Australia Anti-Drone Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report (2026-2035)

Key Market Trends and Insights

• The Australian Capital Territory dominated the market in 2025 and is projected to grow at a CAGR of 25.2% over the forecast period.
• By component, software is expected to grow at a CAGR of 24.5% over the forecast period.
• By type, UAV-based category is projected to witness a CAGR of 25.1% over the forecast period.

Market Size & Forecast

• Market Size in 2025: AUD 71.55 million
• Projected Market Size in 2035: AUD 544.47 million
• CAGR from 2026 to 2035: 22.50%
• Fastest-Growing Regional Market: Australian Capital Territory

Both the increase in asymmetric threats and the growth in drone misuse are driving the demand to acquire advanced counter-UAS solutions in both defence and critical infrastructure markets. At the same time, sensor fusion, AI-related threat detection, and integrated software platforms are evolving into technological innovation, which allows neutralising unauthorised drones faster and more efficiently. These drivers are driving the vendors to produce solutions, which are versatile and scalable and adoptable by the military, government, and commercial stakeholders who want a reliable airspace security.

With growing UAS threats, Australian defence and security agencies are prioritising locally-made counter-UAS systems, enabling rapid upgrades and production to meet surge demands. Expanding R&D in RF detection, electronic warfare, and integrated sensors will boost production capacity, reduce reliance on international suppliers, strengthen national resilience, and position Australian firms competitively for long-term defence programs and allied demand. For instance, in October 2025, DroneShield claimed it would invest AUD 13 million to create a counter-drone research and development centre in Adelaide specialising in RF and EW systems. In a comparable move, in July 2025, DroneShield announced a significant increase in its Sydney research and development and manufacturing footprint with a new 3,000 m 2 production facility to increase output.

Recent Developments

November 2025 - SCG and WhiteFox Partner to Strengthen Australia’s Counter-Drone Capability

Sovereign Capability Group (SCG) partnered with WhiteFox Defence Technologies to advance Australia’s sovereign counter-drone capability. The collaboration integrated WhiteFox’s soft-kill C-UAS solutions with SCG’s local sustainment and workforce expertise, enabling modular, deployable, and fixed-site airspace protection. This partnership strengthened national security, enhanced operational readiness, and supported the Indo-Pacific market’s growing demand for locally sustained, advanced anti-drone systems.

August 2025 - EOS Secures High-Energy Laser Counter-Drone Contract

Australia’s Electro Optic Systems (EOS) announced a EUR 71.4 million order for its 100 kW high-energy laser counter-drone system, marking its first export of this class. The mobile, truck-mounted solution enhances rapid drone swarm neutralisation while supporting multi-layered airspace security. Production and integration strengthen the C-UAS supply chain, fostering technological innovation and boosting market demand in Australia and allied defence sectors.

March 2025 - MESMER Counter-Drone Technology Launched in Queensland

Queensland-based EPE, in partnership with U.S. firm Department 13, launched the MESMER counter-drone system in Brisbane. Unlike traditional jamming systems, MESMER redirected, landed, or took control of rogue drones while remaining low-power and compliant with Australian regulations. The launch strengthened local C-UAS capabilities, supporting defence and critical infrastructure protection, and contributed to the growth of Australia’s anti-drone market.

September 2024 - Anduril Australia Showcased Roadrunner Anti-Drone System

Anduril Australia demonstrated its Roadrunner counter-drone UAS at Land Forces 2024 in Queensland. The system, capable of reusable intercepts via its Lattice OS command and control, offered cost-efficient air defence against drones and manned aircraft. Its deployment strengthened autonomous counter-UAS capabilities, supporting local defence readiness and contributing to growth in Australia’s anti-drone market by expanding operational options.

Key Drivers and Trends

Product Innovation Enhancing Detection and Tracking Capabilities

Continued product innovation is one of the primary growth engines in the market of Australia anti-drone, as the vendors are constantly developing the level of detection, tracking, and multi-sensors to overcome the changing threats of the unmanned. State-of-the-art counter-UAS systems combining RF-, optical-, and radar-data allow defence and infrastructure users to assemble multi-layered airspace protection systems. Such innovations encourage more widespread use both in military and civilian settings as the stakeholders seek high performance situational awareness. Following this direction, in March 2025, DroneShield will release a major update to its DroneSentry counter-drone system at Avalon 2025 to enhance the multi-sensor detection and tracking capabilities of users of defence and critical infrastructure.

Rising Adoption by Civilian Security and Law Enforcement Agencies

The Australia anti-drone market is growing with counter-UAS technologies gaining inroads outside the defence field in civilian security and law enforcement. The operators of airports, public spaces and other critical infrastructures are also implementing measures to reduce the threat of unauthorized drones in urban space. This increased usage diversifies demand and speeds up volumes of deployment. This multi-sector applicability increases the commercial feasibility of anti-drone systems and prompts further technological development. An example of this change is an Australian law enforcement agency that in May 2025 implemented the counter-drone technology that DroneShield developed in a contract worth more than AUD 1 million and enhanced its protection of assets.

