ID: MRFR/A&D/0322-CR | April 2018 | Region: Global | 155 pages
As per the Market Research Future (MRFR) assessment, the Global Market for Unmanned Aerial Vehicles (UAV) is estimated to acquire a notable market value while thriving at a CAGR of 10% during the evaluation period from 2017 to 2023. Growing the military budgets of many countries and increasing the use of UAVs in the commercial sector are some of the main driving factors leading to market growth.
COVID-19 has arisen as a global pandemic that has led to nationwide lockdowns and economies slowing down. In this case, different areas of life, ranging from consumer goods to manufacturing operations, have been affected. UAV has arisen as a major utility commodity in these conditions, where human operations have been restricted and limited because of the disease outbreak. Various UAVs, from small to large, are used for a wide variety of uses, demonstrating that UAVs can be integrated by public and private agencies as a platform for planning and training for similar scenarios in the future. It is expected that the global UAV market will see growth in the adoption of UAVs during the pandemic era. In the war against COVID-19, the use of drones could be a game-changer. The device is used by various countries to easily distribute test kits and emergency supplies to COVID-19 hotspots, thereby increasing the scale of the UAV industry.
Growing Application of UAVs to Boost the Market Growth
Due to the growing application of drones in transport and logistics, inspection, surveying and agricultural spraying, the global UAV market is expected to expand significantly during the forecast period. Another important reason for supporting the demand during the forecast era is supposed to be the the importance of the device in the industrial field. In addition, the rising boundary conflict between different nations is expected to have a positive effect on the market. The growing adoption of UAVs by various industries such as mining, oil & gas, telecommunications and retail among others is anticipated to affect the market development. In addition, the growing drone trend is delivering is expected to bolster the market during the forecast period.
Growing Prominence of Solar-Powered Drones to Drive Market Growth
Over the analysis timeframe, the increasing popularity of solar-powered drones is projected to present a huge incentive for business growth. Furthermore, increasing demand for lightweight material is projected to offer another lucrative opportunity that can increase the market.
Concerns Regarding Cybersecurity to Impede the Market Growth
To work, UAVs rely on their on-board autopilots. Therefore, an autopilot architecture that is not susceptible to cyberattacks must be created. This is a critical element in the appraisal period that can have a negative effect on the market. Different countries have implemented strict rules and regulations banning the use of UAVs, which are predicted to pose a major challenge to business development during the evaluation period.
Over the analysis period, the commercial segment is expected to show a greater CAGR than the other segments.
At the highest CAGR of 24.13 percent during the analysis tenure, the payload segment is projected to rise. Furthermore, the increasing focus of companies to the modification and development of the drone structure to allow them run in any severe environment conditions further encourages the growth of this industry.
In the evaluation period, the fixed-wing segment is projected to undergo a higher CAGR than the other segment. This is largely due to its higher manoeuvrability and lightweight size, nature's ease of use, higher payload power, and comparatively lower cost than other drone types. Furthermore, these drones need less space to take off and will float in the middle of the flight.
Due to the demand for these UAVs from the defence sector for surveillance and reconnaissance applications, the small UAV segment is projected to rise to the highest CAGR during the forecast period.
North America to Lead the Global Market
The global market is projected to be dominated by North America during the study period, as per the UAV market report released by MRFR. On account of major applications in the military and defence sector, North America has the highest demand. Because of its usage of municipal welfare, regional domination is projected to last over the forecast era. Because of the involvement of eminent players, the US is expected to make the most valuable contribution to expanding the regional market. The US is the biggest provider of UAVs worldwide. Due to the robust deployment of the system in the defence business, the area is expected to lead. Therefore, the region is expected to garner the largest UAV market share in the assessment period.
APAC to Witness Robust Growth
Due to the increasing demand for commercial UAVs, APAC is expected to see robust growth during the review timeframe. Increasing aerial photography, increasing drone deliveries, and increasing border tensions between developing countries are expected to reinforce the regional market for unmanned aerial vehicles during the review period. However, during the forecast period, the Asia-Pacific region is expected to witness rapid growth. This region's rapid growth is primarily driven by the increasing adoption of automation and advanced technologies in countries such as China and Japan across a wide range of industries to counter rising labour costs, supporting government initiatives across the region, and growing investments by major UAV companies.
Europe to Showcase Significant Growth
Due to the rising cases of crime and terrorism, Europe is expected to show significant market growth during the forecast period. Among all, the United Kingdom is projected to make the most important contribution in the evaluation period. Moreover, the increasing use of commercial UAVs in the coming period will significantly increase the market.
MEA to be a Lucrative Market for UAVs
Due to the increasing expenditure of governments on UAV development projects, MEA is expected to be a lucrative market during the forecast period. The region is experiencing harsh weather conditions, which is why the use of UAVs is becoming increasingly popular as they can be used for different purposes without any risk.
Device Innovations to Remain Key Focus of Market Players
The key players in the global UAV market are adopting different tactics that are likely to increase the market's competition. The growing worldwide demand for UAVs is likely to motivate key players to introduce innovation in their devices that in the evaluation period can improve market competition. Increasing mergers and acquisitions and partnerships are some of the strategies adopted in the review period that are likely to intensify market competition.
December 2020- The Israeli Heron drones (UAV) were deployed by the Indian Air Force to monitor the Chinese border in the midst of increasing tensions between the two countries in the Ladakh region.
December 2020- Sagetech Avionics, a US-based aerospace technology company, and Hover, Inc., a 3D data and technology company, announced their partnership to provide the key components of an onboard detect and avoid (DAA) solution for UAVs to OEMs.