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Unmanned Traffic Management (UTM) Market Research Report—Global Forecast till 2030

Unmanned Traffic Management (UTM) Market Research Report: Information by Solution (Communication Infrastructure, Navigation Infrastructure, Surveillance Infrastructure, and Others), End Use (Agriculture & Forestry, Logistics & Transportation, Surveillance & Monitoring, and Others), Component (Hardware, Software, and Services), Type (Persistent and Non-Persistent), and Region (North America, Europe, Asia-Pacific, and Rest of the World)—Forecast Till 2030

ID: MRFR/A&D/8681-CR | October 2022 | Region: Global | 128 Pages         

Unmanned Traffic Management (UTM) Market

Unmanned Traffic Management Market is projected to reach USD 4,921.44 Million by 2030 and register a CAGR of 20.21%

Segmentation

By Solution Communication Infrastructure Navigation Infrastructure Surveillance Infrastructure and Others
By End-Use Agriculture & Forestry Logistics & Transportation Surveillance & Monitoring and Others
By Component Hardware Software and Services)
By Type Persistent and Non-Persistent

Key Players

  • Leonardo S.p.A. (Italy)
  • Frequentis (Austria)
  • Altitude Angel (UK)
  • L3Harris Technologies Inc. (US)
  • Skyward (US)
  • Lockheed Martin Corporation (US)
  • AirMap Inc. (US)
  • Nova Systems (Australia)
  • Thales Group (France)
  • Unifly (Belgium)

Drivers

  • The Increasing Adoption of Drones for Logistics and Other Commercial Applications
  • Rising Participation of Private Companies
  • The requirement of UTM Solutions to Integrate Autonomous Aerial Vehicles into Commercial Airspace
  • Rising Traffic Congestion
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Unmanned Traffic Management (UTM) Market Overview


Unmanned Traffic Management (UTM) market size Estimated to Reach at USD 880.12 million in 2021 and is expected to reach USD 5,464.39 million by 2030, with a CAGR rate of 22.64% during 2022–2030.


Increasing adoption of drone for logistics and other services and rising public and private partnerships and investments are expected to drive the market during the forecast period. However, regulation pertaining to UAVs operation are the major hindrance to the market growth. As the reception of automated frameworks is expanding, there is a developing requirement for versatile Traffic Management frameworks, advanced frameworks that help observe and oversee expanding traffic. This framework is called Unmanned Traffic Management, an organized assortment of administrations that impart together dependent on normal principles. Unmanned Traffic Management doesn't depend on incorporated control. Its structures across the globe work on the standard of disseminated authority, which empowers the framework to incorporate more specialist co-ops who can adjust to the changing necessities and the advancing business sector.


This study on the global Unmanned Traffic Management (UTM) market provides detailed information on industry trends, market dynamics, market size, competitive landscape, and growth opportunities. This research report categorizes the global Unmanned Traffic Management (UTM) market by solution, end use, component, type, and region/country.


Based on solution, the Unmanned Traffic Management (UTM) market has been divided into Communication Infrastructure, Navigation Infrastructure, Surveillance Infrastructure, and Others. The Communication Infrastructure segment dominated the market in 2021 and is estimated to remain the same during the review period, whereas the Surveillance Infrastructure segment is expected to register the highest CAGR during the forecast period from 2022 to 2030.


COVID-19 Analysis


While it is impossible to predict the exact economic impact of the global COVID-19 coronavirus pandemic, analysts believe that it will have significant negative consequences for the global economy. Most major economies are expected to lose at least 2.9 percent of their GDP by 2020 if the virus becomes a global pandemic, according to early projections. This prediction has already been revised to a 3.4 percent drop in GDP. To put this figure in context, global GDP is expected to reach about 84.54 trillion dollars in 2020, implying that a 4.5 percent decline in economic growth would result in nearly 2.96 trillion dollars in lost economic output.


The economic impact of the COVID-19 pandemic is mostly due to a drop in demand, which means that fewer people are ready to buy the commodities and services that are available in the global economy. This dynamic was readily visible in businesses that were highly impacted, such as travel and tourism. Countries have imposed travel restrictions to slow the spread of the virus, and many people have been unable to book flights for vacations or business trips. Airlines lost expected revenue due to the decrease in customer demand, and as a result, they had to cut costs by lowering the number of flights they performed.


