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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1406231

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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1406231

Electric Unmanned Aerial Vehicle - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

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Electric Unmanned Aerial Vehicle - Market - IMG1

The Electric Unmanned Aerial Vehicle Market size is estimated at USD 4.42 billion in 2024, and is expected to reach USD 10.87 billion by 2029, growing at a CAGR of 15.60% during the forecast period (2024-2029).

Key Highlights

  • For several years, the umanned aerial vehicle (UAV) market has been in the developing phase, facing a need for more adoption in the commercial sector. Although they were initially viewed as military devices, drones have established a significant presence in the commercial sector over the past five years. Over the years, with several new exemptions from governing bodies like the FAA and EASA, the demand for UAVs has emerged from various industries, like infrastructure, agriculture, transport, entertainment, security, and insurance.
  • Advancements in UAV flight technologies have allowed manufacturers to produce a wide range of models in different sizes, weights, and shapes, which can carry different sensor payloads, making them favorable across a broad application base. Moreover, Ongoing efforts to reduce production costs and enhance manufacturing efficiency make electric UAVs more economically viable, attracting a broader range of consumers.
  • One significant restraint is the limited endurance of electric UAVs compared to traditional fuel-powered counterparts. Despite advancements in battery technology, some applications require longer flight durations, posing challenges for electric UAV adoption in certain scenarios. Associated safety concerns with UAVs are anticipated to further restrict the growth of the E-UAV market to a certain extent.

Electric Unmanned Aerial Vehicle Market Trends

Battery Segment to Dominate Market Share During the Forecast Period

  • The electric UAV market is dominated by battery technology, owing to its unparalleled reliability and proven track record. Batteries, with their adaptability and versatility, emerge as the preferred power source across diverse UAV applications, from agriculture to infrastructure inspection. The well-established infrastructure supporting battery technology, including charging stations and management systems, further propels its widespread adoption. With growing investment in the drone industry, companies are intensifying R&D, particularly in enhancing battery technologies.
  • These investments are fostering innovations to address key challenges such as battery life, weight, and efficiency, thereby making battery-powered electric UAVs more viable and competitive. The UAV industry is witnessing advancements in Battery Management Systems (BMS) and energy storage solutions, propelling the adoption of battery-powered drones. This trend aligns with the broader global focus on sustainability, as electric UAVs offer environmentally friendly alternatives to traditional fuel-powered counterparts.
  • Similarly, continuous advancements in battery materials and electrochemistry ensure an evolving technology that strikes an optimal balance between efficiency, weight considerations, and overall performance. In comparison, challenges like intermittent sunlight for solar power and infrastructure limitations for fuel cells hinder their widespread implementation, emphasizing the entrenched position of batteries as the industry standard for powering UAVs. Moreover, the current cost-effectiveness of battery technology compared to solar and fuel cell alternatives contributes to its dominant market share, and batteries have become the industry standard for powering UAVs, leading to a higher level of acceptance and integration across different UAV models and manufacturers.
  • For instance, in December 2022, Packet Digital was awarded a USD 8.5 million contract to supply unmanned aircraft systems (UAS) smart batteries, chargers, and power systems for the US Navy. As per the contract, Packet Digital was responsible for designing and manufacturing high-performance UAS battery systems for the next generation of Navy Maritime Logistics UAS.
Electric Unmanned Aerial Vehicle - Market - IMG2

North America to Dominate the Market During the Forecast Period

  • The vast expanse of geographic national borders of countries such as the US necessitates the deployment of UAVs to ensure continuous coverage in the regions that are unreachable by patrol forces. The need has resulted in a subsequent increase in demand for E-UAVs with enhanced endurance and lower operational costs to fulfill the operational requirements of the US border patrol forces. Furthermore, the significant deployment of tactical UAVs in military and defense applications has resulted in increased procurement of small UAVs. Since small UAS are powered by some electric power system, the augmented procurement rate would drive the E-UAV market in the region.
  • The US military and its partners are widening their scope of drone operations to include logistics missions such as resupply to forces in enemy territories or remote locations. Unique design features are empowering alternative uses for UAVs. The US Department of Defense (DoD) and the National Aeronautics and Space Administration (NASA) are investing heavily in the R&D of advanced engines and associative components for military UAVs, which will replace the existing propulsion systems. The growing demand for UAVs has resulted in the emergence of several business opportunities in the region, and numerous contracts are being handed out to cater to the broad clientele.
  • For instance, In July 2023, Under the ANCILLARY program, the US Defense Advanced Research Project Agency's (DARPA) Tactical Technology Office awarded Northrop Grumman Corporation a contract to develop an autonomous vertical takeoff and landing (VTOL) uncrewed aircraft. The UAV will have electric motors powering ducted fans and a hybrid-electric power source with batteries.

Electric Unmanned Aerial Vehicle Industry Overview

The electric unmanned aerial vehicle market is fragmented and consists of many active players. Some of the prominent ones are AeroVironment, Inc., AgEagle Aerial Systems Inc., SZ DJI Technology Co., Ltd., Parrot Drones SAS, and Draganfly Inc. The prevalent economic situations primarily influence the sales of technology-based platforms such as UAVs in dominant markets such as the United States and Europe. Hence, in periods of economic downturn, purchases may be subjected to deferral or cancellation and a relatively slower rate of adoption, which, in turn, can adversely affect the market dynamics. Product innovation is a primary focus in the E-UAV market and associative component vendors are continuously investing in R&D activities to enhance their product offering.

The market players intend to devote significant resources and efforts to capitalizing on the technological proficiency of UAVs and enhance their penetration into the rapidly evolving commercial segment of the E-UAV market. Diversification of geographical markets, in tandem with the product offerings, would be a key criterion for ensuring profitability and survival in the long run.

In September 2023, Teal Drones signed a USD 1.8 million contract with the US Customs and Border Protection to provide Teal 2 systems to US Border Patrol. Teal drones will deliver 106 Teal 2 drones plus spare parts and training. The US Border Patrol is using the Teal 2 drone to provide situational awareness for US field commanders and agents. Teal Drone has partnered with ESAero for a multi-battery charger, which will be offered as an accessory with the Teal 2 drones. ESAero's multi-battery charger will make it possible to charge backup batteries while the UAV is in operation to support persistent ISR missions.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 70730



  • 1.1 Study Assumptions
  • 1.2 Scope of the Study




  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Porter's Five Forces Analysis
    • 4.4.1 Bargaining Power of Buyers/Consumers
    • 4.4.2 Bargaining Power of Suppliers
    • 4.4.3 Threat of New Entrants
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry


  • 5.1 Technology
    • 5.1.1 Battery
    • 5.1.2 Solar
    • 5.1.3 Fuel-Cell
  • 5.2 Geography
    • 5.2.1 North America
      • United States
      • Canada
    • 5.2.2 Europe
      • United Kingdom
      • France
      • Germany
      • Russia
      • Rest of Europe
    • 5.2.3 Asia-Pacific
      • China
      • India
      • Japan
      • South Korea
      • Australia
      • Rest of Asia-Pacific
    • 5.2.4 Latin America
      • Brazil
      • Mexico
      • Rest of Latin America
    • 5.2.5 Middle-East and Africa
      • Saudi Arabia
      • United Arab Emirates
      • South Africa
      • Rest of Middle-East and Africa


  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 Aeronautics Ltd.
    • 6.2.2 AeroVironment, Inc.
    • 6.2.3 AgEagle Aerial Systems Inc.
    • 6.2.4 Parrot Drones SAS
    • 6.2.5 Draganfly Inc.
    • 6.2.6 SZ DJI Technology Co., Ltd.
    • 6.2.7 Bye Aerospace
    • 6.2.8 Elbit Systems Ltd.
    • 6.2.9 Teledyne FLIR LLC
    • 6.2.10 VAYU Aerospace
    • 6.2.11 Airbus SE
    • 6.2.12 Intel Corporation
    • 6.2.13 Lockheed Martin Corporation
    • 6.2.14 RTX Corporation
    • 6.2.15 Sunlight Aerospace


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Manager - Americas


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