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Page 1: The Global UAV Market 2013 2023 - SP.pdf · 2014-02-24 · The Global UAV Market 2013–2023 2 TABLE OF CONTENTS 1 Introduction ..... 14 1.1 What is this Report About?..... 14

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The Global UAV Market 2013–2023

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TABLE OF CONTENTS

1 Introduction ......................................................................................................................... 14

1.1 What is this Report About? ............................................................................................................. 14

1.2 Definitions ...................................................................................................................................... 14

1.3 Summary Methodology .................................................................................................................. 16

1.4 About Strategic Defence Intelligence .............................................................................................. 17

2 Executive Summary ............................................................................................................ 18

3 Global UAV Market Size and Drivers ................................................................................. 20

3.1 UAV Market Size and Forecast 2013–2023 .................................................................................... 20

3.1.1 Global UAV market is estimated at US$XX billion during the forecast period ......................................... 20

3.2 Global UAV Market – Regional Analysis ........................................................................................ 21

3.2.1 North America constitutes the majority share in the global UAV market .................................................. 21

3.2.2 Demand for UAVs in the US to spur the North American UAV market .................................................... 23

3.2.3 Europe set to spend US$XX billion on UAVs across the forecast period ................................................ 25

3.2.4 UAV market expected to grow at a CAGR of XX% in the Asia-Pacific region ......................................... 27

3.2.5 Regional unrest to trigger UAV demand in the Middle East during the forecast period ........................... 29

3.2.6 Brazil to dominate the UAV market in Latin America ............................................................................... 31

3.2.7 African markets expected to grow as western defense manufacturers target the region ........................ 32

3.3 UAV Sub–Sector Market Size Composition .................................................................................... 33

3.3.1 HALE UAVs forecast to constitute the largest share of the UAV market ................................................. 33

3.3.2 Market for UCAVs expected to increase at a CAGR of XX% during the forecast period ......................... 35

3.3.3 Need for real-time persistent surveillance to drive the MALE UAV market during the forecast period .... 36

3.3.4 Demand for TUAVs to grow at a CAGR of XX% during the forecast period ............................................ 37

3.3.5 Market size of VTOL UAVs is estimated to be US$XX billion during the forecast period ........................ 38

3.3.6 Market for MUAVs expected to reach US$XX million by 2023 ................................................................. 39

3.4 Demand Drivers and Growth Stimulators ....................................................................................... 40

3.4.1 Demand for UAVs propelled by internal and external security threats ..................................................... 40

3.4.2 Territorial disputes anticipated to increase global demand in UAVs for border monitoring ..................... 41

3.4.3 Need for advanced defense systems creates market opportunity for UAVs ............................................ 43

3.5 Defense Budget Spending Review ................................................................................................. 44

3.5.1 European capital expenditure expected to increase during the forecast period ...................................... 44

3.5.2 Asian defense budgets expected to increase at a robust pace ................................................................ 45

3.5.3 North American defense expenditure projected to decline marginally during the forecast period ........... 46

3.5.4 Modernization programs likely to drive defense expenditure in South American countries ..................... 47

3.5.5 Military budgets of African countries expected to increase during the forecast period ............................ 48

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3.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period .................... 49

3.6 Defense Modernization Review ...................................................................................................... 50

3.6.1 Debt crisis in Europe leading to postponement of modernization plans .................................................. 50

3.6.2 Arms race in Asia reflected in modernization plans ................................................................................. 50

3.6.3 North American modernization plans marginally affected by economic recession .................................. 50

3.6.4 Modernization programs in South America driven by replacement of obsolete armaments .................... 50

3.6.5 African countries mainly spending on infantry weapons, and surveillance and monitoring equipment, to

slow growing crime rate ........................................................................................................................................ 51

3.6.6 Middle Eastern countries pursuing modernization of air force and air defense systems ......................... 51

4 Industry Trends, Recent Developments, and Challenges ............................................... 52

4.1 Technological Developments ......................................................................................................... 52

4.1.1 Solar-powered UAVs progress towards enhanced endurance ................................................................ 52

4.1.2 Enhancement of survivability key in ensuring mission effectiveness ....................................................... 53

4.1.3 Shifting roles of UAVs propelled by advanced technology ....................................................................... 54

4.1.4 Need for cohesion to drive innovation in universal control systems ......................................................... 55

4.1.5 Laser-powered UAVs offer unlimited endurance with no need to land .................................................... 56

4.2 Market Trends ................................................................................................................................ 57

4.2.1 UCAVs emerge as a key category for research and development expenditure ...................................... 57

4.2.2 In the forecast period, demand for solar-powered UAVs is projected to increase ................................... 57

4.3 Industry Consolidation .................................................................................................................... 58

4.3.1 Joint research and development programs to remain robust ................................................................... 58

4.3.2 Defense firms seek to acquire or partner UAV developers with niche capabilities .................................. 58

4.4 Key Challenges .............................................................................................................................. 60

4.4.1 UAV industry growth likely to be affected by defense budget cuts........................................................... 60

4.4.2 High accident rates impede the global UAV industry ............................................................................... 60

4.4.3 International associations such as Missile Technology Control Regime restrict UAV exports ................ 60

4.4.4 Market dominated by a few major players ................................................................................................ 61

5 SWOT Analysis of the UAV Market .................................................................................... 62

5.2 Strengths ........................................................................................................................................ 63

5.2.1 Global increase in demand instigated by technological innovations ........................................................ 63

5.2.2 UAVs excel as force multipliers ................................................................................................................ 63

5.2.3 Global demand rises due to lower cost of acquisition and operations ..................................................... 64

5.3 Weaknesses .................................................................................................................................. 65

