The unmanned traffic management market size is projected to reach US$ 3.37 billion by 2031 from US$ 0.91 billion in 2023. The market is expected to register a CAGR of 17.8% during 2023–2031. Increasing application of blockchain in UTM is likely to remain a key trend in the market.
Unmanned Traffic Management Market Analysis
Stringent regulatory standards for manufacturing the unmanned traffic management solutions products is a crucial challenge for the new entrants. Mandated regulations meeting the standards for controlling the aerial traffic had created a potential challenge for the new entrants into the market. Thus, it is an entry barrier for the new entrants to enter into the market. Hence, less number of new entrants would enable the existing players to maintain a strong potential share in the competitive market. Thus, these factors make the threat to new entrants low to moderate.
Unmanned Traffic Management Market Overview
The major stakeholders in the global unmanned traffic management market ecosystem include hardware manufacturers, Software Developer, UTM system providers, and end use. Hardware manufacturers are the system manufacturers comprised of the development of various components of the system such as antennas, cameras, sensors, and others. With the rising demand for unmanned traffic management for rising number air traffic attributed to increasing sales of drones and UAS across the globe, thus, UTM manufacturers are also experiencing sustainable growth opportunities. Then software developers design software offering the platform to gather and visualize all the data for decision making. The UTM system manufacturers integrate software and hardware into one system. Some of the major UTM system providers are Lockheed Martin Corp; Thales SA; Frequentis AG; Airbus SE; and Raytheon Technologies Corp (Collins Aerospace Systems). These UTM providers are always engaged in the advancement of the unmanned traffic management for proper function. The major end use of the unmanned traffic management market include military and commercial flight operators.
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Unmanned Traffic Management Market: Strategic Insights
Market Size Value in US$ 872.54 Million in 2022 Market Size Value by US$ 3,234.28 million by 2030 Growth rate CAGR of 17.8% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Unmanned Traffic Management Market: Strategic Insights
| Market Size Value in | US$ 872.54 Million in 2022 |
| Market Size Value by | US$ 3,234.28 million by 2030 |
| Growth rate | CAGR of 17.8% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Unmanned Traffic Management Market Drivers and Opportunities
Surge in Adoption of Drones in Logistics and Supply Chain Management
Supply chain management (SCM) is a critical aspect of most businesses and can directly or indirectly impact the functioning of enterprises. With the rising adoption of Industry 4.0 and increasing integration of Internet of Things (IoT)-)-enabled devices in all business spheres, SCM is also witnessing rising technology integration. While the adoption of technology has ramifications, the benefits of such adoption mostly outweigh the challenges. Advantages include better efficiency, reduced operational cost, and data safety. With rising technology adoption, UAVs and UAS technologies are gaining prominence in the transportation and logistics industry owing to the benefits offered. Drones are being utilized in different points across a supply chain, such as inventory management, tracking of 'lost' goods, transfer of goods between warehouses, and last-mile delivery. Relatively newer applications of drones include truck drone collaborations, referred to as multi-UAV parallel delivery, wherein drones execute deliveries to multiple destinations straight off the delivery truck. The development of cargo UAVs, capable of carrying large weights across several hundred miles, further promotes the adoption of drones in this industry. In July 2022, Amazon.com, Inc. announced that it plans to deliver packages to its customers by drones in College Station, Texas, by the end of 2022. The company, in June 2022, announced its plan to deliver some packages by drone in the Northern California town of Lockeford. Such development have been pushing the growth of unmanned traffic management market.
Rising Collaboration Between Drone Operators, Aviation Authorities, and Stakeholders
Drone operators have been pushing for the widespread adoption of unmanned aircraft primarily because of the advantages offered. Aviation authorities, however, have been cautious about how and where such vehicles are operated. Research organizations and institutes have been collaborating with both parties to develop UTM. Better collaboration between various stakeholders of UTM can ensure faster and safer commercial applications of drones and UAVs. With rising understanding of the same, all stakeholders have been collaborating regularly for harmonizing regulations and developing a regulatory framework for the operations of drones in VLOS and BVLOS.
