UAV Payload and Subsystems Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAV Payload and Subsystems Market Analysis
The UAV payload and subsystems market is anticipated to register a CAGR of more than 12% during the forecast period.
The COVID-19 pandemic has had a negative effect on the UAV payload and subsystems market. Due to stringent regulations and lockdowns during the pandemic, there was a reduction in the components needed to manufacture UAV systems. While the COVID-19 pandemic has affected consumer shipments and hampered commercial rollout, it also augmented the usage of drones for public service responses and surveillance by national and local police forces. However, in the post-pandemic scenario, the free flow of goods and services and the opening up of borders are increasing the demand for UAV systems. Significant growth has also been witnessed in the manufacturing of UAV systems by various companies. Moreover, the changing regulatory framework in various countries and a massive upscaling of drone operations are expected to drive market growth during the forecast period.
The emergence of medium-altitude long-endurance (MALE) and high-altitude long-endurance (HALE) UAV systems has been a vital game-changer for technologically superior nations. Unmanned combat aerial vehicles (UCAVs) are being extensively employed to suppress and destroy enemy air defense, electronic attack, communication transfer, combat, search, rescue and intelligence surveillance, and reconnaissance (ISR) operations. The growing integration of weapon systems onboard UAVs is expected to propel the market's growth.
UAV Payload and Subsystems Market Trends
This section covers the major market trends shaping the UAV Payload & Subsystems Market according to our research experts:
The Sensor Segment is Expected to Witness Significant Growth During the Forecast Period
Though the Radar and Communications segment accouted for the largest share in the market in 2021, the sensor segment is expected to witness significant growth during the forecast period. In the current scenario, the use of Unmanned Aerial Vehicles (UAVs), commonly known as drones, in the global civilian market is witnessing significant growth. This trend is due to the integration of high-performance processors, sensors, and electronic devices with lower power consumption on UAV platforms. A growing number of unmanned vehicles in the air, on the ground, and at sea represent a vast universe of sensors and sensor processing that could provide some of the most detailed intelligence information on military forces. Some of the chief enabling technologies for this new generation of connected unmanned vehicle sensor payloads include electro-optical sensors like infrared sensors, visible-light cameras, multispectral, and hyperspectral sensors. Companies are developing a new generation of technologically advanced sensors. For instance, one prominent company involved in electro-optical unmanned vehicle sensor payloads is FLIR Systems in Wilsonville, Ore. FLIR has introduced the UltraForce275-HD compact multi-sensor gyro-stabilized surveillance system for weight, power, and footprint-constrained platforms like unmanned aerial vehicles (UAVs). The gimbal weighs slightly more than 33 pounds. Similarly, Octopus ISR Systems in Riga, Latvia, offers the Epsilon 175 small gyro-stabilized electro-optical four-sensor payload for UAVs for military applications, order control, and civil uses.
More and more sensors are being embedded in UAVs which ensures the safety and automatic navigation to perform measurements during the flight according to the mission targets. New applications and functionalities for UAV systems are growing due to the increasing demand from companies seeking to integrate the benefits of UAVs into industrial processes and this has led to various companies' manufacturing advanced onboard sensors and devices to be fitted to UAVs.
Various new and different types of sensors such as external IMu sensors, external GPS sensors, air quality sensors, fuel level sensors, temperature sensors as well as rain sensors are being increasingly designed by companies to meet the requirement of modern customers. Thus, advancements in terms of development of advanced sensors will lead to the market witnessing growth during the forecast period.
The Asia-Pacific Region is Expected to Witness Significant Growth During the Forecast Period
The Asia-Pacific region is expected to witness significant growth during the forecast period. There has been a significant increase in the number of usage of UAVs in China. The growing number of border conflicts coupled with various Chinese companies developing advanced UAVs that can carry higher payloads will drive the market in the near future. The UAV industry in China is witnessing growth owing to strong demand from the low-altitude economy. According to reports by China Daily, as of 2022, the Chinese drone market has been valued at 100 billion yuan or USD 14.8 billion. Since 2020, despite the COVID-19 outbreak, China's drone market has succeeded in maintaining a 30 percent growth due to contactless delivery and smart applications. Moreover, according to reports from the Civil Aviation Administration of China, by the end of 2021, there are 781,000 registered drone users, and the number of registered drones total 832,000. Various Chinese companies such as ACES, China Electronics, and Hexadrones are now engaged in developing UAVs with advanced payload systems. For instance, in November 2022, China announced the development of their new MD-22 drone which has a flight speed of 8,645 km/h, a range of 8,000 km, and a payload of 4,000 kg. This drone has been developed to test hypersonic technology in China. The other major countyr in the region, India, is engaged in acquiring homegrown drones. Moreover, the country has also launched a series of fast-track drone procurement efforts under emergency powers that will see the country spend up to 3 billion rupees (USD 36 million) for each program. Moreover, according to the Defense Ministry, orders will be fulfilled within one year after the contract has been signed. Countries in the Rest of Asia-Pacific such as Thailand, Singapore as well as Malaysia are witnessing significant improvements in terms of development as well as usage of UAVs and payload subsystems. For instance, in September 2022, the Royal Thai Navy announced that have placed an order for Hermes 900 maritime unmanned aerial vehicles (UAVs) from Israel under a contract worth USD 120 million. Moreover, the medium-altitude long-range (MALE) UAVs will be equipped with various payload systems such as maritime radar, an electro-optic payload, satellite communication (Satcom) equipment, droppable inflated life rafts, and other capabilities and intended to enable the Royal Thai Navy to perform missions such as maritime search-and-rescue and identification of suspicious activities and potential hazards. Such developments will lead to growth in terms of UAV payload and subsystems in the market during the forecast period.
