UAV Payload Market Analysis | 2022-2028

Market Insights

The UAV Payload Market was estimated at US$ 7.72 billion in 2021 and is expected to grow at a CAGR of 16.7% during 2022-2028 to reach US$ 22.8 billion in 2028.

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What is a UAV payload?

UAV payload refers to the capacity to carry the load with the UAV drone. UAV drones might be loaded with dangerous payloads that can be crashed into vulnerable targets. UAV drone payloads may include chemicals, biological hazards, explosives, and radiological and even nuclear payloads can also be carried. Usually, drones with non-lethal payloads have the possibility of being hacked, and that can be used for malicious purposes.

Market Dynamics

The payload of UAV drones varies according to the usage and application of UAV drones. The commercial drone payload is comparatively much less than military drones. The commercial drone payload, such as cameras that weigh less than an adult human, results in the drone's smaller size.  Whereas in the military drone, weights such as missiles, explosives, etc., are very high compared to commercial payloads. The UAV drone payload segment is divided into commercial and military drones. The commercial drone’s payload varies to a maximum of 25 Kg. The military drone payload is further divided into 150 kg., 160 kg to 600 kg. and more than 600 kg. The military drone is heavier than the commercial drone as it carries heavy payloads; the military drones are gaining huge growth as they are lighter than their manned counterparts and have no pilot life risk.

Civil security is of major importance nowadays, growing terrorist attacks, and safeguarding the public from uncertain threats is a major concern. Air support is the major system and security assurance that can be provided to the people but is very expensive. Thus, the UAV drone can allow the security and surveillance of the territory brooders at a low cost and very effectively by eliminating the pilot risk. In the search and rescue operation, every minute is very important; the UAV drone allows us to reach rare and the rarest places where it is impossible to reach a human being. Also, the UAV drones give the exact data related to that location, which makes the operation plan effective.

Increasing military budgets across the globe have significantly contributed to the growth of UAV Payload in the market. Increasing military expenditure in developing and developed countries, including the US, Europe, Germany, China, and Japan. An increase in military and defense spending is expected to result in an overall increase in adopting advanced technologies in the military sector. Also, the rising concern for strengthening the defense and military sector is expected to facilitate the deployment of UAVs in the security surveillance and military sector. Advanced detection capabilities and sensors help UAVs in autonomous decision-making; this increases operation efficiency. However, stringent technology-sharing regulations are growth-restricting factors in the global UAV Payload market.

Government investments and funding to uplift military and defense capabilities are responsible for adopting advanced military and defense equipment that utilizes embedded systems. This contributes to the growth of the global military embedded system market during the forecast period. According to the government of the United States, the United States Department of Defense (DOD) invests heavily in streamlining Foreign Military Sales (FMS). The investment is majorly aimed at manufacturing and developing advanced and innovative products and weapons at reasonable prices for the military and defense sectors of the United States. According to the United States Department of Defense (DOD), the government of the United States spends more than 50% of its total budget annually on the military and defense sectors.

Several investments/guidelines in the defense sector across nations are injecting huge prospectus for the development of innovative technology, thus, in turn, injecting huge growth potential in the UAV Payloads market. Some of them are:

• As per Stockholm International Peace Research Institute, in April 2022, global military expenditure rose from 0.7% in 2021, which is expected to reach $2,113 billion. The 5 largest defense spenders in 2021 were the United States, the United Kingdom, India, China, and Russia, accounting for around 62% of total expenditure.
• According to the Department for Promotion of Industry and Internal Trade (DPIIT), from April 2020 – June 2021, the Foreign Direct Investment (FDI) equity flow in the Indian Defense sector was valued at $10.15 million. 

Segments Analysis

By Application Type

The market is bifurcated into commercial, civil, and military. The commercial will remain the biggest market for UAV Payloads in the forecast period. The increasing adoption of UAVs in commercial applications such as media & entertainment, agriculture, and various other applications. Various benefits are provided by commercial drones, such as being small, helping in the investigation, enhancing public safety, etc. The rising number of applications is one of the major factors that is raising the commercial drone market growth. The commercial drone payload varies to a maximum of 25 kg. The commercial drone generally carries a payload such as a camera, navigation sensors, and many other components; those weights are very low. The commercial drone found its application across various sectors: commercial photography, filmmaking, public safety and service, media, agriculture, wildlife conservation, and many more. On 21 June 2016, the Federal Aviation Administration (FAA) declared regulations meant for small UAS craft commercial operation, weighing about 250 gm to 25 kg together with payload. Further, the military application is expected to grow with the highest CAGR during the forecast period. Moreover, increasing UAV adoption by the military globally is increasing the demand for UAV Payloads is expected to intensify.

Regional Analysis

In terms of regions, North America will hold the largest market share in the UAV Payload market throughout the forecast period. The high military investment by the United States government is expected to facilitate the adoption of UAV Payloads in the defense sector of the US, which in turn is expected to contribute to the growth of the UAV Payload market in the North American region over the forecast period.

Concurrently, Asia Pacific is expected to witness the fastest growth in the global UAV Payload market during the forecast period.  The key factors responsible for the swift growth are the continuous up-gradation in the military and defense sectors of countries such as China and India by upgrading warfare technologies.

Key Players

There is stiff competition in the UAV Payload market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their military robot offerings based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

• In July 2022, Teledyne FLIR LLC introduced MUVE B330 UAV (unmanned aerial vehicle) payload capable of identifying fatal and airborne biological agents.

The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the market:

• BAE Systems PLC
• Elbit Systems Ltd
• Teledyne Technologies Incorporated
• Israel Aerospace Industries Ltd
• L3Harris Technologies Inc.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• SZ DJI Technology Co. Ltd.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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