Global Counter UAS market to reach USD 2.33 billion by 2025

The Global Counter UAS Market was valued at USD 917.81 million in 2019 and is estimated to reach USD 1072.01 million by the year 2020.

It is expected to grow at the CAGR of 16.8% within the time horizon of 2020-2025 because of increasing terrorism activities, growing military expenditure, and increasing incidences of the security breaches by drones.

Its market value will reach USD 2330.3 million by the end of the year 2025.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Counter Unmanned Aircraft System (UAS) is the system that is used to detect, neutralize, and destroy unmanned aircraft. It is also known as counter-drone technology, which has either a portable, vehicle-mounted, or standalone configuration system.

It can be either detectors or defenders, which is based on air, ground, and naval platform. The global counter UAS market is concerned with the production, distribution, sales, and research & development activities on the anti-drone products.

Based on the type of technology, the global counter UAS market is segmented into three categories i.e. Laser, Kinetic, and electronic technology. Based on end-users, its market consists of military, government, airfields, buildings, power stations, and other sectors.

Market Overview

The market size of the total global counter UAS market is valued at USD 917.81 million in 2019 and is expected to reach USD 1072.01 million by the year 2020. It is expected to grow at the CAGR of 16.8% within the forecasted time horizon of 2020-2025.

Its market value will reach USD 2330.3 million by the end of the year 2025. Based on geography, the Americas region is leading the market with a market share of 40% of the total global counter UAS Market. The market size of this region is valued at USD 367.13 million in the year 2019.

Based on technology, the electronics segment is leading the market with a market share of almost 42.86% of the total global counter UAS Market. The market size of this segment is valued at USD 393.35 million in the year 2019.

As the end-users of the Global Counter UAS market is considered, the military segment is leading the market with a market share of almost 41.67% of the total global counter UAS market. The market size of this segment is valued at USD 382.42 million in the year 2019.

Increasing the extent of terrorism & illicit activities, rising governmental military expenditure, and increasing incidences of the security breaches by drones are the driving factors responsible for the growth and development of the global counter UAS market.

However, incidences of damages from drone crashes and legal issues related to the drone technology might restrain the growth and development of the global counter UAS market. The key market players engaged in the global counter UAS market are Boeing, Saab AB, Lockheed Martin Corporation, IAI, Northrop Grumman Corporation, Rheinmetall AG, etc.

Market Risks

Incidences of the damages from drone crashes

The use of the drone is increasing in multiple sectors including military, governmental, industrial, and commercial. However, the incidences of the damages caused by the use of the drone and counter drones are also in increasing trend. For instance, in Victoria Harbour (Hong Kong), almost 46 drones fall over a display screen due to the GPS jamming causing the damage of almost USD 127,500.

Along with this, another incidence also occurred in which 48 drones were crashed because of interference with other flying causing the damage of almost USD 98, 674 drones. It might create a risk for the growth and development of the global counter UAS market.

Top Market Opportunities

Increasing extent of terrorism and illicit activities

Globally, the number of terrorism and illicit activities is increasing in its extent and severity. Although the number of terrorist attacks has been decreased from 14,371 to 8093, the number of fatalities due to the terrorist attacks has been increased from 20,487 to 32836 over the past decade.

On average, almost 21,000 people are killed by terrorist attacks annually. In the year 2019, suicide, car bombing, shooting, melee attack, a vehicular attack, and massacres were the major terrorism incidents.

Among these, almost 95% of the deaths from terrorism have occurred from the Middle East, Africa, or South Asia. Here, Afghanistan is the most affected country in the year with the highest terrorism index of 9.6 followed by Iraq (9.24), Nigeria (8.6), Syria (8.01), and Pakistan (8.01).

The increasing extent of terrorism and illicit activities is creating a significant opportunity for the growth and development of the global counter UAS market.

Increasing government military expenditure

In the global context, the expenditure of the governmental authorities in the military and defense sector is in increasing trend. In the year 2019, global military expenditure is estimated at USD 1917 billion, which is almost 7.2% higher in comparison to the year 2010.

The share of the global military expenditure as per the global GDP is about 2.2% in 2019. More specifically, the military spending of the government of the United States has been increased by almost 5.3%. Along with this, the military spending od China, India, and Russia have been increased by almost 5.1%, 6.8%, and 4.5% respectively.

Here, the military sector accounts for almost 70% of a market share of the total global drone market. The increasing investment in the military sector is creating a favorable environment for investment in the drone and drone detection-based technologies.

For instance, the government of the UK has allocated an investment of USD 2.57 million in the projects related to the drone and drone detection technologies. This increasing governmental expenditure on the military sector is driving the growth and development of the global counter UAS market.

Market Trends

Rising use and demand of the drones

Globally, the use of drones is in the increasing trend. For instance, there are almost 1.1 million drones in the context of the United States in 2017 and has reached almost 2 million in 2019. The number of drones is expected to reach more than 2.4 million units over the few next years.