Strategic Manufacturing Partnerships Strengthening Supply Chains

Counter-drone production capacity is essential to scale and sovereign supply chains to counter-drones in Australia are strategic manufacturing relationships. The partnerships among technology innovators and the established manufacturers help to facilitate quicker system integration, greater efficiency in production, and certain delivery schedules to the defence and security customers. Such partnerships also lessen reliance on foreign suppliers and aid in coordinating the potential of the industrial base with the objectives of national security. In November 2025, a definite trend was anticipated when Silentium Defence signed a three-year deal with REDARC Defence and Space to increase manufacturing of its passive radar systems to allow wider access and survivability.

Government Grants Accelerating Commercialisation of New Technologies

Funding initiatives by the government are increasing the commercialisation of next-generation counter-drone technology in Australia, especially with the emerging technology companies. Through these grants financial risk is minimized, advanced engineering and scale up are supported, and companies can move more quickly through prototype to deployable solutions. These types of funding play an important role in reinforcing the internal innovation infrastructure and broadening the supplier base. To exemplify this, in August 2025, Visionary Machines was awarded a AUD 4.4 million Industry Growth Program grant to fast-track commercialization of its Pandion Sentinel counter-drone sensing technology which will provide it with enhanced situational awareness and tracking capabilities.

Integration Into Major Defence Procurement Programs

Partnerships in major defence procurements create institutional backing and long-term demand prospects of Australian anti-drone technologies. Choosing as part of larger acquisition systems guarantees stable revenue streams and fixes local solutions as part of sovereign security systems. Interoperability is also promoted by taking part in such programs, and new investment is attracted in domestic capabilities. In keeping with this, in January 2026, the M8 passive radar system made by Silentium Defence was contracted as one of the elements of the LAND 156 counter-drone program in Australia, which assists in modernising the detection and airspace awareness system of the Australian Defence Force.

Australia Anti-Drone Market Share

By components, hardware witness the highest demand for real-time detection

The Australia anti-drone market is fuelled by the hardware segment, which necessitates constant demand of radars, RF detectors, electro-optical sensors, infrared and video tracking surveillance systems, and jammers that will help detect and neutralise drones in real-time. Multi-layered suites of hardware have been prioritised by defence and critical infrastructures operators to deal with low-altitude and small-drone attacks. Compact and high-precision sensors are being developed by market players, including DroneShield, EOS, and Echodyne. To support this momentum, Leidos Australia, with its partners, verified integrated counter-drone hardware such as MESA radars and effectors in an ADF live-fire exercise, which supports the procurement interest.

The software segment of the Australia Anti-Drone Market is witnessing robust growth, driven by the rising need for advanced command, control, and situational awareness solutions capable of integrating multi-layered drone detection and mitigation systems. In October 2025, MyDefence’s Situational Awareness System and Custom Drone Library were selected under Australia’s LAND 156 Counter-Drone Program, demonstrating the demand for mission-ready, adaptable software that enables real-time threat detection, intelligence analysis, and seamless integration with wearable, vehicle-mounted, and ground-based counter-UAS systems.

By type, ground-based type is picking up traction driven by critical infrastructure protection needs

The increase in threats of critical infrastructure is hastening the need of ground-based anti-drone solutions that offer persistent, wide-area coverage and expedited reaction. The increase in the preference of fixed installations by airports, utilities, and government facilities has been to enable real time situational awareness to be integrated with the existing security architecture. DroneShield also introduced SentryCiv to the civilian infrastructure in August 2025, emphasizing how scalable, site-based solutions are now key to the protection of high-value assets and leading to growth in the ground-based market.

Counter-UAS systems in handheld format are currently becoming more popular as organisations are eager to mitigate drone threats quickly and effectively in a mobile, on-the-fly format without the expense and installation of permanent systems. Detection, identification and disruption capabilities of portable units are becoming more popular among security forces, law enforcement and infrastructure operators. Product innovation and launches help to support this demand, such as in August 2025, NovoQuad Group introduced the ND-BD005 high-end anti-drone system in the hand, which provides a multi-band detection and directional control to respond flexibly to threats. Growth motives in this sector include better RF and enhanced portability.

By end-use, military and defence category shows robust growth driven by rising counter-drone investments

The military and defence category is motivated by the swift weaponisation of small drones and the increasing use of such drones in surveillance, targeting and low-cost assaults that are forcing armed forces to augment counter-UAS shields around operations and bases. The new teachings are increasingly requiring stacked systems which combine radar, RF detection, and soft and hard kill options. Australia speeded up its Land 156 counter-drone program in January 2026 and revised its rules to enable rapid drones neutralisation, one example of how policy support and rigorous procurement are driving entry in this area.

