Russia’s $0.5bn anti-drone defence market second only to US

Russia’s $0.5bn anti-drone defence market second only to US
Russia's drone production business is now worth $500mn a year and second only to that of the US. / bne IntelliNews
By bne IntelliNews September 12, 2025

Russia ranked second globally in the anti-drone systems market in 2024, according to RBC business portal citing estimates of SK Capital, part of the state development bank VEB.RF.

As followed by bne IntelliNewsdrone warfare plays a central role in Russia's full-scale military invasion of Ukraine. Russian oil refineries and other key industrial infrastructure have been a frequent target of Ukrainian drone attacks. 

Previous reports suggested that up to 80% of Russia’s civilian industrial enterprises have installed anti-drone protection systems as of spring 2025, with the market projected to reach RUB30bn-RUB90bn ($318mn-$953mn) in 2025.

SK Capital estimates that Russia's anti-drone systems market revenue reached RUB42bn ($460mn) in 2024, placing the country second worldwide with a 23% market share. The US was the leader with 35% share ($700mn), followed by China at 8% ($160mn). 

The estimates are based on interviews, available reports, and industry expert sources. The study cited by RBC is presented as Russia's first comprehensive report on this sector. Anti-drone systems encompass devices, technologies, and processes designed to counter unmanned aerial vehicles (UAVs).

The authors of the study stressed that this is largely a classified market, valued at $2bn globally in 2024 using a consensus of available international reports.

Key global players include defence contractors (L3Harris Technologies, RTX Corporation, Thales), electronics and sensor firms (Rohde & Schwarz, Robin Radar, QinetiQ), and defence tech start-ups (Dedrone, Anduril, Blue Halo, Epirus, DroneShield).

The study does not list Russian market players due to confidentiality risks. Most Russian players specialise in radio jamming and GPS spoofing, combining domestic innovation with imported Chinese components.

Top 10 Russian anti-drone solution suppliers account for 45–50% of the domestic market, comprising roughly 130 companies. Participants range from defence enterprises to private security, IT integrators, and civilian drone manufacturers, with half being new entrants, according to RBC.

This month reports suggested that Russian businesses seeks tax breaks for drone attack-related costs, as the drone defences in the ongoing full-scale military invasion of Ukraine become a daily preoccupation in the real sector. In the meantime Russian insurers have reported over RUB10bn ($110mn) in claims related to drone attacks in 2024, with leading firms like SOGAZ and AlfaStrakhovanie experiencing significant increases in both the number and value of claims.

The study by SK Capital sees frequent Ukrainian drone attacks as creating a reactive, rather than strategically planned, demand for drone defence solutions, with buyers often lacking expertise to assess threats or select appropriate solutions. 

Additional challenges include outdated regulations, lack of civilian deployment standards, absence of insurance frameworks, and uneven regional procurement capabilities.

SK Capital forecasts average annual growth of 23% for Russia’s anti-drone market, reaching RUB146bn ($1.58bn) by 2030. In 2025 alone, the market could double or triple due to state mandates requiring critical infrastructure operators to procure UAV defences. 

Until now, 90% of the market relied on EW solutions, but demand is shifting toward multisensor and standardised platforms due to rising threats from FPV and loitering drones, according to the study.

Notably, SK Capital believes Russia can not only strengthen its domestic market but also become a global exporter of “unconventional solutions” for drone defence due to operational insights gained during mass drone attacks on military and civilian targets.

However, MarketsandMarkets forecasts the highest growth in the market from 2025–2030 in Asia (China, India, Japan, South Korea) driven by border defence and commercial drone applications. MarketsandMarkets valued the global anti-drone market at $3.75bn (RUB346.7bn) in 2024 and is expected to grow by 26.5% annually, reaching $14.51bn by 2031.

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