The Unmanned Aerial Vehicle (UAV) Market is expected to reach $21.8 billion by 2027, at a CAGR of 14.1% during the forecast period of 2020 to 2027. Also, in terms of volume, the market is expected to grow at a CAGR of 16.2% from 2020 to 2027 to reach 13.2 million units by 2027. This growth of the market is primarily driven by the factors such as rising adoption of UAVs in civil and commercial applications, increasing deployment of UAVs in border patrolling and combating terrorism, and exemptions made by the regulatory authorities around the globe to permit the use of UAVs in several industries. In addition, increased deployment of UAVs to carry out aerial remote sensing and growing defense budgets of major economies also provides significant opportunities for the various stakeholders in the unmanned aerial vehicle market.
Impact of COVID-19 on UAV Market: Surge in the Demand For UAVs Amid COVID-19 Crisis
The COVID-19 has emerged as a global pandemic causing more than 391,839 deaths (As of 6th June, 2020) and infecting more than 3 million people worldwide, resulting in countrywide lockdowns and slowing down of economies. Under this scenario, multiple facets of life have been affected ranging from consumer products to industrial activities. In these circumstances, where human activities have been limited and restricted due to the epidemic outbreak, UAV have emerged as a major utility product. Various UAVs, from small to large, are being used for a vast array of applications, proving that public and private organizations can incorporate UAVs as a tool for planning and preparation for similar situations in the future. Some of the critical applications where UAVs are being deployed by humans to tackle the COVID-19 impact include:
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To disinfect public spaces and avoid further spread of COVID-19, health authorities are deploying UAVs to conduct tasks such as spraying disinfectants in potentially infected areas. These spraying UAVs are filled with disinfectants and can cover much more area in less time and are 50 times faster than conventional methods. According to DJI (China), one of the world's largest UAV maker, a spraying UAV can hold about 16 liters of disinfectant and cover an area of 100,000 square meters in an hour. Such UAVs are easy to use, affordable, and can be quickly mobilized, in addition to reducing the risk of exposure to health and sanitation workers. Due to its benefits, some countries have successfully used disinfecting UAVs to control the spread of COVID-19.
- Doctors and hospitals need medical supplies and laboratory testing kits more than ever, which increases the demand of UAVs to deliver medical supplies in the safest and fastest way from hospitals to laboratories. This technology not only speeds up the delivery of essential medical supplies and samples but also reduces the risk of exposure to medical staff, thereby making a major difference in efforts to combat the disease. Apart from medical supplies, UAVs are also being used for delivering essential goods, especially in isolated areas, thereby, helping to maintain physical distance and save time as compared with road transport.
- UAV surveillance and monitoring are some of the key applications in military operations. Its adoption at the civilian level was at a nascent stage. Nevertheless, in the current crisis, the demand for UAVs is increasing for surveillance, public announcements, monitoring, and guiding local law enforcement. Besides, UAVs mounted with infrared cameras are also being deployed by various countries to measure body temperature. The introduction of UAVs at this time of crisis is reducing the risk of being contaminated with police officials and other staff, as it enables the surveillance of vast swathe of the area without physical intervention.
It is predicted that the UAV market growth would be somewhat staggered during 2020 owing to a limited military spending by countries, globally, but the commercial and civil applications would continue to generate new revenue prospects for the global unmanned aerial vehicles market amidst the COVID-19 epidemic.
Rising adoption of UAVs in civil and commercial applications to fuel the growth of the UAVs market
The use of drone is gaining momentum primarily within the healthcare and agriculture industries. For instance, in 2017, government agencies across key African countries, such as Tanzania, have partnered with delivery companies like Zipline to deliver medical supplies and blood to inaccessible and rural areas. In addition, in 2018, WakeMed Health & Hospital in North Carolina (U.S.) had partnered with the state’s department of transportation on a pilot program to determine the practicality of the use of drone to deliver medical products across hospital campuses. After several successful tests, WakeMed has formed a partnership with Matternet, a drone manufacturer based in California, and later with UPS to further develop the hospital’s drone delivery efforts.
Furthermore, drone are also transforming how agriculture and farming are done. By implementing drone technology, farms and agriculture businesses can improve crop yields, save time, and make land management decisions that’ll improve long-term success. Agricultural workers are able to gather data, automate redundant farming processes, and generally maximize efficiency. In a research capacity, drone have also been used to pollinate flowers, and could one day prove helpful in compensating for the declining bee population.
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Key Findings in the Global UAV Market Study:
UAV hardware to dominate the global unmanned aerial vehicle market in 2020
Based on component, the hardware segment is estimated to command the largest share of the overall unmanned aerial vehicle market in 2020. The growing need for replacement, upgradation, and modification in the drone hardware components to increase the lifespan and performance of drone as well as to gain competitive advantage is driving the growth of this market. In addition, growing attention of the companies towards the modification and creation of drone structure to make them work under any extreme climatic conditions is further supporting the growth of this market. However, the software segment is expected to grow with the fastest CAGR during the forecast period, owing to developments in advanced drone software technology and increasing software demand for better data analysis.
