PUBLISHER: BIS Research | PRODUCT CODE: 1218346
PUBLISHER: BIS Research | PRODUCT CODE: 1218346
“Global UAV Propulsion System Market to Reach $10.76 Billion by 2033.”
The global UAV propulsion system market is estimated to reach $10.76 billion in 2033 from $8.36 billion in 2022, at a CAGR of 2.33% during the forecast period 2023-2033 in terms of value. The global UAV propulsion system market is expected to be driven by defense and government applications due to the high capital investment involved in the development of the propulsion system. However, commercial applications are expected to witness a high growth rate during the forecast period due to an increase in the usage of UAVs in commercial applications leading to investment in technologically advanced propulsion systems.
Unmanned aerial vehicles (UAVs) have been the subject of extensive research and development worldwide since they first appeared in the early 19th century. The majority of the UAV market was initially dominated by the military, who primarily used them. UAVs now incorporate numerous modules, such as sensors, cameras, and light detection and ranging (LiDAR), making them more useful in the civil and commercial fields as a result of advancements in science and technology. Such developments have encouraged players operating in the market to focus on the development of UAV propulsion systems with a simultaneous push for improving UAV production. The benefits of UAVs using conventional fuel propulsion systems include a large payload, long endurance, a wide range, and quick resupply. However, with the escalating environmental issues and the diminishing supply of fossil fuels, the energy issue for aircraft has emerged as a persistent difficulty. As a result, hybrid and all-electric UAVs and solar-powered UAVs have been witnessing research and development activities supported by investments for UAV manufacturers, making it one of the lucrative opportunities for players operating in the market. Despite such active developments, factors such as government regulations and high manufacturing costs restrain the market growth.
However, the growth of the global UAV propulsion systems market has also been augmented by widening commercial applications and private companies' interest in strengthening their UAV services portfolio by adopting the most advanced and efficient propulsion systems to strengthen their customer base. Additionally, research institutions are other major end users that are utilizing the propulsion systems, as government agencies are actively involved in the design, development, and testing of the latest UAVs and associated propulsion systems.
Owing to such benefits, companies are continuously striving to innovate their products and are into testing and development of these engines in partnership with UAV manufacturers and UAV service providers.
The global UAV propulsion system market is observing rising demand across various end users, which drives the development of investments across the various UAV propulsion systems. The extended range and reliability of UAVs are two major factors that are expected to influence the design and associated demand for the engine by the consumer. The UAV propulsion systems market also has the potential to develop more opportunities and generate immense revenue via various kinds of technological capabilities such as fuel cell technology, micro turbine propulsion, solar propulsion, electric propulsion, etc. Most companies operating in the UAV propulsion system market are well-established and experienced players. Though numerous drone start-up companies have evolved over recent years, the establishment ratio of UAV propulsion system manufacturing companies is comparatively low.
Some of the notable reasons for this current scenario is high investment cost and various government regulations. In general, the cost of certification and development of a new engine currently exceeds one billion dollars. It, therefore, seems simpler and less expensive for drone companies to buy existing engines already certified, where they will only pay part of the non-recurring costs. Hence, in addition to cost and regulations, the long-term supply agreements between the UAV manufacturers and the UAV propulsion system manufacturers have impacted the emergence rate of the UAV propulsion system start-ups and investment Landscape. Despite such challenges, some of the start-ups and the curve of investments to develop their company's presence are picking up pace and are slowly expected to gain traction over the forecast period. Furthermore, in the upcoming years, more companies will enter the UAV propulsion systems, and with the rising penetration of UAV start-ups, the demand for suitable propulsion systems is expected to grow over the forecast period.
The North America region dominates the global UAV propulsion system market, with huge investments and revenue expected to be generated from the U.S. and Canada markets.
The following are the drivers for the global UAV propulsion system market:
The following are the challenges for the global UAV propulsion system market:
Following are the opportunities for the global UAV propulsion system market:
The companies profiled have been selected based on inputs gathered from primary experts and analysis of the company's coverage, product portfolio, and market penetration. The established and improved defense spending on modernization and upgradation of the fleet with the latest technology across major countries like the U.S., U.K., Germany, France, India, China, Japan, and others are expected to create opportunities for UAV propulsion system manufacturers. In addition, as these governments have also started taking necessary initiatives to promote the localization of UAVs and their associated components like propulsion systems, the players operating in the global UAV propulsion system market are expected to find lucrative opportunities over the forecast period.
The top segment players leading the market include established players constituting 65% of the total market share as of 2022, indicating a strong presence in the market. Other players included start-up entities that accounted for approximately 35% in the year 2022 in the total global UAV propulsion system market.
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