Military Drone Market

Military drones, also known as Unmanned Aerial Vehicles (UAVs), have revolutionized modern warfare. Drones have been used for a variety of purposes including reconnaissance, surveillance, targeting, and combat operations. In recent years, their use has increased significantly due to advancements in technology and the decrease in costs.

The use of military drones has been controversial, with some arguing that they reduce the risk of human casualties while others criticize them for their potential to cause civilian casualties and violate international laws. However, despite the criticisms, military drones are becoming an increasingly important aspect of modern warfare.

One of the benefits of military drones is their ability to conduct intelligence, surveillance, and reconnaissance (ISR) missions without putting human lives at risk. Drones equipped with cameras and other sensors can fly for extended periods, providing real-time information to commanders on the ground. This information can be used to track enemy movements, identify potential targets, and plan future operations.

Another advantage of drones is their ability to carry out precision strikes against enemy targets. Drones equipped with missiles can be used to strike targets with high accuracy, minimizing collateral damage and reducing the risk of civilian casualties. Additionally, drones can be used to target enemy positions that are difficult or impossible to reach by ground troops.

The use of drones in warfare, however, raises ethical concerns. One of the primary concerns is the potential for civilian casualties. Drones can mistakenly target civilians or their homes, leading to unnecessary loss of life. This has led to calls for greater transparency and accountability in the use of military drones.

Another ethical concern is the lack of risk to the operator. The operator of a drone is often thousands of miles away from the battlefield, which can lead to a lack of accountability and a disregard for the consequences of their actions. This has led to concerns that the use of drones may lead to a desensitization to violence and a lack of empathy for the human cost of war.

Military Drone Market Dynamics

Drivers in Military Drone Market

The military drone market is witnessing dynamic changes due to various drivers and restraints. One of the major drivers is the increasing government funding for military drones. Governments around the world are investing heavily in military drones to enhance the efficiency of their military operations. This has led to a significant increase in demand for military drones, which in turn has boosted their production. For instance, the US Navy's funding for unmanned systems increased by USD 1 billion (38%) in 2019, while the US Army's funding increased by USD 720 million (73%) compared to 2018. The US Department of Defense (DOD) has also requested USD 9.4 billion for drones and associated technologies in fiscal year 2019, representing a 26% increase in drone spending compared to the previous year.

Restraints in Military Drone Market

However, the lack of trained personnel to operate military drones is a significant restraint in the market. Military drones require skilled pilots to control and operate them, and the number of pilots available for high-precision operations is comparatively low. This has led to efforts to improve the autonomy of these systems to reduce accidents caused by poor control skills. Military drones are equipped with high-tech propulsion systems, avionics systems, advanced flight management technology, modern sensors, and payloads, which increase the final price of these drones across the globe. The deployment of military UAVs has a different product portfolio for the army, air force, and navy, owing to different applications also varying the overall cost of products.

In addition to the lack of skilled personnel, restrictions on the deployment of UAVs in several countries and limited use in aerial spaces are also expected to restrain future demand. Despite these restraints, the global defense spending is attributed to the development and procurement of drones, which is likely to continue to drive the market forward in the coming years.

Opportunities in Military Drone Market

The use of unmanned aerial vehicles (UAVs) for military cargo delivery is a promising opportunity that has recently emerged. This application involves the use of drones to resupply soldiers on the battlefield. This idea was initially adopted from the commercial sector, where companies such as Amazon use drones to deliver products to their customers. In the military sector, the use of UAVs for cargo delivery can reduce the risks associated with transporting supplies through road convoys, which are vulnerable to enemy attacks. UAVs take aerial routes, which can be changed, thereby minimizing the risk of enemy attacks on convoys. This also eliminates the high-risk situations that soldiers face while travelling through the convoys. Deliveries using UAVs can be faster and safer compared to traditional road convoys.

Several countries are investing heavily in strengthening their defense forces, which is expected to drive market growth for military unmanned aerial vehicles. The total global military expenditure in 2023 is estimated to be around USD 2 Trillion, which is a 3% increase from 2022, according to the Stockholm International Peace Research Institute (SPIRI) report. The top five countries with the highest defense budgets in 2020 were the U.S., China, India, Russia, and the U.K.

Countries such as Russia, India, China, and Saudi Arabia are investing large amounts of money in purchasing and upgrading their defense systems, which is projected to fuel the demand for military unmanned aerial vehicles in the coming years. Although the first military cargo delivery using drones was carried out by the US Marine Corps in 2012, the use of UAVs for cargo delivery in the defense sector is not widespread. However, researchers are working to develop drones that can deliver supplies to soldiers in any location. For instance, the US military is developing a drone called the Joint Tactical Aerial Resupply Vehicle (JTARV), which is capable of resupplying soldiers on the battlefield. Additionally, the DeltaQuad Pro by Vertical Technologies, which is designed to carry industrial cargo over a 150 km range, is a military drone featuring a payload drop mechanism and advanced long-range communication systems.

Growing border disputes among countries over land ownership and controlling the area between two or more states are also expected to increase the demand for military unmanned aerial vehicles. Countries such as India, China, Pakistan, Iran, Israel, and Syria are facing territorial issues, and they have increased military spending for the procurement of real-time surveillance drones to improve situation awareness by upgrading the patrolling of the borders. In June 2020, the China-India border dispute turned deadly for the first time in over four decades. Both countries are using military unmanned aerial vehicles for reconnaissance operations and logistics applications in high-altitude areas.

Challenges in Military Drone Market

One of the challenges faced in the use of UAVs in military operations is the issue of safety and security. Due to their remote or autonomous operation, there is a risk of flight control systems being hacked and taken over. This concern was demonstrated in 2012 when a team from Texas University used GPS spoofing devices to take control of a UAV, disrupting its operations and sending it off course. To prevent incidents like the Iranian capture of a Lockheed Martin RQ-170 in 2011, manufacturers of military UAVs need to ensure that their control systems cannot be easily hacked, and that they are secure to use. Despite these concerns, drone technology has experienced significant growth due to continuous research and development, leading to the incorporation of modern sensors, cameras, and other high-tech systems. The most advanced UAVs are equipped with multiple sensor systems and weapon payloads, including missiles and guided bomb units. The use of artificial intelligence for autonomous flight systems is also becoming more widespread, further driving growth in the global military drone market.

In 2023 and beyond, the fixed-wing segment is expected to dominate the military drone market, with the highest market share. Fixed-wing aerial vehicles are preferred over VTOL UAVs for their ability to carry heavier payloads for longer distances and longer flying times while consuming less power. This makes them suitable for critical long-distance missions such as surveillance, mapping, and defense. The global armed forces widely use fixed-wing drones due to their reliability and long-endurance capabilities. These factors are expected to fuel the growth of the fixed-wing segment throughout the forecast period.

Meanwhile, the rotary-wing segment is also expected to experience significant growth in the coming years, mainly due to the emergence of quad-copters. Quad-copters are capable of carrying heavy loads and are widely used for transportation and logistics applications worldwide. Rotary-wing drones are also used for tactical operations, particularly for Intelligence, Surveillance, and Reconnaissance (ISR) missions.

Fixed-wing drones are designed to lift off the ground, just like airplanes, using wings to provide the required vertical lift. They need engines to propel them forward and maintain their altitude. Fixed-wing UAVs are known for their higher payloads, longer endurance, and specific applications. However, they require runways for take-off and landing, which limits their operational flexibility. Examples of fixed-wing UAVs include the MQ-9 Reaper, MQ-1 Predator from General Atomics (US), and RQ-4 Global Hawk from Northrop Grumman Corporation (US). Fixed-wing drones can further be classified into Conventional Take-off and Landing (CTOL) UAVs and Vertical Take-off and Landing (VTOL) UAVs.

Overall, the fixed-wing segment is projected to reach a market value of USD 20 Billion during the forecast period, growing at a CAGR of 9%. The fixed-wing drones' ability to carry heavy payloads for long distances while consuming less power makes them the ideal choice for various military applications.

The military drone market has been classified into three operation modes, namely remotely piloted, optionally piloted, and fully autonomous. The remotely piloted segment is expected to witness significant growth during the forecast period due to its cost-effective usage in various applications, including defense operations and surveys. Additionally, the optionally piloted drones provide high maneuverability and advanced technologies, resulting in comparatively low maintenance costs. However, fully autonomous drones are anticipated to replace them in the future, as they offer high payload capacity, enhanced propulsion power, long endurance, and can operate without any human involvement.

The Asia Pacific region is projected to grow at the highest CAGR during the forecast period. The military drone market in this region is expected to witness substantial growth due to the rise in military spending by various countries to enhance their defense capabilities. The political tensions in Asia Pacific countries have led to the deployment of drones to safeguard their borders, which is a significant factor driving the market's growth in this region. Moreover, China is developing innovative technologies to manufacture low-cost drones, which is expected to contribute to the growth of the military drone market in the Asia Pacific region.

