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The surge in global terrorism threats and heightened security concerns has propelled a notable increase in expenditures on drones, also known as unmanned aerial vehicles (UAVs). This escalation in drone utilization extends beyond military applications, infiltrating the realms of industrial surveillance, thereby contributing to a growing demand for enhanced surveillance technologies. As a consequence, the need for efficient unmanned traffic management systems has become imperative to facilitate the safe and organized execution of drone operations.
Drones possess unique capabilities that make them indispensable in surveillance activities. Their ability to conduct covert operations, operate during nighttime, navigate diverse terrains, and deploy with simplicity has made them increasingly prevalent in both law enforcement and commercial surveillance endeavors. This burgeoning trend is exemplified by significant contracts, such as the $300 million agreement secured by Elbit Systems Ltd. in March 2021, wherein 12 Asian countries were slated to receive Hermes 900 unmanned aircraft systems. As the deployment of drones for various missions becomes more widespread, the implementation of unmanned traffic management systems becomes paramount to bolster surveillance capabilities. A case in point is the collaboration between Unifly NV and NAV CANADA in February 2020, where they forged a contract to establish a national system in Canada. This system provides digital services that facilitate secure drone flight and maintenance, featuring a user-friendly interface accessible via web and mobile applications. Canadian drone pilots benefit from functionalities such as locating safe and legal airspace, organizing flights, and overseeing operations, pilots, and a fleet of drones.
The growing emphasis on improved monitoring is anticipated to be a catalyst for heightened demand for drones, consequently propelling the expansion of the unmanned traffic management market. This momentum is further propelled by the integration of cutting-edge access control and video surveillance systems, which have significantly elevated the security standards of critical organizations. In metropolitan settings, drones are increasingly deployed to monitor significant events and gatherings, augmenting traditional surveillance measures. Government entities have responded to this technological evolution with stringent regulations, particularly in high-risk areas.
A noteworthy collaboration between OneSky and Garuda Robotics (GR) in April 2022 exemplifies this trend, as they joined forces to provide Uncrewed Aircraft Traffic Management (UTM) services to Malaysian aviation authorities, local governments, businesses, and security organizations. The partnership underscores the rising demand for surveillance systems in urban landscapes and unmanned traffic management systems within security agencies. This demand is poised to be a driving force behind the expansion of the market throughout the forecast period.
In conclusion, the escalating global demand for improved surveillance, fueled by the persistent threat of terrorism and heightened security concerns, is steering significant investments towards the deployment of drones. This, in turn, necessitates the establishment of advanced unmanned traffic management systems to ensure the efficient and secure operation of drones in diverse applications. As technological advancements continue to shape the landscape of surveillance, the market for unmanned traffic management is positioned for substantial growth.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Solution, End-User, Component, Type, and region |
Unmanned Traffic Management Market Highlights:
Global Unmanned Traffic Management (UTM) Market Overview
Unmanned Traffic Management (UTM) Market Size was valued at USD 1.1 Billion in 2022. The Unmanned Traffic Management (UTM) Market industry is projected to grow from USD 1.61 Billion in 2024 to USD 6.90 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.70% during the forecast period (2024 - 2032). Increasing artificial intelligence automation spending and robotic process automation. The key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Unmanned Traffic Management (UTM) Market Trends
Growing Artificial Intelligence and Automation is driving the market growth
Market CAGR for unmanned traffic managementis being driven by the rising number of Artificial Intelligence and Automation.One of the most prominent trends in the UTM market is the integration of artificial intelligence (AI) and automation technologies. Al-based systems enable real-time data analysis, decision-making, and automation of various UTM processes. This integration enhances the efficiency and safety of drone operations by automating tasks such as airspace authorization, collision avoidance, and route optimization. Al-powered UTM systems can analyze large volumes of data from multiple sources, including weather conditions, flight paths, and real-time traffic data, to make informed decisions and manage drone traffic effectively. These systems can identify potential conflicts, reroute drones to avoid congestion, and provide real-time alerts to operators and pilots.
Additionally,trend in the UTM market is the emergence of collaborative ecosystems involving multiple stakeholders, including regulators, drone operators, airspace management authorities, and technology providers. These ecosystems aim to establish standardized protocols, data sharing mechanisms, and cooperation frameworks to ensure seamless integration of drones into the existing airspace. Collaborative UTM ecosystems facilitate the exchange of critical information between stakeholders, enabling real-time coordination and decision-making. For instance, drone operators can share their flight plans with airspace management authorities, who can then provide approval or suggest modifications based on airspace constraints. This collaboration fosters trust, improves situational awareness, and enhances the overall safety and efficiency of UTM operations.
Regulatory advancements and standardization efforts are vital to address the challenges associated with the integration of drones into the airspace and to ensure safe and efficient UTM operations. Governments and regulatory bodies worldwide are actively working on developing regulations and standards specific to UTM. Regulations focus on various aspects, including flight altitudes, airspace restrictions, flight authorization procedures, and drone identification and tracking requirements. These regulations aim to strike a balance between enabling the growth of the drone industry and ensuring safety and security in the airspace
For instance, the unmanned traffic management market is experiencing significant growth, driven by the integration of Al and automation technologies, the emergence of collaborative UTM ecosystems, and regulatory advancements and standardization efforts. These trends are shaping the future of UTM, enhancing safety, efficiency, and scalability. As the drone industry continues to evolve, it is crucial for stakeholders to stay updated on these trends and adapt their strategies and solutions to effectively navigate the evolving UTM landscape. It drives the Unmanned Traffic Management (UTM) Market revenue.
