Market Size of Small UAV Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.48 Billion |
| Market Size (2029) | USD 17.98 Billion |
| CAGR (2024 - 2029) | 16.21 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Small UAV Market Analysis
The Small UAV Market size is estimated at USD 8.48 billion in 2024, and is expected to reach USD 17.98 billion by 2029, growing at a CAGR of 16.21% during the forecast period (2024-2029).
- The COVID-19 pandemic drove the adoption of small UAVs by law enforcement agencies in some countries for crowd monitoring and other surveillance purposes. However, the supply chain disruption resulted in a temporary shortage of such systems which resulted in the end-users procuring commercial-off-the-sheld (COTS) payloads for small UAVs. The temporary production crunch on account of supply chain disruption also led to temporary price inflation during the pandemic. However, since the normalization of the global supply chain due to the repelling of lockdown restrictions, the price inflation has been negated, and the demand for small UAVs is witnessing healthy growth on account of adoption from both civil and military end-users.
- Government regulations, to a huge extent, determine the growth of the civilian drone industry in any country. Countries with lesser restrictions on civilian drones have witnessed increased adoption of drones, while countries with stricter regulations have witnessed smaller market growth in the last ten years. Several countries across the world lack well-formulated guidelines and regulations that are required for the smooth operation of drones without any ambiguity or concerns. Market growth in such countries is largely dependent on the pace at which these guidelines are drafted and implemented.
- Advancements in newer-generation military UAVs are unlikely to stop and may experience accelerating growth in the coming years. To succeed in critical military missions, real-time information can prove to be the most powerful weapon for warfighters, commanders, and troops to protect themselves. Hence, tailoring their response to the threat requires superior tactical intelligence, surveillance, and reconnaissance. This is generating the demand for small UAVs from the armed forces across the world, thus, driving market growth.