Anti-drone technologies are widely used by government agencies to protect the space of the population, the most important infrastructure facilities, and national events, weighing the rights of citizens against their aircraft security. These apps need credible detection, identification and disruption capacities which can be incorporated into criminal justice and emergency response systems. Such companies like DroneShield Ltd, Dedrone, and Rohde and Schwarz are developing software and hardware packages that aid round-the-clock surveillance and quick reaction. As an example of the continued adoption of the counter-drone solutions, an Australian police agency commissioned DroneShield counter-drones worth more than AUD 1 million in May 2025 to increase the security of civic infrastructure.

Australia Anti-Drone Market Regional Analysis

By region, South Australia records notable growth driven by defense and critical infrastructure security

South Australia is experiencing a rise in the adoption of counter-drone systems as defence ranges, ports and energy properties adopt an airspace security focus and incident preparedness. The combination of military testing zones with essential infrastructure of the state provides a consistent demand in detection and identification and mitigation solutions based on the command-and-control networks. Plans for counter-UAS Electro Optic Systems (EOS) publicly unveiled its built-in counter-small drone capability in the Cultana training area in December 2025, and its announcement underscored the rising level of investment in counter-UAS operations by the state and its support for its continued development in South Australia.

The market of the New South Wales anti-drone is steadily growing, as it is being fuelled by the growing usage of advanced drone solutions in the protection of critical infrastructure and emergency response. Utilizing handheld systems, ground-based systems, and UAV-mounted systems are the methods to which public safety agencies and utility operators are spending to identify, prevent, and eliminate unauthorized drones. In July 2023, Vocus and the NSW Telco Authority demonstrated a tethered mobile tower drone at the Bimbimbie Rural Fire Service base, which offers 4G/5G connection over 28 sq km in case of an emergency. These efforts underline the emphasis of NSW to incorporate the latest drone technologies and enhance the scope of surveillance in the region and enhance demand in all the anti-drone sectors.

Competitive Landscape

The market players in the anti-drone market segment in Australia are striving to ensure that they are establishing their positions by investing more in high-level research, integrating, and mass production. Companies are giving top priority to modular and upgradeable counter-UAS systems that include RF detection, passive radar, electro-optical sensors, and command software. By doing so, the vendors will be able to promptly make systems react to evolving threat profiles and also respond to the requirements of defence, law enforcement, and critical infrastructure operators.

At the same time, the large players are still pursuing strategic partnership, commercially facilitated government funded commercialisation, and participation in long term defence acquisition projects to ensure further growth. Collaboration with local manufacturing and technology is making the supply chain and delivery times more resilient, and the correspondence to the sovereign defence priorities is making credibility and future perspective of the demand higher. All these are accelerating the process of innovation, enhancing regions of implementation and asserting the Australian presence in the international counter-drone ecosystem.

DroneShield LLC

Droneshield LLC is a counter-UAS technology manufacturer that was established in 2014 and concentrates on radiofrequency sensory technology, electronic warfare, and combined anti-drone solutions. It is a defence company based in Virginia, United States.

Dedrone

One of the leading airspace security companies named as Dedrone was established in the year 2014, and its mission was to identify, monitor, and neutralize drones through counter-UAS software-based mitigation countermeasures. Its headquarters is located in California, the United States and the company supplies security of military, civilian and critical infrastructure operators in different locations.

Thales Group

Thales Group is a multinational defence and aerospace corporation that was founded in 1893, and has a history of presence in defence electronics, defence sensors, and security systems. Thales is a company in Paris, France that provides counter-drone and air defence solutions to armed forces and governments all over the world.

DroneShield Ltd

DroneShield Ltd is a counter-drone technology firm based in Australia and was founded in 2014 which operates within the field of RF detection, electronic warfare and integrated C-UAS solutions. The company is based in Sydney, Australia and is involved in the sovereign defence support and international defence customers.

Other player in the market includes Electro Optic Systems, SDS Group, Department 13 Pty Ltd, and Rohde & Schwarz, among others.

Key Highlights of the Australia Anti-Drone Market Report

• Detailed analysis of historical market performance along with accurate forecasts through 2035, providing the user with a clear understanding of the growth tendencies and demand changes in the long term.
• In-depth information on current product developments, such as the development of RF detection, electronic warfare, passive radar, and counter-UAS integrated platforms.
• Competitive profiling of the major domestic and international anti-drone solution providers in terms of their strategic positioning and technology orientation.
• Geographical market review of the new demand centers in the three areas: defence, critical infrastructure, and civilian security usage.
• The supply and demand of the market would be optimized through: the outlook of the market, investment-focused supported with quantitative data, growth indicators, along with the opportunity assessment to make informed decisions.

Why Choose Expert Market Research?

• Reliable market information with the help of broad primary research and verification of industry experts.
• Decision-ready and actionable intelligence that is set to help develop strategies, plans of entry and expansion.
• Granular region-specific and product-level analysis allowing the opportunity to accurately assess in relation to technologies and end-user segments.

Call to Action

Explore the latest trends shaping the Australia Anti-Drone Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Australia anti-drone market trends 2026.