5.3.1 High accident rates impede growth .......................................................................................................... 65

5.3.2 High research and development expenses can increase unit cost .......................................................... 65

5.3.3 Payload limitations hinder growth of UAVs in combat roles ..................................................................... 66

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5.4 Opportunities .................................................................................................................................. 67

5.4.1 Asymmetric warfare create demand for UAVs ......................................................................................... 67

5.4.2 Demand for UAVs grow amidst shrinking defense budgets ..................................................................... 67

5.4.3 Demand for multirole defense systems is rising ....................................................................................... 68

5.5 Threats ........................................................................................................................................... 69

5.5.1 Indigenous capabilities may pose a threat to established companies ..................................................... 69

5.5.2 UAVs may be substituted by refurbished manned aircraft ....................................................................... 69

6 Country Analysis – UAV Market ......................................................................................... 71

6.1 United States Market Size and Forecast 2013–2023 ...................................................................... 72

6.1.1 HALE UAV market expected to reach US$XX billion by 2023 ................................................................. 76

6.1.2 UCAVs to account for the second largest area of expenditure by the US ............................................... 78

6.1.3 Expenditure on MALE UAVs to increase at a CAGR of XX% over the forecast period ........................... 80

6.2 Canada Market Size and Forecast 2013–2023............................................................................... 81

6.2.1 Spending on HALE UAV to increase at a CAGR of XX% ........................................................................ 84

6.2.2 Canada anticipated to direct significant fund towards UCAVs over the forecast period .......................... 85

6.2.3 Expenditure on MUAVs to remain modest during the forecast period ..................................................... 86

6.3 France Market Size and Forecast 2013–2023 ................................................................................ 87

6.3.1 France expected to acquire a considerable number of MALE UAVs during the forecast period ............. 90

6.3.2 Market for UCAVs to increase at a CAGR of XX% over the forecast period ........................................... 91

6.3.3 France expected to acquire MUAVs during the forecast period ............................................................... 92

6.4 UK Market Size and Forecast 2013–2023 ...................................................................................... 93

6.4.1 MALE UAVs expected to account for the highest segment of expenditure in the UK .............................. 96

6.4.2 UCAV segment to account for the second highest segment of expenditure in the UK ............................ 97

6.4.3 Expenditure on TUAVs likely to remain steady during the forecast period .............................................. 98

6.5 Russia Market Size and Forecast 2013–2023 ................................................................................ 99

6.5.1 Russia set for considerable investment to acquire MALE UAVs ............................................................ 102

6.5.2 Russian expenditure on UCAV to be robust during the forecast period ................................................. 103

6.5.3 Russian VTOL-UAV procurement will amount to US$XX million ........................................................... 104

6.6 China Market Size and Forecast 2013–2023 .................................................................................105

6.6.1 China’s UCAV market to account for the highest segment of expenditure over the forecast period ..... 110

6.6.2 China’s MALE UAV programs expected to grow at a CAGR of XX% .................................................... 112

6.6.3 HALE UAVs to account for the third largest segment of expenditure in China ...................................... 113

6.7 South Korea Market Size and Forecast 2013–2023 ......................................................................114

6.7.1 South Korea eyes considerable investment in domestic MALE UAVs ................................................... 118

6.7.2 HALE UAV procurement expected to account for the second largest share of South Korean UAV market119

6.7.1 South Korean expenditure on TUAVs to increase at a CAGR of XX% over the forecast period ........... 120

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6.8 India Market Size and Forecast 2013–2023 ..................................................................................121

6.8.1 Expenditure on HALE UAVs to grow at a CAGR of XX% over the forecast period ............................... 125

6.8.2 MALE UAVs to account for the second largest segment of Indian expenditure ..................................... 127

6.8.3 Expenditure on UCAVS to account for the highest share of Indian expenditure on this sector ............. 129

6.9 The UAE Market Size and Forecast 2013–2023 ............................................................................131

6.9.1 UCAV market in the UAE to register a growth of XX% over the forecast period ................................... 133

6.9.2 MALE UAVs are likely to be procured by the UAE for intelligence and surveillance missions .............. 134

6.10 Saudi Arabia Market Size and Forecast 2013–2023 ......................................................................135

6.10.1 UCAVs expected to account for the largest segment of expenditure over the forecast period .............. 138

6.10.2 Total spending on MALE UAV is expected to reach US$XX million ...................................................... 139

6.11 Israel Market Size and Forecast 2013–2023 .................................................................................140

6.11.1 MALE UAVs expected to comprise highest expenditure over the forecast period ................................. 143

6.11.2 Spending on TUAV to remain modest .................................................................................................... 145

6.12 Brazil Market Size and Forecast 2013–2023 .................................................................................146

6.12.1 Spending on MUAVs expected to increase at XX% during the forecast period ..................................... 149

6.12.2 MALE UAVs to be the largest segment in Brazilian UAV market ........................................................... 150

6.13 South African Market Size and Forecast 2013–2023 .....................................................................151

6.13.1 TUAVs to account for a major portion of spending by South Africa on UAVs ........................................ 154

7 Major UAV Programs ........................................................................................................ 155

7.1 High Altitude Long Endurance Unmanned Aerial Vehicles (HALE UAVs) ......................................155

7.1.1 Global Hawk - US ................................................................................................................................... 155

7.1.2 BAMS MQ-4C Triton - US ....................................................................................................................... 156

7.1.3 Zephyr - US............................................................................................................................................. 157

7.2 Unmanned Combat Aerial Vehicles (UCAVs) ................................................................................158

7.2.1 Taranis - UK ............................................................................................................................................ 158

7.2.2 nEUROn - Europe ................................................................................................................................... 159

