Market Trends of Unmanned Aerial Vehicles Industry
Small UAV Segment Held Highest Shares in the Market
Small UAVs are unmanned aerial vehicles that can span up to 2 meters long. These UAVs typically feature either a rotary-wing or fixed-wing style. Because of their small size, most small UAVs are flown at altitudes near 125 meters at speeds less than 50 meters per second. As several countries focus on enhancing their military surveillance capability, huge investments are being made in developing small drones. Militaries across the world have been procuring nano drones for different military missions. Growing applications of small UAVs in aerial photography, 3D mapping, surveying, and oil and gas pipeline monitoring, among others, have been propelling the growth of the small UAV market. Thus, the growing demand for small drones for various defense and applications drives the segment's growth during the forecast period.
Also, the growing adoption of small UAVs for intelligence, surveillance, and reconnaissance (ISR) and combat missions and rising spending on the defense sector drive the market growth during the forecast period. Increased start-ups and fundraising from governments and investors to design and develop small UAVs for various commercial and military applications have also boosted the market growth.
For instance, in October 2023, Teledyne FLIR LLC launched the latest edition of the Black Hornet nano-drone with upgraded sensors. The newly launched Black Hornet 4 is less than a foot long and weighs a fraction of a pound. It can fly for over 30 minutes and has a range of more than 2 kilometers (1.24 miles). It has a sensitive daytime camera, a thermal imager that can capture videos and images, and a software-defined data system. Such developments will drive the segment growth in the coming years.
North America is Projected to Show Highest Growth During the Forecast Period
North America held the highest shares in the UAV market and continued its domination during the forecast period. The growth is due to growing demand for UAVs for commercial and military applications and rising spending on procurement of autonomous drones. According to the Federal Aviation Administration (FAA), almost 900,000 drones were registered in the US as of July 2023. Of the registered drones, 416,095 were for recreational purposes, and 369,528 were registered for commercial operations. Also, the FAA awarded 331,573 remote pilot certificates.
Additionally, the US DoD constantly seeks innovative and low-cost solutions to enhance its capabilities and counter threats from adversaries like Russia and China. For instance, in April 2023, the Pentagon announced a new program focused on building thousands of autonomous systems, including UAVs, as the US seeks to better counter China’s vast military buildup. In March 2023, the US Army awarded five companies future tactical UAV contracts. The companies selected were AeroVironment, Griffon Aerospace, Northrop Grumman, Sierra Nevada Corporation, and Textron Systems.
Also, the Canadian Defense Forces are investing in enhancing their defense capabilities and procuring UAVs. The MALE (medium-altitude low-endurance) UAV project of the Royal Canadian Air Force has entered the phase of operation analyses. The Remotely Piloted Aircraft Systems (RPAS) Project has been renamed. The national defense strategy released by Canada has led to the inclusion of RPAS into the modern military as a significant development for conducting military operations. Such programs will boost market growth across the region.
