The Sky's the Limit: High-Growth Defense Firms Leading the Drone Detection Revolution in Airport Security

The global aviation sector is undergoing a seismic shift in security priorities as unauthorized drone activity near airports surges. According to a GlobeNewswire report, incidents of drone-related disruptions at major airports increased by 300% between 2022 and 2025. This crisis has accelerated investment in counter-drone technologies, creating a $2.32 billion market projected to grow at a 28.7% CAGR through 2029, according to industry research. For investors, this presents a golden opportunity to capitalize on defense and cybersecurity firms pioneering innovations in drone detection and neutralization.

Market Drivers: AI, Regulation, and Strategic Alliances

The core growth drivers for this sector are technological advancements and regulatory tailwinds. AI-powered sensor fusion systems, which integrate radar, RF, and electro-optical data, now enable real-time threat identification with 99.8% accuracy, as noted in a Substack report. Governments are amplifying demand through mandates: the U.S. Federal Aviation Administration (FAA) now requires airports to deploy certified counter-drone systems by 2026, per an FAA press release. Meanwhile, firms are forming strategic partnerships to tailor solutions. For example, Lockheed Martin's collaboration with airport authorities to integrate its Sanctum system with existing air traffic control infrastructure has secured contracts worth $26.3 million, according to a Lockheed announcement.

Leading the Charge: Defense Giants and Disruptive Startups

Lockheed Martin (LMT) and RTX (Raytheon Technologies) dominate the market with their scalable, military-grade solutions. Lockheed's February 2025 unveiling of a modular counter-UAS system-capable of neutralizing drone swarms using AI-driven targeting-has positioned it as a leader in airport-specific applications; the Substack report likewise documents RTX Coyote system contracts from 2024–2025. RTX's Coyote 2C interceptors, with $75 million in 2024 contracts, are now standard equipment for U.S. and UAE airports (see Epirus coverage below).

Emerging players are disrupting the space with niche innovations. Epirus Inc., valued at $1.35 billion post-2022 Series C funding, has secured $43.5 million in 2025 for its second-generation Leonidas HPM systems, per an Epirus press release, which offer cost-effective swarm defense. Similarly, Anduril Industries' Lattice platform, deployed by the U.S. Space Force, is being adapted for airport use, leveraging its AI-driven sensor fusion to reduce false positives.

Fortem Technologies, backed by Lockheed Martin and Hanwha Aerospace, exemplifies the startup surge. Its Dante system, which combines 3D radar with real-time threat remediation, has attracted $17.8 million in Series B funding and is now deployed at three major U.S. airports, according to Northrop reports. Fortem's funding profile and investor list are detailed in its Tracxn profile.

Financial Performance and Contract Wins: A Barometer of Growth

Recent financial data underscores the sector's momentum. Northrop Grumman reported $41.03 billion in 2024 sales, driven by its AN/TPS-80 G/ATOR radar systems for airport surveillance. Despite a $1.6 billion loss on the B-21 Raider program, its 2025 contracts-totaling $156.2 million for electronic warfare and logistics-highlight diversified revenue streams. Coverage of Epirus's financing and funding milestones appears in a Yahoo Finance piece.

Startups are equally compelling. Epirus's $250 million Series D funding in March 2025, led by BlackRock and Fidelity, reflects institutional confidence in its HPM technology, while Fortem, with $69.1 million in total funding and an estimated $10–$100 million annual revenue range, is scaling rapidly, per its IncFact profile. Cost differentials between ground-based and satellite-dependent counter-drone systems are explored in a RAND study.

The Investment Thesis: Why Now?

Three factors make this sector a high-conviction play:
1. Regulatory Catalysts: The FAA's 2026 mandate and EU's 2027 drone registration rules will force airports to adopt certified systems, as tracked in the Eurocontrol report.
2. Technological Leapfrogging: AI and cognitive radar advancements are reducing costs-ground-based systems now cost 40% less than satellite-dependent alternatives.
3. Geopolitical Demand: Tensions in the Middle East and Asia-Pacific have spurred $1.2 billion in 2025 counter-drone spending by governments, per the SIPRI database.

Conclusion: Sky-High Opportunities

The confluence of regulatory pressure, technological innovation, and geopolitical demand has created a perfect storm for defense firms in the drone detection space. While giants like Lockheed Martin and RTX offer stable, contract-driven growth, startups such as Epirus and Fortem provide high-reward potential. For investors, the key is to balance exposure between established players with proven systems and agile innovators poised to disrupt. As airports worldwide brace for an era of persistent drone threats, the companies leading this charge will not only secure the skies but also deliver outsized returns.