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UAV Market 2017 Analysis by Region and Forecast 2021
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Market Summary:


The UAV or Unmanned Aerial Vehicle is an aircraft without a pilot on board. UAVs can be controlled remotely i.e. flown by a pilot at a ground control station or can fly autonomously, based on pre-programmed flight plans or more complex dynamic automation systems. UAVs are currently used for a number of missions, including reconnaissance and attack roles. In some cases, the abbreviation UAV has been expanded to UAVS (Unmanned Aircraft Vehicle System). Officially, the term ‘Unmanned Aerial Vehicle' was changed to 'Unmanned Aircraft System' to reflect the fact that these complex systems include ground stations and other elements besides the actual air vehicles.

UAVs are considered as cost effective and effective for operation in comparison to manned aircrafts, for military and commercial applications. Hence, the factors such as internal and external security threats, territorial disputes and modernization initiatives undertaken by armed forces across the world are providing impetus to the market growth of global UAV market. Furthermore, the augmented demand for UAVs from emerging markets, such as the Middle East and Asia, will result in this market’s strong growth during the forecast period


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Meanwhile, Demand for UAVs is rapidly increasing from emerging and developing nations to counter national security threat. According to a recent study report published by the Market Research Future, Globally, the market for UAVs has increased its market growth in recent years and is expected to grow at a rapid pace during the forecast period. The global market of UAV is forecasted to witness a thriving growth by 2021, surpassing its previous growth records in terms of value with a striking CAGR of around ~ 11% during the anticipated period (2016 – 2021). 

As per the MRFR analysis, cost effectiveness is one of the key drivers for global UAV market to acquire and operate in comparison to manned aircraft and helicopters. The challenges associated with the market are the low endurance and stringent regulation associated with civilian and commercial usage of UAVs. Small unmanned aerial vehicles (UAVs) have become popular on the battlefield for various military missions (such as ISR applications).


Key Players

The leading market players in the global UAV market primarily include AeroVironment, Elbit Systems, Israel Aerospace Industries (IAI), Northrop Grumman. The other prominent vendor includes Aeronautics Limited, Aeyron Labs, Aibotix, BAE Systems, DJI, Lockheed Martin and Prox Dynamics.


Latest Industry/ Innovation/ Related News:

October 09, 2017- AeroVironment, Inc. announced the receipt of a contract award from the United States Navy on September 29, 2017, for continuation and expansion of its Blackwing™ small Unmanned Aerial Vehicles (UAV) program. The contract includes orders for multiple Blackwing vehicles, sensor payloads and refurbishment kits for a total value of USD 2,578,822. The initial set of vehicles are anticipated for delivery by May 2018, and final delivery anticipated by November 2018.

Sept. 19, 2017:- AeroVironment announced that it has delivered M1/M2/M5-compatible Raven® and Puma™ AE unmanned aircraft systems (UAS) to two DoD customers, with more orders and deliveries scheduled. In addition, the company will begin taking orders in December 2017 for M1/M2/M5-configured Wasp® AE micro air vehicles (MAV) for delivery in spring 2018.

January 23, 2017:- Israel Aerospace Industries (IAI) expects to expand collaboration with local leading companies to integrate strategic state-of-the-art systems for the Indian MOD, in a number of areas; and in accordance with the Indian Government's Make in India policy. These collaborations are a direct continuation of IAI's business deals in India which totalled some USD 0.5 billion in 2016.


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Regional Analysis

Majority of the world market is now mainly for military and defense applications, and is dominated by the US. However, increasing demand for the emerging economies have shown interest in implementation of UAVs for border security and surveillance applications. Middle East is one of the emerging market, with Israel being one of the major manufacturers and exporter of UAVs. Asia is also expected to show a substantial growth in the future, mainly dominated by the demand from China.

The US is the global market leader of both UAV demand and as a manufacturer. It is the largest operator of UAVs globally as well. The majority of this demand is mainly supported by military and defense applications, and the US army is the single largest buyer of UAVs worldwide. In addition to the large tactical UAVs, many small electric-powered UAVs have also become common on the battlefield. However, the market has slowed down to some extent in the past two years as the US had started to withdraw its military from the conflict regions (Afghanistan and Iraq), where many of these UAVs were implemented in service for various missions.




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