Military UAV Market to Reach $12.2 Billion in 2018

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The military UAV market is estimated to be valued at around $12.2 billion in 2018 and is expected to grow at a CAGR of just over 4% to a value of about $18 billion by 2028. Cumulatively, the global market for military UAV is projected to be valued at $153 billion during the forecast period and is expected to be dominated by Asia Pacific followed by North America and Europe. The Asia Pacific region is projected to garner a share of around 35% of the total global military UAV market during 2018-2028.

In terms of segments, the military UAV market is split into six segments: UCAV, HALE, MALE, VTOL-UAV, TUAV and MUAV. The UCAVs and HALE UAVs are expected to account for about 39.4% and 22.9% of the military UAV market, respectively, followed by MALE UAVs, with a share of 17.7%. Category-wise, UCAVs are anticipated to be the top segment in the global UAV market. The demand for UCAVs is expected to be driven by the need to strike targets whenever detected by the UAV's ISR equipment, thereby providing enhanced lethality for the military. The demand for UCAVs is also driven by innovations that utilize solar energy in this segment, thus reducing costs in terms of fuel consumption. Combat UAVs (UCAVs) are the next generation of unmanned platforms, capable of carrying weapon payloads and accomplishing offensive missions.

UCAV's will be followed by HALE and MALE UAV's, which will account for the second and third largest segments over the forecast period, with cumulative spending of around $35 billion and $27billion respectively.Spending on VTOL-UAVs and TUAV's will be relatively low with projected cumulative investments of about $13.6 billion and $11.0 billion, respectively, during 2018-2028. MUAV's will account for the lowest spending in the UAV market with a cumulative spending of $5.9 billion during the forecast period.

Highlights:

• The Military UAV Market, valued at $12.2 billion in 2018, is projected to grow at a CAGR of 4.09% over the forecast period, to reach $18.1 billion by 2028.
• Realizing the benefits provided by UAVs as force multipliers, various countries are allocating substantial defense budgets to the R&D and procurement of advanced UAVs.
• UCAVs and HALE UAVs are more in demand by major defense spenders such as the US, Russia, the UK, and China, whereas MALE UAVs and TUAVs are finding growing markets in developing countries such as India, Brazil, and the UAE.

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