7.2.3 Unmanned Combat Air System Demonstration (UCAS-D) - US ............................................................ 160

7.2.4 Predator C Avenger - US ........................................................................................................................ 161

7.3 Medium Altitude Long Endurance Unmanned Aerial Vehicles (MALE UAVs) ................................162

7.3.1 Heron TP (Eitan) - Israel ......................................................................................................................... 162

7.3.3 Rustom H - India ..................................................................................................................................... 164

7.4 Mini Unmanned Aerial Vehicles (MUAVs) .....................................................................................165

7.4.1 RQ-11 Raven - US .................................................................................................................................. 165

7.4.2 RQ-20A Puma – US ............................................................................................................................... 166

7.4.3 Skylark II - Israel ..................................................................................................................................... 167

7.5 Tactical Unmanned Aerial Vehicles (TUAVs) ................................................................................168

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7.5.1 RQ-7B Shadow 200 - US ........................................................................................................................ 168

7.5.2 Watchkeeper WK450 - UK ...................................................................................................................... 169

7.5.3 ScanEagle - US ...................................................................................................................................... 170

7.6 Vertical Take-Off and Landing UAVs .............................................................................................171

7.6.1 Fire Scout - US ....................................................................................................................................... 171

7.6.2 Camcopter S-100 - Germany.................................................................................................................. 172

8 Competitive Landscape and Strategic Insights .............................................................. 173

8.1 Competitive Landscape Overview .................................................................................................173

8.1.1 Israel Aerospace Industries: overview .................................................................................................... 175

8.1.2 Israel Aerospace Industries: products and services ............................................................................... 175

8.1.3 Israel Aerospace Industries: recent announcements and strategic initiatives ........................................ 176

8.1.4 Israel Aerospace Industries: alliances .................................................................................................... 177

8.1.5 Israel Aerospace Industries: recent contract awards ............................................................................. 177

8.1.6 Israel Aerospace Industries: financial analysis ....................................................................................... 178

8.1.7 EMT Ingenieurgesellschaft: overview ..................................................................................................... 180

8.1.8 EMT Ingenieurgesellschaft: products and services ................................................................................ 180

8.1.9 EMT Ingenieurgesellschaft: recent announcements and strategic initiatives ......................................... 180

8.1.10 EMT Ingenieurgesellschaft: alliances ..................................................................................................... 180

8.1.11 Selex ES: overview ................................................................................................................................. 181

8.1.12 Selex ES: products and services ............................................................................................................ 181

8.1.13 Selex ES: recent announcements and strategic initiatives ..................................................................... 181

8.1.14 Selex ES: alliances ................................................................................................................................. 183

8.1.15 Selex ES: recent contract awards .......................................................................................................... 183

8.1.16 Alenia Aermacchi: overview .................................................................................................................... 184

8.1.17 Alenia Aermacchi: products and services ............................................................................................... 184

8.1.18 Alenia Aermacchi: recent announcements and strategic initiatives ....................................................... 184

8.1.19 Alenia Aermacchi: alliances .................................................................................................................... 185

8.1.20 AAI Corporation: overview ...................................................................................................................... 185

8.1.21 AAI Corporation: products and services ................................................................................................. 185

8.1.22 AAI Corporation: recent announcements and strategic initiatives .......................................................... 186

8.1.23 AAI Corporation: alliances ...................................................................................................................... 187

8.1.24 AAI Corporation: recent contract awards ................................................................................................ 188

8.1.25 Sagem: overview .................................................................................................................................... 189

8.1.26 Sagem: products and services ............................................................................................................... 189

8.1.27 Sagem: recent announcements and strategic initiatives ........................................................................ 189

8.1.28 Sagem: alliances .................................................................................................................................... 190

8.1.29 Sagem: recent contract awards .............................................................................................................. 190

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8.1.30 BlueBird Aero Systems: overview .......................................................................................................... 191

8.1.31 BlueBird Aero Systems: products and services...................................................................................... 191

8.1.32 BlueBird Aero Systems: recent announcements and strategic initiatives .............................................. 191

8.1.33 BlueBird Aero Systems: alliances ........................................................................................................... 192

8.1.34 BlueBird Aero Systems: recent contract awards .................................................................................... 192

8.1.35 Singapore Technologies Aerospace: overview ...................................................................................... 193

8.1.36 Singapore Technologies Aerospace: products and services ................................................................. 193

8.1.37 Singapore Technologies Aerospace: recent announcements and strategic initiatives .......................... 193

8.1.38 Singapore Technologies Aerospace: alliances....................................................................................... 193

8.1.39 Singapore Technologies Aerospace: recent contract awards ................................................................ 194

8.1.40 Cassidian: overview ................................................................................................................................ 194

8.1.41 Cassidian: products and services ........................................................................................................... 194

8.1.42 Cassidian: recent announcements and strategic initiatives .................................................................... 194

8.1.43 Cassidian: alliances ................................................................................................................................ 196

8.1.44 Cassidian: recent contract awards ......................................................................................................... 196

8.1.45 Boeing: overview .................................................................................................................................... 197

8.1.46 Boeing: products and services ............................................................................................................... 197

8.1.47 Boeing: recent announcements and strategic initiatives ........................................................................ 197

8.1.48 Boeing: alliances ..................................................................................................................................... 199

8.1.49 Boeing: recent contract awards .............................................................................................................. 199

8.1.50 Boeing: financial analysis ....................................................................................................................... 200

8.1.51 General Atomics Aeronautical Systems Inc.: overview .......................................................................... 202

8.1.52 General Atomics Aeronautical Systems Inc.: products and services ..................................................... 202

8.1.53 General Atomics Aeronautical Systems Inc.: recent announcements and strategic initiatives .............. 202

8.1.54 General Atomics Aeronautical Systems Inc.: alliances .......................................................................... 203

