UAV Payload and Subsystems Market Research Report- Global Forecast to 2032

UAV Payload and Subsystems Market Research Report Information By Payload (C4I, Radar, Electronic Warfare (EW), Electro-optic and Infrared Sensor (EO/IR), and Sonar), By Type (MALE UAVs, HALE UAVs, Man-portable UAVs and Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032.

ID: MRFR/A&D/0729-CR | 110 Pages | Author: Swapnil Palwe | March 2018         

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Global UAV Payload and Subsystems Market Overview


UAV Payload and Subsystems Market Size was valued at USD 5.2 billion in 2022. The UAV payload and subsystems market is projected to grow from USD 5.590 Billion in 2023 to USD 9.977 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.51% during the forecast period (2023 - 2032). The rising demand from businesses looking to incorporate the advantages of UAVs into industrial processes and the increase in the use of unmanned aerial vehicles, or drones, in the civilian market are the key market drivers enhancing the market growth.


UAV Payload and Subsystems Market Overview


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


UAV Payload and Subsystems Market Trends


An increase in unmanned aerial vehicles, or drones, is driving the market growth.


Despite holding the largest market share in 2021, the radar and communications segment, the sensor segment is anticipated to grow significantly over the next five years. The use of unmanned aerial vehicles, or drones, in the civilian market is expanding significantly. Incorporating powerful processors, power-efficient sensors, and electronic devices on UAV platforms is to blame for this development. Unmanned vehicles are becoming more prevalent in the air, on land, and at sea, and they represent a vast universe of sensors and sensor processing that could offer some of the most in-depth intelligence data on military forces. The main enabling technologies for this new generation of connected unmanned vehicle sensor payloads include electro-optical sensors like infrared sensors, visible-light cameras, multispectral and hyperspectral sensors. Businesses are developing a new generation of technologically sophisticated sensors. For instance, Wilsonville, Oregon-based FLIR Systems is a well-known business that manufactures electro-optical unmanned vehicle sensor payloads. For platforms with limited weight, power, and footprint, such as unmanned aerial vehicles (UAVs), FLIR has unveiled the UltraForce275-HD compact multi-sensor gyro-stabilized surveillance system. The gimbal carries less than 33 pounds. The Epsilon 175 small gyro-stabilized electro-optical four-sensor payload for UAVs is available from Octopus ISR Systems in Riga, Latvia, for military, law enforcement, and civilian applications.


UAVs are incorporating more and more sensors, ensuring flight safety and automatic navigation to carry out measurements following mission objectives. Due to the rising demand from businesses looking to incorporate the advantages of UAVs into industrial processes, there is a growing need for new applications and functionalities for UAV systems. This has prompted several businesses to produce cutting-edge onboard UAV sensors and devices.


Various new and different types of sensors, such as external IMu sensors, external GPS sensors, air quality sensors, fuel level sensors, temperature sensors, and rain sensors, are increasingly being designed by companies to meet the requirement of modern customers. Therefore, the market will experience growth during the forecast period due to developments in advanced sensors. Thus, driving the UAV payload and subsystems market revenue.


UAV Payload and Subsystems Market Segment Insights


UAV Payload and Subsystems Payload Insights


The UAV payload and subsystems market segmentation based on payload includes C4I, radar, electronic warfare (EW), electro-optic and infrared sensors (EO/IR), and sonar. The radar segment dominated the market. Due to increased awareness of the various advantages and benefits of the radar, this segment is expected to grow significantly in the UAV Payload and Subsystems Market Outlook.


UAV Payload and Subsystems Type Insights


Based on type, the UAV payload and subsystems market segmentation includes MALE UAVs, HALE UAVs, man-portable UAVs, and others. The MALE UAVs generated the most income. Even with high traction, the MALE UAVs segment. These industries improve the outlook for the UAV Payload and Subsystems market.


Figure 1: UAV Payload and Subsystems Market, by Type, 2022 & 2032 (USD billion)


UAV Payload and Subsystems Market, by Type, 2022 & 2032 (USD billion)


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


UAV Payload and Subsystems Regional Insights


By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American UAV payload and subsystems market will dominate this market, In terms of manufacturing and demand, the US dominates the market for UAVs and payload subsystems. We operate most military-grade remotely piloted aircraft. The region's primary factor fueling market expansion is military spending on security and surveillance operations. The market's continued expansion is partly due to strong clientele in the area, product offerings, investment in R&D, and manufacturing capabilities.


Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: UAV PAYLOAD AND SUBSYSTEMS MARKET SHARE BY REGION 2022 (%)


UAV PAYLOAD AND SUBSYSTEMS MARKET SHARE BY REGION 2022 (%)


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe’s UAV payload and subsystems market account for the second-largest market share. The market for UAV payload subsystems has grown as a result of countries in the European region taking the initiative to change laws governing the use of UAVs in various applications. Further, the German UAV payload and subsystems market held the largest market share, and the UK UAV payload and subsystems market was the fastest-growing market in the European region.


The Asia-Pacific UAV Payload and Subsystems Market is expected to grow at the fastest CAGR from 2023 to 2032, with nations like China and India placing more emphasis on military and commercial UAV investments. The report also studies related industries, such as the telecommunication network industries, to provide accurate statistics. Moreover, China’s UAV payload and subsystems market held the largest market share, and the Indian UAV payload and subsystems market was the fastest-growing market in the Asia-Pacific region.


