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The global Unmanned Aerial Vehicle (UAV) market size was valued at USD 27.43 billion in 2022 and is projected to grow from USD 31.70 billion in 2023 to USD 91.23 billion by 2030, exhibiting a CAGR of 16.3% during the forecast period. North America dominated the UAV market with a market share of 34.89% in 2022. Moreover, the UAV market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 8,997.3 million by 2030, driven by the homeland security and commercial activities in the Country
WE ARE IN THE PROCESS OF REVAMPING Unmanned Aerial Vehicle (UAV) Market WITH RESPECT TO RUSSIA-UKRAINE CONFLICT
Request SampleThe important parts of the UAV, commonly known as a drone, are the onboard computers controlled remotely by ground-based controllers. UAVs have aerodynamic structures designed to carry out several functions with the appropriate navigation system. The technology was first introduced for dangerous military missions without risk to human life in various military applications. Military UAVs are equipped with a missile to hit specific targets that are operated at high altitudes. Military-operated UAVs have modified propulsion systems that use liquid hydrogen fuel for long-range operations against enemy troops.
Consumer drones are mainly used in cinematography, surveys, and aerial mapping. However, the use of consumer drones has rapidly grown in numerous applications, such as business, science, recreation, and other services. Giant companies such as Google, Amazon, DHL, Uber, Boeing, and Airbus have invested in research and development in this technology for the past few years due to lucrative opportunities in this market.
Rising Use of UAVs during Russia-Ukraine War Drives Market Growth
The Russia-Ukraine war started in early 2022 and has been ongoing for over a year. The war has observed extensive military investments from both sides and is heavily sided toward electronic equipment rather than pure gun firepower. This electronic nature of the war has seen a growing deployment of drones and UAVs on the battlefield. UAVs provide enhanced situational awareness owing to their Intelligence, Surveillance, and Reconnaissance (ISR) capability and communication. Both countries involved have been increasing their usage of drones to increase their offense while guaranteeing the safety of their personnel.
The demand for drones has also been created outside Europe. The influx of military supplies to Ukraine from N.A.T.O. nations, such as the U.S. and U.K., have also increased the production of drones in these areas. In the Middle East, Iran and Turkey have been providing drones used in day-to-day activities on the battlefield.
For instance, in March 2023, a third-party data provider released official Russian customs data, which indicated that the Chinese government had supplied drones worth more than USD 12 million to Russia since the start of the war. The shipments contained a mix of DJI drones and an array of products from smaller companies.
Such an increased supply of drones has also boosted the research and development of the technology. Drones and UAVs, which were earlier expensive and sophisticated to manufacture, are now being produced in masses. The war has solidified the need for simple, efficient, cost-effective drones that can be manufactured rapidly to replenish depleting stocks.
Increased Unmanned Aerial Vehicle Demand during Pandemic Boosted Market Growth
The COVID-19 pandemic outbreak in 2020 negatively impacted market growth. Despite social distancing norms and other restrictions in effect, this industry managed to stay afloat during the pandemic. With the travel bans in effect, autonomous UAVs, or drones, were used for door-to-door delivery of essential supplies, such as groceries, medicines, and others. Many countries, such as the U.S., the U.K., Singapore, China, Ghana, Chile, and others, used drones to deliver such items. Many Unmanned Aerial Vehicle and drone operators capitalized the opportunity and expanded into newer regions.
The market's biggest impact during COVID-19 was on the healthcare industry. With travel bans and social distancing in effect, drones proved useful in delivering medical supplies while avoiding human interaction and adhering to the norms. The period witnessed many upgrades to the existing drone technology, such as improved payload capacity, faster speed, longer battery life, better stabilization, and many others. Drones could collect test samples from homes, deliver vaccines and other supplies, identify potential areas with a high risk of disease transmission, and perform various other tasks.
Rising Development of Drone-in-a-Box (DiaB) Technology to Propel Market Growth
The drone-in-a-box (DiaB) technology includes a drone capable of flying and returning from a point and starting self-charging upon return from the mission. This development has many use cases in several industries, as it minimizes the need for human intervention. The technology has found applications in industries such as telecom, maritime, space, and others. In the telecom industry, drone-in-a-box technology can provide a faster and more efficient communication network.
