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UAV Market Major Key Players - AeroVironment, Elbit Systems, Israel Aerospace Industries (IAI), Northrop Grumman

UAV Market Major Key Players - AeroVironment, Elbit Systems,

Industry/ Innovation/ Related News:
October 09, 2017- AeroVironment, Inc. announced the receipt of a contract award from the United States Navy on September 29, 2017, for continuation and expansion of its Blackwing™ small Unmanned Aerial Vehicles (UAV) program. The contract includes orders for multiple Blackwing vehicles, sensor payloads and refurbishment kits for a total value of USD 2,578,822. The initial set of vehicles are anticipated for delivery by May 2018, and final delivery anticipated by November 2018.
Sept. 19, 2017:- AeroVironment announced that it has delivered M1/M2/M5-compatible Raven® and Puma™ AE unmanned aircraft systems (UAS) to two DoD customers, with more orders and deliveries scheduled. In addition, the company will begin taking orders in December 2017 for M1/M2/M5-configured Wasp® AE micro air vehicles (MAV) for delivery in spring 2018.
January 23, 2017:- Israel Aerospace Industries (IAI) expects to expand collaboration with local leading companies to integrate strategic state-of-the-art systems for the Indian MOD, in a number of areas; and in accordance with the Indian Government's Make in India policy. These collaborations are a direct continuation of IAI's business deals in India which totalled some USD 0.5 billion in 2016.

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The leading market players in the global UAV market primarily include AeroVironment, Elbit Systems, Israel Aerospace Industries (IAI), Northrop Grumman. The other prominent vendor includes Aeronautics Limited, Aeyron Labs, Aibotix, BAE Systems, DJI, Lockheed Martin and Prox Dynamics.

Market Highlights:
UAVs, also commonly referred as drones, are the ones without a human pilot aboard. The flight is controlled either autonomously, or by an onboard computer, or by remote control from the ground or another vehicle. The UAVs range from large sized UAVs used for tactical missions that are powered by internal combustion engine to small electric-powered UAVs driven by electric motors. These small electric-powered UAVs are currently mainly used for military and defense applications. Without combustion, these electric-powered UAVs are low sound producing, hence found to be more suitable for the spy missions. In addition, there has been increasing interest for civilian or commercial applications of UAVs for applications such as aerial photography, agriculture, 3D mapping, wildlife protection etc.
One of the drivers for global UAV market is the cost effectiveness of UAVs to acquire and operate in comparison to manned aircraft and helicopters, for various military as well as commercial applications. Moreover, the UAVs (mainly electrically powered) make comparatively low noise during flight, which makes these UAVs very suitable for the spy missions. Furthermore, there has been an increase in global UAV spending and demand for small UAVs which has driven the market growth.
Despite the challenges, there has been a growing demand for small UAVs for civil, commercial, as well as military applications. In addition, there has been an increase in UAV R&D, which stimulate the spending in the market as well as provide improvements in the technology. Currently, the US leads the global market; however, there has been rising demand from the emerging markets as well, mainly from the Middle East and Asia.

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Regional Analysis
Majority of the world market is now mainly for military and defense applications, and is dominated by the US. However, increasing demand for the emerging economies have shown interest in implementation of UAVs for border security and surveillance applications. Middle East is one of the emerging market, with Israel being one of the major manufacturers and exporter of UAVs. Asia is also expected to show a substantial growth in the future, mainly dominated by the demand from China.

The US is the global market leader of both UAV demand and as a manufacturer. It is the largest operator of UAVs globally as well. The majority of this demand is mainly supported by military and defense applications, and the US army is the single largest buyer of UAVs worldwide. In addition to the large tactical UAVs, many small electric-powered UAVs have also become common on the battlefield. However, the market has slowed down to some extent in the past two years as the US had started to withdraw its military from the conflict regions (Afghanistan and Iraq), where many of these UAVs were implemented in service for various missions.

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