Market Dynamics


The expanding necessity of Unmanned Traffic Management answers for coordinate independent elevated vehicles in the business airspace is another factor impacting the development of this Unmanned Traffic Management market. Unmanned Traffic Management is expected to grow at an effective rate in the future forecasted period due to high demand in this market. The major reason for the increase of the global market revenue is the driver like the requirement of UTM Solutions to Integrate Autonomous Aerial Vehicles into Commercial Airspace and the rising Traffic Congestion. These drivers help the major players enhance their growth and development in the market for Unmanned Traffic Management. On the other hand, integration of 5G cellular network is likely to provide a lucrative opportunity over the forecast duration for the market players involved.


Drivers



  • Rising Public and Private Partnerships And Investment


During the projected period, it is anticipated that rising public and private company investments in the creation of autonomous traffic management systems will fuel market expansion. For instance, Terra Drone Corporation raised a B-series capital of $70 million (8 billion Japanese yen) in March 2022 to hasten the development of Unmanned Traffic Management, or UTM, an air traffic control system for unmanned aircraft.


Additionally, it is anticipated that the growth of the unmanned traffic management market would be fueled by the innovations of unmanned traffic systems and partnerships between private and public market participants to improve the performance and efficiency of UTM.


For instance, PrecisionHawk, Inc. created Automated Unmanned Air Traffic Control System in August 2020, which enables drone and manned aircraft collision avoidance. Additionally, in December 2020, Altitude Angle collaborated with A-techSYN, a leading producer of next-generation Unmanned Aerial Vehicles (UAVs), and Inmarsat, the market leader in worldwide mobile satellite communications, to jointly develop the Pop-Up UTM platform. Additionally, in June 2019, Terra Drone Corporation and Unifly, a well-known provider of drone traffic management, collaborated. In accordance with this partnership, Terra Drone Corporation successfully showed Taiwanese government officials an unmanned traffic management (UTM) system that was created in conjunction with Unifly.


Competitive Landscape


The global market for Unmanned Traffic Management (UTM) has witnessed significant growth over the forecast period due to the growing digital content. There are several domestic, regional, and global players operating in the Unmanned Traffic Management (UTM) market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global Unmanned Traffic Management (UTM) market who have contributed to the market growth. These include Leonardo S.p.A., Raytheon Technologies Corporation, Frequentis, Thales Group, Lockheed Martin Corporation, L3Harris Technologies Inc., DJI, Precisionhawk, Viasat, Inc., and Unifly.


During the study, MRFR has analyzed some of the major players in the global Unmanned Traffic Management (UTM) market who have contributed to the global market growth.


Key Players



  • Leonardo S.p.A.

  • Raytheon Technologies Corporation

  • Frequentis

  • Thales Group

  • Lockheed Martin Corporation

  • L3Harris Technologies Inc.


Opportunity



  • Integration of 5g Cellular Network


As it has several advantages over current technology, 5G mobile cellular network usage is rapidly rising in a number of end-use industries. Additionally, this technology helps to improve drone industrial operations. The industry is searching for a communications network that has been approved by the Federal Communications Commission (FCC) and the Federal Aviation Administration (FAA) and has the expanded functionality needed for secure commercial drone operations. Scalable, financially feasible drone operations could be unlocked by technologies of the fifth generation.


The major market participants are sure that their tactics will determine if 5G is an appropriate solution for the unmanned aircraft traffic management sector. Governor Hochul stated in September 2021 that New York would host the nation's first 5G test network for unmanned aircraft in a 50-mile drone corridor. With an investment of USD 70 million, this aids New York in maintaining its position as a global leader in unmanned aircraft systems.


Market Segmentation


The Unmanned Traffic Management (UTM) Market has been segmented based on solution, end use, component, type, and region.


Based on solution, the global Unmanned Traffic Management (UTM) market has been segmented into Communication Infrastructure, Navigation Infrastructure, Surveillance Infrastructure, and Others.


Based on end use, the Unmanned Traffic Management (UTM) market has been segmented into Agriculture & Forestry, Logistics & Transportation, Surveillance & Monitoring, and Others.


Based on component, the Unmanned Traffic Management (UTM) market has been segmented into Hardware, Software, and Services.


Based on type, the Unmanned Traffic Management (UTM) market has been segmented into Persistent and Non-Persistent.


Regional Analysis


Globally, the Unmanned Traffic Management (UTM) market has been categorized into four different regions—North America, Europe, Asia-Pacific, and Rest of the World. North America accounted for the largest market share, with a market value of USD 271.02 Million in 2020; it is expected to register a CAGR of 21.35% during the forecast period. Asia-Pacific was the second-largest market in 2020, valued at USD 204.38 Million; it is projected to register CAGR of 24.34%.


