Unmanned Systems Market - Growth, Trends, and Forecasts (2022 - 2027)

The Unmanned Systems market is expected to witness a CAGR of 12% during the forecast period.

The COVID-19 pandemic had a slightly negative impact on market growth and opportunities. An increase in global defense expenditure and increased focus on strengthening defense forces drive the growth of the market. The defense sector witnessed steady growth during the pandemic as the countries continuously invested in the procurement of advanced unmanned systems due to growing warfare situations and cross-border conflicts among neighboring countries. The United States Department of Defense (DoD) invested USD 1.3 billion in 2020 for the procurement of unmanned aerial vehicles (UAVs). These factors lead to increasing demand for unmanned systems from all the platforms such as ground, naval, and airborne.

An increase in the use of unmanned systems for combat and intelligence, surveillance, and reconnaissance (ISR) missions drives the growth of the market. Defense forces are highly invested in developing and procuring unmanned systems over manned systems as it reduces the risks of soldier casualties and enhances accuracy during combat operations. The growing use of unmanned systems in the commercial sectors, like unmanned ground vehicles in firefighting and agriculture, unmanned sea vehicles for underwater sea exploration and marine research, and UAVs for disaster relief, recreational uses, and photo and videography is expected to boost the growth of the market during the forecast period.

The introduction of next-generation technologies, like artificial intelligence and IoT in the UAVs, UGVs, and USVs will create higher demand for autonomous systems in coming years. Rising investments in autonomous systems are bringing various companies together to develop advanced autonomous vehicles.

Key Market Trends

The Unmanned Sea Systems Segment to Experience the Highest Growth During the Forecast Period

The unmanned sea systems segment of the market is anticipated to witness the highest CAGR during the forecast period. Currently, the use of unmanned sea systems is higher by various research organizations for deep-sea exploration. According to the International Energy Agency, the demand for natural gas is anticipated to grow at 1.5% up to 2025. Oil & gas will play vital roles in the future and account for around 44% of the world's primary energy supply in 2050. The oil & gas companies highly adopted unmanned underwater vehicles for making seafloor maps.

In October 2021, Boxfish Research, a New Zealand-based company with its Norwegian partner Transmark Subsea launched the ARV-I, a new class of underwater sea vehicles. The vehicles offer users operational flexibility and are configurable for fully autonomous manual control or self-piloting. Furthermore, in July 2022, Leidos signed a contract worth USD 358.5 million contract with the U.S. Navy to develop a medium-size unmanned undersea vehicle for torpedo tube-launched data collection operations and surface-launched mine countermeasures.

The use of autonomous surface and underwater vehicles by educational institutes is supporting this growth. Moreover, in the military sector, the United States, China, and Russia are working toward increasing their fleet of unmanned sea systems. The United States Navy is planning to develop and procure three types of large unmanned vehicles (UVs) that includes Large Unmanned Surface Vehicles (LUSVs), Medium Unmanned Surface Vehicles (MUSVs), and Extra-Large Unmanned Undersea Vehicles (XLUUVs). The United States Navy proposed FY2023 budget requests of USD 549.3 million in funding for these unmanned vehicles and USD 60.7 million in additional for core technologies for XLUUV and other UUVs.

The Asia-Pacific Region is Expected to Generate the Highest Demand during the Forecast Period

The Asia-Pacific region is projected to generate the highest demand for unmanned systems during the forecast period. This growth is attributed due to a rise in defense expenditure by the countries in this region, along with the changing regulations for the use of unmanned systems in the commercial sector. Countries such as India, Japan, and Indonesia, are currently working on the use of unmanned aerial vehicles for the transportation of parcels and cargo. Growing procurement of next-generation unmanned systems from China, India, Australia, and others due to rising cross-border conflicts, growing terrorism, and political unrest among neighboring countries drive the growth of the market across the region.

Similarly, the development of UGVs is being carried out in South Korea, Japan, and China, among others, for assisting their armed forces with a range of manual handling tasks, like moving heavy loads and field equipment, and casualty evacuations. In September 2022, Japan-based Drone Fund (DF) tied up with drone major Aerodyne India Group to invest in manufacturing facilities, and the company is planning to invest USD 40 million in the UAV ecosystem in India. In addition to that, in April 2022, India's Defense Research and Development Organization (DRDO) started developing an unmanned ground combat vehicle based on the Arjun Mk.1A tank.

Furthermore, in August 2022, the research team from eastern China developed a submarine drone prototype that can fly in the air at high speed. In March 2022, Boeing's Insitu Pacific Pty Ltd will supply twenty-four new unmanned aerial surveillance systems, developed in Brisbane, to the Australian Army. The cost of the project was USD 650 million.

Competitive Landscape

The market for unmanned systems is highly fragmented, with a large number ofsuppliers who provide different unmanned platforms, like UAVs, UGVs, and USVs. The major players in the unmanned systems market are BAE Systems plc, Lockheed Martin Corporation, Saab AB, The Boeing Company, and Northrop Grumman Corporation. There are a few players, like BAE Systems, Saab AB, and ECA Group, among others who provide all types of unmanned systems, which help the companies to capitalize and expand their geographic presence, as well as diversify their cash flows. Product innovation is the primary factor that aids companies in getting new contracts from the defense, as well as commercial sectors. In addition to this, the mergers and acquisitions of the local companies with the major companies are allowing them to expand their product portfolio and market presence.

In February 2021, the advanced defense advanced technology group, EDGE, unveiled a new series of unmanned ground vehicles SCORPIO-B. It can be equipped with remote weapon systems, pan-tilt-zoom (PTZ) cameras and intelligence, surveillance, and reconnaissance (ISR) sensors, and twin 40mm grenade launchers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support