Unmanned Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Unmanned Systems Market Trends & Share. The Market is Segmented by Type (Unmanned Aerial Vehicles, Unmanned Ground Vehicles, and Unmanned Sea Systems), Application (Military & Law Enforcement and Commercial), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa).

Unmanned Systems Market Size

Unmanned Systems Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 15.10 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Unmanned Systems Market

*Disclaimer: Major Players sorted in no particular order

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Unmanned Systems Market Analysis

The unmanned systems market was valued at USD 15.31 billion in 2022 and is anticipated to register a CAGR of 15.1% during the forecast period.

  • The COVID-19 pandemic positively impacted market growth due to the increased demand for unmanned systems for various commercial and military applications. An increase in global defense expenditure and increased focus on strengthening defense forces drive the market's growth. The defense sector witnessed steady growth during the pandemic as the countries continuously invested in the procurement of advanced unmanned systems due to growing warfare situations and cross-border conflicts among neighboring countries.
  • Similarly, increasing the use of unmanned systems for combat and intelligence, surveillance, and reconnaissance (ISR) missions drives the market's growth. Defense forces are highly invested in developing and procuring unmanned systems over manned systems as it reduces the risks of soldier casualties and enhances accuracy during combat operations.
  • The growing use of unmanned systems in the commercial sectors, like unmanned ground vehicles (UGVs) in firefighting and agriculture, unmanned sea vehicles (USVs) for underwater sea exploration and marine research, and unmanned aerial vehicles (UAVs) for disaster relief, recreational uses, and photo and videography is expected to boost the growth of the market during the forecast period.
  • The introduction of next-generation technologies, like artificial intelligence (AI) and the Internet of Things (IoT), in the UAVs, UGVs, and USVs will create higher demand for autonomous systems in the coming years.

Unmanned Systems Market Trends

The Unmanned Sea Systems Segment to Witness the Highest Growth During the Forecast Period

  • The unmanned sea systems segment of the market is anticipated to witness the highest CAGR during the forecast period. Currently, the use of unmanned sea systems is higher by various research organizations for deep-sea exploration. According to the International Energy Agency (IEA), the demand for natural gas is anticipated to grow by 1.5% up to 2025. Oil and gas will play vital roles in the future and account for around 44% of the world's primary energy supply in 2050. The oil and gas companies highly adopted unmanned underwater vehicles for making seafloor maps.
  • In October 2021, Boxfish Research, a New Zealand-based company with its Norwegian partner Transmark Subsea launched the ARV-I, a new class of underwater sea vehicles. The vehicles offer users operational flexibility and are configurable for fully autonomous manual control or self-piloting.
  • Furthermore, in July 2022, Leidos signed a contract worth USD 358.5 million with the US Navy to develop a medium-size unmanned undersea vehicle for torpedo tube-launched data collection operations and surface-launched mine countermeasures. The use of autonomous surface and underwater vehicles by educational institutes is supporting this growth.
  • Moreover, in the military sector, the United States, China, and Russia are working toward increasing their fleet of unmanned sea systems. The US Navy is planning to develop and procure three types of large unmanned vehicles (UVs) that includes large unmanned surface vehicles (LUSVs), medium unmanned surface vehicles (MUSVs), and extra-large unmanned undersea vehicles (XLUUVs).
  • The US Navy proposed FY2023 budget requests of USD 549.3 million in funding for these unmanned vehicles and USD 60.7 million in additional for core technologies for XLUUV and other UUVs. Moreover, in March 2021, the Navy and the Marine Corps published the Unmanned Campaign Framework to guide their investments in and integration of unmanned platforms in the United States. Further, increasing investments in strengthening the navy and the country's defense systems shall aid in developing the demand for unmanned sea systems for defense purposes.
Unmanned Systems Market: Budget of the US Navy and the US Marine Corps, 2018-2022, (USD Billion)

The Asia-Pacific Region is Expected to Generate the Highest Demand during the Forecast Period

  • Asia-Pacific is anticipated to witness the highest growth during the forecast period, majorly due to robust investments from countries like China, India, and Japan into unmanned systems. This growth is attributed due to a rise in defense expenditure by the countries in this region, along with the changing regulations for the use of unmanned systems in the commercial sector.
  • Countries such as India, Japan, and Indonesia are currently working on the use of unmanned aerial vehicles for the transportation of parcels and cargo. Growing procurement of next-generation unmanned systems from China, India, Australia, and others due to rising cross-border conflicts, growing terrorism, and political unrest among neighboring countries drive the growth of the market across the region.
  • Similarly, the development of unmanned ground vehicles (UGVs) is being carried out in South Korea, Japan, and China, among others, to assist their armed forces with a range of manual handling tasks, like moving heavy loads and field equipment and casualty evacuations.
  • In September 2022, Japan-based Drone Fund (DF) tied up with drone major Aerodyne India Group to invest in manufacturing facilities, and the company is planning to invest USD 40 million in the unmanned aerial vehicle (UAV) ecosystem in India. In addition to that, in April 2022, India's Defense Research and Development Organization (DRDO) started developing an unmanned ground combat vehicle based on the Arjun Mk.1A tank.
  • Furthermore, in August 2022, the research team from eastern China developed a submarine drone prototype that could fly in the air at high speed. In March 2022, Boeing's Insitu Pacific Pty Ltd supplied twenty-four new unmanned aerial surveillance systems developed in Brisbane to the Australian Army. The cost of the project was USD 650 million.
Unmanned Systems Market: Unmanned System Market - Growth Rate by Region (2023 - 2028)

Unmanned Systems Industry Overview

The market for unmanned systems is highly fragmented, with a large number of suppliers who provide different unmanned platforms, like UAVs, UGVs, and USVs. The major players in the unmanned systems market are BAE Systems plc, Lockheed Martin Corporation, Teledyne FLIR LLC, The Boeing Company, and Northrop Grumman Corporation. There are a few players, like BAE Systems, Saab AB, and ECA Group, among others, who provide all types of unmanned systems, which help the companies to capitalize and expand their geographic presence, as well as diversify their cash flows. 

