The worldwide market for small unmanned aerial vehicles should grow at a compound annual rate of about 7% through 2021, according to a study by Market Research Future (MRFR). Small UAVs fall into two main groups, mini and micro. Both are light enough for one person to carry and fly. In combat, infantry units can even launch them as a portable air-defense system.
Serious development of these aircraft began in 1997. That year, the Defense Advanced Research Projects Agency (DARPA) started a multi-year, USD 35 million program to build micro air vehicles. Working with companies such as Lockheed Martin and Aerovironment, the effort produced several micro UAV designs. Because they were useful and cheap to run, mostly for the military, demand for them kept rising.
Mini-UAVs are bigger than micro models but still compact. They serve both armed forces and civilian businesses. The Bayraktar mini-UAV and the Imperial Eagle are mainly military examples, while the DJI Phantom has become a popular commercial model.
On the civilian side, these drones usually carry cameras and image sensors for video work and 3D mapping. They are also used more and more to inspect wind turbine blades and to watch over oil and gas pipelines.
Small UAVs cost less than manned aircraft or larger drones, and they are easier to buy and fly. As a result, demand has grown in the military, industry, agriculture and real estate. As of 2015, militaries in conflict zones around the world were still the main users. Even so, the civil-commercial segment is growing much faster.
The report lists AeroVironment, Elbit Systems, Israel Aerospace Industries Ltd., SAAB, Thales, Lockheed Martin, Aeronautics Limited and Northrop Grumman as key players. It also tracks their recent moves:
- September 19, 2017: AeroVironment delivered M1/M2/M5-compatible Raven and Puma AE systems to two U.S. Department of Defense customers, with more orders lined up. It also planned to take orders in December 2017 for Wasp AE micro air vehicles, with delivery in spring 2018.
- June 1, 2017: the Australian Defence Force picked AeroVironment’s Wasp AE. The contract covers deliveries over three years plus training and logistics support for up to ten years, worth up to USD 36.5 million.
- January 13, 2016: Saab agreed to supply three UAV systems to the Swedish Police, each with day/night sensors, a ground station, spare parts and training. The contract runs from 2016 to 2018.
- September 16, 2015: Thales presented Watchkeeper X, a modular system that brings military-grade surveillance and reconnaissance to wider markets. Thales plans to deliver it together with local industry partners.
Global, regional and local vendors all compete in this market, so the fight for share is intense. Fast technology change, shifting government policy and environmental rules all slow growth, according to the study. In-house manufacturing, a global footprint, R&D spending and a strong client base give some firms an edge. Beyond that, vendors compete on cost, product quality, reliability and after-sales service.