June 17, 2024
Small Uav Market

Small Uav Market is Estimated to Witness High Growth Owing to Growing Military Applications

Small unmanned aerial vehicles (UAVs), also known as small drones, are becoming increasingly popular for both commercial and military applications. Weighing less than 25 kilograms, small UAVs have a low unit cost and can perform tasks like reconnaissance, target acquisition, battle damage assessment, and delivering payloads such as medicines in remote areas. Their small size allows them to reach locations difficult to access otherwise. Small UAVs are equipped with sensors and cameras for applications in areas such as border security, disaster management, infrastructure inspection and precision agriculture.

The Global small UAV Market is estimated to be valued at US$ 6.67 Bn in 2024 and is expected to exhibit a CAGR of 11.% over the forecast period from 2024 to 2031.

Growing military applications for surveillance and reconnaissance activities around the world are a key driver for growth of Small Uav Market Trends. The use of small UAVs allows militaries to carry out operations with low collateral damage at minimal cost compared to manned aircraft or helicopters.

Key Takeaways

Key players: Key players operating in the small UAV market are Northrop Grumman, DJI, Parrot Drone SAS, Israel Aerospace Industry Ltd., AeroVironment, Inc., Lockheed Martin Corporation, Teledyne FLIR LLC, BAE Systems, Elbit Systems Ltd., AIRBUS, Textron Inc., Autel Robotics, Yuneec, PowerVision Inc., Teledyne Technologies Incorporated , Guangzhou Walkera Technology Co Ltd, Yuneec , Turkish Aerospace Industries, and Others.

Key opportunities: Increased funding for border surveillance and security applications is opening new growth avenues for small UAV manufacturers. Additionally, rising demand for small commercial drones for applications in precision agriculture, infrastructure inspection and aerial photography present major opportunities.

Global expansion: Leading manufacturers are focusing on expanding their global footprint through partnerships and acquisitions. In emerging markets, demand for low-cost small UAVs for military and commercial applications is on the rise driving increased investments by international players.

Market Drivers

Growing military applications for small UAVs around the world remain a key growth driver. Small drones allow armed forces to carry out tasks like border monitoring, naval patrols and Intelligence, Surveillance and Reconnaissance (ISR) operations at lower operational costs compared to manned systems. The ability of small drones to reach remote locations with advantage of minimal sound and small size make them suitable for military applications. Additionally, supportive government policies and regulations regarding commercial drone operations in several countries are encouraging applications in areas like agriculture, infrastructure inspection and emergency response thereby propelling the small UAV market growth.

PEST Analysis

Political: Regulations regarding safety, security and privacy related to drone usage are evolving. Stricter norms could impact demand.

Economic: Falling component prices and improving affordability is driving consumer interest. However, an economic slowdown may dampen spending.

Social: Growing popularity of UAVs for professional and recreational applications. Safety concerns if misused still remain a challenge to overcome.

Technological: Advancements in batteries, cameras, sensors and AI are enhancing capabilities. Miniaturization is making drones more accessible. However, connectivity and longer flight times remain areas of focus.

The geographical regions where the market is concentrated in terms of value include North America and Europe. North America accounts for the largest share currently due to high defense spending and a significant presence of leading manufacturers in the US.

The Asia Pacific region is expected to experience the fastest growth over the forecast period. Countries like China, Japan and South Korea are major manufacturing hubs and see increasing adoption of drones for agriculture, surveillance and delivery applications. Developing Southeast Asian countries are also emerging as key future markets.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.