The drone market is expected to grow at a CAGR of almost 20.5% within the forecasted time horizon of 2020-2025. The market size of the global drone market is expected to reach USD 42.1 billion by the end of the year 2024. Here, almost 70% of the drones are used for military purposes.

The increasing use of the drone in the military activities will create a significant opportunity for the growth and development of the global counter UAS market.

Incidences of security breaches by drones

The incidences of the security breaches caused by the use of unidentified drones and the use of the unmanned aerial system in the military operations are in increasing trend. For instance, in 2019, the two key oil stations of Saudi Arabia are stroked by the drone attack at Abqaiq-Khurais.

In this incident, the Houthis, a regional network of the militant groups aligned with Iran, has said that almost 10 drones were used for the aerial attacks. These types of drone attacks are blooming the demand for the anti-drone system, which will ultimately drive the growth and development of the counter unmanned system market.

Legal issues surrounding technology

The use of the counter UAS can create the issues of electromagnetic and radio frequency interference and others affecting the flight and air traffic management issues in certain conditions. To address such issues, governmental authorities have developed legal regulations.

For instance, the government of the United States has developed the Communication Act 1934, criminal code and 47 CFR section of federal communications commission has prohibited the manufacture, import, and sale of the devices requiring radio transmitters and its interference to the communication system of the United States.

These legal regulations and issues might restrain the growth and development of the global counter UAS market.

Industry Challenges

Difficulty in controlling the landing of the Unmanned aircrafts

The counter drones defense system is responsible to neutralize and destroy the unmanned aircraft systems. In most of the conditions, the jammed unmanned aircraft systems fall at random locations as the anti-drone system becomes unable to control the landing of the jammed unmanned aircraft system during the disruption process.

So, it is quite challenging for the key market players engaged in the global counter UAS market to develop a system and advanced controlling technology responsible for the safe landing of the jammed UAS system.

Technology Trends

Advancement in science and technology such as artificial intelligence, machine vision is creating a favorable environment for the enhancement of the functionality and scope of the counter UAS products. Some of the key technological changes occurred in the global counter UAS market are discussed as follows:

Electro-optical and infrared sensors: These technologies are used for the imaging purposes of the military and law enforcement applications in both day and night situations as it facilities the imaging process at low light conditions.

3D Defense radar system: This technological system enables us to build up the 3 D images with elevation and is widely used in the sector of air defense, weather monitoring, and surveillance.

Acoustic-based detection system: It uses the sound for the detection of the direction and distance of the unmanned aircraft devices.

High-powered laser and microwave technology: It uses the beams of laser and microwaves for the detection and destruction of the unmanned aircraft systems.

Long-range infra-red cameras: The use of the infra-red cameras in the anti-drone technology enables the detecting the drone and its related devices from the several kilometers of distance.

Pricing Trends

The price of the counter UAS products depends upon the type of system, use of technology, end-users, size, and platform. For instance, the price of the intelligent ultra-long-range multi-spectrum Dome-shape photoelectric platform wireless anti-UAS system ranges from USD 40,000 to USD 40,230 per unit while the price of the small target early warning and prevention digital eagle UAV detect anti UAV drone jammer system ranges from USD 28000 to USD 28361 per unit.

The price of the new anti-drone anti-UAV system ranges from USD 93000 to USD 98500 per unit while the price of the anti-drone electromagnetic interference equipment system is about USD 53968 per unit. On average, the price of the counter-UAS system ranges from USD 306000 to USD 1227000 per unit.

Regulatory Trends

Some of the regulations, laws, and standards directly or indirectly related to the global counter UAS system market are discussed as follows:

Communication Act: It was developed by the government of the United States in 1934. According to it, the person operating the jammer and using a radio transmitter is needed to be licensed and certified under the Commission rules. It also prohibits the manufacture, marketing, and sale of the unlicensed jammers in the United States and prohibits the testing research & development activities related to the drone in the person’s property.

Anti-drone rules in India: According to it, the companies engaged in the manufacture, assembly, and sales of the anti-drone products should obtain the Unique Identification number from the aviation regulator the Directorate General of Civil Aviation to operate the drones. Along with this, the drone must have No permission No Takeoff complaint in the context of India.

Regulations on standardization of the low-level operation of light and small unmanned aircraft: This regulation is developed by the government of China which states that the pilot is directly responsible for the operation of the aircraft and has the final authority. They must make sure that the Unmanned Aerial system should avoid entry in the restricted area.

Market Size and Forecast

The total market size of the global counter UAS market is valued at USD 917.81 million in 2019 and is expected to reach USD 1072.01 million by the year 2020. It is expected to grow at the CAGR of 16.8% within the forecasted time horizon of 2020-2025. Its market value will reach USD 2330.3 million by the end of the year 2025.