8.1.55 General Atomics Aeronautical Systems Inc.: recent contract awards .................................................... 204

8.1.56 AeroVironment: overview ........................................................................................................................ 205

8.1.57 AeroVironment: products and services ................................................................................................... 205

8.1.58 AeroVironment: recent announcements and strategic initiatives ........................................................... 205

8.1.59 AeroVironment: recent contract awards ................................................................................................. 206

8.1.60 AeroVironment: financial analysis .......................................................................................................... 207

8.1.61 Aeronautics Ltd.: overview ...................................................................................................................... 209

8.1.62 Aeronautics Ltd.: products and services ................................................................................................. 209

8.1.63 Aeronautics Ltd.: recent announcements and strategic initiatives ......................................................... 209

8.1.64 Aeronautics Ltd.: alliances ...................................................................................................................... 210

8.1.65 Aeronautics Ltd.: recent contract awards ............................................................................................... 210

8.1.66 Elbit Systems Ltd.: overview ................................................................................................................... 211

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8.1.67 Elbit Systems Ltd.: products and services .............................................................................................. 211

8.1.68 Elbit Systems Ltd.: recent announcements and strategic initiatives....................................................... 211

8.1.69 Elbit Systems Ltd.: alliances ................................................................................................................... 212

8.1.70 Elbit Systems Ltd.: recent contract awards ............................................................................................ 212

8.1.71 Elbit Systems Ltd.: financial analysis ...................................................................................................... 213

8.1.72 Northrop Grumman Corporation: overview ............................................................................................. 215

8.1.73 Northrop Grumman Corporation: products and services ........................................................................ 215

8.1.74 Northrop Grumman Corporation: recent announcements and strategic initiatives ................................ 215

8.1.75 Northrop Grumman Corporation: alliances ............................................................................................. 217

8.1.76 Northrop Grumman Corporation: recent contract awards ...................................................................... 217

8.1.77 Northrop Grumman: financial analysis ................................................................................................... 218

8.1.78 Dassault Aviation SA: overview .............................................................................................................. 220

8.1.79 Dassault Aviation SA: products and services ......................................................................................... 220

8.1.80 Dassault Aviation SA: recent announcements and strategic initiatives .................................................. 220

8.1.81 Dassault Aviation SA: alliances .............................................................................................................. 221

8.1.82 Dassault Aviation SA: recent contract awards........................................................................................ 221

8.1.83 Dassault Aviation SA: financial analysis ................................................................................................. 222

8.1.84 Denel Dynamics: overview ..................................................................................................................... 224

8.1.85 Denel Dynamics: products and services ................................................................................................ 224

8.1.86 Denel Dynamics: recent announcements and strategic initiatives ......................................................... 224

8.1.87 Denel Dynamics: alliances ...................................................................................................................... 224

8.1.88 Denel Dynamics: recent contract awards ............................................................................................... 225

8.1.89 Korea Aerospace Industries: overview ................................................................................................... 225

8.1.90 Korea Aerospace Industries: products and services .............................................................................. 225

8.1.91 Korea Aerospace Industries: recent announcements and strategic initiatives ....................................... 225

8.1.92 Korea Aerospace Industries: recent contract awards ............................................................................. 226

8.1.93 BAE Systems: overview .......................................................................................................................... 226

8.1.94 BAE Systems: products and services ..................................................................................................... 226

8.1.95 BAE Systems: recent announcements and strategic initiatives ............................................................. 227

8.1.96 BAE Systems: alliances .......................................................................................................................... 227

8.1.97 BAE Systems: recent contract awards ................................................................................................... 228

8.1.98 BAE Systems: financial analysis............................................................................................................. 228

8.1.99 Saab: overview ....................................................................................................................................... 230

8.1.100 Saab: products and services .................................................................................................................. 230

8.1.101 Saab: recent announcements and strategic initiatives ........................................................................... 230

8.1.102 Saab: alliances ....................................................................................................................................... 231

8.1.103 Saab: recent contract awards ................................................................................................................. 231

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8.1.104 Saab: financial analysis .......................................................................................................................... 232

9 Appendix ............................................................................................................................ 234

9.1 Methodology .................................................................................................................................234

9.2 Contact us .....................................................................................................................................234

9.3 About SDI ......................................................................................................................................234

9.4 Disclaimer .....................................................................................................................................234