Dominating Companies in Military Drone Market

• NORTHROP GRUMMAN CORPORATION
• RAYTHEON TECHNOLOGIES CORPORATION
• ISRAEL AEROSPACE INDUSTRIES LTD.
• GENERAL ATOMICS AERONAUTICAL SYSTEMS
• TELEDYNE FLIR LLC
• AEROVIRONMENT, INC.
• THE BOEING COMPANY
• AIRBUS
• TEXTRON INC.
• LOCKHEED MARTIN CORPORATION
• ELBIT SYSTEMS LTD.
• DASSAULT AVIATION
• BAE SYSTEMS
• THALES GROUP
• LEONARDO S.P.A.
• DYNETICS, INC.
• ROBOTICAN CORPORATION
• VOLANSI, INC.
• GRIFFON AEROSPACE
• PLATFORM AEROSPACE
• SHIELD AI
• INSTANTEYE ROBOTICS
• ATHLON AVIA
• SILVERTONE UAV
• BLUEBIRD AERO SYSTEMS LT

Recent Developments in Military Drone Market

One of the most significant mergers in the military drone industry was the acquisition of Aurora Flight Sciences by Boeing in November 2017. Aurora Flight Sciences was a leading manufacturer of unmanned aerial vehicles, and this acquisition expanded Boeing's capabilities in autonomous systems, robotics, and advanced manufacturing. The move was part of Boeing's broader strategy to expand its military drone offerings and strengthen its position in the military aviation market.

In August 2018, FLIR Systems, a provider of sensor systems, acquired Aeryon Labs, a leading manufacturer of small unmanned aerial systems (UAS) used for intelligence, surveillance, and reconnaissance (ISR) operations. The acquisition allowed FLIR to expand its unmanned systems capabilities and offer more comprehensive solutions to its military clients.

In January 2020, Elbit Systems, an Israeli-based defense electronics company, announced the acquisition of the U.S.-based company, Sparton Corporation, which specializes in the production of sonobuoys, anti-submarine warfare (ASW) devices, and other defense-related products. The acquisition was aimed at expanding Elbit's capabilities in the U.S. defense market and strengthening its position in the global military drone industry.

In February 2021, AeroVironment, a leading manufacturer of unmanned aircraft systems (UAS), announced its acquisition of Telerob, a German robotics company that specializes in unmanned ground vehicles (UGVs) used for military and law enforcement purposes. The acquisition allowed AeroVironment to expand its product portfolio and offer more comprehensive solutions to its military clients.

In addition to these mergers and acquisitions, there have been several notable partnerships in the military drone industry in recent years. In February 2020, General Atomics Aeronautical Systems (GA-ASI) announced a partnership with Sankhya Infotech, an Indian technology company, to develop a new version of the Predator B drone for the Indian Navy. The partnership was aimed at improving India's maritime surveillance capabilities and expanding GA-ASI's market share in the Indian defense market.

In August 2021, drone manufacturer Skydio announced its acquisition of drone software company Hummingbird. The move was aimed at enhancing Skydio's autonomous flight capabilities and expanding its offerings in the defense and public safety markets.

In September 2021, Raytheon Technologies announced a partnership with drone manufacturer Blue sUAS. The partnership will provide the U.S. Department of Defense with secure and trusted drone technology for military operations.

In October 2021, drone manufacturer Kratos Defense & Security Solutions announced its acquisition of 5-D Systems, a company that specializes in autonomous systems for military and defense applications. The move was aimed at expanding Kratos' unmanned systems capabilities and enhancing its position in the military drone market.

In November 2021, AeroVironment announced its acquisition of Progeny Systems Corporation's Intelligent Systems Group, which specializes in unmanned underwater vehicles (UUVs) and other advanced marine technologies. The move was aimed at expanding AeroVironment's offerings in the unmanned systems market and enhancing its capabilities in the defense and security sectors.

In conclusion, military drones are becoming an increasingly important aspect of modern warfare. They offer several advantages, including the ability to conduct ISR missions without putting human lives at risk and the ability to carry out precision strikes against enemy targets. However, their use also raises ethical concerns, including the potential for civilian casualties and the lack of risk to the operator. As such, the use of military drones should be subject to greater transparency and accountability to ensure that they are used in a responsible and ethical manner.