July 25, 2024
Small UAV Market

Small UAV Market Poised to Gain Traction with 11% CAGR by 2031 Driven by Rising Demand for Commercial Applications

The small UAV market comprises mini drones weighing less than 25 kilograms, and have payload capacities ranging from 1 kilograms to 2 kilograms. Key features of small UAVs include easy launch and recovery, high maneuverability for navigation in confined areas, integration of multi-payload options like HD cameras and sensors for commercial as well as defense applications. Small UAVs are suitable for applications requiring close range aerial monitoring and inspection such as agriculture, law enforcement, infrastructure monitoring, and aerial photography.

 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.

Key Takeaways

Key players operating in the small UAV market are Northrop Grumman, Bayer Tech, 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.

Growing demand for small drones in commercial applications like aerial photography, precision agriculture, and infrastructure monitoring is fueling market growth. Small UAVs enable low-cost aerial monitoring and inspection of farms, construction sites, and industrial facilities with minimum operational costs.

The Small UAV Market Trends is witnessing increasing global expansion driven by rising adoption across North America, Europe, Asia Pacific, Middle East and Africa. Strict regulations regarding drone usage and privacy concerns in some countries continue to restrain market growth.

Market Key Trends

The demand for small drones equipped with advanced technologies like artificial intelligence, computational photography, and lightweight multi-materials is growing for applications like package delivery and surveillance. For example, AI-enabled inspection drones can autonomously scan infrastructure for defects. Rising investments by startup companies in developing alternative power sources like hydrogen fuel cells is making small UAVs more capable for longer endurance applications.

Porter’s Analysis

Threat of new entrants: New companies find it difficult to enter this market as it requires large investments and established supply chains. Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of a large number of players in the market. Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are alternative suppliers for companies to source components. Threat of new substitutes: Threat of new substitutes is moderate as new technologies can disrupt the market. Competitive rivalry: The small UAV market is competitive due to the presence of major global players operating in the market.

North America holds the largest share of the small UAV market owing to high defense expenditures of countries in the region. The region is focusing on developing advanced technologies due to increasing investments in R&D by prominent players.

The Asia Pacific region is expected to grow at the fastest rate during the forecast period due to increasing demand from emerging economies such as China and India. Countries in the region are procuring small UAVs for military modernization programs that is driving the market.

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