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The UAV Market size is forecast to increase by USD 20.40 billion, at a CAGR of 9.96% between 2023 and 2028. The growth rate of the market depends on several factors, such as the increasing defense spending on unmanned technologies, the low-cost alternative to fighter aircrafts and jets, and the emergence of miniaturized EO/IR systems. In recent years, there have been many changes in the way wars are fought because of advancements in technology and new platforms. Many aviation designers are working to improve performance without increasing operational costs. The market is expanding rapidly due to advancements in technology and increasing demand for aerial surveillance and security and reconnaissance. This market research and growth report also includes market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The defense and homeland security segment is estimated to witness significant growth during the forecast period. Rapid innovations in microelectronic components, along with other technological advances in the aerospace domain, have resulted in the development of modern tactical UAVs that have better performance characteristics than their predecessors and can be deployed for critically challenging combat missions. Unmanned aerial vehicles (UAVs) equipped with LiDAR are transforming aerial mapping and surveying by providing high-precision data for terrain analysis, infrastructure monitoring, and environmental studies. In addition, during the last decade, the adoption rate of MALE UAVs has drastically increased as the major operators such as the US Army, have been seeking to optimize the use of such robotic process automation (RPA) for addressing the persistent challenges in the ISR missions.
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The defense and homeland security segment was the largest segment and was valued at USD 13.06 billion in 2018. Moreover, the Predator and the Reaper, both MALEs, made by the US firm General Atomics, are extensively deployed by the US Army on attack missions as they can be armed with various air-to-surface missiles, as well as laser-guided bombs and have a range of over a thousand miles with an endurance of 14 hours. In addition, other emerging countries such as China, India, and Iran are upgrading their UAV arsenal to counter the threat of being outgunned on the aerial front. Furthermore, China's domestically produced UAV completed a 6-day live-fire test with various ammunition covering both extensive bombing and precise targeting. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the type, the market has been segmented into rotary wing, fixed wing, and hybrid. The rotary wing segment will account for the largest share of this segment. A rotor wing segment is a heavier-than-air UAV that flies by harnessing the lift produced by its revolving rotor blades. In addition, a rotor is a number of rotor blades fixed to a single mast. Moreover, static lifting surfaces may also be used in rotorcraft, but the lift produced by one or more rotors is what sets them apart. In addition, rapidly changing security scenarios across borders, along with the increased government funding for the procurement of military equipment, have driven the procurement of UAVs. Furthermore, the applications of UAVs in the military include intelligence, reconnaissance, and surveillance. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 45% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market growth in APAC is fuelled by the expansion of defense capabilities in key countries such as China, India, Japan, and South Korea. In addition, the paradigm shift in favor of unmanned systems reflects the military general tendency to be at par with the most advanced technology available and perceptions of the emergence of asymmetrical warfare. Moreover, the development of home-grown UAVs is likely to increase owing to the rising initiatives for indigenous aerospace platforms, which would significantly boost the market in APAC. Hence, such factors are driving the market growth in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AeroVironment Inc: The company offers UAVs such as Wasp Micro Air Vehicle that has built upon the technology amassed from the earlier DARPA Black Widow MAV program. With a wingspan of 41 cm and a weight of 275 grams.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
BAE Systems Plc, DELAIR SAS, Draganfly Inc., Dynamatic Technologies Ltd., Elbit Systems Ltd., Field Group AS, General Atomics, Israel Aerospace Industries Ltd., Leonardo S.p.A., Lockheed Martin Corp., Northrop Grumman Corp., Parrot Drones SAS, Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., SZ DJI Technology Co. Ltd., Textron Inc., Thales Group, The Boeing Co., and Turkish Aerospace Industries Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Over the last couple of decades, numerous transformations in warfare strategies have been witnessed due to the advent of new technologies and platforms. In addition, powerful nations such as the US, Russia, and China are focusing on the development of sophisticated and powerful weapons that can accelerate the impact of enemy destruction using cost-efficient and reliable sources.
Moreover, UAVs have proven their effectiveness in multiple instances. For instance, drones have been extensively used extensively for counter-terrorism operations, particularly in the Middle East and South Asia. Moreover, the ISIS conflict, the Indo-Pak conflict over Kashmir, Russian military intervention in Ukraine, the Syrian civil war, the Lebanon conflict, and the conflicts between the US and North Korea have increased territorial security threats. Hence, such factors are positively impacting the market. Therefore, it is driving the market growth during the forecast period.
Several designers in the aviation industry are focused on achieving higher performance without an increase in the related operational costs. In addition, since the landing gear and its sub-systems account for 6%-12% of the overall weight of a large UAV, enhanced strength of the frame must not be achieved at the expense of increased weight. Therefore, composite materials are being utilized in the design and manufacturing of landing gears.
Moreover, the use of composite materials, in conjunction with the expanded use of titanium on other major structural components, significantly reduces the weight of the landing gear versus previous-generation steel gears. In addition, the titanium plates fit tightly against the bushing to help mitigate and transfer the heavy loads into the laminate, especially the high-impact loads created on landing a UAV weighing more than 4,000 lbs. Hence, such factors are positively impacting the market. Therefore, it is driving the market growth during the forecast period.
Drones possess a broader operational range than manned aircraft, with several differentiating physical and operational characteristics. Drones are the most common type of UAVs used in various industries, including agriculture, construction, and logistics. In addition, though governments and commercial bodies utilize UAS for a variety of applications, the scope of usage of such systems is dependent on the laws and regulations of the country. Furthermore, the numerous regulations that restrict the scope of operations of drones act as a major threat to the mass adoption of drones.
Moreover, the FAA has levied several regulations that impede the growth of the global market. In addition, the most prevalent of the aforementioned restrictions is the line-of-sight rule, which mandates that drone operators to keep the UAS within their scope of vision during flight. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
In the rapidly growing UAV market, demand for versatile vehicles is soaring, with investments pouring in from various sectors worldwide. UAVs equipped with advanced sensors, navigation software, and hardware are revolutionizing industries like logistics, construction, agriculture, and inspection. These small yet powerful drones offer efficient delivery, precise mapping, and potential in various areas of infrastructure development and cargo transportation. With their vertical take-off and landing (VTOL) capabilities, UAVs are becoming indispensable tools for market players looking to capitalize on the expanding opportunities in the UAV sector.
UAV Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.96% |
Market Growth 2024-2028 |
USD 20.40 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.6 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, Canada, China, Australia, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AeroVironment Inc., BAE Systems Plc, DELAIR SAS, Draganfly Inc., Dynamatic Technologies Ltd., Elbit Systems Ltd., Field Group AS, General Atomics, Israel Aerospace Industries Ltd., Leonardo S.p.A., Lockheed Martin Corp., Northrop Grumman Corp., Parrot Drones SAS, Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., SZ DJI Technology Co. Ltd., Textron Inc., Thales Group, The Boeing Co., and Turkish Aerospace Industries Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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