Market Trends of Europe Tactical UAV Industry
Military Segment Will Showcase Significant Growth During the Forecast Period
- The increasingly diverse military applications and the requirement for highly effective and objective surveillance and reconnaissance for some of the most critical military applications are driving the highest demand from the military applications segment of the market. With increasing global unrest due to the ongoing conflicts between major global military superpowers, several militaries are focusing on expanding the fleets of their tactical UAVs to counter any adversary actions from enemies successfully. Furthermore, growing expenditure in the defense sector from Russia, Germany, the UK, France, and others and the increasing use of UAVs for combat operations boost the market growth.
- Tactical UAVs are critical to ensure uninterrupted surveillance at the borders. Due to its diverse application profile, the demand for tactical UAVs has witnessed a multifold increase during the last decade. Hence, several procurements are underway to cater to the increased demand from global military forces.
- For instance, in October 2023, Rheinmetall AG received a contract worth EUR 200 million (USD 210 million) to deliver Luna NG reconnaissance drone systems to the German Army. Under the agreement, the company will provide 13 systems, including a pilot system, in the second quarter of 2025.
- The contract includes spares and training support. Also, in May 2022, Switzerland announced it had received the first two of six Elbit Systems’ Hermes 900 unmanned aerial systems from Israel. The country will receive four other drones by the end of 2023. Such developments will drive the market growth in the coming years.
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United Kingdom is Expected to Show Highest Growth During the Forecast Period
- The UK government is significantly investing in enhancing its defense capabilities due to Russia's growing security threats towards NATO countries, cross-border conflicts, and the ongoing war between Russia and Ukraine. According to the Stockholm International Peace Research Institute (SIPRI) report published in 2022, the UK ranked as the sixth-largest defense spender globally and the second largest in Europe, allocating a defense budget of USD 68.5 billion.
- Moreover, there has been a recent surge in tactical unmanned aerial vehicles (UAVs) within the United Kingdom. Currently, the UK operates a fleet of ten Reaper drones, with plans to replace this fleet in the upcoming years. SIPRI's data indicates that the United Kingdom stands among the largest drone importers globally, having procured three MQ-9 Reaper drones from the US and 55 ‘Watchkeeper’ drones from Israel over the past few years.
- The British military has extensively utilized tactical UAVs in Iraq and Afghanistan, experiencing the loss of nearly 450 UAVs in five years. The Ministry of Defense attributes the loss of these drones to factors such as pilot error, technical faults, or the challenges of retrieval from hostile areas. Consequently, this loss surge has generated substantial demand for new advanced UAVs in the UK over the last five years.
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