In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
A Small Unmanned Aerial Vehicle (SUAV), commonly called as ‘drone’ is a portable unmanned aerial vehicle which doesn’t carry any human and is remotely operated by a human pilot or by an onboard computer, or controlled autonomously at a ground control station. UAV is made from light composite materials in order to increase mobility while flying and reduce its weight. It can be equipped with a variety of additional equipment, including cameras, global positioning systems (GPS), GPS guided missiles, navigation systems, sensors and so on.
Small unmanned aerial vehicles are gaining acceptability across numerous industries, as they are no longer considered as an advanced military technology for basic surveillance or as a hobbyist’s tool for photography. Drones are explored and used for various applications, for instance, search & rescue operations, law enforcement, helping farmers in monitoring crops, assist insurance agents in assessing damaged assets. Additionally, drone delivery services for retailers and air taxis for commuters are some of the other services that are anticipated to be explored in coming years.
The small UAV market is anticipated to witness significant opportunities and is estimated to grow at a CAGR of around 16% over the forecast period i.e. 2019-2027.
By 2021, the Indian UAV market is anticipated to cross USD 860 million, whereas, the global UAV market size is estimated to cross USD 12 billion. This can be attributed to increase in adoption of drone based solutions in commercial, scientific, recreational, agricultural, and surveillance sectors.
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One of the notable growth drivers behind the growth of the market is the high rate of return-on investment obtained by multiple industries that are using UAVs for their wide range of applications. With growing technological advancements, these vehicles are modified as per the requirement and are used to perform different sets of operations.
The changes in government policies for increased adoption of drones in various fields, the market is bound to boom in a relatively short span of time. They are powerful tools to aid the businesses in a cost effective manner with applications ranging from firefighting to farming. These factors are estimated to support the growth of the market.
Globally, a lot of capital investment and creation of conducive environment for organizations in order to utilize drones owing to their various beneficial applications such as monitoring, mapping and remote surveillance among others has paved way for innovations and increased utilization of these vehicles. Moreover, low operating costs and the information gathered through UAVs are some of the notable factors that are predicted to boost the growth of the market over the forecast period.
While anticipating and incorporating the technological advancements, organizations are estimated to face challenges to ensure wide scale compliance with regulations while maintaining an equivalent level of safety, privacy and noise in operation of drones at the same time. Additionally, there will also be a need to address relevant knowledge gaps which will act as the bridge between manufacturers and potential users to operate the UAV in the coming years. These factors are anticipated to hamper the growth of the market over the forecast period.
Our-in depth analysis of the small UAV market includes the following segments:
On the basis of regional analysis, the small UAV market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Globally, North America holds the major share in the UAV market and is further expected to grow owing to the presence of largest developer and exporter of drones, United States. Additionally, increasing expenditure by U.S. on military applications, integration of technologies and surveillance missions to combat warfare among other commercial applications is estimated to boost the market share in the North America region. Furthermore, the market in Asia Pacific is estimated to hold second largest share in the global small UAV market and is expected to grow with highest CAGR over the forecast period. This can be attributed to growing popularity of these vehicles, increasing technological developments, and changes in regulations related to UAVs in the region. The market in Europe is anticipated to witness high adoption rate across different industries while adhering to challenging regulations by European authorities relating to commercial use of small UAVs.
The small UAV market is further classified on the basis of region as follows: