the prominent companies in this space are: BAE Systems plc, Elbit Systems, Lockheed Martin Corporation, Airbus S.A.S. and Northrop Grumman Corporation. Conclusion
As modernization, training realism and unmanned system threats increase, the target drones market is positioned for steady growth. For defence planners, investors, and industry players, this segment offers compelling opportunities — especially when combined with advances in autonomy and simulation-capable systems.

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