Global UAV Market - Growth, Trends, and Forecast (2018 - 2023)
The global UAV market is expected to register a CAGR close to 10% during the forecast period, 2018 to 2023. Military expenditure is the primary driving factor of the global UAV market. UAVs have the capability of reducing collateral damage, while hovering, searching, identifying, and striking targets, which makes them an asset for the military. For instance, the UAV market in pacific region is primarily driven by the threat posed by North Korea. As a result, South Korea has developed few UAV models indigenously and also, rolled out a long-term plan in December 2017 to develop unmanned vehicles, with the aim of emerging as a global leader in the sector by 2030. Other factors that fuel the growth are growing demand for UAVs for commercial applications, such as aerial photography, express shipping and delivery, gathering information or supplying essentials for disaster management, geographical mapping of inaccessible terrain and locations, building safety inspections, precision crop monitoring. However, strict airspace regulations across major countries of the world, especially US, where FAA pioneered in setting regulations for commercial use of drones in the region can restrain the growth rate of UAV market. Further, the export restrictions on UAVs, by classifying them in the same bracket as missiles, is expected to hinder growth of the market to some extent.
Asia- Pacific to Dominate the Market
The UAV market for Asia-Pacific region is expected to register a CAGR close to 12%, during the forecast period. China accounted for the largest market, accounting a significant share in the Asia-pacific region in 2017. In December 2017, South Korea unveiled a long-term plan to develop unmanned vehicles, with the aim of emerging as a global leader in the sector by 2030. According to the data released by Stockholm International Peace Research Institute (SIPRE), results indicate India as one of the top countries having 22.5% of the world's drone imports.
Key Developments in the Market
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