Unmanned Aerial Vehicle (UAV) Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Market Overview

Global Unmanned Aerial Vehicle (UAV) market is projected to offer a revenue opportunity of US$ 46.7 billion during the forecast period 2022-2030. The global UAV market is estimated to reach a valuation of US$ 106.03 billion by 2030 at a CAGR of 7.5%.

The demand for unmanned aerial vehicle (UAV) market is rapidly growing due to its increased usage across various applications, evolving technological advancements, and also reducing the risks and strengthening securities. The rapid use of UAVs in recent years has improved accuracy, reduced workload and production costs, increased work efficiency and productivity. At the same time, it vastly improved service and customer relations. All these factors have resulted in a sharp increase in demand for UAVs across various industries, particularly in military, civil & commercial, residential, and future technology. 

Today, various sectors in the global unmanned aerial vehicle (UAV) market are making use of UAVs to rip the advantages it offers such as delivering high-quality aerial imaging, detailed data, the ability to reach dangerous areas, and ease of deployment. UAVs can lower the risk to people get into accidents, as they can reach the most remote locations with little to no help and need the least amount of work, time, and energy. It can also be used in disastrous situation as well to perform structural analysis, aerial monitoring, logistic and cargo, active faults, fire detection and others.

Competitive Landscape:

Top five players namely DJI Technology, General Atomics Aeronautical Systems, Lockheed Martin Corporation, BAE Systems Plc, and Northrop Grumman in the global unmanned aerial vehicle (UAV) market collectively accounted for 68.5% market share in 2021. 

Key Players and their Growth Strategies:

• DJI Technology aims to create UAVs that enters the lives of common consumers. The company is dedicated to advancing the UAV technology through R&D and creativity to provide the public with new lifestyle options. It most recently collaborated with tech giant Microsoft to create AI drones that have a variety of uses, including transmitting real-time data that is analysed by a computer to find problems like power line defects. It is also working on introducing tools and technologies for the commercial UAV Drone industry at DJI AirWorks.
• Lockheed Martin Corporation and Army Aviation, a key player in the global unmanned aerial vehicle (UAV) market, are working together to provide the solutions they need to succeed today and in the future. In addition, Lockheed Martin Ventures makes strategic investments in businesses that are creating cutting-edge technology in key markets and core industries.
• The Gambit, a revolutionary jet-powered robotic drone from General Atomics Aeronautical Systems, Inc., is designed to use Autonomous Systems and Artificial Intelligence (AI) to fly alongside human-piloted aircraft and gain air superiority. It has also developed the Mojave, a brand-new unmanned aerial vehicle (UAV) that is capable of flying without an airport's typical infrastructure or runways.

Market Dynamics of the Global Unmanned Aerial Vehicle (UAV) Market 

Drivers

Growing Demand for Unmanned Aerial Vehicle (UAV) Across Various Applications

Aerial robots, particularly small UAVs and drones have made significant advancements in recent years in terms of their design, operation, flying capabilities, and navigational control. Unmanned aerial vehicles (UAVs) are being deployed increasingly in a wide range of civil applications, including wireless coverage, real-time monitoring, remote sensing, precision agriculture, delivery of goods, search and rescue, security and surveillance, and inspection of civil infrastructure.  

UAV can take pictures, capture video, transmit data, and other features that allow them to collect and share data that would take time using the current means. Its application is also expanding across various domains in the unmanned aerial vehicle (UAV) market including real estate management, insurance, and agriculture. These deployments are in relation with photography, public announcements, and crowd surveillance, delivery of medical supplies and other essentials, screening masses, and spraying disinfectants.

However, there are still various issues that must be resolved in the unmanned aerial vehicle (UAV) market, particularly when it is out of sight, battery life, the absence of clear government laws, and load carrying capability.