UAV Payload and Subsystems Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development in order to expand their product lines, which will help the UAV payload and subsystems market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The UAV payload and subsystems industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.


Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the UAV payload and subsystems industry to benefit clients and increase the market sector. The UAV payload and subsystems industry has offered some of the most significant advantages in recent years. Major players in the UAV payload and subsystems market, including AAI Corp (U.S.), Alpha Unmanned Systems (Madrid), BAE Systems (U.K.), IAI(Israel), InsituPacific(USA), AeroVironment(U.S.), Boeing(U.S.), Elbit Systems(Israel), Lockheed Martin(U.S.), Northrop Grumman(U.S.), and others, are attempting to increase market demand by investing in research and development operations.


Boeing (U.S.), The MEA's unique geographic location in the world, has contributed to the growth of the aviation industry there. Carriers can reach 80% of the world's population with eight hours of flight time to the Middle East, aggregating traffic and enabling one-stop service on carrier routes. During the study period, market growth is being accelerated by government investments in a range of tourism-related infrastructure projects. Travelers from North America and Europe make up the majority of visitors to this area. The Middle East also benefits from notable infrastructures such as the tallest towers, the largest shopping malls, islands, and opulent services, influencing the aircraft industry and drawing more tourists there.


BAE Systems (U.K.), British multinational defense, security, and aerospace company BAE Systems plc. It is among the biggest defense contractors in the world, with operations in the United Kingdom, the United States, and several other nations. Among the many goods and services that BAE Systems designs, develops, and produces are military aircraft, missiles, ships, submarines, and armored vehicles. In 1999, British Aerospace and Marconi Electronic Systems merged to form the business. It employs about 85,000 people worldwide and has its headquarters in Farnborough, Hampshire, in the UK. In addition to being a significant supplier to the US military, BAE Systems has a long history of providing defense equipment to the UK armed forces. The FTSE 100 Index includes BAE Systems, traded on the London Stock Exchange. The company works in markets for cyber security, intelligence, surveillance, defense, and aerospace.


Key Companies in the UAV payload and subsystems market include



  • AAI Corp (U.S.)

  • Alpha Unmanned Systems (Madrid)

  • BAE Systems (U.K.)

  • IAI(Israel)

  • InsituPacific(USA)

  • AeroVironment (U.S.)

  • Boeing (U.S.)

  • Elbit Systems (Israel)

  • Lockheed Martin (U.S.)

  • Northrop Grumman (U.S.)


UAV Payload and Subsystems Industry Developments

For Instance, March 2022 The British Army will use 99 Stalker and 15 Indago models of the drones that will be provided to the Armed Forces under an initial contract worth Euro 129 million from the Ministry of Defence. Lockheed Martin's Mini Uncrewed Air Systems (MUAS) will be used by the British Army and Strategic Command for Intelligence, Surveillance, Target Acquisition, and Reconnaissance (ISTAR) on the front lines and deep inside enemy territory.


For Instance, January 2022 Voyager, a LiDAR scanning system for fixed-wing and multirotor UAVs (unmanned aerial vehicles), was introduced by YellowScan. It can capture complex and vertical targets with an accuracy of up to 1 cm and a data acquisition rate of 1800 kHz.


UAV Payload and Subsystems Market Segmentation


UAV Payload and Subsystems Payload Outlook



  • C4I

  • Radar

  • Electronic Warfare (EW)

  • Electro-optic and Infrared Sensor (EO/IR)

  • Sonar


UAV Payload and Subsystems Type Outlook

  • MALE UAVs

  • HALE UAVs

  • Man-portable UAVs

  • Others


UAV Payload and Subsystems Regional Outlook

  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Scope:

UAV Payload and Subsystems Report Scope
Report Attribute/Metric Details
Market Size 2022 USD 5.2 billion
Market Size 2023 USD 5.590 billion
Market Size 2032 USD 9.977 billion
Compound Annual Growth Rate (CAGR) 7.51% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Payload, Type, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled AAI Corp (U.S.), Alpha Unmanned Systems (Madrid), BAE Systems (U.K.), IAI(Israel), InsituPacific (USA), AeroVironment (U.S.), Boeing (U.S.), Elbit Systems (Israel), Lockheed Martin (U.S.), Northrop Grumman (U.S.)
Key Market Opportunities The rising demand from businesses looking to incorporate the advantages of UAVs into industrial processes
Key Market Dynamics Increase in the use of unmanned aerial vehicles, or drones, in the civilian market




Frequently Asked Questions (FAQ) :

The UAV payload and subsystems market size was valued at USD 5.2 Billion in 2022.

The market is projected to grow at a CAGR of 7.51% during the 2023-2032.

The key players in the market are AAI Corp (U.S.), Alpha Unmanned Systems (Madrid), BAE Systems (U.K.), IAI(Israel), InsituPacific(USA), AeroVironment(U.S.), Boeing(U.S.), Elbit Systems(Israel), Lockheed Martin(U.S.), Northrop Grumman(U.S.).

The MALE UAVs category dominated the market in 2022.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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