Market Trends of Tactical UAV Industry
The Military Segment is Anticipated to Lead the Market 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.
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 or being placed to cater to the increased demand from global military forces. For instance, in May 2022, Switzerland received the first two of six Elbit Systems' Hermes 900 unmanned aerial systems from Israel. The country would receive four other drones by the end of 2023.
Border patrol and air surveillance are other critical areas of application for these drones, driving the demand for tactical drones. For instance, in March 2022, Saudi Arabia's Intra DefenceTechnologies unveiled its Samoomtactical MALE UAV, with the design to be optimized for intelligence, surveillance, and reconnaissance tasks. The Saudi Armed Forces anticipated becoming the first customer of the drone.
In October 2022, to bolster the surveillance system on the northern border, the Indian Army floated tenders to procure 750 remotely piloted aerial vehicles or drones along with complete accessories through a fast-track procedure under emergency procurement. Such developments are expected to drive the market for tactical UAVs in the military sector in the coming years.
Asia-Pacific will Experience the Highest Growth During the Forecast Period
Asia-Pacific is expected to register the highest growth and demand during the forecast period due to increasing R&D activities and increasing procurements by countries in the region. The increased purchase of drones for major tactical applications has increased the demand from various countries involved in developing these drones. The rising emphasis on effective border patrol and maritime patrol used by naval forces has increased the demand for tactical drones in these applications.
As Asia-Pacific has been witnessing rapid economic growth and geopolitical tensions, governments are investing in advanced military technologies, including UAVs. Countries like China, India, Japan, Taiwan, and South Korea have made significant strides in developing indigenous UAV capabilities. Ongoing territorial disputes and security challenges have further fueled the demand for UAVs for ISR purposes in Asia-Pacific.
In June 2022, the Taiwan Army purchased 50 short-range tactical UAVs to improve joint battalion reconnaissance capabilities. The Army prepared a budget of TWD 779.98 million (USD 26.5 million) from 2020 to 2023 to acquire 14 UAVs in 2022 and 36 sets in 2023. In January 2022, Japan resumed its plan to procure Northrop Grumman's RQ-4 Global Hawk Drone in a deal worth USD 528 million. The RQ-4 Global Hawk is a High-Altitude surveillance drone to be stationed at the ASDF Misawa Air Base in Japan.
Currently, the Indian Defense Ministry is procuring high-tech UAVs to strengthen its ISR capabilities and improve the effectiveness of its military operations. In December 2023, Johnnette Technologies secured a contract from the Indian Army for its flagship tactical UAV “Johnnette JF-2” for border surveillance. The Johnnette JF-2 is India’s first crash-resistant drone. The Johnnette JF-2 is a hand-launched fixed-wing tactical UAV designed for surveillance and reconnaissance operations. The UAV is equipped with a high-definition day camera and a thermal imaging camera. The UAV also features a crash-proof avionics bay and anti-jamming and anti-spoofing capabilities, making it an ideal solution for military forces. India's tactical UAVs are currently being developed on a huge scale to support tactical units with very short ranges.