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LIST OF FIGURES

Figure 1: Global UAV Market (US$ Billion), 2013–2023 ...................................................................................................................................... 20 Figure 2: UAV Market Breakdown by Region (%), 2013–2023 ............................................................................................................................ 22 Figure 3: North American UAV Market (US$ Billion), 2013–2023 ........................................................................................................................ 24 Figure 4: European UAV Market (US$ Billion), 2013–2023 ................................................................................................................................. 26 Figure 5: Asia-Pacific UAV Market (US$ Million), 2013–2023 ............................................................................................................................. 28 Figure 6: Middle East UAV Market (US$ Million), 2013–2023 ............................................................................................................................. 29 Figure 7: Latin American UAV Market (US$ Million), 2013–2023 ........................................................................................................................ 30 Figure 8: African UAV Market (US$ Million), 2013–2023 ..................................................................................................................................... 31 Figure 9: UAV Market Breakdown by Segment (%), 2013–2023 ......................................................................................................................... 33 Figure 10: UCAV Market Size (US$ Billion), 2013–2023 ..................................................................................................................................... 34 Figure 11: MALE UAV Market Size (US$ Billion), 2013–2023 ............................................................................................................................. 35 Figure 12: TUAV Market Size (US$ Billion), 2013–2023 ..................................................................................................................................... 36 Figure 13: VTOL UAV Market Size (US$ Billion), 2013–2023 ............................................................................................................................. 37 Figure 14: MUAV Market Size (US$ Billion), 2013–2023 .................................................................................................................................... 38 Figure 15: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2013–2023 .................................................. 43 Figure 16: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2013–2023 ....................................................... 44 Figure 17: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2013–2023 ................................................... 45 Figure 18: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2013–2023 ........................................ 46 Figure 19: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2013–2023 ................................................................... 47 Figure 20: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2013–2023 .......................................... 48 Figure 21: UAV Market in the US (US$ Billion), 2013–2023 ................................................................................................................................ 72 Figure 22: UAV Market by Category in the US (%), 2013–2023 .......................................................................................................................... 74 Figure 23: HALE UAV Market Size in the US (US$ Billion), 2013–2023 .............................................................................................................. 76 Figure 24: UCAV Market Size in the US (US$ Billion), 2013–2023 ..................................................................................................................... 78 Figure 25: MALE UAV Market Size in the US (US$ Billion), 2013–2023 ............................................................................................................. 79 Figure 26: UAV Market in Canada (US$ Million), 2013–2023 .............................................................................................................................. 81 Figure 27: UAV Market Split by Sector in Canada (%), 2013–2023 ..................................................................................................................... 82 Figure 28: HALE UAV Market Size in Canada (US$ Million), 2013–2023 ............................................................................................................ 83 Figure 29: UCAV Market Size in Canada (US$ Million), 2013–2023 ................................................................................................................... 84 Figure 30: MUAV Market Size in Canada (US$ Million), 2013–2023 ................................................................................................................... 85 Figure 31: UAV Market in France (US$ Million), 2013–2023 ............................................................................................................................... 87 Figure 32: UAV Market Split by Sector in France (%), 2013–2023 ...................................................................................................................... 88 Figure 33: MALE UAV Market Size in France (US$ Million), 2013–2023 ............................................................................................................. 89 Figure 34: UCAV Market Size in France (US$ Million), 2013–2023 ..................................................................................................................... 90 Figure 35: MUAV Market Size in France (US$ Million), 2013–2023 .................................................................................................................... 91 Figure 36: UAV Market in the UK (US$ Million), 2013–2023 ............................................................................................................................... 93 Figure 37: UAV Market Split by Sector in the UK (%), 2013–2023 ...................................................................................................................... 94 Figure 38: MALE UAV Market Size in the UK (US$ Million), 2013–2023 ............................................................................................................. 95 Figure 39: UCAV Market Size in the UK (US$ Million), 2013–2023 ..................................................................................................................... 96 Figure 40: TUAV Market Size in the UK (US$ Million), 2013–2023 ..................................................................................................................... 97 Figure 41: UAV Market in the Russia (US$ Million), 2013–2023 ......................................................................................................................... 99 Figure 42: UAV Market By Category in Russia (%), 2013–2023 ....................................................................................................................... 100 Figure 43: MALE UAV Market Size in Russia (US$ Million), 2013–2023 ........................................................................................................... 101 Figure 44: UCAV Market Size in Russia (US$ Million), 2013–2023 ................................................................................................................... 102 Figure 45: VTOL UAV Market Size in Russia (US$ Million), 2013–2023 ........................................................................................................... 103 Figure 46: UAV Market in China (US$ million), 2013–2023 ............................................................................................................................... 106 Figure 47: UAV Market Split by Sector in China (%), 2013–2023 ...................................................................................................................... 108 Figure 48: UCAV Market Size in China (US$ Million), 2013–2023 .................................................................................................................... 110 Figure 49: MALE UAV Market Size in China (US$ Million), 2013–2023 ............................................................................................................ 111 Figure 50: HALE UAV Market Size in China (US$ Million), 2013–2023 ............................................................................................................. 112 Figure 51: UAV Market in South Korea (US$ billion), 2013–2023 ..................................................................................................................... 114 Figure 52: UAV Market Split by Sector in South Korea (%), 2013–2023 ........................................................................................................... 116 Figure 53: MALE UAV Market Size in South Korea (US$ Million), 2013–2023 .................................................................................................. 117 Figure 54: HALE UAV Market Size in South Korea (US$ Million), 2013–2023 .................................................................................................. 118

