Market Trends of UAV Propulsion Systems Industry
Commercial Segment is Expected to Lead the Market During the Forecast Period
Drone technology is no longer limited to military and homeland uses. UAVs have found a vast number of applications in different commercial industries. There is a rapid rise in the adoption of UAVs for various commercial applications. UAVs are used for close visual inspection of other assets like roof inspection, telco and radio towers inspection, and oil & gas plant inspections. UAVs are utilized for monitoring and management applications such as waste management, road safety, traffic monitoring, highway infrastructure management, natural hazards and disaster relief, and port & waterways.
Commercial UAV manufacturers have long been strategizing to adopt alternative propulsion technologies for UAVs. With several vendors experimenting with such innovative technologies, the dependence of UAVs on fossil fuels has been reduced significantly. Recently, hydrogen fuel cells have emerged as a viable alternative fuel to replace Li-ion batteries in smaller drones, and their efficiency in terms of weight/power ratios is increasing rapidly. They offer compelling value for UAVs due to improved reliability over small internal combustion engines, enhancing safe and low maintenance operation.
UAV systems powered by fuel cells operate longer than their battery counterparts, with the same benefits of low thermal and noise. For instance, in August 2023, the Federal Aviation Administration (FAA) approved the Pelican Spray drone from Pyka for crop protection operations in the US.
Asia-Pacific is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to generate the highest demand for UAV propulsion systems during the forecast period. This increasing demand is mainly due to the increasing orders for different UAV configurations for many military and commercial applications. Investments in drone start-ups are projected to grow in several countries in the region, necessitating the implementation of well-defined regulatory policies. In the Asia-Pacific, several modernization programs are underway to enhance the current capabilities of the commercial and military end-users in the region. For instance, in June 2023, India’s Defense Acquisition Council (DAC) announced the procurement of 31 MQ-98 Predator drones manufactured by General Dynamics Atomics Systems Inc. The procurement cost is USD 3 billion, and acquiring these drones will improve India’s surveillance capabilities beyond its borders.
Additionally, in July 2023, the Indian Armed Forces issued a notice to purchase 97 medium-category and long-endurance 'Made-in-India' drones. Moreover, in October 2022, Garuda Aerospace and Elbit Systems signed an agreement at the Defense Expo for Garuda Aerospace; Elbit Systems signed a deal to provide Skylark 3 UAS drones to commercial and government agencies. Skylark 3 drones implement large-scale surveying and mapping of government village projects. Such developments are envisioned to drive the market's growth prospects in focus during the forecast period.