UAV Payload and Subsystems Industry Overview
The UAV payload and subsystems market is characterized by the presence of limited dominant vendors operating at a global level. The market is highly competitive, with players competing to gain the largest market share. Some of the major players in the UAV payload and subsystems market are AeroVironment Inc., Elbit Systems Ltd., Lockheed Martin Corporation, SZ DJI Technology Co., Ltd., and Teledyne Technologies Incorporated amongst others. It is now becoming crucial for vendors to provide state-of-the-art systems to OEMs to survive and succeed in an intensely competitive market environment.
In this regard, in March 2021, Elbit Systems introduced the new variant of its Advanced Multi-Sensor Payload System (AMPS NG) for UAVs, which introduces Shortwave Infrared (SWIR) technology to the existing CCD (Charge-Coupled Device) TV sensors with a unique dual FLIR sensor design. Similarly, another company, Aerovironmenthas introduced its new imaging payload in the MANTIS range of payloads, the MANTIS i23 D multi-sensor payload. This new payload is compatible with Raven B small Unmanned Aircraft System (SUAS) and has an ultralight imaging system with dual 18 MP electro-optical sensors and 24X digital zoom. The majority of the defense OEMs integrate advanced sensors and other supporting subsystems aboard their UAV offerings to minimize R&D costs pertaining to the cross-integration of communication platforms.
Hence, vendors mainly compete on their in-house manufacturing capabilities, global footprint network, product offerings, R&D investments, and strong client base. The competitive environment in the market is likely to intensify further due to an increase in product/service extensions and technological innovations.
UAV Payload and Subsystems Market Leaders
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AeroVironment Inc.
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Elbit Systems Ltd.
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Lockheed Martin Corporation
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SZ DJI Technology Co., Ltd.
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Teledyne Technologies Incorporated
*Disclaimer: Major Players sorted in no particular order
UAV Payload and Subsystems Market News
In December 2022, A Euro 129 million initial contract has been awarded by the Ministry Of Defence to deliver drones to the Armed Forces, of which 99 Stalker and 15 Indagomodels will be used by the British Army. The Mini Uncrewed Air Systems (MUAS), produced by Lockheed Martin, will be used by British Army and Strategic Command for Intelligence, Surveillance, Target Acquisition, and Reconnaissance (ISTAR) on the front line and deep into enemy territory.
In June 2022, YellowScan introduced Voyager, which is a LiDAR scanning system for fixed-wing and multirotor UAVs (unmanned aerial vehicles) that can capture complex and vertical targets with a data acquisition rate of up to 1800 kHz and accuracy down to 1 cm.
UAV Payload and Subsystems Market Report - Table of Contents
1. Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. Market Segmentation
5.1 Payload
5.1.1 Sensors
5.1.2 Weaponry
5.1.3 Radar and Communications
5.1.4 Other Payloads
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 Rest of Asia-Pacific
5.2.4 Middle East and Africa
5.2.4.1 Saudi Arabia
5.2.4.2 Turkey
5.2.4.3 Israel
5.2.4.4 Rest of Middle East and Africa
5.2.5 Latin America
5.2.5.1 Brazil
5.2.5.2 Rest of Latin America
6. Competitive Landscape
6.1 Vendor Market Share
6.2 Company Profile
6.2.1 AeroVironment Inc.
6.2.2 BAE Systems PLC
6.2.3 Elbit Systems Ltd
6.2.4 Teledyne Technologies Incorporated
6.2.5 Israel Aerospace Industries Ltd
6.2.6 L3Harris Technologies Inc.
6.2.7 Lockheed Martin Corporation
6.2.8 Northrop Grumman Corporation
6.2.9 SZ DJI Technology Co. Ltd
6.2.10 Textron Inc.
6.2.11 The Boeing Company
6.2.12 YUNEEC
7. Market Opportunities and Future Trends
UAV Payload and Subsystems Industry Segmentation
UAVs are unmanned platforms that utilize onboard sensors to function effectively and perform according to their specified mission profile. The sensors are integrated onboard as payloads are used for controlling several aspects of the flight of the UAVs. Besides providing a complete battlefield assessment from an aerial perspective, the onboard payload systems are also used for gathering mission data and transmitting them to ground-based data centers for evaluation.
The UAV payload and subsystems market is segmented by payload and geography. By payload, the market is segmented into sensors, weaponry, radar, communications, and other payloads. By geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. The report also covers market sizes and forecasts of different geographical regions. Moreover, the report offers a market forecast in terms of value in USD million. Furthermore, the report also includes various key statistics on the market status of leading market players and provides key trends and opportunities in the UAV payload and subsystems market.
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UAV Payload and Subsystems Market Research FAQs
What is the current UAV Payload and Subsystems Market size?
The UAV Payload and Subsystems Market is projected to register a CAGR of 7.38% during the forecast period (2024-2029)
Who are the key players in UAV Payload and Subsystems Market?
AeroVironment Inc., Elbit Systems Ltd., Lockheed Martin Corporation, SZ DJI Technology Co., Ltd. and Teledyne Technologies Incorporated are the major companies operating in the UAV Payload and Subsystems Market.
Which is the fastest growing region in UAV Payload and Subsystems Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in UAV Payload and Subsystems Market?
In 2024, the North America accounts for the largest market share in UAV Payload and Subsystems Market.
What years does this UAV Payload and Subsystems Market cover?
The report covers the UAV Payload and Subsystems Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAV Payload and Subsystems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAV Payload and Subsystems Industry Report
Statistics for the 2024 UAV Payload and Subsystems market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. UAV Payload and Subsystems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
UAV Payload and Subsystems Market Report Snapshots