Majority of the North American market is driven from the United States. Drones have quickly evolved into one of the military's main weapons as US counterterrorism policy has pushed toward tactics that are more covert, more destructive, and farther away from the fight. Both the US military and the CIA have deployed drones in conflict zones to conduct conventional fighting as well as targeted killings of people who have been accused of terrorism, both inside and outside of active battle zones.


According to the Bard College Center for the Study of the Drone, the Department of Defense proposed $9.39 billion for drones and related technology in the fiscal year 2019 budget. The Stimson Center estimated that the administration's request for drone procurement, research, development, testing, and assessment would cost $3.4 billion. As a result of the growing usage of drones, the US is predicted to have a strong need for unmanned traffic control systems.


After passing the U-space legislative package, Europe is now well on its way to establishing drone eco-systems across the whole continent. The U-space package, which consists of three regulations, was approved by the European Commission in April 2021. It sets up the conditions for both manned and unmanned aircraft to fly safely in the U-space region of the atmosphere. In particular, in crowded, low-level airspace (below 120m), and when out of sight, the laws add new services for drone operators, enabling them to conduct more complicated and distant activities.


Member States of the European Civil Aviation Conference (ECAC) member states are now tasked with putting U-space regulatory practices into place so drone operators can expand their operations in a unified European market. Some countries have already started the process, including Poland, Belgium, Italy, Germany, the United Kingdom, France, Spain, and Switzerland, but many more are still waiting for the legislation to be passed before launching their U-space implementation plans.


GLOBAL UNMANNED TRAFFIC MANAGEMENT (UTM) MARKET, BY REGION, 2020 (% SHARE)
GLOBAL UNMANNED TRAFFIC MANAGEMENT (UTM) MARKET, BY REGION, 2020 (% SHARE)
Source: Industry Expert, Secondary Research, and MRFR Analysis


Recent Developments



  • In June 2022, Frequentis Singapore Pte Ltd has signed a Memorandum of Understanding (MoU) with CAELUM Co., Ltd, a South Korean aerospace & defense industry developer to work in collaboration on Urban Air Mobility (UAM) and Unmanned Traffic Management (UTM) solutions in South Korea.

  • In May 2022, Raytheon Intelligence & Space is collaborating with multiple universities to conduct research related to drone traffic management and to further develop its weather-sensing Skyler radar technology.

  • In May 2022, Unifly, received a significant boost to its drone navigation development capabilities with a USD 10.5 million capital infusion from two Japanese investors, including one co-financed by the government.

  • In January 2021, Thales and H3 Dynamics collaborated to provide real-time tracking for drone traffic control in low-altitude airspace.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2030. For this analysis, MRFR segmented the global Unmanned Traffic Management (UTM) Market report based on solution, end use, component, type, and region.


By Solution



  • Communication Infrastructure

  • Navigation Infrastructure

  • Surveillance Infrastructure

  • Others


By End Use



  • Agriculture & Forestry

  • Logistics & Transportation

  • Surveillance & Monitoring

  • Others


By Component



  • Hardware

  • Software

  • Services


By Type



  • Persistent

  • Non-Persistent



Report Scope:

Report Attribute/Metric Details
  Market Size   2021: USD 880.12 Million 2030: USD 5,464.39 Million
  CAGR   22.64%
  Base Year   2021
  Forecast Period   2022–2030
  Historical Data   2018-2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Solution, End-Use, Component, Type
  Geographies Covered   North America (US, Canada, and Mexico) Europe (France, Germany, UK, Switzerland, Netherlands, and Rest of Europe) Asia-Pacific (China, Japan, India, South Korea, Singapore, New Zealand, and Rest of Asia-Pacific) Rest of the World (Middle East & Africa and South America)
  Key Vendors   Leonardo S.p.A. Raytheon Technologies Corporation Frequentis Thales Group Lockheed Martin Corporation L3Harris Technologies Inc. DJI Precisionhawk Viasat, Inc. Unifly
  Key Market Opportunities   Integration of 5g cellular network
  Key Market Drivers   Rising public and private partnerships and investment Growing demand for improved surveillance


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Frequently Asked Questions (FAQ) :

The North America regional market is projected to be the major driver of the market.

The segments in the market are solution, end use, component, and type

The key contenders in the market are Leonardo S.p.A., Raytheon Technologies Corporation, Frequentis, Thales Group, Lockheed Martin Corporation, L3Harris Technologies Inc., DJI, Precisionhawk, Viasat, Inc., and Unifly.

Rise in issues with software can restrain unmanned traffic management market.