June 22, 2024
Unmanned Aerial Vehicle Market
Ict

Unmanned Aerial Vehicle Market Poised to Grow at a Robust Pace due to Increasing Military Expenditure

The Unmanned Aerial Vehicle (UAV) market provides various advantages including cost-effectiveness, safety, and situational awareness. UAVs can carry out tasks such as inspections, deliveries, surveillance, agriculture, research & development, and disaster response with minimal human intervention. The growing applications across various sectors including military, commercial, and agriculture have stimulated the demand for Unmanned Aerial Vehicles.

The global Unmanned Aerial Vehicle market is estimated to be valued at US$ 40813.79 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Unmanned Aerial Vehicle are A Guangdong Guanhao High-Tech, Hansol Paper Co., Ltd., Sappi Group, Neenah Coldenhove, Ahlstrom-MunksjÃ, The Felix Schoeller Group, Beaver Paper & Graphic Media Inc., Jiangyin Allnice Digital Technology, Seiko Epson Corporation, B.N Papeis.

The Unmanned Aerial Vehicle Market Growth provides numerous opportunities such as increasing use of drones in e-commerce, logistics, and transportation sectors. Furthermore, growing advancement in AI, IoT, and miniaturization of components is supporting the development of long endurance and smarter UAVs.

Globally, North America dominated the Unmanned Aerial Vehicle market in 2020. However, Asia Pacific is estimated to witness the fastest growth due to increasing military expenditure and rising applications across emerging nations.

Market drivers
The increasing military expenditure across major countries is an important driver boosting the Unmanned Aerial Vehicle market. Military forces around the world are extensively procuring unmanned systems for intelligence, surveillance, and reconnaissance activities. Additionally, growing R&D investments by prominent manufacturers to develop advanced UAVs will further support the market growth over the forecast period.

PEST Analysis
Political: The UAV market is regulated by government organizations regarding privacy, safety and security laws. Different countries have different regulations for operating UAVs which can affect their demand and adoption.

Economic: Changes in global and regional economic conditions affect the spending behavior of industries and government agencies which are major consumers of UAVs. Economic growth influences the investment in UAVs for commercial applications.

Social: Increasing uses of UAVs for photography, videography and entertainment has grown their social acceptance. However, concerns around privacy and surveillance continue to impact public perception on UAV usage.

Technological: Advancements in areas such as autonomous navigation, computer vision, miniaturization and battery life are expanding the capabilities and use cases of UAVs. 5G and other connectivity technologies will improve their command and control capabilities.

Geographical Regions
The North American region currently holds the largest share of the Unmanned Aerial Vehicle market in terms of value, primarily led by the United States. This is attributed to increased government and commercial spending on UAVs for applications like border surveillance, agriculture, infrastructure inspection, and delivery services.

The Asia Pacific region is projected to grow the fastest during the forecast period, expected to be led by countries like China, Japan and India. This growth can be attributed to increasing adoption of UAVs for applications across industries like agriculture, energy, infrastructure and transportation in emerging economies of the region.

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