Unmanned aerial vehicles (UAVs) or drones have been found to be highly successful all throughout the latest conflicts.
Drones have special integral features that are beneficial over manned platforms. These features enhance the potential of military forces in addition to increasing the market for military drones. Although there is high investment on UAVs, less military expenditure by the U.S. has posed a more unstable situation for the industry stakeholders.
Frost & Sullivan’s new analysis, ‘Military Unmanned Aerial Systems Market Assessment’ reveals that total market revenue will be $ 61.37 B during 2011-2020. As per the estimation, in 2010, $ 4.55 B was produced in revenues by the global military unmanned aerial systems (UAS) market, which is expected to soar up to $ 7.31 B in 2020.
Concurrently, with the increase in collaboration of more domestic companies with regard to development of indigenous equipment, Europe has been challenged with severe competition in the MALE (medium-altitude, long-endurance) UAV segment. Existing high altitude, long-endurance (HALE) UAVs are highly expensive that it cannot be afforded by several nations, though MALE equipment is relatively less efficient. New equipment with combined capabilities of MALE and HALE is therefore under demand.
With the closure of Afghanistan operations, governments will be less interested in the renewal of lease agreements, thereby impacting UAV leasing companies. This will turn to be positive in the long-term, which will enable low-economy countries to allocate resources for procuring the equipment.
The European and Asian markets of military UAV anticipates considerable growth during the next decade. During this period, UAV producers and suppliers can enter these emerging markets and look out for various potentials.
Source: http://www.frost.com/