Unmanned aerial Vehicles are used in a wide range of applications from Defense to Agriculture. The current market is around $900million and is expected to grow to around $1.45 Billion by the end of 2020 at a CAGR of 8.25%. The major market in the defense sector where they are being used for reconnaissance and surveillance applications, the civilian applications are still to grow but have a huge potential to develop.
The major driver of this market is UAVs can be employed in potentially hazardous conditions where a human life can have a grave danger. They are also employed in mundane operations which are prone to human error if done over long periods of time. The growing Chinese economy is set to be the biggest user of UAVs. There are currently over a 1000 drones in china alone and the number is expected to rise.
The end of the Afghan and Iraqi wars have reduced the dependency of the US government on UAVs but the defense cuts are expected to affect UAVs the least because of their versatile applications. However the socio-political factors play a very important role in the future of the UAV market. Their application in the battlefield has caused outrage among some groups as they lack the Human eye and may cause unintended causalities.
The report divides the UAV into five major segments and discusses the applicability of these factors on each of them. The major Defense contracts are discussed and the various companies in the industry are presented.