According to a comprehensive global report on the UAS market by Global Industry Analysts, the global spending on Unmanned Aircraft and Systems is projected to reach US$ 5.34 billion by the year 2017.
Growth will be primarily driven by factors such as increase in defense budgets, proliferation of numerous civil and military operations and increasing use of these vehicles in testing operations. Robust demand from developing markets, particularly Asia-Pacific, also augurs well for the market.
Global market for Unmanned Aerial Vehicles witnessed remarkable growth in the recent past, and is expected to sustain the growth during the forthcoming years, primarily owing to the increasing reluctance to risk human lives and proliferation of numerous civil and military operations. At present, constantly changing technological preferences, and special customer requirements are the prime factors driving the market for UAVs. The increasing use of these vehicles in testing operations and their ability to offer real-time intelligence are considered as other factors responsible for rising demand. Moreover, several countries are seeking to deploy a wide range of UAVs with enhanced capabilities for military as well as civilian applications. The deployment of unmanned aerial vehicles in the battlefield creates a completely new industry, and the usage of UAVs for civil, military, and government purposes, is expected to reach billions of dollars globally during the next decade.
The global Unmanned Aerial Vehicles and Systems market is sensitive to a broad range of factors encompassing technological, political, social, and economic variables. While political factors revolve around regulations, trade/tariff/tax policies, international political relationships, economic factors encompass rate of GDP growth, level of inflation, exchange rate fluctuations, and debt/interest rates. Social factors influencing the market include security issues, such as, rise in cultural terrorism as a result of factors like religious fanaticism, and growing need for homeland defense driven by geopolitical interests to maintain power, among others. Strength of military budgets typically influences profitability of market participants in the unmanned aerial vehicles and systems market for defense applications. Reductions in defense budgets can single-handedly jeopardize competitiveness and survival of market participants as well as sustainability of growth in the industry.
In the upcoming years, plans to purchase advanced combat fighters, enhance ISR (Intelligence, Surveillance and Reconnaissance) capabilities, and modernize network-centric warfare environment will benefit the market. Future growth prospects for unmanned aircraft systems remain encouraging fuelled by favorable government policy actions, as well as UAV acquisitions for defense applications.
Demand for unmanned aircraft systems is expected to increase at a positive rate, even though defense spending is expected to remain constricted in post recession years. As countries all over the world face complex security and surveillance challenges, demand for combat aerial vehicles that have the ability to perform wide range of mission-critical operations such as fighter/bomber aircraft, and manned refueling, will increase in coming years.
The prospects of UAV for non-military use is also encouraging with increasing use of UAV for myriad applications, such as firefighting, aerial photography, advertising, surveying, and law enforcement.
The civil/commercial UAS sector will experience subdued growth in post recession period with most companies pinned down by lack of civil regulations for certification &operation in the national air space. Efforts of European civil aviation authorities and the US Federal Aviation Administration (FAA) to rationalize civil certification procedures will be a key factor for future growth.
As stated by the new market research report on Unmanned Aerial Vehicles (UAV) and Systems, Asia-Pacific represents the fastest growing regional market for UAV and Systems, with annual spending waxing at a CAGR of about 6.3% over the analysis period. Most of the procurement spending will be focused on purchasing equipment for battling emergencies such as terrorist attacks, and natural disasters, undertaking surveillance of airspace and sea, and missile defense programs. In the US, spending on UAVs is fastest for MALE UAV type.
The research report titled “Unmanned Aerial Vehicles (UAV) and Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections by segments R&D Spending and Procurement spending, across all major geographic markets including the United States, Europe, Asia-Pacific, Middle East and Rest of World.
Source: Press Release