UAV (Drone) Propulsion Market worth $11.3 billion by 2030 - Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., June 24, 2025 /PRNewswire/ -- The UAV (drone) propulsion market is estimated to be USD 7.0 billion in 2025. It is projected to reach USD 11.3 billion by 2030, at a CAGR of 10.0% during the forecast period according to a new report by MarketsandMarkets™. The UAV (drone) propulsion market is witnessing strong growth globally, fueled by the rising adoption of drones across defense, commercial, and civil sectors. As UAV applications expand from surveillance and logistics to agriculture and urban mobility, there is a growing demand for advanced propulsion systems that offer greater efficiency, endurance, and reliability. Technological advancements in electric, hybrid, and fuel-based propulsion units, miniaturization, and improved energy density transform performance capabilities across UAV classes. This market growth is further supported by increasing defense investments, supportive regulatory frameworks, and the surge in demand for autonomous aerial operations.

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UAV (Drone) Propulsion Market Report Scope:

By component, the IC Engine segment is projected to account for the largest share during the forecast period.

By component, the IC Engine segment is projected to account for the largest share of the UAV (drone) propulsion market during the forecast period. The segment's dominance is largely because of the power requirements of the medium and large UAVs in defense and commercial uses. IC engines provide better range, increased thrust, and more payload capacity than electric propulsion, leading to the use of IC engine-powered UAVs in long-endurance surveillance drones, cargo drones, and UCAVs. Additionally, the widespread availability of the existing global fuel supply and maintenance infrastructure further enhances the extensive use of IC engine-powered UAVs for defense, homeland security, and far-flung industrial uses. Developments in lightweight materials, direct fuel injection, and thermal efficiency have helped these engines achieve more stringent emission standards while maintaining better performance-to-weight ratios.

By MTOW, the 2–25 kg segment is projected to account for the largest share during the forecast period.

By MTOW, the 2–25kg segment is projected to account for the largest share in the UAV (drone) propulsion market during the forecast period. The segment's growth is primarily due to the surge in demand for small to medium-sized drones used across various commercial, civil, and security applications. The compact size of these drones facilitates effective electric propulsion system integration while preserving cost-effectiveness, low maintenance, and easy regulatory compliance. The explosive proliferation of enterprise drone programs and government deployments of municipal services, police forces, and environmental monitoring units further drive the growth of this segment. The segment is also gaining from increasing innovation in modular propulsion units, battery energy density improvements, and the adoption of AI-based flight control systems.

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North America is projected to account for the largest share during the forecast period.

North America is projected to lead the UAV (drone) propulsion industry during the forecast period. The region's growth is driven by its strong defense infrastructure, heavy R&D expenditure, and the dominant presence of leading UAV and propulsion system companies. Additionally, the increasing use of drones generates high demand for sophisticated propulsion systems ranging from internal combustion engines and gas turbines to electric and hybrid-electric propulsion units. The region is witnessing the growing use of drones in delivery services, agriculture, infrastructure inspection, and emergency services, all needing reliable and efficient propulsion systems.

Major players in UAV (drone) propulsion companies such as DJI (China), RTX (US), Honeywell International Inc. (US), Rolls-Royce plc (UK), General Electric Company (US), T-motor (China), BRP-Rotax GmbH & Co KG (Austria), Maxon (Germany), General Atomics(US), Epsilor-Electric Fuel Ltd.(Israel), RRC Power Solutions (Germany), EaglePicher Technologies (US), Hobbywing Technology CO., LTD, Yuneec-ATL Drone, and Shenzhen Grepow Battery Co., Ltd. (China).

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Browse Adjacent Market: Aerospace and Defence Market Research Reports &Consulting

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Small Drones Market by Application (Combat, ISR, Inspection, Survey & Mapping, Agriculture, Delivery, Search & Rescue), Platform (Nano, Micro, Mini), Type (Fixed Wing VTOL, Multi Rotor, Hybrid), Mode of Operation, Power Source, and Region – Global Forecast to 2030

Military Drone Market by Platform (Small, Tactical, Strategic), Type (Fixed Wing, Rotary Wing, Hybrid), Application (UCAVs, ISR, Delivery), Propulsion (Fuel Powered & Battery Powered), MTOW, Operation Mode, Launching Mode & Region Global Forecast to 2030

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