Unmanned Aerial Vehicle Market

Unmanned Aerial Vehicle (UAV) Market Size & Growth 2022 - 2027:

In 2019, the Unmanned Aerial Vehicle (UAV) Market was at USD 25.9 billion and is estimated to grow at a CAGR of 26.4% to reach USD 133.5 billion by 2026.

Unmanned aerial vehicles (UAVs) are the human-free components, generally called a drone. The autonomous aircraft comprises onboard computers that are controlled by ground-based controllers remotely. The aerodynamic structures are built to perform various functions with the desired navigation system.

Recent Developments:

September 2019 – Israel-based Rafael Advanced Defence System acquired the domestic UAV manufacturer Aeronautics Limited at USD 240 million. This strategy was implemented to achieve a broader range of products and in-house capability, consisting of sensors, mutation, and systems. Besides, the company has a comprehensive distribution network in more than 50 countries.

January 2019 – China-based giant DJI is anticipated to launch three new product models, including Mavic 3, Mavic Air 2, and Matrice 300, in 2020. This strategy will recover and propel the sales of the company in the coming years.

Market Drivers:

The surge in the adoption of military drones by defense forces around the world is one of the most crucial factors supporting the developments in the UAV market. The growing use of drones in various commercial applications, such as monitoring, surveying & mapping, precision agriculture, aerial remote sensing, and product delivery, contributes to the growth of the global UAV market.

UAV) Market Restraints:

The global UAV business can be interrupted because of technological and legal restrictions such as short endurance, bandwidth issues, and the lack of standard laws and regulations that can restrict the usage of such systems in the airspace of certain countries.

UNMANNED AERIAL VEHICLE (UAV) MARKET REPORT COVERAGE:

Market Segmentation:

Unmanned Aerial Vehicle (UAV) Market By Class:

Based on class, the market is segregated into small UAVs, strategic UAVs, tactical UAVs, and special purpose UAVs. The small UAVs segment is estimated to be the fastest-growing market owing to its numerous military and civil applications worldwide. They are widely utilized for security, monitoring, and surveillance. The increasing demand for small military drones for intelligence, surveillance, and reconnaissance (ISR) applications drives the market growth. High utilization of small UAVs for industrial applications such as agriculture, mapping, surveying, and logistics worldwide is also expected to propel their demand in the coming future. Small UAVs segment to proliferate backed by their usage in commercial applications

Unmanned Aerial Vehicle (UAV) Market By Technology:

Depending on the technology, the worldwide market is divided into remotely operated, semi-autonomous, and fully autonomous. The fully autonomous segment is estimated to grow at the highest CAGR during the forecast timeframe. It includes a command delivery system and flight planning system in which the flight route and range are decided before the operation. The UAVs fully control it without an external operator from the ground. These are mission-based high payload UAVs designed for specific functions in various countries such as the U.S., China, Russia, and Israel. The remotely operated segment to add a considerable share owing to applications in aerial mapping & others.

Unmanned Aerial Vehicle (UAV) Market By System:

The global UAV market is segmented into payload, airframe, avionics, propulsion, and software in terms of the system.

The avionics segment is likely to proliferate during the forecast period due to adopting a modern electronics system, path control, and automated flight management system. Several companies focus on improving their navigation system based on the global navigation satellite system (GNSS) to sure flight efficiency. This development will enhance drones' capability for object detection, collision avoidance, and automatic flight control system. This factor is estimated to propel the software system growth in the future years. Avionics segment to observe remarkable CAGR stoked by rising adoption of modern electronic systems.

Unmanned Aerial Vehicle (UAV) Market By Application:

Based on application, the UAV market is categorized into military, commercial, and recreational. The military segment is estimated to hold the largest share during the anticipated timeframe. An increase in the demand for tactical UAVs and strategic UAVs for military application drives the segment growth. Several countries have increased their purchase for particular purpose UAVs such as Medium Altitude Long Endurance (MALE) UAV and High-Altitude Long Endurance (HALE) UAV for various missions. It is likely to propel demand in the coming years. The commercial segment to register higher CAGR fuelled by increasing investments by companies.

Regional Analysis:

Based on the region, the global UAV market is categorized into North America, Europe, Asia Pacific, and the ROW. North America controlled a larger market share in 2019, owing to the growing utilization of drones in infrastructure surveys, aerial mapping, forest monitoring, and other military uses. The U.S. is one of the significant manufacturers of military UAVs by exporting to different countries worldwide. The presence of leading players in the U.S., such as General Atomics, Textron, and Boeing, supports the positive business outlook. 

The European market is predicted to grow at a modest rate because of the growing demand for cameras, software, avionics, and navigation systems for the past few years. The European countries have major technology companies operating like Parrot Drones and Delair, approaching the globe's demand. The Asia Pacific market is supposed to witness significant growth due to the growing market for modern warfare unmanned aerial vehicles for tactical and strategic uses in the coming years. The major importer countries such as India, Pakistan, and China are likely to secure considerable revenue in the forthcoming years. The ROW is set to gain a lower market share due to substantially low demand in South Africa, Saudi Arabia, and Brazil.

Leading Company:

General Atomics is one of the prominent manufacturers in the military UAV markets with its products operational with the U.S. air force. It has demonstrated Afghanistan, Pakistan, Iraq, Yemen, Libya, Iran, and Syria. The company has an extensive product portfolio ranging from UAV platforms, sensor systems, and ground control stations and is one of the most prominent players in the tactical and strategic UAV market. General Atomics is one of the leading contractors of unmanned aerial systems for U.S. armed forces and generates most of its revenue from the U.S. with the sale of its Predator and Sky Guardian drones as prime revenue pockets.

Key Players:

General Atomics (U.S.), Northrop Grumman (U.S.), Textron Inc. (U.S.), and Boeing (U.S.) are some of the significant players operating in the military UAV market. At the same time, SZ DJI (China), Parrot (France), 3D Robotics (U.S.), Aeryon Labs (Canada) are significant players in commercial UAVs.

Impact of COVID-19 on Unmanned Aerial Vehicle (UAV) Market:

UAV manufacturers worldwide struggle to meet production deadlines as the coronavirus continues to impact the Chinese electronic component manufacturing industries. An increasing number of component suppliers worldwide are also experiencing slowdowns or shutdowns in response to the COVID-19, affecting sub-components availability in a snowball effect. Besides, disrupted supply chains due to COVID-19 have slowed UAVs' shipments to major markets across the globe.