Product innovation is the primary factor that aids companies in getting new contracts from the defense as well as commercial sectors. In addition to this, the mergers and acquisitions of the local companies with the major companies are allowing them to expand their product portfolio and market presence.

In February 2021, the advanced defense advanced technology group, EDGE, unveiled a new series of unmanned ground vehicles, SCORPIO-B. It can be equipped with remote weapon systems, pan-tilt-zoom (PTZ) cameras and intelligence, surveillance, and reconnaissance (ISR) sensors, and twin 40mm grenade launchers.

Unmanned Systems Market Leaders

  1. Northrop Grumman Corporation

  2. Lockheed Martin Corporation

  3. BAE Systems PLC

  4. The Boeing Company

  5. Teledyne FLIR LLC

*Disclaimer: Major Players sorted in no particular order

Unmanned Systems Market Concentration
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Unmanned Systems Market News

  • October 2022: Rheinmetall AG introduced a new Mission Master XT unmanned ground vehicle (UGV). It has large tires and an off-road optimized design that improves the overall performance even in extreme terrain conditions. The Mission Master XT will overcome the extreme terrain and harsh conditions. Also, it has amphibious capability and can accommodate heavy payloads of up to 1000 kg.
  • July 2022: Insitu, a Boeing subsidiary, received a four-year contract worth USD 160.3 million from the Naval Air Systems Command to provide training, test, and engineering services to support the US Navy's RQ-21A Blackjack and ScanEagle unmanned aerial vehicles (UAVs). Blackjack is a small tactical unmanned aerial vehicle capable of carrying out both land and sea operations, while ScanEagle is a long-endurance UAV designed to support intelligence, surveillance, reconnaissance, and electronic warfare missions.

Unmanned Systems Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Unmanned Aerial Vehicles

        1. 5.1.1.1 Small UAVs

        2. 5.1.1.2 Medium UAVs

        3. 5.1.1.3 Large UAVs

      2. 5.1.2 Unmanned Ground Vehicles

        1. 5.1.2.1 Wheeled

        2. 5.1.2.2 Tracked

        3. 5.1.2.3 Legged

        4. 5.1.2.4 Hybrid

      3. 5.1.3 Unmanned Sea Systems

        1. 5.1.3.1 Unmanned Underwater Vehicles (UUVs)

        2. 5.1.3.2 Unmanned Surface Vehicles (USVs)

    2. 5.2 Application

      1. 5.2.1 Military and Law Enforcement

      2. 5.2.2 Commercial

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 South Korea

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Japan

        6. 5.3.3.6 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Mexico

        3. 5.3.4.3 Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Egypt

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 QinetiQ Group

      2. 6.2.2 Israel Aerospace Industries Ltd

      3. 6.2.3 General Dynamics Corporation

      4. 6.2.4 Rheinmetall AG

      5. 6.2.5 Teledyne FLIR LLC

      6. 6.2.6 ECA Group

      7. 6.2.7 The Boeing Company

      8. 6.2.8 Elbit Systems Ltd

      9. 6.2.9 Lockheed Martin Corporation

      10. 6.2.10 Saab AB

      11. 6.2.11 BAE Systems plc

      12. 6.2.12 Northrop Grumman Corporation

      13. 6.2.13 L3Harris Technologies Inc.

      14. 6.2.14 SZ DJI Technology Co., Ltd.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Unmanned Systems Industry Segmentation

Unmanned systems are remotely controlled or autonomous systems used for a wide range of applications, from military and defense applications to homeland security. These systems are used in all airborne, land, and naval platforms. Some of the major applications include intelligence, surveillance, reconnaissance (ISR), underwater surveys, border patrol, and other combat operations.

The unmanned systems market is segmented based on type, application, and geography. By type, the market is segmented into unmanned aerial vehicles (UAVs), unmanned sea vehicles (USVs), and unmanned ground vehicles (UGVs). By application, the market is segmented into military & law enforcement and commercial. By geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

The market sizing and forecasts have been provided in value (USD billion) for all the above segments.

Type
Unmanned Aerial Vehicles
Small UAVs
Medium UAVs
Large UAVs
Unmanned Ground Vehicles
Wheeled
Tracked
Legged
Hybrid
Unmanned Sea Systems
Unmanned Underwater Vehicles (UUVs)
Unmanned Surface Vehicles (USVs)
Application
Military and Law Enforcement
Commercial
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific
China
India
South Korea
Australia
Japan
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Egypt
Rest of Middle-East and Africa
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Unmanned Systems Market Research FAQs

The Unmanned Systems Market is projected to register a CAGR of 15.10% during the forecast period (2024-2029)

Northrop Grumman Corporation, Lockheed Martin Corporation, BAE Systems PLC, The Boeing Company and Teledyne FLIR LLC are the major companies operating in the Unmanned Systems Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Unmanned Systems Market.

The report covers the Unmanned Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Unmanned Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Unmanned Systems Industry Report

Statistics for the 2024 Unmanned Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Unmanned Systems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Unmanned Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)