Unmanned Aerial Vehicle Market size was over USD 36.04 billion in 2024 and is anticipated to cross USD 242.66 billion by 2037, growing at more than 15.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of cloud logistics is estimated at USD 40.6 billion.
Growing demand for secure communications, navigation, and reconnaissance has boosted the requirement for unmanned aerial vehicles (UAVs). UAV offers advanced aviation tools and features such as video surveillance missions, power-line inspection, relief operations in disaster environments, search and rescue, and remote sensing. Additionally, several governments are increasing their investments in the military sector to ensure that the national security agencies have the most up-to-date resources possible. For instance, Campaign on Military Spending-UK 2024 stated that in 2023, global military spending showed a growth rate of 6.8% surpassing USD 2.44 trillion since the Cold War ended.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
15.8% |
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Base Year Market Size (2024) |
USD 36.04 billion |
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Forecast Year Market Size (2037) |
USD 242.66 billion |
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Regional Scope |
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Application (Military, Emergency Medical, Commercial, Consumer, Government)
By 2037, military segment in the unmanned aerial vehicle (UAV) market is estimated to cross USD 14.2 billion. Significant growth in the revenue share is anticipated as a result of their ability to conduct drone strikes. UAVs deliver aircraft weaponry, such as bombs, ATGMs, or missiles, to strategic locations and strike. Combat UAVs have varying levels of control and are usually controlled by humans in real-time. For instance, according to Defence Industry Europe in 2023, the Turkish drone manufacturer Baykar and the Romanian Ministry of National Defense made a deal for Bayraktar TB2 UAVs. Romanian Ministry also awarded USD 321 million to the Turkish defense in this purchase.
In addition, the emergency medical segment in the UAV market is predicted to record significant growth during forecast period. In the situation of environmental calamity, where quick action is essential to boost patient care, this is the most promising service. During the pandemic, medical drones gained popularity all over the world. Where direct human-to-human contact was avoided for infection control reasons, PPE (personal protective equipment), COVID-19 tests (SARS CoV-2), laboratory specimens, and vaccines were delivered via drones.
End use (Government & Defense, Energy, Power, Oil & Gas, Construction & Mining, Agriculture, Forestry & Wild Life Conservation, Public Infrastructure & Homeland Security, Hospitals & Emergency Medical Services, Transportation & Logistics, Event Management)
The government & defense segment in the UAV market is expected to be the dominating sub-segment with a substantial share attributed to the increasing military and security community's use variety of tasks, such as monitoring, surveying, mapping, transport, and combat. For instance, to create opportunities for the future integration of UAVs for refueling in military operations, the U.S. Navy and Boeing have demonstrated air-to-air refueling operations using an Unmanned Aerial Vehicle, specifically Boeing's proprietary MQ-25 T1 test vehicle. Growth in this sector will boost the home security drone value in the near future.
Fully Autonomous (Individual Autonomous System, Drone-in-a-Box (DiaB))
The individual autonomous system in the unmanned aerial vehicle (UAV) market is poised to be a faster-growing segment with a notable CAGR by the end of the forecast period. This tremendous gain is credited to the device that requires a whole system to function and is controlled by software. The need for individual autonomous systems is a surge since they can function independently to complete tasks and missions. As part of Autonomy Prime, Near Earth Autonomy announced that it has been chosen by the US Air Force's AFWERX program in 2023 to develop a Reliability Standard for Autonomous Aerial Transport. This partnership demonstrates Near Earth's dedication to pushing the boundaries of autonomous aircraft development.
Our in-depth analysis of the UAV market includes the following segments:
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Application |
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Fully Autonomous |
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Operational Mode |
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End use |
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System |
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North America Market Statistics
North America industry is predicted to dominate majority revenue share of 46% by 2037.The surge in government funding to ensure advanced defense units for national security drives the growth of unmanned aerial vehicles in this region. Peter G. Peterson Foundation in 2024 estimated that defense spending in the United States observed a gain of USD 55 billion between 2022 and 2023.
There is an increase in spending on autonomous drones in the United States. A recent report by Research Nester in 2024 stated that the Pentagon's 2023 Replicator program is an attempt to quickly assemble and install a large number of low-cost drones in a timeframe of 18 to 24 months. The Pentagon impacted spending of USD 500 million in 2024 and USD 500 million in 2025.
The economic development in Canada is fueling the UAV market share as this increases the exports of UAVs. According to the World Bank 2024, Canada’s GDP in 2022 was slated to be USD 2.14 trillion. This is highly based on imports and exports of goods and services, as this makes up to 1/3rd of the GDP.
Asia Pacific Market Analysis
Asia Pacific will also encounter huge growth in the unmanned aerial vehicle (UAV) market value during the forecast period with a share of 25%. This region will account for the second position in this landscape owing to the increasing spending and investments in the military in this region. According to The International Institute for Strategic Studies in 2024, the defence spending in Asia surpassed USD 510 billion in 2023.
China has introduced several technologically advanced UAVs, especially for the armed forces such as WZ-7 & WZ-8. Moreover, Asia Pacific Defence Reporter in 2022 stated that a new 8x8 UGV called Dragon Horse II was introduced by the PLA Army for use in carrying ammunition. The gain in this sector will augment the drone battery value in the near future.
It is anticipated that the mining and construction industries in Japan will place a greater focus on the development of cutting-edge drone navigation technologies. That can quickly and easily create a site map and detect object movement in real time. A report by Research Nester estimated in 2024 that in 2022, constructional investments were valued at 68.8 trillion yen. One of the major reasons for using UAV technology is to increase operational efficiency and worker safety.
Unmanned aerial vehicle market expansion is estimated to witness a lucrative share during the forecast period. The competitive environment is attributed to the tremendous spike in investments in the automation and military sectors globally. More companies are entering this sector owing to the potential growth opportunities. In the forecast period, the unmanned aerial vehicle (UAV) market will observe emerging competitors and a growing demand for unmanned aerial vehicles around the world.
Some of the key players include in the UAV market:
Author Credits: Saima Khursheed
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