Unmanned Traffic Management (UTM) Market Segment Insights
Unmanned Traffic Management (UTM) Market Solution Insights
The Unmanned Traffic Management (UTM) Market segmentation, based on solution, includes Communication Infrastructure, Navigation Infrastructure, Surveillance Infrastructure, and Others. The Communication Infrastructure segment dominated the market, accounting for 35% of market revenue (78.48 Billion). Improving drone communication is crucial in all activities to ensure that drone operators have direct control over the aircraft when conducting BVLOS flight operations.
Unmanned Traffic Management (UTM) Market End-User Insights
The Unmanned Traffic Management (UTM) Market segmentation, based on End-User, includes Agriculture & Forestry, Logistics & Transportation, Surveillance & Monitoring, and Others. The logistics & transportation category generated the most income (70.4%). Due to increased drone transportation activities in developed nations. Additionally, the use of small drones to deliver food, emergency medical supplies, and other necessities is growing.
Unmanned Traffic Management (UTM) Market Component Insights
The Unmanned Traffic Management (UTM) Market segmentation, based on Component, includes hardware, software, and services. The software category had a major share in the market. Due to assist pilots in avoding flying into prohibited zones,it aims to track all UAVs in the air in real-time and display restricted and unrestricted airspaces.
Unmanned Traffic Management (UTM) Market Type Insights
The Unmanned Traffic Management (UTM) Market segmentation, based on type, includes persistent and non-persistent. The persistent was anticipated to hold a prominent market share. Due to the demand for commercial drones for logistics and medical supply transportation services and the need for sale traffic management systems.
Figure1: Unmanned Traffic Management (UTM) Market, by Type, 2022 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Unmanned Traffic Management (UTM) Market Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Unmanned Traffic Management (UTM) Market area will dominate this market, due to early adoption and significant investments in UTM infrastructure. The presence of major UAS companies, strong regulatory framework, and extensive research and development activities contribute to market growth. The region also benefits from a robust ecosystem of technology providers, drone operators, and government support. However, challenges such as airspace congestion and regulatory compliance pose hurdles to the market's full potential.Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: UNMANNED TRAFFIC MANAGEMENT (UTM) MARKET SHARE BY REGION 2022 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
EuropeUnmanned Traffic Management (UTM) Marketaccounts for the second-largest market share driven by favorable government initiatives, progressive regulations, and active participation of key industry players. The region also benefits from advanced air traffic management infrastructure, extensive testing facilities, and collaborations between research institutions and industry stakeholders. However, the complexity of managing diverse national airspace regulations remains a challenge. Further, the GermanUnmanned Traffic Management (UTM) Marketheld the largest market share, and the UK Unmanned Traffic Management (UTM) Market was the fastest growing market in the European region
The Asia-Pacific Unmanned Traffic Management (UTM) Marketis expected to grow at the fastest CAGR from 2024 to 2032. This is driven by government initiatives, supportive regulations, and investments in UAS technology. The region's large population, urbanization, and demand for innovative logistics solutions are major factors driving the market. However, airspace management complexities, privacy concerns, and limited infrastructure in some areas hinder market growth. Moreover, China’sUnmanned Traffic Management (UTM) Market held the largest market share, and the IndianUnmanned Traffic Management (UTM) Market was the fastest growing market in the Asia-Pacific region.
Unmanned Traffic Management (UTM) 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 Unmanned Traffic Management (UTM) Market, grow even more. Market participants are also undertaking a variety of 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. To expand and survive in a more competitive and rising market climate, Unmanned Traffic Management (UTM) Marketindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Unmanned Traffic Management (UTM) Market industry to benefit clients and increase the market sector. In recent years, the Unmanned Traffic Management (UTM) Marketindustry has offered some of the most significant advantages to medicine. Major players in the Unmanned Traffic Management (UTM) Market, including 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), and others, are attempting to increase market demand by investing in research and development operations.
Frequentis safety-critical communication and information solutions leverage more than 75 years of experience showcasing true leadership in this market. With deep cross-industry experience in civil aviation, defense, public safety, maritime, and public transportation markets; the company has built upon its initial control Centre voice communications focus to develop deep expertise in these five areas of core competence. The company has driven innovation throughout its history with many industry firsts. This will continue as the industry evolves, with a focus on user-centric design that considers the controller in all it does.
L3Harris Technologies, Inc. is an American technology company, defense contractor, and information technology services provider that produces command and control systems and products, wireless equipment, tactical radios, avionics and electronic systems, night vision equipment, and both terrestrial and spaceborne antennas for use in the government, defense, and commercial sectors. They specialize in surveillance solutions, microwave weaponry, and electronic warfare. It was formed from the merger of L3 Technologies and Harris Corporation on June 29, 2019, and was expected to be the sixth-largest defense contractor in the United States.
Key Companies in the Unmanned Traffic Management (UTM) Market
- 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)
Unmanned Traffic Management (UTM) Market Industry Developments
For Instance, Decebber 2021 Leonardo Electronics announced it would be building a semiconductor device fabrication facility in Oro Valley, Arizona with construction beginning in the first half of 2022.
For Instance, June 2021 Canada's air navigation service provider NAV CANADA publicly launched the 'NAV Drone' application as part of its national RPAS Traffic Management (RTM) platform supplied by Unifly.
Unmanned Traffic Management (UTM) Market Segmentation
Unmanned Traffic Management (UTM) Market Solution Outlook
- Communication Infrastructure
- Navigation Infrastructure
- Surveillance Infrastructure
- Others
Unmanned Traffic Management (UTM) Market End-User Outlook
- Agriculture & Forestry
- Logistics & Transportation
- Surveillance & Monitoring
- Others
Unmanned Traffic Management (UTM) Market Component Outlook
- Hardware
- Software
- Services
Unmanned Traffic Management (UTM) Market Type Outlook
- Persistent
- Non-Persistent
Unmanned Traffic Management (UTM) Market 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
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