Unmanned Traffic Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Unmanned Traffic Management Market size is estimated at USD 0.98 billion in 2024, and is expected to reach USD 2.87 billion by 2029, growing at a CAGR of 23.5% during the forecast period (2024-2029).
Key Highlights
Unmanned traffic management system (UTM) development would ultimately identify services, information architecture, roles and responsibilities, software functions, infrastructure, data exchange protocols, and performance requirements that enable the management of low-altitude uncontrolled drone operations.
UTM technology allows delivery drones and air taxis to enter future airspace with improved security. The system is jointly developed by the National Aeronautics and Space Administration (NASA), the Federal Aviation Administration (FAA), and other agencies to manage unmanned aerial vehicle operations. The stringent government regulations regarding the operation of unmanned aerial vehicles can act as a restraint to the market's growth.
The use of drones is becoming increasingly common in various industries, including agriculture, surveillance, logistics, and transportation. Systems are needed to ensure drone operations are safe, efficient, and organized. The goal of unmanned traffic management is to establish a framework for managing drone traffic in the current airspace alongside manned aircraft.
Due to the growing demand for commercial drone applications and advancements in drone technology, the unmanned traffic management market has experienced significant growth in recent years.
Unmanned Traffic Management (UTM) Market Trends
The Software Segment will Showcase Highest Growth During the Forecast Period
The unmanned traffic management software is estimated to show remarkable growth during the forecast period. The UAM software provides real-time data on all the UAVs in the airspace and informs pilots about the restricted and non-restricted airspace.
Rising demand for unmanned aerial vehicles and growing procurement of drones for various commercial and military applications from countries such as China, India, the United States, and others drive the segment growth. Increasing investments in developing advanced software solutions for air traffic planning will drive market growth during the forecast period. For instance, in March 2023, Skye Air, a drone solutions provider based in Gurugram, launched a traffic management system for drones in India. The Skye software enables drone operators to plan routes, create flight plans, and evaluate risks before conducting drone-based operations in the country. This solution is the first of its kind in India.
Similarly, US-based firm AirMap Inc. has developed software solutions that help military forces manage UAV traffic over sensitive locations and complete tactical missions safely. The software provides visual intelligence and real-time insights to deployed soldiers to make decisions in the field. Furthermore, ANRA Technologies, OneSky, and Collins Aerospace developed software platforms to schedule and deconflict drone operations.
Thus, increasing demand for unmanned aerial vehicles and growing expenditure on the development of advanced UTM software are projected to show remarkable growth during the forecast period.
North America to Dominate Market Share During the Forecast Period
North America held the largest market share and continued its domination during the forecast period. The growth is attributed to the presence of a large number of unmanned aerial vehicles, growing investment in research and development, and increasing use of drones for military applications. According to NASA, there were more than 873,000 unmanned aircraft systems registered to fly in the US as of July 2023.
Furthermore, in May 2022, Walmart announced a partnership extension with DroneUp for drone deliveries in 34 sites across six states in the US. Growing procurement of drones from the US for military applications drives the market growth. In October 2022, the US Border Patrol procured more than USD 1 million worth of tracking and surveillance drones from Red Cat subsidiary Teal Drones. Under the contract, the company will provide its Golden Eagle drones to the border patrol, designed to offer enhanced security and protection to agents in typically unmanned areas.
In August 2022, in partnership with AirMatrix, a provider of remote traffic management software, IN-FLIGHT Data, an experienced drone operator in the region, successfully conducted one of the first "SAIL 4" urban drone operations beyond the pilot's line of sight and over urban neighborhoods. As a result, this initiative has been driving market vendors to develop new solutions to meet the increasing demand for unmanned traffic management systems in the region.
Unmanned Traffic Management (UTM) Industry Overview
The unmanned traffic management market is consolidated, with few players holding significant shares. Some prominent market players are OneSky Systems, Inc., THALES, Unifly nv, Frequentis AG, and Leonardo S.p.A., among others.
With growing competition in the market, the key OEMs focus on developing advanced solutions for unmanned traffic management. The e-commerce sector, food delivery services, and medical emergency services are witnessing a surge in the need for last-mile delivery solutions, which has led to a rise in demand for drone logistics. As a result, there is a growing demand for unmanned traffic management solutions. Many companies that are involved in small package delivery and the last-mile delivery of goods are extensively using drones to reduce their expenses and enhance their operational efficiency. The new digital traffic management system will ensure that flight clearances for UAVs are handled safer, faster, and more efficiently in the future.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
Unmanned traffic management system (UTM) development would ultimately identify services, information architecture, roles and responsibilities, software functions, infrastructure, data exchange protocols, and performance requirements that enable the management of low-altitude uncontrolled drone operations.
UTM technology allows delivery drones and air taxis to enter future airspace with improved security. The system is jointly developed by the National Aeronautics and Space Administration (NASA), the Federal Aviation Administration (FAA), and other agencies to manage unmanned aerial vehicle operations. The stringent government regulations regarding the operation of unmanned aerial vehicles can act as a restraint to the market's growth.