Furthermore, this technology can be used in sectors such as agriculture. Drones fitted with various sensors and cameras can monitor crop health and manage crop growth. In the military sector, these drones allow offense on the battlefield. At the same time, personnel oversee the operation from safety. DiaB can also be used in the construction and mining sector, with drones being able to carry out Beyond Visual Line-of-Sight (BVLOS) operations. Such drones can also be used to inspect mining sites, solar fields, power, oil, gas, and others.
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Growing Procurement of Drones in the Military Sector to Boost Market Growth
Military warfare today is shifting from the conventional notion that better firepower provides an edge on the battlefield to which side has the better Intelligence, Surveillance, and Reconnaissance (ISR) capabilities. This phase of electronic warfare has created a huge demand for using UAVs in the military sector.
UAVs do not need a crew onboard for flight and can be autonomous or remotely controlled by human personnel from a safe distance. Aside from ISR, UAVs are also employed for offenses. UAVs as big as small aircraft can carry missiles into the battlefield, while autonomous UAVs, also called drones, can be the size of a bird's wingspan and are used for kamikaze warfare. Such capabilities make drones a must-have for any military, allowing for major push-back to the enemy from the safety of the ground stations.
The ongoing Russia-Ukraine war has projected the capability and reliability of UAVs to the world. Both sides have been stockpiling drones, hoping to get an advantage on the ground over the enemy. Ukraine has primarily been outsourcing drones from the U.S. and Turkey. The Turkish Bayraktar B2 drone has been extensively used in Ukraine’s counter-offensives, while U.S.-provided kamikaze drones have proved capable of flushing out soldiers from dangerous areas.
On the other hand, Russia has started importing kamikaze drones from Iran, adding them to its arsenal of indigenous drones. Both nations have also used commercial drones like the Chinese-made DJI Mavic drones. Such extensive use of drones has created demand in Europe, North America, and Asia Pacific. The increasing complexity of electronic warfare also favors the advancements in Unmanned Aerial Vehicle technology.
Growing Demand for UAVs to Support Commercial Applications to Drive Market Growth
UAVs and drones are rapidly being deployed in commercial applications. Many organizations see drones as an economical and more efficient mode for product delivery. Drones avoid traffic on the road and thus provide faster delivery. Drone flying is gaining popularity as a leisure activity in many countries.
Drones with high-quality cameras and axis stabilization are used in the film-making and videography industries. These allow for aerial shots, which would not have been possible, with great ease and accuracy. Drones can also be used in the healthcare industry for delivering medicines, carrying test samples, and many other activities. Many countries have started implementing drones in the healthcare industry.
Furthermore, UAVs can be used for remote sensing and Earth observation operations. UAVs can be built to fly at high altitudes and, when equipped with sensors, can provide climatic and other information about a large area. They can provide insights about undiscovered areas, including potential stores for new ores and mines. They can even be used for site inspections in many industries such as oil, energy, solar, and others. UAVs and drones can also be used in agriculture to manage crop growth and monitor crop health.
Stringent Government Rules and Regulations for UAVs are Anticipated to Hamper Market Growth
The usage of UAVs and drones differ in different nations. Each region has its policy on the commercial and military applications of UAVs. Unregulated usage of these poses a risk to national security. Countries have applied regulations to the weight of the UAV, the height up to which it can fly, the regions where Unmanned Aerial Vehicle or drone flight is allowed, and many more.
Manufacturers also need to make their products according to these regulations and adhere to different guidelines laid for the production of drones. This development limits the number of UAVs eligible for commercial usage. UAV must remain in the Visual Line-of-Sight (VLOS) of the operator, and the operator needs to have a license in many countries to fly the product.
Growing geopolitical tensions worldwide also add to the deceleration of market growth. Most UAVs and drones used commercially are fitted with cameras, making them vulnerable to cyber-attacks. These features also raise the suspicion of snooping through the network, which further poses a risk to national security. Following these reasons, many countries have started restricting products from a specific manufacturer to a country slowing down market growth.
Increased Demand for Tactical UAVs (MALE & HALE) for Defense and Law Enforcement Applications to Aid Market Growth
By UAV class, the market is segmented into micro UAVs (below 2 Kg), mini UAVs (2-20 Kg), small UAVs (20-50 Kg), and tactical UAVs (MALE & HALE). The tactical UAVs (Medium Altitude Long Endurance (MALE) and High Altitude Long Endurance (HALE)) segment is expected to be the fastest growing segment during the forecast period. Tactical UAVs provide real-time data and visuals outside the enemy’s front lines without compromising soldier life. In tactical UAVs, Live Electro-Optical and Infrared (LEO/IR) videos are used. Growing demand for tactical UAVs by major countries, such as China, India, Japan, and Australia will boost market growth.