Minimal Risks and Security Concerns

UAVs are utilized in many situations due to their improvements in safety. Drones use their remote-control capabilities to monitor certain areas, transmit potential dangers, and alert threatening circumstances including pipelines, flare stacks, and oil and gas refineries. In addition to this, drone technology is used in the military during high-risk situations, in transportation, civil engineering, and construction for the surveillance of assets and protection of areas to maximize efficacy. Their capabilities enable them to gather real-time information to establish and maintain a secure environment in the unmanned aerial vehicle (UAV) market. 

All these factors related to security and convenience are driving the market growth, thus leading to increased investment in Unmanned Aerial Vehicle (UAVs) market.

Market Trends

Integration of Cutting-Edge Technologies including AI and ML in Unmanned Aerial Vehicle (UAV)

Unmanned aerial vehicles (UAVs) are becoming integrated into a wide range of modern IoT applications. The ease of remote monitoring and the flexibility of drone technology in difficult circumstances have considerably increased its popularity across industries like eCommerce, agriculture, and combat. The application of AI software is empowering the drones to become smarter and more autonomous. 

Unmanned autonomous systems are one of the most significant uses of artificial intelligence (AI) in the unmanned aerial vehicle (UAV) market. Unmanned ground or aerial vehicles and medical robotics have both been made possible by the amazing developments in AI and machine learning. Unmanned autonomous systems have benefited from machine learning in two ways: first, it receives information, then processes and manipulates it, providing perception and control similar to human interaction with the outside environment. To boost their autonomy, future UAV systems in the global market will need to make significant use of AI technologies.

Restraints: Regulatory Guidelines, High Cost, and Poor Public Perceptions 

The unmanned aerial vehicle (UAV) market has seen significant growth in recent years. However, there are several factors hampering the growth of UAV demand.

One of the key factors hampering the growth of UAV demand is regulatory uncertainty. The regulatory framework for UAVs is still evolving and is unclear in many jurisdictions. This uncertain regulatory environment makes it difficult for companies to invest in UAV technology and develop commercial applications for UAVs.

Another factor hampering the growth of UAV market is the high cost of UAV technology. UAVs are still relatively new and the technology is expensive. This high cost limits the adoption of UAVs by many companies and individuals.

Finally, public perception is also one of the factors hampering the growth unmanned aerial vehicle (UAV) market. There is a negative public perception of UAVs, as they are often associated with surveillance and privacy concerns. This negative public perception makes it difficult to generate excitement and demand for UAVs. 

COVID-19 Impact

The COVID Pandemic has impacted the deployment of UAVs across various major sectors. At the start of pandemic, the manufacturing operation of UAV came to standstill which started to slowdown the unmanned aerial vehicle (UAV) market. The commercial and military demand for UAV were drastically reduced. Since one of the primary usages for UAVs in military operations is surveillance, the pandemic's influence on military funding had a negative effect on the expansion of the UAV business. 

However, the healthcare sector observed an extensive deployment of UAVs, particularly in the delivery of medications & other medical supplies to upscale areas and the transfer of sample testing to diagnostic labs. Drones took up more and more space in government strategies to mitigate risks during COVID-19, particularly for services like package delivery of medications, curfew control, and detecting the body temperature of consumers in large shopping malls, etc.

According to Astute Analytics, it is inferred that the impact of covid has quickly mitigated in 2021 and the unmanned aerial vehicle (UAV) market rebounded in 2021 registering a y-o-y of 3.1% and is expected to reach 10.8% by 2030, which shows that as the effect of pandemic lessens with time the huge demand of drones is expected to rise, which in turn would propel the market.

Market Segmentation

Type Analysis

Based on type, the global unmanned aerial vehicle (UAV) market is segmented into fixed wing, rotary wing and hybrids. The rotatory wing segment held the largest share of 47.5% in 2021 and is expected to reach a valuation of US$ 49507.81 million by 2030. Due to few moving parts in rotatory wing, which reduces the overall cost, it has become most preferred and efficient for smaller drones. 

On the other hand, the fixed wing segment in the unmanned aerial vehicle (UAV) market is expected to grow at the highest CAGR of 8.4% over the forecast period.

