April 15, 2024
Unmanned Aerial Vehicle Market

Unmanned Aerial Vehicle Market Is Expected To Be Flourished By Increasing Demand From Commercial Applications

Unmanned aerial vehicles, commonly known as drones, are aircraft operated remotely without an onboard human pilot. They vary in size, shape and configuration, with some resembling airplanes and helicopters, while others have unique configurations. Drones are increasingly finding applications across commercial, industrial and defense sectors for various purposes such as filming, photography, mapping, precision agriculture, delivery, surveillance and border security. They provide several benefits compared to manned aircraft such as lower operational costs, greater flexibility and ability to perform tasks in hazardous areas.

The global unmanned aerial vehicle market is estimated to be valued at US$ 35428.63 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Increasing Demand from Commercial Applications: Commercial sector is one of the fastest growing application areas for unmanned aerial vehicles. They are increasingly being used for aerial photography, filming, mapping, surveying and monitoring applications by various industries. Several companies are using drones for filmmaking, real estate, media broadcasting and environmental monitoring. For example, farmers are deploying drones for crop scouting, soil and field analysis which improves farm yields and productivity. With continuous technology advancement and regulatory framework developments, commercial drone applications are expected to flourish over the forecast period.

Growth in Precision Agriculture: Precision agriculture involves using drones, satellites, sensors and other advanced technologies to optimize farm operations. Unmanned aerial vehicles help farmers gain enhanced insight into their fields through real-time field monitoring for weeds, pests and disease detection. They provide multispectral images to analyze crop yields, soil health and irrigation needs. Drones support precision spraying of inputs only where needed to boost agricultural productivity. Rising commodity prices and need to adapt sustainable practices are propelling the adoption of precision agriculture worldwide, thus driving the UAV market.

Segment Analysis

The unmanned aerial vehicle market is dominated by defense segment which holds around 50% share of the overall market. The defense segment is dominating as UAVs have a wide range of applications in defense sector for surveillance, combat support, border monitoring and others. The commercial segment is witnessing high growth and expected to be the fastest growing segment during the forecast period. Increasing application of UAVs in agriculture, insurance, filming and photography industries is fueling the growth of commercial segment.

PEST Analysis

Political: Regulations regarding usage of UAVs have been easing in many countries which is positively impacting the market growth. However, privacy and security concerns still exist which can hinder the market.
Economic: Ongoing technological advancements and declining prices of UAVs are supporting the market growth. Developing economies are majorly investing in UAVs for defense and commercial applications.
Social: Social acceptance of UAVs is increasing due to their multiple benefits. However, safety and privacy issues still exist which impact social acceptance.
Technological: Ongoing technological developments such as advanced cameras, improved batteries, miniaturization and autonomous flying capabilities are supporting the market growth. Adoption of new technologies such as AI and IoT are opening new growth avenues.

Key Takeaways

The global Unmanned Aerial Vehicle Market Growth is expected to witness high growth. The global unmanned aerial vehicle market is estimated to be valued at US$ 35428.63 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030.

North America currently dominates the market due to heavy investments by US and Canada in defense UAVs. However, Asia Pacific is expected to witness fastest growth due to increasing investments by countries like China and India in defense as well as commercial segments.

Key players operating in the unmanned aerial vehicle market are 3M, Armolan, Avery Dennison Corporation, Eastman Chemical Company, HYOSUNG CHEMICAL, Johnson Laminating and Coating, Inc., LINTEC Corporation, Nexfil Co., LTD., Rayno Window Film, Saint-Gobain Performance Plastics, and Toray Industries, Inc. US based companies like 3M and Avery Dennison Corporation have a strong presence in the market. Meanwhile, HYOSUNG CHEMICAL from South Korea and Toray Industries, Inc. from Japan are other prominent players.

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