The analysts found that rising demand for military C4ISR capabilities is driving the demand for UAVs. Drones are used to gather data about ongoing and life-threatening military missions with the help of their command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capabilities which are used to reinforce, boost, or implement command and control strategies and directives within military and intelligence frameworks. C4ISR powered by AI uses machine learning to identify and classify tanks and other vehicles, improves image feeds, and also provides driving assistance by giving early warning on obstacles and changing ground conditions. Governments are also quickly adopting these technologies to improve their defence arsenal.

Defence & government to record the highest growth

The research further divides the defence & government segment into small, tactical, and strategic. Rising demand for defence sector for surveillance, reconnaissance and border security is the area that is boosting the demand for defence & government drones. And currenty, the strategic segment holds the leading share of the market in 2022 given the high value of strategic drones such as HALE and MALE, that fly at particularly high altitude. Tactical UAVs fly at altitudes ranging between 3,000 and 8,000 meters and are principally used in military applications. They fill the gap between small UAVs and strategic UAVs by combining the flexibility of small platforms with high-end platforms. The increasing demand for tactical drones that can be hand-launched and have an endurance of about 2 hours with suitable payload capacities to provide the required surveillance information has led to the growth of the tactical drones segment of the UAV market for defence & government globally.

Special purpose drones

UAVs perform various functions ranging from transporting passengers to carrying out combat duties. Based on function, the UAV market has been segmented into special purpose drones, passenger drones, inspection & monitoring drones, surveying & mapping drones, spraying & seeding drones, cargo air vehicles, and others. Special purpose drones mainly include decoy drones, swarm drones, combat UAVs, etc., used in military applications. The use of special purpose drones in military and combat operations is driving the demand for these drones. As the name suggests, special purpose drones are specifically designed for performing a particular set of duties. These include aerial combat duties and lethal or swarm tasks. Exo-stratospheric drones also fall in the category of special purpose drones; they remain in the air as launch-effect vehicles. The MQ-9 Reaper by General Atomics (US) is an example of a known battlefield drone that is used extensively across the world.

Asia Pacific has growth potential

The rising number of UAV manufacturers in China and India and increased procurement of military drones is the major factor driving the market growth in Asia Pacific.

China held the leading share in the Asia Pacific UAV Market during 2022. China is one of the prime manufacturers of drones globally. China focuses on the procurement of tactical UAVs owing to their increased applications in the civil and defence sectors. UAV manufacturers in the country have witnessed an increased demand from various countries of Asia Pacific, Africa, and the Middle East. This is positively affecting the growth of the UAV market in China.

Some of the major players in the UAV market and named by the researchers are, DJI from China, Parrot Drone SAS of France, Israel Aerospace Industry Ltd., Aerovironment, Inc., and Lockheed Martin Corporation both from the US.