global unmanned aerial vehicle market - jan'14

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published: Nov’ 2013

Unmanned Aerial Vehicle Market


Market Overview

UAS (Unmanned Aircraft Systems) is an emerging sector of the aero-space industry with great opportu-nity and market demand that can be leveraged to high profitability in the near future.UAS market includes all unmanned vehicles such as Unmanned Aerial Vehicles (UAVs), blimps and zeppelins.

Unmanned Aerial Vehicles (UAVs) are the most predominant seg-ment of the UAS market. Pres-ently, most of the expenditures on UAVs are dedicated for Research and Development activities.

The global UAV Market is witness-ing a gradual but constant growth during past few years and is expected to reach US$ 7.1 Billion by the end of the year 2013 rising from US$ 4.5 Billion in 2009.

It is projected that NATO nations (especially the U.S.) will reduce their investment in defense and security UAVs while the non-NATO world will move into the military and police UAVs in a relatively big way.

Thus, the revenue for Unmanned Aerial Vehicle is expected to experience a CAGR of 3.3% during the period of 2013- 2018 from US$ 7.1 Billion to reach US$ 8.4 Billion in 2018. Further, General Atomics Aeronautical Systems is the leader in UAV market with around 19% of the market share.

The UAV market is evolving and manufac-turers are fairly concentrated in the US; and Israel is another major location. It is now becoming an increasingly international market, as UAVs have also proved their value in Iraq and Afghanistan.

Overview

7.1

6.65.9

5.34.5

20092010

20112012

2013

Figure 1: Unmanned Aerial Vehicle Market (Billion US$), 2009-2013

Source: RNCOS

7

2013e 2018f

8

CAGR3.3%

Figure 2: Unmanned Aerial Vehicle Market (Billion US$), 2013 & 2018

Source: RNCOS


It is further being sought by a growing number of militaries worldwide.US is expected to account for 65% of the worldwide RDT&E spending on UAV technology over the next decade, and 51% of the procurement. In addition, at present, 32 nations are developing over 250 models of UAS and 41 countries are operating 80 types, mainly for recon-naissance activities.

Apart from US, the coun-tries which have shown major interest in UAVs are Brazil and Argentina in Latin America; UK, France and Germany in Eu-rope; South Africa in Africa; Israel and

the UAE in the Middle East and India, Australia, Japan and South Korea in the Asia-Pacific. Russia too has an in-depth UAV programme, but their success levels have been limited.

There has been extensive usage of tacti-cal UAVs (TUAVs) and relatively fewer high altitude long endurance UAVs (HALE) and medium altitude long endurance (MALE) systems and further Small UAVs (SUAVs) have also seen strong growth.

In addition to the military market, the mar-ket for civilian and commercial unmanned air vehicles is also growing. Civilian usage of UAVs is majorly present in Australia, France, South Africa, Sweden and the US.

North America

Asia-Pacific

Europe

Middle East

Africa

Latin America

71%

12%9%

1%5%

2%

Figure 3: Unmanned Aerial Vehicle Market by region (%), 2012

Source: Eurosmart

North America

Asia-Pacific

Europe

Middle East

Africa

Latin America

66%

5%

15%

8%

3%

3%

Figure 4: Unmanned Aerial Vehicle Market by region (%), 2017

Source: Eurosmart


Also, the High altitude unmanned Aerial Vehicles are expected to rule the market with around 62% by 2017 followed by the Me-

dium Altitude types with around 20% share and low altitude vehicles with about 14%.

With FAA regulation until 2015, the civilian UAV market is growing at a slower rate when compared to military and security applica-tions although is expected to gain demand in future. The USA and EU are looking at policies by which they can allow the usage of UAV’s in the national airspaces.

Further, High Altitude Unmanned Aerial Vehicle lead the market followed by medium altitude vehicles and low altitude types and a small portion of the pie is also occupied by the stratospheric unmanned vehicles.

Source: RNCOS

High Altitude

Medium Altitude

Low Altitude

Stratrospheric

Figure-5: Unmanned Aerial Vehicle Market by Type (%), 2017

62%

4%

14% 20%


UAVs are expected to have an extended presence although at a slower pace and reach impres-sive heights; the predictions on the show floor push the envelope even more as the market is anticipated to grow at a CAGR of over 3% during 2013-2018.

Similarly, SPUAV (Solar Powered Unmanned Aerial Vehicles) will be one of the major technologi-cal advances to be seen in the near future. In future, UAVs may be capable of reaching heights that are over double or triple of what the present can reach and stay in the air for months at a time.

