Market Trends of Unmanned Combat Aerial Vehicle Industry
This section covers the major market trends shaping the Unmanned Combat Aerial Vehicle Market according to our research experts:
Fixed-Wing Segment is Projected to Show Significant Growth During the Forecast Period
The fixed-wing segment of the market has the highest market share and is expected to register the highest CAGR during the forecast period. The growth is attributed to the increase in investments in the development of delta-wing and complex delta-wing UCAVs, with advanced combat capabilities, that can fly at supersonic speeds. Countries, like the United States, India, China, Iran, Israel, and Russia, among others, have invested in such combat UAVs. China is using stealth technology in unmanned platforms and is unveiling more UCAV variants. Furthermore, rising global expenditure and rising spending in enhancing defense capabilities drive market growth.
For instance, in July 2022, Defense Research and Development Organisation (DRDO) in India successfully conducted the first flight test of the autonomous flying wing technology demonstrator at the aeronautical test range in Karnataka. It was the major milestone of DRDO scientists towards developing an unmanned combat aerial vehicle of flying wing type. It was the precursor to an autonomous UCAV being developed by the DRDO's Aeronautical Development Establishment (ADE), for the Indian Air Force. Thus, growing expenditure on the design and development of next-generation fixed-wing combat drones drives the growth of the market during the forecast period.
North America is Expected to Lead the Market During the Forecast Period
North America held the highest market share in the unmanned combat aerial vehicle market and continue its domination during the forecast period. The growth is attributed to the highest defense expenditure, growing focus on improving military capabilities, and procurement of next-generation combat drones. The United States is the highest defense spender in the world in 2021. The United States Department of Defense (DoD) allocated about USD 7.5 billion in 2021 for a variety of unmanned systems and related technologies. Furthermore, the United States Department of Defense requested USD 1 billion for the procurement of 3 MQ-4 Triton unmanned aerial vehicles in the fiscal year 2023 defense budget. Thus, rising defense expenditure and increasing adoption of next-generation combat UCAVs for strengthening defense capabilities drive market growth across North America.
For instance, in May 2022, XTEND, an Israeli defense company signed an agreement with the United States Department of Defense to supply hundreds of new Wolverine Gen2 drones to the United States military. The drones will be used to protect ground troops on dangerous missions. The Wolverine drones are lightweight with lower power consumption than other small unmanned systems. Thus, increasing investment in the procurement of advanced combat drones will boost market growth across the region in the coming years.
