The UAV market is projected at USD 19.3 billion in 2019 and is likely to reach USD 45.8 billion by 2025, at a CAGR of 15.5% from 2019 to 2025. The rise in the procurement of military UAVs by defense forces worldwide is one of the most significant factors projected to drive the growth of the UAV market.

UAVs are being extensively used in various civil and commercial applications like photography, product delivery, and greenhouse emission monitoring and wildlife preservation. They are also being used in the agriculture, real estate, mining and oil and gas industries. UAVs are also being increasingly used by defense forces in Intelligence, Surveillance and Reconnaissance activities, combat operations, and battle damage management.

With the incorporation of new technologies such as AI, sense and avoid systems, and cloud computing in UAVs, the demand for UAVs is expected to further increase. The incorporation of AI in UAVs is expected enhance their capabilities and enable them to carry out a number of activities such as take-off, navigation, data capture, data transmission etc. Powering drones will become more efficient with the incorporation of hydrogen.

In the USA, Commercial pilots are expected to follow the specifications of the FAA’s Part 107 Small UAS Rule (Part 107), which contains passing the FAA’s Aeronautical Knowledge Test to gain a Remote Pilot Certificate. Hobbyists are expected to follow the FAA’s recreational model aircraft rules. One of the rules is that if the drone weighs more than 0.55 lbs (250g), then the users need to pay $5 to get it registered. In Europe, the European Union (EU) does not control the civilian use of remotely piloted aircraft (RPA) with a mass of 150 kg or less. These aircrafts are overseen by national rules accepted by the EU Member States. RPAs above the threshold of 150 kg fall within the directive of the European Aviation Safety Agency (EASA). In the UK, the limitations are still pretty upfront. Drones are included under English laws, including aviation laws, which are regulated by the Civil Aviation Authority (CAA). UAVs that weigh 20 kg or less are covered by articles 166 and 167 of the Air Navigation Order. Drones with cameras must not be flown within 150 meters of a jammed area in UK, or within 50 meters of a person, vessel, vehicle, or any other construction that is not under the pilot’s control. Any person using a drone for commercial purposes must attain a license from the CAA. In Australia, small commercial drone operators do not have to pay the current $1,400 in regulatory fees. All the landholders could fly drones of up to 25 kg on their properties without the any approvals.

The unmanned aerial vehicle ecosystem comprises of vendors, such as DJI, Parrot Drones SAS, Flir Systems Inc, Microdrones, Lockheed Martin Corpoation, Yuneec, Airbus S.A.S., Northrop Grumman Corporation, Boeing, Elbit Systems Ltd etc. It is a highly competitive and fragmented market with large number of public and private sector players operating in it. The increasing use of different types of UAVs in the military and commercial secotrs has fueled the growth of the market across the globe. Multiple strategies have been adopted by the key players operating in the market.