Further, UAVs are also trending towards “Tiny UAVs” that can be flown through open windows are in the works. These miniscule aircraft would stay airborne in times measured in seconds or minutes while giving valuable information to soldiers on the ground without giving away their position like a thrown ground vehicle might.

In addition to new technical capabilities, the potential of UAVs is also trending towards Ad-vanced Automated systems. Rather than having several personnel monitoring a UAV, in the future it is expected that one person can monitor many different UAVs at once. For instance, The Hummingbird is the step towards automation, with the ability to fly to land without any assistance with high accuracy and also perform a number of similarly complex feats without human guidance.

Thus, UAVs with various degrees of autonomy are already being used and the potential for the new technology makes it evident that the unmanned aerial vehicle have a positive future.

Future Outlook


• Light weight Sensors emerge as an Opportunity Area

There is an increasing deployment of unmanned aerial vehicles (UAVs), to allow new air borne payloads to be tested rapidly and effectively.

For instance, research team at the Georgia Tech Research Institute (GTRI) is developing an airborne testing capability for sensors. Lightweight sensors allow the use of lighter, smaller UAVs.

• PotentiallyVastMarketforCivilUAVs

According to the European Commission, there are more than 400 projects across 20 Euro pean countries to develop civil unmanned aerial vehicles (UAV) ranging from some weigh ing just a few grammes to others the size of an Airbus A320 jet.

• DefenceContractorsFormPartnershipswithSmallerCompanies For instance, Smaller companies in U.S are striking up partnerships with major defense con tractors, as they await rules from the FAA on integrating UAS’s into the U.S. airspace.

• GrowthinUnmannedCombatAerialVehicles(UCAV) Russia joined China and European firms in developing unmanned combat air vehicle. These are considered to be the replacements for current light bombers (or fighters operating as light bombers) and combat reconnaissance aircraft.

Opportunities

Opportunities & Challenges


• OperatingCostsDeterCountriesfromBuyingUAVs

The costs of operating a UAV is more than double the costs of operating a manned air craft. This is because UAVs require a significant amount of logistical support and special ized operator and maintenance training.

• PronetoOperationalErrors

Operating one UAV requires a crew of up to 20 support personnel. Moreover, these tasks, which require sustained attention from the operator can become target repetitious and dull over time and can lead to degraded performance and operational errors.

• BandwidthLimitationRaisingConcern

With the increased autonomy, bandwidth required to support these capabilities limit opera tional flexibility because of the need to choose between large numbers of relatively static surveillance missions or a few very flexible multi-mission operations.

• IntegrationintoControlledAirspace

There is a lack of clear regulations to integrate UAVs into the airspace and make them coexist with manned aircraft and thus is posing a serious threat.

• FuelandBatteryRequirements

• AirRegulationsAffectbothMilitaryandCivilUAVs

• CivilUAVsRaiseAirSafetyConcerns

Challenges


Recent News

• April 2013, South Korea has planned to resume a once-aborted program to develop mid-altitude unmanned aerial vehicles (MUAV) to bolster its monitoring capabilities of North Korea’s missile and nuclear programs.

• May 2013, The Indian government is set to move unmanned aerial vehicles (UAVs) meant for anti-Naxalite operations to Bhilai in Chhattisgarh, even as the Indian Air Force (IAF) is ramping up its helicopter fleet in central India.

• June 2013, Three of Europe’s biggest aerospace companies: EADS Cassidian, Dassault Aviation and Finmeccanica Alenia Aermacchi, having a common view on the current situation in Europe regard-ing MALE drones, call for the launch of a European MALE program.

• September 2013, Iran unveiled the latest unmanned aerial vehicle (UAV) during the ceremonies of the Sacred Defense week. The UAV`s domestically made bombs and missiles, which have already been fully installed and tested. The capability to fly at higher altitudes for a longer range distin-guishes Hamaseh from other Iranian-made drones.

• September 2013, The Border Security Force (BSF) will soon deploy unmanned aerial vehicles (UAV) along the border with Pakistan to maintain heightened vigil. A standard operating procedure is be-ing drafted with the Indian Air Force (IAF) to finalize the modalities of using the UAVs.

• October 2013, Army’s Northern Command has issued a global tender for procuring 49 latest min-iature unmanned aerial vehicles (UAVs) for gathering intelligence and carry out reconnaissance of areas along Line of Control (LoC) with Pakistan and Sino-India border.

Recent News


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