The unmanned aerial vehicle (UAV) drones market is expected to grow from USD 17.82 Billion in 2017 to USD 48.88 Billion by 2023, at a CAGR of 18.32% between 2017 and 2023. The drivers for this market are rapid technological advancements in drones and increase in demand for drone-generated data in commercial applications are the key factors for the growth of the market. Further, the increase in venture funding propels the growth of the UAV drones market.

The military drones are expected to hold the largest market share in 2017. Military drones are being used successfully by defense agencies across the world to guard their borders, enforce law, and for combat missions. Commercial drones are expected to hold the largest market share by 2023 and grow at the highest CAGR during the forecast period. This growth is attributed to the rising demand for drones and drone-generated data in commercial applications. Also, in some countries, the rules for operating drones in the airspace have been relaxed, thereby boosting the adoption rate of commercial drones.

Among all the components, camera is expected to hold the largest share of the market during the forecast period. Camera systems are used in UAVs continuous video monitoring, investigation, remote surveillance, border security, and protection of critical infrastructure, thermographic inspection of inaccessible buildings, and firefighting and law enforcement applications. The high rate of adoption of cameras for military and commercial applications is a key factor driving the growth of the UAV drones market for cameras.  However, the market for sensors is expected to grow at the highest CAGR between 2017 and 2023.

The market for military drones with payload carrying capacity of up to 150 kg is expected to hold the largest share during the forecast period as they have simple operational and maintenance procedures with high tactical capabilities. They are versatile and can carry out a variety of missions such as search and rescue, illegal traffic monitoring, support to ground forces, and intelligence missions. The market for drones with payload carrying capacity of up to 600 kg is expected to grow at the highest CAGR during the forecast period.

Among all the major applications of the commercial drones, the market for media and entertainment is expected to hold the largest share in 2017. Drones offer numerous advantages over other methods of capturing images; some of the benefits offered by drones include lower costs and improved quality of films and photos. This is the main driver for the growth of UAV drones market for media and entertainment. The market for precision agriculture is expected to grow at the highest CAGR during the forecast period.

Of all the major applications of military drones, the market for border security is expected to hold the largest share in 2017. Drones help in capturing images and videos (e.g., footage of smugglers and undocumented immigrants crossing borders) using various payloads such as camera systems and sensors. Predator drones can silently patrol borders looking for infiltrants, illegal immigrants, human traffickers, and drug peddlers in desolated areas. The increasing demand for long-endurance and highly stable UAV systems from armies worldwide to secure their borders is a key factor driving the growth of the military drones market for border security applications. The market for spying applications is expected to grow at the highest CAGR during the forecast period.

In terms of different geographic regions, North America is expected to hold the largest market share in 2017. UAVs have been extensively used by the US in strikes against terrorist outfits in Syria, Libya, and Iraq. In Canada, UAVs have been used in diverse environments and high-risk roles such as atmospheric research including weather and atmospheric gas sampling and oceanographic research. The market in APAC is expected to grow at the highest CAGR between 2017 and 2023.

Drones are being widely used for the collection of data. In this process, at times confidential or sensitive information about a private property or a private behavior gets accumulated. Thus, security and safety concerns as well as social issues, such as privacy and nuisance concerns, are the key factors restraining the growth of the UAV drones market. Also, the cost of commercial drones today is far lower than what it was in the initial stages but their characteristics and capabilities have grown manifold. Moreover, the increase in the number of drones can rise security concerns. Hence, security and safety concerns are among the key factors that limit the growth of the UAV drones market.

Northrop Grumman Corp. has been consistently upgrading its product in accordance with the technological advances. For instance, in August 2017, the company demonstrated its advanced mission management and control system at Advanced Naval Technology Exercise (ANTX). This system enables collaborative operations of several unmanned undersea vehicles (UUVs), unmanned surface vehicles (USVs), and unmanned aerial vehicles (UAVs) for collecting, analyzing, and synthesizing data from numerous sensors. The gathered information further helps in developing real-time targeting solutions that enable an UUV to engage an adversary’s seabed infrastructure. The company adopts expansion as its key business strategy to remain competitive in the UAV drones market. For instance, in April 2017, the company opened a new facility in North Dakota, US. Research and development; pilot, operator, and maintainer training; operations and mission analysis; and aircraft maintenance are the key activities carried out at this new facility. The company also plans to increase its clientele, especially among private companies rather than existing government agencies that currently account for most of its revenue generation.

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