Aerostat Systems Market Research Report: by Product Type (Balloon, Airship and Hybrid), Class (Compact-Sized, Mid-Sized and Large-Sized), Payloads (Electro-Optic/Infrared Sensor (EO/IS), Communication Intelligence, Electronic Intelligence, Navigation Systems, Radar and Camera) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and Latin America) - Forecast till 2030

Aerostat Systems Market Overview:

Aerostat Systems Market Size is expected to reach USD 5.41 Billion by 2030, registering a CAGR of 15.09% during 2020-2030.

The three segments of aerostat such as airship, aerostat balloon and hybrid are witnessing exceptional demand from the end-users. This positive market trend of the aerostat market will continue in the forecast period. 

The aerostat is a tethered hot air balloon that is made of a large envelope like fabric. The aerostat surveillance system is used at the low-level airborne ground. The sign of the aerostat depends on the temperature, wind, altitude, and load capacity. The aerostat works through light air gasses such as hydrogen, hot air and helium. They are applicable for both scientific and commercial purposes. Today, the military aerostat uses are surveillance, intelligence and reconnaissance. The aerostat can travel with the drag force.

 However, if the drag force is high, then it uses tethers to control the displacement. Due to the prevalence of airborne mission and activities the aerostat systems are gaining more popularity. Also, the aerostat systems market is witnessing massive demand in recent years. 

Covid-19 Analysis 

The outbreak of covid 19 has caused unexpected losses in the global industries. The supply-demand chain of the aerostat company is affected due to the pandemic. The global shutdown has put a halt to the aerostat production facilities. The air balloons in the commercial sector also suffered a huge loss. Further, the stringent government rules regarding the aerostat company productions have caused even more challenges in the market. The unavailability of raw materials is another major issue in this market. The aerostat testing procedures were delayed. The covid 19 aerostat market trends is a declining figure. However, as the production process is resuming, the aerostat market size is experiencing positive trends. The global aerostat market is recovering and the demand is also increasing every day. 

Market Dynamics 

• The crucial market drivers 

There is a wide range of applications for aerostat systems. The system is used for surveillance, scientific research and information gathering. The aerostat system has plenty of beneficial features. It is durable, high integrity, cost-effective, low maintenance and an eco-friendly airborne system. The versatile uses and exceptional features of the aerostat are fuelling its demand. Further, air balloons are a crucial part of the commercial market. The profitability from the commercial sector was massive.

Today, aerostat technology is used more for the defence sector. The aerial Surveillance and drones are gaining more popularity. The better designs and innovations in the aerostat market drive more demand. The technological advancement in the sector is massive in the forecast period. The market players are involving more in product innovation and development strategies to increase the demand. The versatility and the product enhancements are the two crucial drivers in this market. During the forecast period, the market drivers will intensify their actions. The end-users will prefer the aerostat technology more due to these two market drivers. 

• The market growth opportunities 

The requirement of security is more in the upcoming years. National and residential security is a crucial aspect. In the forecast period, the role of the aerostat system will be high for homeland security. Several governments are increasing their investments in homeland security that ultimately provides growth opportunities for the aerostat market. The aerostat is considered the best airborne technology that comes with exceptional surveillance. It is the most suitable security technology for the homeland. The mounting investments by the US army and from other defence sector are offering tons of development opportunities for the market.

The growth rate of the market is massive due to these aspects. Moreover, the R&D on aerostat systems is rising every year. Governments are ready to invest more in the research part of aerostat. It will cause further development opportunities for the market. The hybrid aerostat system is an emerging trend in this market. Through years of R&D, the long-enduring aerostat system is in the development process. These new developments provide potential growth possibilities for the market. 

• The market restraints 

There few restraints in the market that can hamper the overall growth. The operating cost of aerostat technology is expensive. The aerostat technology travels with the help of helium and hydrogen gas. These gases are thinner than the air. The availability of quality and thinner gases is a sophisticated process. The unavailability of these gasses is causing several restrictions in the global market. The helium gas shortage can affect the aerostat operation in several verticals. Moreover, due to the shortage of helium gas, the cost of it is pricey. It makes the overall operating cost of the aerostat technology expensive. The high operating cost is a serious restraint in this market. The unavailability of gases and high operating cost are the significant restraints in this market. 