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Remotely Operated Segment Dominates due to Increased Popularity of Drone Technology in Several Applications
By operational mode, the market is classified into fully autonomous, semi-autonomous, and remotely-operated. The remotely operated segment dominated the market in 2022. A UAV does not have a crew or passengers on board. UAVs can be automated ‘drones’ or Remotely Piloted Vehicles (RPVs). UAVs can fly for extended flight time at low altitudes. The demand for remotely operated UAVs has increased in many countries in recent years due to the growing popularity of drone technology and its various applications.
Fully autonomous segment is anticipated to be the fastest-growing segment in 2023-2030. It includes the Command Delivery System (CDS) and the Flight Planning System (FPS), where the flight path and radius are determined before the operation. The Unmanned Aerial Vehicle has complete control without any external guidance from the operator on the ground. Mission Based High Payload UAVs (MBHPPs) are UAVs that are specially designed for specific missions in the U.S., China, Russia, and Israel.
Individual Autonomous Segment Leads Owing to High Demand for Individual Autonomous System
The fully autonomous segment is classified into individual autonomous system and Drone-in-a-Box (DiaB). The individual autonomous system segment dominated the market in 2022. The system is controlled by software and requires a complete system to operate. Due to the self-ability of performing tasks and missions, the demand for individual autonomous systems is high.
Drone-in-a-Box (DiaB) will have the fastest growth during the forecast period. The drone-in-a-box supports the operation of a facility by capturing aerial images and providing real-time information to users. Designed tasks can help detect human/vehicle activity, alert facility users to gas/water leaks, and monitor other maintenance issues.
Aerostructures & Mechanism Propels due to Technological Advancements
The solutions segment is classified into aerostructures & mechanisms, securing system, operating software, tethering cord, power sources & management system, and others. Aerostructures & mechanism held the maximum share in 2022. Companies with high technical skills are expected to make significant technological advancements in the aerostructures & mechanisms of UAVs, leading to a good development cycle and significantly improving the performance of UAVs.
Securing system will be the fastest-growing segment during the forecast period. Since a UAV’s payload, range, and endurance are at the top of OEMs’ and operators’ to-do lists, the advent of cyber-attack on UAVs is expected to change the competitive landscape significantly. To cater to this problem, securing systems plays a vital role so that their demand will be high during the forecasted period.
Combat and Combat Support Missions Segment Leads due to UAVs Ability to Perform Tasks Smoothly at Hardpoints
By application, the market is classified into perimeter security & border management, combat and combat support missions, situational awareness, disaster management & first responders, surveying, mapping, & monitoring, precision agricultural management, power station management, asset & operations management, emergency medical logistics, and others. Combat and combat support missions segment dominated in 2022. These UAVs carry aircraft ordnance (missiles, antitank guided missiles (ATGMs), or bombs) at hardpoints to carry out drone strikes. Combat UAVs are typically operated in real-time under human control and have varying degrees of autonomy.
Emergency medical logistics is estimated to be the fastest-growing segment during the forecast period. It is the most promising service in drone services, where a quick response is essential to improve patient care. Medical drones became increasingly popular around the world during the pandemic. Drones were used to deliver PPE (personal protective equipment), COVID-19 tests (SARS CoV-2), laboratory specimens, and vaccines, where direct human-to-human contact was discouraged for infection control purposes.
Government & Defense Segment Dominates Owing to Several Applications of Drones in Military Sector Dominates
By end-user, the market is classified into government & defense, energy, power, oil & gas, construction & mining, agriculture, forestry & wild life conservation, public infrastructure & homeland security, hospitals & emergency medical services, transportation & logistics, event management, and others.
The government & defense segment dominated the market in 2022. Military UAVs will continue to be in high demand due to the increasing use of UAVs by the defense and security community for various purposes, including survey, mapping, transport, combat, and monitoring.
Hospitals & emergency medical services segment is expected to be the fastest growing segment during the forecast period. The pandemic also prompted governments and OEMs to adopt UAVs for medical applications and emergencies, which has derived market growth. Hence, many countries started experimenting and testing the efficiency of UAVs.
