Unmanned Traffic Management Market Analysis, Size, and Share by 2031

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

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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 Regional Insights

The regional trends and factors influencing the Unmanned Traffic Management Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Unmanned Traffic Management Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Unmanned Traffic Management Market Report Scope

Unmanned Traffic Management Market Players Density: Understanding Its Impact on Business Dynamics

The Unmanned Traffic Management Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Unmanned Traffic Management Market are:

1. Lockheed Martin Corporation
2. Leonardo SpA
3. Thales Group
4. Raytheon Technologies Corporation
5. Altitude Angel Ltd
6. Frequentis AG

Disclaimer: The companies listed above are not ranked in any particular order.

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