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Figure 55: TUAV Market Size in South Korea (US$ Million), 2013–2023 .......................................................................................................... 119 Figure 56: UAV Market in India (US$ Billion), 2013–2023 ................................................................................................................................. 122 Figure 57: UAV Market in India by Sector (%), 2013–2023 ............................................................................................................................... 123 Figure 58: HALE UAVs Market Size in India (US$ Million), 2013–2023 ............................................................................................................. 125 Figure 59: MALE UAV Market Size in India (US$ Million), 2013–2023 .............................................................................................................. 127 Figure 60: UCAV Market Size in India (US$ Million), 2013–2023 ...................................................................................................................... 129 Figure 61: UAV Market in the UAE (US$ Million), 2013–2023 ........................................................................................................................... 131 Figure 62: UAV Market Split By Category in the UAE (%), 2013–2023 ............................................................................................................. 132 Figure 63: UCAV Market Size in the UAE (US$ Million), 2013–2023 ................................................................................................................ 133 Figure 64: MALE UAV Market Size in the UAE (US$ Million), 2013–2023 ........................................................................................................ 134 Figure 65: UAV Market in Saudi Arabia (US$ million), 2013–2023 .................................................................................................................... 136 Figure 66: UCAV Market Size in Saudi Arabia (US$ Million), 2013–2023 ......................................................................................................... 137 Figure 67: MALE UAV Market Size in Saudi Arabia (US$ Million), 2013–2023 ................................................................................................. 138 Figure 68: UAV Market in Israel (US$ Million), 2013–2023 ............................................................................................................................... 140 Figure 69: UAV Market Split By Category in Israel (%), 2013–2023 .................................................................................................................. 141 Figure 70: MALE UAV Market Size in Israel (US$ Million), 2013–2023 ............................................................................................................. 143 Figure 71: TUAV Market Size in Israel (US$ Million), 2013–2023 ..................................................................................................................... 144 Figure 72: UAV Market in Brazil (US$ Million), 2013–2023 ............................................................................................................................... 146 Figure 73: UAV Market Split By Category in Brazil (%), 2013–2023 .................................................................................................................. 147 Figure 74: MUAV Market Size in Brazil (US$ Million), 2013–2023 .................................................................................................................... 148 Figure 75: MALE UAV Market Size in Brazil (US$ Million), 2013–2023 ............................................................................................................. 149 Figure 76: UAV Market in South Africa (US$ Million), 2013–2023 ..................................................................................................................... 151 Figure 77: UAV Market Split By Category in South Africa (%), 2013–2023 ....................................................................................................... 152 Figure 78: TUAV Market Size in South Africa (US$ Million), 2013–2023 ........................................................................................................... 153 Figure 79: Israel Aerospace Industries – Revenue Trend Analysis (US$ Billion), 2008–2012 ........................................................................... 178 Figure 80: Israel Aerospace Industries – Operating Profit Trend Analysis (US$ Million), 2008–2012 ................................................................ 179 Figure 81: Israel Aerospace Industries – Net Profit Trend Analysis (US$ Million), 2008–2012 .......................................................................... 179 Figure 82: Boeing – Revenue Trend Analysis (US$ Billion), 2008–2012 ........................................................................................................... 203 Figure 83: Boeing – Operating Profit Trend Analysis (US$ Billion), 2008–2012 ................................................................................................ 204 Figure 84: Boeing – Net Profit Trend Analysis (US$ Billion), FY2008–2012 ...................................................................................................... 204 Figure 85: AeroVironment – Revenue Trend Analysis (US$ Million), 2008–2012 .............................................................................................. 211 Figure 86: AeroVironment – Net Profit Trend Analysis (US$ Million), 2008–2012 ............................................................................................. 212 Figure 87: Elbit Systems Ltd. – Revenue Trend Analysis (US$ Million), FY2008–2012 ..................................................................................... 217 Figure 88: Elbit Systems Ltd. – Operating income Trend Analysis (US$ Million), 2008–2012 ............................................................................ 218 Figure 89: Elbit Systems Ltd. – Net income Trend Analysis (US$ Million), 2008–2012...................................................................................... 218 Figure 90: Northrop Grumman – Revenue Trend Analysis (US$ Billion), 2008–2012 ........................................................................................ 222 Figure 91: Northrop Grumman – Operating Profit (US$ Million), 2008–2012 ..................................................................................................... 223 Figure 92: Northrop Grumman – Net Profit Trend Analysis (US$ Million), 2008–2012....................................................................................... 223 Figure 93: Dassault Aviation SA – Revenue Trend Analysis (EUR Million), 2008–2012 .................................................................................... 226 Figure 94: Dassault Aviation SA – Operating Profit Trend Analysis (EUR Million), 2008–2012 ......................................................................... 227 Figure 95: Dassault Aviation SA – Net Profit Trend Analysis (EUR Million), 2008–2012 ................................................................................... 227 Figure 96: BAE Systems – Revenue Trend Analysis (GBP Billion), 2008–2012 ................................................................................................ 233 Figure 97: BAE Systems – Operating Profit (GBP Million), 2008–2012 ............................................................................................................. 234 Figure 98: BAE Systems – Net Profit Trend Analysis (GBP Million), 2008–2012 ............................................................................................... 234 Figure 99: Saab – Revenue Trend Analysis (SEK Billion), 2008–2012.............................................................................................................. 237 Figure 100: Saab – Operating Profit Trend Analysis (SEK Million), 2008–2012 ................................................................................................ 238 Figure 101: Saab – Net Profit Trend Analysis (SEK Million), 2008–2012 .......................................................................................................... 238

