Unmanned Traffic Management Market Analysis | 2023-2028

Market Insights

The unmanned traffic management market was estimated at USD 698.57 million in 2022 and is likely to grow at a CAGR of 20.23% during 2023-2028 to reach USD 2134.76 million in 2028.

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Market Dynamics

Introduction

Unmanned traffic management is a system designed to manage and regulate the traffic of Unmanned Aerial Vehicles (UAVs), also known as drones, in the air. UTM systems are used to ensure the safe and efficient operation of drones in shared airspace, including Beyond Visual Line of Sight (BVLOS) operations.

UTM systems rely on a combination of technologies, including communication systems, surveillance systems, command and control centers, and data analytics tools, to manage drone traffic and ensure the safety of people and property on the ground. These systems enable drone operators, air traffic controllers, and other stakeholders to monitor and manage drone operations, including flight planning, real-time tracking, and situational awareness. The development of UTM systems is a key priority for the drone industry and regulatory agencies worldwide. The technology continues to evolve, and UTM systems are expected to play a critical role in managing airspace and ensuring the safe integration of drones into the existing aviation infrastructure.

Market Drivers

As the usage of drones develops across industries such as agriculture, construction, transportation, and logistics, UTM systems are becoming crucial. Advanced UTM systems are required in these industries to provide safe and efficient drone operations, particularly BVLOS operations.

Drones are being used in a wide range of industries, which has led to an increase in drone operations, which in turn has created a demand for UTM systems that can manage the growing volume of drone traffic.

UTM systems are essential for ensuring the safe integration of drones into the airspace and preventing collisions with other aircraft or obstacles on the ground. They also enable efficient and effective drone operations, particularly BVLOS operations, which require advanced UTM systems to ensure safety and compliance with regulations.

The demand for BVLOS operations is also driving the growth of the UTM market, as these operations require more advanced UTM systems to ensure safe and efficient operations. Additionally, the development of new UTM technologies, such as artificial intelligence and machine learning, is expected to further drive the growth of the UTM market in the coming years.

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Key Players

Some of the major players in the market are:

• Airmap, Inc.
• Altitude Angel Limited
• Analytical Graphics
• SZ DJI Technology Co., Ltd.
• Frequentis
• Harris Corporation
• Lockheed Martin Corporation
• Nova Systems
• Nokia Corporation
• PrecisionHawk

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

By End-Use Type

Based on the end-use type, the market is segmented as agriculture & forestry, logistics & transportation, surveillance & monitoring, and others. The logistics & transportation segment dominated the market in 2022 and is likely to continue its leading position during the forecast period. The growth of this segment is owing to the growth in the application of small unmanned aerial systems (below 25 kg in weight) by e-commerce and retail companies.

By Solution Type

Based on the solution type, the market is segmented as communication infrastructure, navigation infrastructure, surveillance infrastructure, and others. The communication infrastructure segment is expected to remain dominant during the forecast period. The growth of this segment is driven by the growing acceptance of Beyond Line of Sight Operations (BVLOS), which demands precise communication between UTM and drone operators.

By Type

Based on the type, the market is segmented as non-persistent UTM and persistent UTM. The persistent UTM segment is estimated to register higher growth in the coming five years. This growth can be attributed to the increase in logistics and transportation activities in developed economies, such as the US, the UK, and Switzerland.

By Component Type

Based on the component type, the market is segmented as hardware equipment, software, and services. The services segment commanded the market in 2022 and is likely to remain dominant during the forecast period as well. The prime focus of unmanned traffic management will be on service providers delivering flight and security information to UTM as well as drone operators.

Regional Insights

In terms of regions, North America dominated the market in 2022 and is estimated to maintain its dominance in the coming five years, driven by the growth in drone activities, the rise in investments by various government agencies on drone BVLOS operations, and the regional presence of major global giants, such as AirMap, Lockheed Martin Corporation, and Harris Corporation. The North American region is expected to witness the highest growth during the forecast period. Europe and Asia-Pacific are also expected to offer substantial growth opportunities during the forecast period.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects unmanned traffic management market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• 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 15 detailed primary interviews with 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 in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The unmanned traffic management market is segmented into the following categories:

By End-Use Type

• Agriculture & Forestry
• Logistics & Transportation
• Surveillance & Monitoring
• Others

By Solution Type

• Communication Infrastructure
• Navigation Infrastructure
• Surveillance Infrastructure
• Others

By Type

• Non-Persistent UTM
• Persistent UTM

By Component Type

• Hardware Equipment
• Software
• Services

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the types by end-use type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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