Rotary wing UAVs to witness the largest demand through 2027
Based on the type, the rotary-wing UAV segment is estimated to command the largest share of the overall unmanned aerial vehicle market in 2020. This is primarily attributed to its greater maneuverability and compact design, easy to use nature, higher payload capacity, and comparatively lower price than the other types of drone. In addition, these drone require less space to take flight; and can hover mid-flight.
Remotely operated UAV to command the largest share of the market in 2020
Based on the mode of operation, remotely operated UAV is estimated commanded the largest share of the overall unmanned aerial vehicle market in 2020, owing to their capabilities of emergency landing, disconnecting recovery, and emergency handover between control channels. However, the fully autonomous UAV segment is projected to grow with the fastest CAGR during the forecast period. The fast growth of this segment is mainly attributed to the increasing demand of fully autonomous UAV due to its well-developed features such as stability enhancement and waypoint flight. Also, a fully autonomous UAV can perform all functions on its own without the requirement of any external command from the operator.
Small UAV segment is projected to grow with the fastest CAGR during the forecast period
Based on class, the small UAVs segment is projected to grow with the fastest CAGR during the forecast period. This is primarily attributed to the growing adoption of small UAVs in commercial applications such as law enforcement, media & entertainment, energy & power, wildlife survey, disaster management, logistics & transportation, manufacturing, and inventory management.
Military dominated the unmanned aerial vehicle (UAV) market
Based on end-user, the military segment is estimated to account for the largest share of the overall UAV market in 2020. This is primarily attributed to the increasing demand of autonomous UAVs for intelligence, defense, and reconnaissance (ISR) missions. Increasing demand for UAVs such as HALE, MALE, and tactical & special purpose UAVs in operations such as border surveillance and terrorism combat will further contribute to the higher deployment of UAVs in military applications.
Asia-Pacific: The fastest-growing regional market
The North America is estimated to command the largest share of the global unmanned aerial vehicle market in 2020, followed by Europe, Asia Pacific, Latin America, and the Middle East and Africa. However, Asia-Pacific region is expected to witness a rapid growth during the forecast period. The rapid growth of this region is mainly driven by the increasing adoption of automation and advanced technologies across a wide range of industries in countries such as China and Japan to counter the rising labor costs; supporting government initiatives across the region, and growing investments by major UAV companies.
Key Players
The report includes competitive landscape based on the extensive assessment of the key strategic developments adopted by the leading market participants in the unmanned aerial vehicle industry over the last four years (2017-2020). The key players profiled in the global unmanned aerial vehicle market are Elbit Systems Ltd. (Israel), Northrop Grumman Corporation (U.S.), General Atomics (U.S.), AeroVironment, Inc. (U.S.), Lockheed Martin Corporation (U.S.), Israel Aerospace Industries Ltd. (Israel), Parrot S.A.(France), Microdrone GmbH (Germany), PrecisionHawk Inc (U.S.), SZ DJI Technology Co., Ltd (China), 3D Robotics (U.S.), Textron Inc. (U.S.), Boeing (U.S.), Aeronautics (U.S), Saab AB (Sweden), BAE Systems plc (U.K.), Ehang (China), Raytheon Company (U.S.), Turkish Aerospace Industries (Turkey), and Yuneec International (China) among others.
Scope of the report
Unmanned Aerial Vehicle Market, by Component
- UAV Hardware
- UAV Airframes
- UAV Avionics
- UAV Flight Control Systems
- UAV Navigation Systems
- UAV GPS/GNSS
- UAV INS/IMU
- UAV Sense & Avoid Systems
- UAV Sensors
- Speed Sensors
- Light Sensors
- Proximity Sensors
- Temperature Sensors
- Position Sensors
- UAV Communication Systems
- Others
- UAV Propulsion Systems
- UAV Engines
- Electric Engines
- Gas Engines
- UAV Batteries
- Solar Cells
- Fuel Cells
- Hybrid Cells
- UAV Ground Control Stations
- UAV Launch & Recovery Systems
- UAV Software
Unmanned Aerial Vehicle Market, by Class
- Small UAVs
- Strategic & Tactical UAVs
- Special-Purpose UAVs
Unmanned Aerial Vehicle Market, by Type
- Fixed-Wing UAVs
- Fixed-Wing VTOL UAVs
- Rotary-Wing UAVs
- Single Rotor wing UAVs
- Multi-Rotor wing UAVs
Unmanned Aerial Vehicle Market, by Capacity
- <25 Kilograms
- 25-170 Kilograms
- >170 Kilograms
Unmanned Aerial Vehicle Market, by Mode of Operation
- Remotely Operated UAVs
- Semi-Autonomous UAVs
- Fully Autonomous UAVs
Unmanned Aerial Vehicle Market, by End-user
- Military
- Commercial
- Law Enforcement
- Agriculture
- Energy & Power
- Construction & Mining
- Media & Entertainment
- Wildlife & Forestry
- Insurance
Unmanned Aerial Vehicle Market, by Geography
- North America
- Europe
- U.K.
- Germany
- France
- Italy
- Russia
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Rest of Asia-Pacific
- Latin America
- Middle East and Africa
Key questions answered in the report: