Unmanned Aerial Vehicle UAV Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global unmanned aerial vehicle UAV market size was valued at USD 36.86 billion in 2023 and is predicted to surpass USD 42.61 billion by the end of 2032. The unmanned aerial vehicle UAV industry is expected to grow by a CAGR of 15.60% between 2024 and 2032.

Market Overview

Unmanned vehicles refer to vehicles that function without any human pilot. It operates remotely through human intervention or autonomously via pre-program flights. There are different kinds of UAVs available in the market, like autonomous UAVs, hybrid UAVS, and remotely operated UAVs.

These UAVs have a wide range of applications in logistics & delivery, agriculture, military & defense, environmental monitoring, infrastructure inspection, research & rescue campaigns, and many others. UAV drones help in precise maneuvering through GPS navigation. It has advanced sensors like radar cameras and thermal imaging, which further extend its capabilities.

Key Insights

• As per the analysis shared by our research analyst, the global unmanned aerial vehicle UAV market size is estimated to grow annually at a CAGR of around 15.60% over the forecast period (2024-2032).
• In terms of revenue, the global unmanned aerial vehicle UAV market size was valued at around USD 36.86 billion in 2023 and is projected to reach USD 42.61 billion by 2032.
• Rising use of UAVs for surveillance and combat missions is driving the growth of the global unmanned aerial vehicle UAV market.
• Based on the operational modes, the remotely operated segment is growing at a high rate and is projected to dominate the global market.
• Based on solutions, the aerostructures and mechanism segment is anticipated to grow with the highest CAGR in the global market.
• Based on the applications, the combat and combat support mission segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Military and defense applications are driving the growth of the global market.

Increasing utilization of UAVs for surveillance and combat missions is driving the growth of the global unmanned aerial vehicle UAV market.

Also, there is a rising demand for unmanned combat aerial vehicles in the defense sector, which is further likely to propel the growth of the industry. Stealth drones and high-altitude long-endurance UAVs are also gaining immense popularity in the market.

Also, its rising usage in the industrial and commercial sectors is further expected to positively influence the growth of the industry. The increasing number of smart cities is also fostering growth opportunities in the market.

Smart cities use these UAVs for different purposes like traffic monitoring, infrastructure inspection, and many others. The growth of the logistics and e-commerce sector is further widening the scope of the industry.

Giant companies like Amazon Prime Air, Wing, Zipline, etc., are further strengthening the demand for UAVs for delivery purposes in the market. The rise of last-mile delivery for food, medical supplies, and other goods is also anticipated to contribute immensely to the growth of the industry.

For instance, Elbit Systems Ltd. received a contract worth USD 410 million in 2022. It is likely to supply seven 'Watchkeeper X' unmanned aircraft systems to the Ministry of National Defense for five years.

Restraints

• Security and privacy concerns are likely to hamper the growth of the global market.

The rising cases of data breaches and unauthorized surveillance are likely to hamper the growth of the unmanned aerial vehicle UAV industry during the forecast period. Increasing terrorist activities are also posing a danger regarding the misuse of UAVs.

Limited battery life is also a major factor likely to negatively impact the growth of the industry. Also, the limited payload capacity is further expected to restrict UAVs for many heavy-duty functions.

Opportunities

• Technological advancements are likely to foster growth opportunities in the global market.

The innovation of extended battery life in hybrid propulsion is expected to revolutionize the market in the coming years. It is likely to enhance flight endurance and operational efficiency, which is expected to positively influence the growth of the industry. The integration of AI and machine learning in UAVs is also likely to extend its operational capabilities.

Furthermore, government support is likely to positively influence the growth of the industry. The government is offering relaxations in UAV regulations to promote drone operations.

The government is also investing in special corridors for various operations, which is further expected to support the growth of the market in the coming years.

UAVs have a major utilization in disaster management and humanitarian aid missions, which is further anticipated to facilitate growth in the global unmanned aerial vehicle UAV market.

For instance, Ukraine said it would obtain 300 DJI Mavic 3T UAVs in 2023 to send them to the frontline. These are ideal for gathering intelligence on ground zero.

Challenges

• High cost is a big challenge in the global market.

The financial cost of UAVs is a big challenge in the unmanned aerial vehicle UAV industry. Moreover, advanced UAVs with better functionality and capabilities are more expensive. Also, there is a need for training pilots, maintenance, and other compliances, which further adds to the overall cost.

Additionally, there is an increasing risk of accidents like collisions with unmanned aircraft in urban infrastructure. Therefore, all these factors limit the growth of the industry.

Report Scope

Segmentation Analysis

The global unmanned aerial vehicle UAV market can be segmented into operational modes, solutions, applications, and regions.

On the basis of operational modes, the market can be segmented into remotely operated, semi-autonomous, and fully autonomous. The remotely operated segment will account for the largest share of the unmanned aerial vehicle UAV industry during the forecast period. Remotely operated UAVs are widely used in military and defense applications for target acquisition, surveillance, and combat machines.

Also, governments globally are realizing the importance of these UAVs for counter-terrorism and border security, which is attracting huge investments.

However, its large-scale usage in the industrial and commercial sectors is further expected to foster opportunities in the segment.

Also, UAVs help farmers in crop monitoring, pesticide spraying, and precision farming. In commercial areas, it is also used for the inspection of pipelines and bridges in buildings, which was difficult with manual interventions.

Technological advancements also contribute to the high growth rate of the segment. The emergence of AI-powered remote control systems helps users with greater automation, which in turn is also likely to support the growth of the segment.

On the basis of solutions, the market can be segmented into the propulsion system, payload, tethering cord, operating software, securing system, aerostructures & mechanisms, and others. The aerostructures and mechanism segment is expected to dominate the global unmanned aerial vehicle UAV market during the forecast period.

The market is witnessing heavy demand for lightweight materials to enhance fight endurance in fuel efficiency, which is a major factor leading the growth of the segment.

Manufacturers are increasingly using titanium alloys, carbon fiber, and other composite materials, which can lower the overall weight and are likely to contribute immensely towards the growth of the segment.

For instance, the emergence of additive manufacturing and 3D printing is likely to revolutionize the assembly process for better functioning. Modern mechanisms like retractable landing gear, folding wings, and morphing structures are likely to further increase its appeal in the market.

Rugged UAV designs are required in commercial and civil applications to combat different external conditions, which in turn is further likely to positively influence the growth of the segment.

On the basis of applications, the market can be segmented into emergency medical logistics, combat support missions, power station management, precision agricultural management, and others. The combat support mission segment is likely to register the highest CAGR growth during the forecast period.

Increasing the government budget for defense and military modernization is a major factor leading to the growth of the segment. The growing capabilities of unmanned combat aerial vehicles are attracting end-users to lower pilot casualties and improve strike capabilities.

The growing focus of the military sector on intelligence, surveillance, and reconnaissance is expected to foster growth opportunities in the segment. These vehicles help in battlefield surveillance and target acquisition. The emergence of swarm drone technology is widening the scope of the segment as it helps facilitate electronic warfare and coordinated attacks with multiple UAVs.

Regional Analysis

• North America to dominate the global market.

North America is likely to account for the largest share of the global unmanned aerial vehicle UAV market during the forecast period. The region's substantial growth is highly driven by its security concerns, driving the procurement decisions of UVAs.

Moreover, many companies in the region are undergoing strategic partnerships to introduce a standardized operating system for UAVs in North America.

Such partnerships are likely to come up with operating systems for controlling autonomous battlefield drones to improve interoperability, particularly among the NATO allies.

Also, the growing military and industrial use of UAVs in countries like the US and Canada are further expected to foster growth opportunities in the region.

Construction and agricultural sectors are using UAVs for infrastructure inspection and environmental monitoring, which is further expected to fuel the growth of the regional market. Increasing investment by the US Defense Department is also expected to expand the scope of the market in the coming years.

Asia Pacific is poised to grow significantly in the coming years. APAC is establishing its position in the unmanned aerial vehicle UAV industry because of the ongoing technological advancements in the region. Governments in APAC are investing heavily in UAVs for surveillance and combat operations. China is leading the market because of its collaboration with Russia's defense industry.

Moreover, advancements in military technology will further bolster the growth of the Chinese market in the coming years. India is also likely to witness significant developments in the coming years because of the growing focus of the regional government on improving and modernizing defense technology.

Additionally, agricultural, energy, and construction sectors in APAC are witnessing the wide-scale adoption of UAVs for diverse tasks.

Therefore, such a landscape is likely to positively influence the growth of the regional market in the coming years. For instance, Bayer said to start utilizing drones in agriculture in 2022. Drone services will help end users protect their crops in a phased manner.

Competitive Analysis

The key players in the global unmanned aerial vehicle UAV market include:

• Leonardo S.p.A.
• Textron Systems Corporation
• Teledyne Technologies Inc.
• SZ DJI Technology Co. Ltd.
• Northrop Grumman Corporation
• Israel Aerospace Industries
• General Atomics Aeronautical Systems
• BAE Systems PLC

For instance, Nokia is said to have signed a contract with Citymesh in 2023 to provide 70 drone-in-a-box units. Latter is a Belgium-based telecom operator that will function with a 5G automated drone grid, which will grow the speed of the resources.

The global unmanned aerial vehicle UAV market is segmented as follows:

By Operational Modes Segment Analysis

• Remotely Operated
• Semi-Autonomous
• Fully Autonomous

By Solutions Segment Analysis

• Propulsion System
• Payload
• Tethering Cord
• Operating Software
• Securing System
• Aerostructures & Mechanisms
• Others

By Applications Segment Analysis

• Emergency Medical Logistics
• Combat And Combat Support Missions
• Power Station Management
• Precision Agricultural Management
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America