Mode of Operation Analysis

In terms of mode of operation, the remotely operated segment holds the highest share of 51.2% of the global unmanned aerial vehicle (UAV) market due to its vast array of UAV devices that use remote sensing technologies, followed by the semi-autonomous segment. Whereas the fully autonomous segment is predicted to grow at the fastest CAGR of 8.7% over the forecast period, as they are being used on a bigger scale in both consumer and business industries.

Size Analysis

In terms of size, the very small UAVs segment accounted for the largest share of unmanned aerial vehicle (UAV) market, which accounted for 44.8% in 2021 and is anticipated to reach 48.1% by 2030. This growth can be attributed to its extended vision of ground combat units beyond their front lines. These UAVs are light weight and small, which make them most preferred for spying and biological warfare activities.

Payload Analysis

In terms of payload, the UAVs of payload <25 kg are the most widely used in the global unmanned aerial vehicle (UAV) market across various applications. In 2021, the segment held the largest market share of 59.5% in 2021.

Industry Analysis

Based on Industry, the military & defence segment held the highest share (21.1%) of the global unmanned aerial vehicle (UAV) market due to its increasing usage in missions and precision. The segment is also expected to grow at the highest CAGR due to their higher costs and placement of orders in bulk.

Range Analysis

In terms of range, the visual line of sight (VLOS) segment is expected to grow at the highest CAGR of 8.2% over the forecast period thanks to the requirement that the drone must have to be completely visible to the drone operator during the whole flight mission without the use of any additional equipment, such as binoculars or first-person view (FPV) goggles.

Regional Analysis:

In 2021, Europe held 35.6% share of the global unmanned aerial vehicle (UAV) market. This can be attributed to rapid rise in the use of drones for commercial and residential applications. In addition to this, we have observed that changes in the drone regulations to protect the safety and the privacy of EU citizens while also enabling the free circulation of UAVs or UAS’ and a level regulating playing field within the European Union is playing a key role in the market growth.

Furthermore, North America is the leading region in the UAV market, with US emerging as a key country in North America. Whereas Asia Pacific is growing at the highest CAGR of 8.8% over the forecast period. However, strict UAVs regulations in countries like Singapore, Thailand, and Malaysia has somewhat slowed the market expansion in these countries.

List of Key Companies Profiled

• Boeing
• Elbit Systems
• Northrop Grumman
• Textron Inc.
• BAE Systems Plc
• Autel Robotics
• 3D Robotics
• General Atomics Aeronautical Systems
• DJI Technology
• Lockheed Martin Corporation
• Saab AB
• Israel Aerospace
• FLIR Systems, Inc.
• AeroVironment, Inc.
• Delair
• Yuneec
• Holy Stone
• Other Prominent Players

Segmentation Overview

The global Unmanned Aerial Vehicle (UAV) market is segmented into:

By Type

• Fixed Wing
• Rotary Wing
• Hybrid

By Mode of Operation

• Remotely Operated
• Semi-Autonomous
• Fully Autonomous

By Size

• Very small UAVs
  • Micro or Nano UAVs
• Small UAVs
  • Mini UAVs
• Medium UAVs
• Large UAVs

By Payload

• <25 KG
• 25-170 KG
• >170 KG

By Industry

• Military & Defence
• Government & Law Enforcement
• Civil & Commercial
• Agriculture
  • Aerial Spraying
• Construction & Mining
• Arts, Entertainment & Recreation
• Healthcare & Social Assistance
• Civilian/ Commercial
• Airports
• Energy & Utilities
• Critical Infrastructures
• Data Centers
• Stadiums
• Residential
• Other Public Venues
• Others

By Range

• Visual Line of Sight
• Extended Visual Line of Sight
• Beyond Visual Line of Sight

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
  • Rest of Western Europe
    • Eastern Europe
    • Poland 
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • South Korea
  • Japan
  • Australia & New Zealand
  • ASEAN
    • Malaysia
    • Myanmar
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Indonesia
    • Cambodia
    • Rest of ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America