Unmanned Traffic Management Market Report Segmentation Analysis
Key segments that contributed to the derivation of the unmanned traffic management market analysis are type, component, application, and end user.
- Based on type, the unmanned traffic management market is bifurcated into persistent UTM and non-persistent UTM. The persistent UTM segment held a larger market share in 2023.
- Based on component, the unmanned traffic management market is bifurcated into hardware and software. The hardware segment held a larger market share in 2023.
- Based on application, the unmanned traffic management market is segmented into communications, navigation, surveillance & monitoring, and others. The communications segment held a larger market share in 2023.
- Based on end user, the unmanned traffic management market is segmented into agriculture & forestry, logistics & transportation, surveillance, and others. The defense & law enforcement segment held a larger market share in 2023.
Unmanned Traffic Management Market Share Analysis by Geography
The geographic scope of the unmanned traffic management market report is mainly divided into four regions: North America, Europe, Asia Pacific, and Rest of the World.
North America has dominated the market in 2023 followed by Europe and Asia Pacific regions. Further, Asia Pacific is also likely to witness highest CAGR in the coming years. The US dominated the North America unmanned traffic management market in 2023. The unmanned traffic management market is expected to grow in the US owing to supportive government regulations by enacting 11 types of legislation for usage of drones in Florida, Idaho, Minnesota and South Dakota such as allowing the use of drones for emergency management workers, including wildfire management. Also, Idaho and Minnesota had permitted law enforcement agencies to operate unmanned aircraft systems (drones) for specified purposes, including traffic crash reconstruction, search and rescue missions, and training purposes. The US states had formulated regulations for flying the drones for the betterment of society for various applications. Thus, upcoming regulations for drones is expected an increase in number of unmanned vehicles in the air which is leveraging the demand for traffic management systems fueling the market growth. Moreover, supportive government funding initiatives is further contributing to the market growth in the country. For instance, in March 2021, the US Air Force’s Agility Prime initiative will help finance the flight test and certification efforts of about 20 different eVTOL aircraft participating in its “Air Race to Certification” program. The initiative Agility Prime is also providing funding to 257 teams of small businesses, universities and other non-profit research institutions engaged in near-term eVTOL research and development (R&D) work. Thus, such initiatives are accelerating the adoption of unmanned aerial vehicles propelling the market growth.
Unmanned Traffic Management Market Report Scope
Unmanned Traffic Management Market News and Recent Developments
The unmanned traffic management market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the unmanned traffic management market are listed below:
- Thales and Thaicom, through Thaicom’s subsidiary, a leading Asian satellite operator and provider of integrated satellite communications, establish the foundations of an Unmanned Traffic Management (UTM) framework to enable the growth of the drone ecosystem in Thailand. (Source: Thales, Press Release, Apr 2024)
- CAL Analytics, in coordination with the Ohio Department of Transportation (ODOT), has launched a low-altitude air traffic management system for drones to support statewide operations. (Source: CAL Analytics, Press Release, Mar 2024)
Unmanned Traffic Management Market Report Coverage and Deliverables
The “Unmanned Traffic Management Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Unmanned traffic management market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Unmanned traffic management market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed porter’s five forces analysis
- Unmanned traffic management market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the unmanned traffic management market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Component, Application, and End Use
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Canada, China, France, Germany, India, Italy, Japan, MEA, Mexico, Russian Federation, SAM, South Korea, United Kingdom, United States
Frequently Asked Questions
North America region dominated the unmanned traffic management market in 2023.
Advancement in UAS leading to increasing application of UTM and surge in adoption of drones in logistics & supply chain management are some of the factors driving the growth for unmanned traffic management market.
Application of blockchain in UTM is one of the major trends of the market.
Lockheed Martin Corporation, Leonardo SpA, Thales Group, Raytheon Technologies Corporation, Altitude Angel Ltd, Frequentis AG, AirMap Inc, Unify NV, Onesky Systems Inc, and Airbus SA are some of the key players profiled under the report.
The estimated value of the unmanned traffic management market by 2031 would be around US$ 3.37 billion.
The unmanned traffic management market is likely to register of 17.8% during 2023-2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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