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LIST OF TABLES

Table 1: Global UAV Market Overview................................................................................................................................................................ 21 Table 2: Global UAV Market Overview................................................................................................................................................................ 32 Table 3: Category-wise UAV Survivability Enhancement Measures .................................................................................................................... 52 Table 4: SWOT Analysis of the UAV Market ....................................................................................................................................................... 61 Table 5: Leading UAV Markets and Top Three Segments .................................................................................................................................. 70 Table 6: US UAV Market Overview ..................................................................................................................................................................... 72 Table 7: Key US UAV Programs ......................................................................................................................................................................... 73 Table 8: Canadian UAV Market Overview ........................................................................................................................................................... 80 Table 9: French UAV Market Overview ............................................................................................................................................................... 86 Table 10: Key French UAV Programs ................................................................................................................................................................. 87 Table 11: UK UAV Market Overview ................................................................................................................................................................... 92 Table 12: Major UK UAV Programs .................................................................................................................................................................... 93 Table 13: Russian UAV Market Overview ........................................................................................................................................................... 98 Table 14: Major Russian UAV Programs ............................................................................................................................................................ 99 Table 15: Chinese UAV Market Overview ......................................................................................................................................................... 105 Table 16: Major Chinese UAV Programs .......................................................................................................................................................... 107 Table 17: South Korean UAV Market Overview ................................................................................................................................................ 113 Table 18: Major South Korean UAV Programs .................................................................................................................................................. 115 Table 19: Indian UAV Market Overview ............................................................................................................................................................ 121 Table 20: The UAE UAV Market Overview ....................................................................................................................................................... 130 Table 21: Key UAE UAV Programs ................................................................................................................................................................... 131 Table 22: Saudi Arabian UAV Market Overview ................................................................................................................................................ 134 Table 23: Major Saudi Arabian UAV Programs ................................................................................................................................................. 136 Table 24: Israeli UAV Market Overview ............................................................................................................................................................ 139 Table 25: Major Israeli UAV Programs .............................................................................................................................................................. 140 Table 26: Brazilian UAV Market Overview ........................................................................................................................................................ 145 Table 27: Key Brazilian UAV Programs ............................................................................................................................................................ 146 Table 28: The South African UAV Market Overview .......................................................................................................................................... 150 Table 29: Key South African UAV Programs ..................................................................................................................................................... 151 Table 30: Program Details – Global Hawk UAV ................................................................................................................................................ 154 Table 31: Program Details – BAMS .................................................................................................................................................................. 155 Table 32: Program Details – Zephyr ................................................................................................................................................................. 156 Table 33: Program Details – Taranis UCAV ...................................................................................................................................................... 157 Table 34: Program Details – Neuron UCAV ...................................................................................................................................................... 158 Table 35: Program Details – UCAS-D ............................................................................................................................................................... 159 Table 36: Program Details – Neuron UCAV ...................................................................................................................................................... 160 Table 37: Program Details – Heron UAV .......................................................................................................................................................... 161 Table 38: Program Details – MQ-9 Reaper ....................................................................................................................................................... 162 Table 39: Program Details – Rustom Reaper.................................................................................................................................................... 163 Table 40: Program Details – RQ-11 Raven ....................................................................................................................................................... 164 Table 41: Program Details – RQ-11 Raven ....................................................................................................................................................... 165 Table 42: Program Details – Skylark II .............................................................................................................................................................. 166 Table 43: Program Details – RQ-7 Shadow 200 ............................................................................................................................................... 167 Table 44: Program Details – Hermes 450 ......................................................................................................................................................... 168 Table 45: Program Details – ScanEagle ........................................................................................................................................................... 169 Table 46: Program Details – Fire Scout ............................................................................................................................................................ 170 Table 47: Program Details – S-100 ................................................................................................................................................................... 171 Table 48: Competitive Landscape – Major UAVs Manufacturers Worldwide and their Capabilities ................................................................... 173 Table 49: Israel Aerospace Industries: Alliances ............................................................................................................................................... 177 Table 50: Israel Aerospace Industries: Recent Contract Awards ....................................................................................................................... 177 Table 51: EMT Ingenieurgesellschaft: Alliances ................................................................................................................................................ 180 Table 52: Selex ES: Alliances ........................................................................................................................................................................... 183 Table 53: Selex ES: Recent Contract Awards ................................................................................................................................................... 183 Table 54: Alenia Aermacchi: Alliances .............................................................................................................................................................. 185

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Table 55: AAI Corporation: Alliances ................................................................................................................................................................ 188 Table 56: AAI Corporation: Recent Contract Awards ........................................................................................................................................ 189 Table 57: Sagem: Alliances .............................................................................................................................................................................. 191 Table 58: Sagem: Recent Contract Awards ...................................................................................................................................................... 191 Table 59: BlueBird Aero Systems: Alliances ..................................................................................................................................................... 193 Table 60: BlueBird Aero Systems: Recent Contract Awards ............................................................................................................................. 193 Table 61: Singapore Technologies Aerospace: Alliances .................................................................................................................................. 194 Table 62: Singapore Technologies Aerospace: Recent Contract Awards .......................................................................................................... 195 Table 63: Cassidian: Alliances .......................................................................................................................................................................... 197 Table 64: Cassidian: Recent Contract Awards .................................................................................................................................................. 198 Table 65: Boeing: Alliances .............................................................................................................................................................................. 201 Table 66: Boeing: Recent Contract Awards ...................................................................................................................................................... 201 Table 67: General Atomics Aeronautical Systems Inc.: Alliances ...................................................................................................................... 206 Table 68: General Atomics Aeronautical Systems Inc.: Recent Contract Awards .............................................................................................. 207 Table 69: AeroVironment: Recent Contract Awards .......................................................................................................................................... 209 Table 70: Aeronautics Ltd.: Alliances ................................................................................................................................................................ 214 Table 71: Aeronautics Ltd.: Recent Contract Awards ........................................................................................................................................ 214 Table 72: Elbit Systems Ltd.: Alliances ............................................................................................................................................................. 216 Table 73: Elbit Systems Ltd.: Recent Contract Awards ..................................................................................................................................... 216 Table 74: Northrop Grumman Corporation: Alliances ........................................................................................................................................ 221 Table 75: Northrop Grumman Corporation: Recent Contract Awards ................................................................................................................ 221 Table 76: Dassault Aviation SA: Alliances ........................................................................................................................................................ 225 Table 77: Dassault Aviation SA: Recent Contract Awards ................................................................................................................................ 225 Table 78: Denel Dynamics: Alliances ................................................................................................................................................................ 228 Table 79: Denel Dynamics: Recent Contract Awards ........................................................................................................................................ 229 Table 80: Korea Aerospace Industries: Recent Contract Awards ...................................................................................................................... 230 Table 81: BAE Systems: Alliances .................................................................................................................................................................... 232 Table 82: BAE Systems: Recent Contract Awards ............................................................................................................................................ 233 Table 83: Saab: Alliances ................................................................................................................................................................................. 236 Table 84: Saab: Recent Contract Awards ......................................................................................................................................................... 236

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1 Executive Summary

The global UAV market is expected to increase at a CAGR of XX% during the forecast period

The global UAV market, estimated to value US$XX billion in 2013, is projected to grow at a CAGR of XX%

during the forecast period to value US$XX billion in 2023. Demand for UAVs is anticipated to be driven by

internal as well external security threats, territorial disputes and modernization initiatives undertaken by armed

forces across the world. Cumulatively, the market for UAVs during the forecast period is expected to value

US$XX billion. Significant UAV customers include countries in the North American and Asia Pacific region,

and the global UAV market is likely to be dominated by the US throughout the forecast period. Asia Pacific’s

share of the global UAV market is also projected to increase, largely due to a number of international territorial

conflicts and insurgency issues. Europe is expected to account for the third largest market after the Asia

Pacific region. Such relatively low spending in the European region is expected as a result of budget cuts that

have been implemented in the region.