The use of drones is becoming increasingly common in various industries, including agriculture, surveillance, logistics, and transportation. Systems are needed to ensure drone operations are safe, efficient, and organized. The goal of unmanned traffic management is to establish a framework for managing drone traffic in the current airspace alongside manned aircraft.
Due to the growing demand for commercial drone applications and advancements in drone technology, the unmanned traffic management market has experienced significant growth in recent years.
Unmanned Traffic Management (UTM) Market Trends
The Software Segment will Showcase Highest Growth During the Forecast Period
The unmanned traffic management software is estimated to show remarkable growth during the forecast period. The UAM software provides real-time data on all the UAVs in the airspace and informs pilots about the restricted and non-restricted airspace.
Rising demand for unmanned aerial vehicles and growing procurement of drones for various commercial and military applications from countries such as China, India, the United States, and others drive the segment growth. Increasing investments in developing advanced software solutions for air traffic planning will drive market growth during the forecast period. For instance, in March 2023, Skye Air, a drone solutions provider based in Gurugram, launched a traffic management system for drones in India. The Skye software enables drone operators to plan routes, create flight plans, and evaluate risks before conducting drone-based operations in the country. This solution is the first of its kind in India.
Similarly, US-based firm AirMap Inc. has developed software solutions that help military forces manage UAV traffic over sensitive locations and complete tactical missions safely. The software provides visual intelligence and real-time insights to deployed soldiers to make decisions in the field. Furthermore, ANRA Technologies, OneSky, and Collins Aerospace developed software platforms to schedule and deconflict drone operations.
Thus, increasing demand for unmanned aerial vehicles and growing expenditure on the development of advanced UTM software are projected to show remarkable growth during the forecast period.
North America to Dominate Market Share During the Forecast Period
North America held the largest market share and continued its domination during the forecast period. The growth is attributed to the presence of a large number of unmanned aerial vehicles, growing investment in research and development, and increasing use of drones for military applications. According to NASA, there were more than 873,000 unmanned aircraft systems registered to fly in the US as of July 2023.
Furthermore, in May 2022, Walmart announced a partnership extension with DroneUp for drone deliveries in 34 sites across six states in the US. Growing procurement of drones from the US for military applications drives the market growth. In October 2022, the US Border Patrol procured more than USD 1 million worth of tracking and surveillance drones from Red Cat subsidiary Teal Drones. Under the contract, the company will provide its Golden Eagle drones to the border patrol, designed to offer enhanced security and protection to agents in typically unmanned areas.
In August 2022, in partnership with AirMatrix, a provider of remote traffic management software, IN-FLIGHT Data, an experienced drone operator in the region, successfully conducted one of the first "SAIL 4" urban drone operations beyond the pilot's line of sight and over urban neighborhoods. As a result, this initiative has been driving market vendors to develop new solutions to meet the increasing demand for unmanned traffic management systems in the region.
Unmanned Traffic Management (UTM) Industry Overview
The unmanned traffic management market is consolidated, with few players holding significant shares. Some prominent market players are OneSky Systems, Inc., THALES, Unifly nv, Frequentis AG, and Leonardo S.p.A., among others.
With growing competition in the market, the key OEMs focus on developing advanced solutions for unmanned traffic management. The e-commerce sector, food delivery services, and medical emergency services are witnessing a surge in the need for last-mile delivery solutions, which has led to a rise in demand for drone logistics. As a result, there is a growing demand for unmanned traffic management solutions. Many companies that are involved in small package delivery and the last-mile delivery of goods are extensively using drones to reduce their expenses and enhance their operational efficiency. The new digital traffic management system will ensure that flight clearances for UAVs are handled safer, faster, and more efficiently in the future.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
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 Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Component
5.1.1 Hardware
5.1.2 Software
5.1.3 Services
5.2 Application
5.2.1 Agriculture and Forestry
5.2.2 Transportation and Logistics
5.2.3 Surveillance and Monitoring
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Israel
5.3.5.4 South Africa
5.3.5.5 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Airbus SE
6.1.2 Leonardo S.p.A.
6.1.3 OneSky Systems, Inc.
6.1.4 Unifly nv
6.1.5 THALES
6.1.6 Altitude Angel Limited
6.1.7 Droniq GmbH
6.1.8 PrecisionHawk, Inc.
6.1.9 Frequentis AG
6.1.10 NovaSystems
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
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 Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Component
5.1.1 Hardware
5.1.2 Software
5.1.3 Services
5.2 Application
5.2.1 Agriculture and Forestry
5.2.2 Transportation and Logistics
5.2.3 Surveillance and Monitoring
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Israel
5.3.5.4 South Africa
5.3.5.5 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Airbus SE
6.1.2 Leonardo S.p.A.
6.1.3 OneSky Systems, Inc.
6.1.4 Unifly nv
6.1.5 THALES
6.1.6 Altitude Angel Limited
6.1.7 Droniq GmbH
6.1.8 PrecisionHawk, Inc.
6.1.9 Frequentis AG
6.1.10 NovaSystems
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
