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The unmanned aerial vehicles (UAV) market is anticipated to register a CAGR of more than 10%, during the forecast period (2019-2024).
Growing applications of UAVs for various commercial purposes, like remote sensing, photo and videography, oil, gas, and mineral exploration, disaster relief, recreational uses, and other purposes, are driving the growth of the market.
UAVs are now being largely used in performing ISR missions, target recognition, and electronic warfare. Defense ministries around the world are investing in this capability, to reduce troop casualties, and as they are a less costly alternative to manned aircraft.
However, the strict airspace regulations across major countries of the world, especially the United States, where FAA pioneered in setting regulations for commercial use of drones in the region, may hamper the growth of the market.
Key Market Trends:
Military Segment to Dominate the Market during the Forecast Period
Military was the leading segment in terms of revenue, as of 2018. However, the commercial segment is expected to register the fastest CAGR. The increase in defense budgets and growing tensions among countries in Asia-Pacific and Middle East have driven the market for UAVs in the military segment, as the use of UAVs reduces the risk of losing human lives. The main reason behind the growth of the commercial UAV market, during the forecast period, is the increase in demand from various applications in the civil and commercial segments.
Asia-Pacific May Experience the Fastest Growth in the UAV Market
Currently, North America holds the major share in the UAV market, globally. This is primarily due to the growing use of unmanned aerial vehicles, both for commercial and military applications. However, Asia-Pacific is expected to register the highest CAGR, during the forecast period, due to growing popularity and changes in regulations in the region. The procurement of UAVs in the region is steadily growing, thereby driving the growth of the Asia-Pacific UAV market.
Boeing, BAE Systems PLC, General Atomics, Israel Aerospace Industries Ltd, and Elbit Systems Ltd are some of the prominent players in the military segment of the market, while the commercial UAV segment is dominated by companies, such as DJI and Parrot Drones SaA, which have a large share in the small UAV market.
Growing military procurements of HALE, MALE, and tactical UAVs may help the military drone manufacturers to further increase their market share to a huge extent, as compared to small commercial UAV manufactures.