Impressive Growth in Military UAV Market

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Military Drone/Unmanned Aerial Vehicle (UAV) market was estimated to be over USD 5 billion in 2016, and will have a market value of more than USD 13 billion by 2024, according to a 2018 report by Global Market Insights.
The advancements in the UAV technology will foster the military drone market growth. The integration of advanced machine learning algorithms and artificial intelligence in the drones will fuel their demand for traffic monitoring, surveillance, and spy applications. However, the safety and security issues associated with the use of drones and stringent government regulations across the countries are estimated to hinder the military drone/ unmanned aerial vehicle market growth.
Military Drone/Unmanned Aerial Vehicle (UAV) Market is driven by the increasing procurement of UAVs for combat operations and surveillance purposes by the government across the countries. The increasing internal and external threats are encouraging the government to adopt the drone technology for gathering intelligence related to the developments on the battlefield, assessing battle damages, and performing high-level reconnaissance activities.
Market growth is also fostered by the increasing utilization of UAVs for administrative functions such as traffic monitoring and police investigations along with emergency response services that include firefighting and disaster management.
The drone can effectively track and monitor real-time traffic congestions; it proficiently facilitates the quick dispatch of patrol units for relieving vehicle congestions and optimizing traffic monitoring and management functions.
Drones are also witnessing a rapid adoption in wildfire prevention operations, where they assist firefighters in determining hot spots using thermal imaging capabilities.
The increasing investments in the drone technology by military and defense departments has contributed to market growth. The government across the countries are spending heavily to increase their UAV fleet size.
The U.S. federal government has allocated approximately 4.5 billion for drone procurement in the 2017 budget proposal. The proposal indicates a paradigm shift in the technology, as the major drone procurement program was launched, with the funding assigned for new research and development.
Similarly, the government of India has also formed an alliance with the General Atomics to deliver 22 sea guardian drones worth approximately USD 2.0 billion. The South Korean government has also announced a five-year plan to invest more than USD 1 billion in the industry for the next five years.
According to gminsights.com, the market is characterized by the presence of major aerospace design and manufacturing companies. The major vendors of drones are General Atomic, Northrop Grumman, Lockheed Martin, Boeing, BAE Systems, Inc., Israel Aerospace Industries Ltd., China Aerospace, Aerovironment, Inc., Leonardo, and Textron Systems.
Asia Pacific region is estimated to grow fastest in the military drone/ unmanned aerial vehicle market with a CAGR of 17.6%, owing to the increase in the use of UAVs in countries such as Japan, China, Australia, and India, where there are opportunities in abundance for traffic monitoring, border management, and surveillance.
South Korea is estimated to emerge as a market leader in drone technology in the APAC region because of its government’s firm commitment towards heavy investment in drone for varied applications and use cases.
North America accounts for more than 70% share in the global military drone market. The demand is driven by the wide adoption of drones in the U.S. for defense and civil applications.
By 2024, North America will be accounting for 70% of the overall military drone market share. This expansive growth can be aptly credited to the heavy adaptation of drones in civil applications and the ongoing ‘War on Terror’ that the U.S. is current involved in.