Market Trends of Military Unmanned Ground Vehicle Industry
ISR Segment to Experience the Highest Growth During the Forecast Period
The intelligence, surveillance, and reconnaissance (ISR) segment of the market studied is expected to record the highest CAGR during the forecast period. Intelligence, surveillance, and reconnaissance form a vital part of every military complex operation. The success of military missions largely depends on platforms for ISR missions. Defense companies are working closely with government agencies to develop UGVs that are likely to play a vital role in catering to this need. It is done by providing combatants with additional surveillance and reconnaissance support.
Also, the integration of advanced technology with UGVs for better data acquisition and target identification became another major investment area for the companies. In 2022, Milrem Robotics launched THeMIS Observe, an autonomous Intelligence, Surveillance and Reconnaissance (ISR) Unmanned Ground Vehicle (UGV) based on the company's THeMIS UGV. Such developments in UGVs to support ISR missions are propelling the growth of the segment during the forecast period.
Asia-Pacific to Showcase Remarkable Growth During the Forecast Period
Asia-Pacific is projected to show the highest growth in the military unmanned ground vehicle market during the forecast period. The growth is attributed to the increasing demand for unmanned systems for combat operations and growing expenditure on the defense sector from China, India, South Korea, and Japan. According to the Stockholm International Peace Research Institute (SIPRI), in 2022, China and India were the second and fourth largest defense spenders in the world, with a defense budget of USD 292 billion and USD 81.4 billion, respectively.
Rising cross-border conflicts between India-China and China-Taiwan, political disputes among neighboring countries, and growing terrorism across the region lead to increasing military spending and procurement of advanced defense systems. Indian government started the 'Make in India' initiative to support local defense OEMs to develop and manufacture advanced defense products.
For instance, in August 2022, Edgeforce India, an Indian start-up, unveiled Astro, an unmanned ground vehicle. Autonomous Surveillance and Tracking Rover (Astro) is a wheeled UGV that works in both teleoperated and autonomous modes for performing surveillance operations. Thus, growing expenditure on the procurement of advanced UGVs and the rising use of robotics systems for military applications is driving market growth across the region.