• The market challenges 

Few external challenges restrict the overall growth of the aerostat systems market. The aerostat is often affected by harsh weather conditions. The air is the bulk lifting force for the aerostat technology. As the aerostats are in an ellipsoidal state the ambient winds can cause plenty of horizontal displacements. If the drag force or the wind condition is bad, then it can affect the aerostat operation. Using a longer tether is used to control the technology. However, to avoid accidents the aerostat technology is not put into operation during bad weather conditions. As the technology depends on the weather condition the purchasers become hesitant. During complex defence programs, the aerostats technology can be a failure due to bad weather. These are a few of the challenges that have a slight effect on the overall market growth. 

• The cumulative growth analysis 

The aerostat system market is sophisticated. There are both exceptional market drivers and serious challenges in this market. The market growth remains even in the forecast period. However, the market restraints such as high operating cost can cause a slight decline in the overall trend. The market players are working on cost-cutting measures to reduce the overall operating cost. However, the bad weather condition challenges remain external. The market players are innovating advanced aerostats with excellent control and tethers. These measures will constantly fuel the overall market growth. The high investments from the defence sector will continue in this market. All this shows that the aerostat market analysis looks promising. 

• The value chain analysis 

North America holds the world's largest aerostat market. The rising need for border security and homeland security is increasing the demand in this area. Also, America is known for the high purchasing power. The market investments are massive in aerostat technology. The well-established players in the market further increase the overall demand and growth rate.

Moreover, the adoption rate of aerostat in the defence sector is happening at an exponential pace. All these factors contribute to high growth and profitability in this region. Also, there are several advancements in technology such as infrared imaging, advanced optics and wireless communication in aerostat technology. All these aspects create more opportunities for the aerostat market in North America. 

Market Segment 

By product type 

• Hybrid 


• Airship 


• Balloon 

By class 

• Large-sized 


• Medium-sized 


• Compact size 

By payload 

• Camera 


• Infrared sensor 


• Electronic intelligence 


• Navigation system 


• Communication intelligence

By region 

• North America 


• Europe 


• Asia pacific 


• Middle East 


• Africa 


• Latin America 

Regional Analysis 

The aerostat regional market is fragmented into North America, Asia Pacific, the Middle East, Europe, Africa and western America. North America will be the dominant aerostat market. The United States aerostat sACystems market is the main contributor to the overall growth in North America. Europe is the second-largest aerostat systems market. The European aerostat systems market is witnessing massive demand due to governmental investments in aerostats.

The Asia pacific aerostat systems market is the fastest-growing global market. The high requirement for border security is offering more demand for aerostat technology. The technological advancements will offer more growth rate in this region. Further, the Middle East and Africa are emerging markets. These markets will experience a quick growth rate in the forecast period. The tremendous rise in security and surveillance are the crucial drivers for the market in all these regions. 

The key players of the aerostat system market are 

• TCOM LP (US)


• Aero Drum Ltd (UK)


• RT LTA Systems Ltd (Israel)


• Augur RosAeroSystems (Russia)


• Raytheon Company (US)


• DRONE Aviation Corp (US)


• Raven Industries Inc. (US)


• ILC Dover, LP (US)


• Lindstrand Technologies Ltd (US)

Recent Developments 

• The key players of the aerostat market are launching hybrid technology in several regions. The hybrid technology proves to be high-end system surveillance and security for the defence sector. 


• The key players of the market are acquiring several partnerships’ deals in many regions. Market expansion is a key strategy of the key players. During the forecast year, the aerostat systems market will expand its market massively. 

Report OAverview 

• Market overview highlights 


• Analysis based upon COVID 19


• Explanation upon the Market Dynamics


• Value chain analysis


• Market segmentation overview


• The regional analysis


• Competitive landscape analysis


• Recent Developments