Unmanned Traffic Management Market Overview
Unmanned traffic management(UTM) is considered as a subset of air traffic management (ATM) that is aimed at the safe, economical and efficient management of UAS operations through the provision of facilities and a seamless set of services in collaboration with all parties and involving airborne and ground-based functions. The UTM system can be considered as a collection of services, among other features, intended to ensure safe and efficient operations of UA within the UTM-authorized volume of airspace and which is in compliance with regulatory requirements. The global UTM market was valued at USD 468.5 million in 2018 and is expected to grow at a CAGR of 20.33% over the forecast period, i.e., 2020-2028. The progressive growth of the overall market is propelled by the growing adoption of drones in the logistics & transportation along with other commercial applications.
Growth Highlights based on Region during 2020-2028
On the basis of region, the unmanned traffic management market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The market in North America is anticipated to lead the global market as it accounted for over 48% of the global market share in 2018. This was followed by the market in Europe with over 26% market share in the same year. The growth in these regions can be attributed to the rise in drone activity across various end use sectors along with growing investments by government bodies on drone BVLOS (Beyond Visual Line of Site) operations.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
The global unmanned traffic management market is segmented into hardware, software and services on the basis of components. The services segment held the major part of the market segment with over 45% market share in 2018 which is anticipated to grow further. Further, based on services, the market is sub-segmented into flight services, security services and information services. The growth of this segment can be attributed to the growing use of UTM services across various application areas including flight information, network, communication & connectivity, emergency response and weather. At present, there is a growing focus towards service providers supplying security, flight and information services to UTM as well as drone operators.
By UTM Type
The market is segmented into persistent UTM and non-persistent UTM on the basis of type. The persistent UTM segment is anticipated to grow at a faster pace in the global UTM market. The growth of this segment can be attributed to upsurge in the transportation and logistics activities in the developed as well as in developing regions. The mounting implementation of drones by medical industry and e-commerce is anticipated to boost the growth of this segment. The non-persistent UTM segment, on the other hand, is expected to witness significant growth during the forecast period, as they can be moved between geographical regions in support of operations such as public safety and precision agriculture among others.
By End User
On the basis of end user, the market is segmented into logistics & transportation, medical logistics, surveillance & monitoring, agriculture & forestry, public & security and energy & utility. Out of these, the surveillance & monitoring segment is leading the global UTM market as it is expected to grow up to USD 920.7 million by the end of 2028. The logistics & transportation segment is expected to grow at a fast pace, accounting for US$ 73.7 million in 2018. This growth can be attributed to the growing adoption of UAVs by e-commerce & retail companies. The eased regulations for the use of drones for commercial purposes are estimated to provide a huge boost to the use of drone in logistics & transportation segment over the coming years.
The market is segmented on the basis of solution into surveillance infrastructure, navigation infrastructure, communication infrastructure and others. Communication infrastructure segment is expected to grow at a fast pace during the forecast period. The growth of this segment can be attributed to the varied use of communication infrastructure such as wireless communication, data exchange, drone to drone communication and data link communication for more secure and safe operation of UAVs.
Market Drivers and Challenges
Over 22 countries in around the globe have partnered with UTM service providers to build national UTM system as the momentum of unmanned aerial vehicles (UAVs) is anticipated to continue to grow over the forecast period. This growing introduction of elements of a national UTM system is anticipated to boost the growth of the overall market. The innovators of drone services across various countries such as Canada, US and Australia are building their operations with UTM system as an integrated service rather than a standalone feature operated by some third party. This integration is anticipated to further boost the adoption of UTM and boost the growth of the market. Furthermore, the growing demand for drones across various applications such as construction monitoring, insurance investigation, fire services, monitoring and retail fulfillment among others is anticipated to result in the growth of the overall market.
As the fleet of UAVs is growing, there is bound to be a huge amount of data acquired by the drones through monitoring & surveillance. Thus, to maintain the information flow between the drones and management system providers, there is growing requirement for a solid infrastructure which is needed for the transfer of billions of data packages. The UTM market is experiencing a rapid growth with the growing use of drones across various sectors such as construction, agriculture, mining and surveying among others. However, the stringent regulations & laws imposed by the aviation authorities or government bodies are expected to hamper the growth of the UTM market.
Top Featured Companies
Some of the affluent industry leaders in the global UTM market are Lockheed Martin Corporation, Thales Group, L3 Harris Technologies, Inc., Airmap, Inc., PrecisionHawk, Unifly NV, UTC Corporation (Collins Aerospace), Frequentis AG and Leonardo S.p.A.