Frost & Sullivan: Europe and Asia to Drive Market Growth in Unmanned Aerial Systems Market in the Next Ten Years
- Slowdown in US Procurements to be Partially Offset by Significant Growth in Asia and Europe
LONDON, April 26, 2012 /PRNewswire/ -- Unmanned aerial vehicles (UAVs) or drones have repeatedly proved their worth in recent conflicts. Drones have certain inherent advantages over manned platforms, motivating the interest of military forces and driving the market for military drones. Despite projections for a substantial increase in spending on UAVs, reduced military expenditure by the United States is causing uncertainty among industry stakeholders.
New analysis from Frost & Sullivan (http://www.aerospace.frost.com), Military Unmanned Aerial Systems Market Assessment, finds that total market revenue is likely to be $ 61.37 billion across the forecast period 2011-2020. It is estimated that the global military unmanned aerial systems (UAS) market generated $ 4.55 billion in revenues in 2010, a figure that is set to rise to $ 7.31 billion in 2020.
"The United States will reduce its spending on UAS as it is adequately equipped to meet its needs," notes Frost & Sullivan Senior Research Analyst Mahendran Arjunraja. "Although the country has plans to increase its inventory by more than 35 per cent over the next ten years, market revenues are expected to decline at least till 2020; the U.S. military UAS space is undergoing a transition from procurements to sustainment with most future procurements likely to be limited to upgrades."
At the same time, Europe is facing intense competition in the medium-altitude, long-endurance (MALE) UAV segment, as more domestic companies are collaborating to develop indigenous equipment. Existing high altitude, long-endurance (HALE) UAVs are too expensive for many nations, even while MALE equipment has limited capability. Hence, an opportunity exists for equipment with capabilities between MALE and HALE.
As the operations in Afghanistan are expected to reach an end soon, governments are unlikely to show keen interest in renewing lease agreements. This will have an immediate impact on UAV leasing companies. However, this restraint is set to become a driver in the long-term, as cash-strapped countries would be able to allocate resources for equipment procurement.
"Reduction in spending by the United States is expected to slow down the UAS market," cautions Arjunraja. "Fortuitously for market participants, this slowdown will be partly off-set by the growth in the European and Asian markets."
The military UAV market in Europe and Asia will witness significant growth in the next ten years. This is the opportune time for UAV manufacturers and suppliers, therefore, to explore opportunities in these emerging markets.
If you are interested in more information on this study, please send an e-mail with your contact details to Joanna Lewandowska, Corporate Communications, at email@example.com.
Military Unmanned Aerial Systems Market Assessment is part of the Defence Growth Partnership Services programme, which also includes research in the following markets: United Kingdom Civil Security Market - Revenue Opportunities & Stakeholder Mapping, and Revenue Opportunities and Stakeholder Mapping in the French Land Defence Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com
Military Unmanned Aerial Systems Market Assessment
Corporate Communications – Europe
SOURCE Frost & Sullivan
More by this Source
The New Enterprise Hub: Utilizing Colocation Data Centers to Enable Hybrid IT
05 Dec, 2016, 16:26 GMT
In-Vehicle Connectivity to Propel New Growth Opportunities for OEMs in Latin America
05 Dec, 2016, 14:08 GMT
Get content for your website
Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Contact PR Newswire
Send us an email at MarketingUK@prnewswire.co.uk or call us at +44 (0)20 7454 5382
Become a PR Newswire client
Request more information about PR Newswire products & services or call us at +44 (0)20 7454 5382