Counter-drone specialist DroneShield grew 2025 revenue to A$216.5 million and had a A$2.3 billion sales pipeline, with Europe its largest region at 40% of revenue.
Why this market is moving now
- World military spending hit a record USD 2,887 billion in 2025.
- European military spending rose 14% in 2025, and Europe became the largest region for at least one counter-drone maker.
- Ukraine, where drones are used at scale, raised military spending 20% in 2025 to become the seventh largest spender.
- Counter-drone order books are growing, with DroneShield's pipeline up 92% in 2025 to A$2.3 billion.
Key figures
Global figures for this market, with the year each one describes. Use Cite to copy a reference to this page.
| Figure | Value | Year | Cite |
|---|---|---|---|
| World military expenditure rose 2.9% in real terms to USD 2,887 billion in 2025, the 11th year of growth in a row. | 2887 USD billion | 2025 | |
| Military spending in Europe rose 14% to USD 864 billion in 2025, the highest European level on record. | 864 USD billion | 2025 | |
| The five biggest military spenders in 2025, the United States, China, Russia, Germany and India, accounted for 58% of world military spending. | 58 % of world military spending | 2025 | |
| Ukraine was the seventh largest military spender in the world in 2025, raising spending 20% to an estimated USD 84.1 billion. | 84.1 USD billion | 2025 | |
| Counter-drone maker DroneShield had an unweighted sales pipeline of A$2.3 billion across almost 300 opportunities at the end of 2025, up 92% in 12 months. | 2.3 AUD billion | 2025 | |
| DroneShield's revenue reached a record A$216.5 million in 2025. | 216.5 AUD million | 2025 | |
| Europe was DroneShield's largest region in 2025 at 40% of revenue, while the US share fell to 14% from 69% in 2024. | 40 % of revenue (Europe) | 2025 | |
| DroneShield had A$261 million of committed revenue for 2026 by October 2026, within its full-year outlook of A$250 million to A$270 million. | 261 AUD million | 2026 | |
| More than 6,300 DroneShield counter-drone devices have been fielded globally, with products deployed in 50 countries. | 6,300 devices fielded (more than) | 2026 |
Calculated figures (shares, changes and prices per kilogram) are plain arithmetic on the reported values. Read how we work.
Companies to watch
DroneShield
Counter-drone specialist with record 2025 revenue of A$216.5 million and a A$2.3 billion pipeline.
MBDA
European missile maker that extended its counter-drone partnership with Fortem Technologies in October 2026 (
Fortem Technologies
Maker of the DroneHunter interceptor, offered by MBDA as a layer in air defence networks (
Kongsberg
Norwegian defence group building a counter-UAS manufacturing facility in Poland (
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the global market - 03Global market size, 2021 to 2025
Historical series and growth rates - 04Countries and regions
Demand, supply and trade by country and region - 05Outlook to 2031
Base, low and high scenarios with stated assumptions - 06Rules, policy and deadlines
Regulation and programmes that change demand - 07Drivers and barriers
What accelerates or slows adoption, by customer segment - 08Prices, costs and margins
Unit economics where public data allows - 09Competitive landscape
8 to 12 company profiles with recent moves - 10Opportunities and risks
For new entrants, suppliers and investors - 11Method and assumptions
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Frequently asked questions
How big is the counter-drone market?
Counter-drone sits within world military spending of USD 2,887 billion in 2025. One specialist, DroneShield, had 2025 revenue of A$216.5 million and a A$2.3 billion sales pipeline.
Which countries spend the most on defence?
The United States, China, Russia, Germany and India were the five biggest spenders in 2025, with 58% of the world total. Ukraine ranked seventh.
Where is counter-drone demand growing fastest?
European military spending rose 14% to USD 864 billion in 2025. Europe was DroneShield's largest region in 2025 at 40% of revenue.
Who are the leading counter-drone companies?
DroneShield, a counter-drone specialist, has fielded more than 6,300 devices in 50 countries and had record 2025 revenue of A$216.5 million.
What is the outlook for counter-drone sales in 2026?
DroneShield had A$261 million of committed revenue for 2026 by October, within its outlook of A$250 million to A$270 million.
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