North America Unmanned Aerial Vehicle (UAV) Market Size, 2019-2030 (USD Billion)
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This market is segmented into North America (NA), Europe (EU), Asia Pacific (APAC), the Middle East (ME), Africa, and Latin America (LA). North America dominated the market in 2022, followed by Asia Pacific and Europe. North America is expected to hold the largest Unmanned Aerial Vehicle market share as most UAV developers are based in the region. This growth is attributed to an increase in the Airforce defense budget, which has increased the demand for fixed-wing UAVs in the U.S. In addition, increasing Canadian exports and economic development are expected to drive market growth.
Asia Pacific is anticipated to be the fastest-growing region during the projection period, according to market forecast. This growth is attributed to the high adoption rate of heavy-duty UAVs in China's commercial and defense sectors, including combat, cargo, and other applications. Increased UAV activity in India is expected to boost market growth.
European market is highly segmented, with several players dominating the market. Some leading European market players are Azure Drones SAS, Parrot Drones, Terra Drone, Onyx Scan advanced LiDAR Systems, and AltiGator unmanned Solutions. Drone manufacturers invest heavily in improving technology and new features to support commercial applications.
The market in the Middle East is highly fragmented, with players such as SZ DJI Technology Company Co. Ltd, Parrot SA, AeroVironment Inc., BlueBird Aero Systems Ltd., and Terra Drone Corporation. The collaboration between the manufacturers and the UAV solutions companies mainly drives the technology development of the market. To increase their revenue, the UAV service providers are adapting their solution portfolio (Technological Advanced UAVs) to meet the specific needs of the end-users in the region, including construction, infrastructure management, and security and surveillance.
In Africa, UAVs are increasingly used and deployed in different regions for applications, such as post-delivery and agriculture. Agriculture in Africa has the highest demand for soil scanning UAVs for monitoring nitrogen content, electrical conductivity, crop monitoring, spraying pesticides, pests, weeds, disease detection, and fish population monitoring.
Latin America holds a small UAV market, however the region has significant growth potential. The U.S. is influencing the military procurement of countries, such as Colombia and Mexico through many bilateral initiatives, including Plan Colombia and the Merida Initiative. These initiatives will attract more contracts to the U.S.-based companies in Latin America over the coming years. Local manufacturers can compete with major foreign players by modernizing their products with cutting-edge technologies, thus increasing their regional presence.
Development of Advance Technology by Key Market Players to Propel Market Growth
The market growth is highly fragmented due to the presence of numerous manufacturing companies. The key market leaders have a robust product portfolio and extensive distribution networks in developed and developing countries. Currently, the leading players in the market are DJI (China), Parrot (Switzerland), and Yuneec (China). These companies accounted for a majority of the global market share in 2022. However, due to the absence of stringent entry barriers, the number of domestic players in the global market is expected to grow. The other key players include AeroVironment (U.S.), Autel Robotics (U.S.), and Boeing Company (U.S.). Some key strategies adopted by the players are introducing innovative product ranges, wide variety and size acquisition, collaboration, and partnerships.
An Infographic Representation of Unmanned Aerial Vehicle (UAV) Market
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The market research report gives an in-depth analysis of this market by identifying the leading companies, product types, and the leading applications in the market. The report also provides market trends and key developments in this industry. In addition to the abovementioned factors, the report includes several factors that contributed to the advanced market growth in recent years.
ATTRIBUTE | DETAILS |
Study Period | 2019-2030 |
Base Year | 2022 |
Forecast Period | 2023-2030 |
Historical Period | 2019-2021 |
Growth Rate | CAGR of 16.3% from 2023-2030 |
Unit | Value (USD billion) |
Segmentation
| By UAV Class
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By Operational Mode
| |
By Fully Autonomous
| |
By Solutions
| |
By Application
| |
By End-User
| |
By Region
|
Fortune Business Insights says the market value stood at USD 27.43 billion in 2022 and is estimated to reach USD 91.23 billion by 2030.
The market will grow steadily at a CAGR of 16.3% during the projection period (2023-2030).
The small UAVs (20-50 Kg) segment is estimated to be the leading segment in this market during the forecast period.
SZ DJI Technology Co. Ltd., Elbit Systems Ltd., General Atomics Aeronautical Systems, and AeroVironment Inc. are some of the leading OEMs in the market.
North America is projected to be the largest shareholder in the market.
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