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2 Global UAV Market Size and Drivers

2.1 UAV Market Size and Forecast 2013–2023

2.1.1 Global UAV market is estimated at US$XX billion during the forecast period

UAVs are the next generation of aerial platforms being deployed by defense ministries around the world,

demand for which has been fuelled by the successful deployment of these systems in combat operations in

Iraq and Afghanistan. These unmanned platforms are used as force multipliers, performing ISR missions,

target recognition, damage assessment and electronic warfare Defense ministries around the world are

investing in this capability to reduce troop casualties. Specifically, mini and VTOL UAVs are affordable and

capable of performing ISR missions; demand for these cost-effective UAVs is on the rise in countries with low

spending power. The global market for UAVs in 2013 is estimated at US$XX billion and is expected to grow at

a CAGR of XX% to reach US$XX billion by 2023. Cumulatively, during the forecast period, the total market for

UAVs is estimated to be US$XX billion.

The chart below shows the global UAV market during 2013–2023:

Figure 1: Global UAV Market (US$ Billion), 2013–2023

Source: SDI analysis © SDI

XX

XX

XX

XX

XX

XX

XX

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

US

$ B

illi

on

2023

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2.2 Global UAV Market – Regional Analysis

2.2.1 North America constitutes the majority share in the global UAV market

The global UAV market is dominated by North America, with the US being the largest defense spender in the

sector, and the world. Overall, North America is set to spend US$XX billion on UAVs during the forecast

period. A number of countries in the Asia Pacific region are enhancing its UAV industry through sustained

procurement and indigenous development programs, and is projected to spend an estimated at US$XX billion

on UAVs during the forecast period. Europe represents the third-largest market, with the total UAV market

valued at around US$XX billion in the region, offering a potentially attractive investment opportunity for

western firms, followed by the Middle East, Latin America and Africa.

The table below gives a brief overview of the UAV market:

Table 1: Global UAV Market Overview

Region Market in 2013 Market in 2023 Total Market (2013–2023)

Annualized growth/decline

(2013–2023)

North America US$XX billion US$XX billion US$XX billion XX%

Asia Pacific US$XX billion US$XX billion US$XX billion XX%

Europe US$XX billion US$XX billion US$XX billion XX%

Middle East US$XX million US$XX million US$XX billion XX%

Latin America US$XX million US$XX million US$XX billion XX%

Africa US$XX million US$XX million US$XX million XX%

Total UAV Market US$XX billion US$XX billion US$XX billion XX%

Source: SDI analysis © SDI

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2.3 UAV Sub–Sector Market Size Composition

2.3.1 HALE UAVs forecast to constitute the largest share of the UAV market

The High Altitude Long Endurance (HALE) UAV segment is expected to account for the largest share of the

global UAV market during the forecast period. The increasing need for continuous surveillance over large

areas by numerous countries is the major reason behind the growth of this segment. North America

constitutes the largest share for HALE UAVs globally at XX%, followed by Asia Pacific and Europe accounting

for XX% and XX% respectively. The US Navy’s initiative known as the Broad Area Maritime Surveillance

(BAMS) is a major driving factor behind the North American spending on HALE UAVs. The country is

expected to procure approximately 36 MQ-4C UAVs from Northrop Grumman by 2020, spending US$XX

billion. Similarly, Australia which is a major contributor to the HALE UAV market in Asia Pacific is also

expected to spend significantly on the segment for its Phase 1B of project AIR 7000. India, Japan, China and

South Korea are expected to become the major markets for HALE UAVs in the Asia Pacific during the forecast

period. The European market for HALE UAVs is currently being driven by the NATO’s Alliance Ground

Surveillance program, which is a combined program by various European NATO member nations. Countries

involved include Bulgaria, Czech Republic, Denmark, Estonia, Germany, Italy, Latvia, Lithuania, Luxembourg,

Norway, Romania, Slovakia and Slovenia. However, this program is expected to be completed in 2017, after

which the European HALE market is projected to witness a decline. The total expenditure on HALE UAVs is

expected to be US$XX billion in 2013 which is expected to grow at a CAGR of XX% to reach US$XX billion in

2013. The global cumulative expenditure on this segment is expected to be US$XX billion during the forecast

period.

The table below gives a brief overview of the global UAV market:

Table 2: Global UAV Market Overview

Particulars Market in 2013 Market in 2023 Total Market (2013–2023)

Annualized growth/ decline (2013–2023)

HALE US$XX billion US$XX billion US$XX billion XX%

UCAV US$XX billion US$XX billion US$XX billion XX%

MALE US$XX billion US$XX billion US$XX billion XX%

TUAV US$XX million US$XX million US$XX billion XX%

VTOL UAV US$XX million US$XX million US$XX billion XX%

MUAV US$XX million US$XX million US$XX billion XX%

Total UAV Market USXX billion US$XX billion US$XX billion XX%

Source: SDI analysis © SDI