Based on geography

The Americas region is leading the market with a market share of 40% of the total global counter UAS Market. The market size of this region is valued at USD 367.13 million in the year 2019.
The European region accounts for a market share of almost 20% of the total global counter UAS market. The market size of this segment is valued at USD 183.56 million in the year 2019.
The Asia-Pacific region accounts for a market share of almost 30% of the total global counter UAS market. The market size of this segment is valued at USD 275.34 million in the year 2019.
The Middle East and African region account for a market share of almost 10% of the total global counter UAS market. The market size of this segment is valued at USD 91.78 million in the year 2019.

Based on technology

The electronics segment is leading the market with a market share of almost 42.86% of the total global counter UAS Market. The market size of this segment is valued at USD 393.35 million in the year 2019.
The kinetic segment accounts for a market share of almost 35.71% of the total global counter UAS market. The market size of this segment is valued at USD 327.79 million in the year 2019.
The laser segment accounts for a market share of almost 21.43% of the total global counter UAS market. The market size of this segment is valued at USD 196.67 million in the year 2019.

Based on the end-users

The military segment is leading the market with a market share of almost 41.67% of the total global counter UAS market. The market size of this segment is valued at USD 382.42 million in the year 2019.
The government segment accounts for a market share of almost 22.22% of the total global counter UAS market. The market size of this segment is valued at USD 203.96 million in the year 2019.
The airfields segment accounts for a market share of almost 12.5% of the total global counter UAS market. The market size of this segment is valued at USD 114.73 million in the year 2019.
The building segment accounts for a market share of almost 8.33% of the total global counter UAS market. The market size of this segment is valued at USD 76.48 million in the year 2019.
The power stations segment accounts for a market share of almost 5.56% of the total global counter UAS market. The market size of this segment is valued at USD 50.99 million in the year 2019.

Market Outlook

The global counter UAS market is expected to grow at the CAGR of 16.8% within the forecasted period of 2020-2025 because of the increasing extent of terrorism & illicit activities, rising governmental military expenditure, and increasing incidences of the security breaches by drones. Its market size will reach USD 2330.3 million by the end of the year 2025.

Technology Roadmap

Adoption of advanced technologies such as artificial intelligence, 3D radar system, machine vision, infra-red ray cameras is blooming the scope of the application of the anti-drone products in the versatile sectors.

Its use is declining the size of the drone and owing towards the most advanced drone technologies. This advanced technological changes occurring in this global counter UAS market are driving the growth and development of its market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this global counter UAS market are anti-drone product manufacturers, distributors, retail sales of the counter-drone products, and end-users.

At first, the counter-drone products are manufactured and supplied to the product assembly. Once the anti-drone systems are developed, they are available through the online and retail sales to the end-users.

Competitive Factors

The key market players engaged in this global counter UAS market are competing for the development of the more advanced technologies for the easy and efficient detection and management of the unidentified drone system.

Along with this, they are focused on the development of the versatile multi-functional counter-drone system with the introduction of the advanced technology and reduced product size.

Key Market Players

Globally, more than 150 manufactures are producing more than 200 counter-UAS products in almost 30 countries. Short profile of the key market players engaged in the global counter UAS market are discussed as follows:

Boeing: It is the US-based multinational company engaged in the design, manufacture, and sales of the airplanes, rotorcraft, rockets, and aerial vehicular products. The market revenue of this company is about USD 76.56 billion in 2019.

Saab AB: It is the Swedish based company engaged in the sector of aerospace and defense sector. Its major products are military aircraft, civilian aircraft, unmanned aerial vehicles, naval radar systems, and missiles.

Lockheed Martin Corporation: It is the US-based multinational company engaged in the sector of aerospace, defense, arms, security, and advanced technologies. The market revenue of this company is about USD 53.76 billion.

Israel Aerospace Industries: It is one of the largest aerospace and aviation manufacturing company of Israel. It is engaged in the development of aerial and astronautic systems for both military and civilian sectors.

Northrop Grumman Corporation: It is one of the largest global aerospace, defense, and military technology companies based in the United States of America. The market revenue of this company is about USD 30 billion.

Rheinmetall AG: It is the European defense contractor with its headquarter in Germany. This company has sales of almost USD 7.66 billion in the year 2019.

Dronedefence: It is the UK based defense company providing solutions to marine drone security and other sectors. Its major products are aerosnare, aerosentry, aeroguards, skyfence, solar sentines, and Netgun.

Thales Group: It is the multinational company engaged in the sector of aerospace, defense, transportation, and security markets with its headquarter in La Defense, France. Its market revenue is valued at USD 22.55 billion in 2019.

Strategic Conclusion

The global counter UAS market is growing at the rate of 16.8% because of the increasing extent of terrorism & illicit activities, rising governmental military expenditure, and increasing incidences of the security breaches by drones.

However, incidences of damages from drone crashes and legal issues related to the drone technology might restrain the growth and development of the global counter UAS market. So, the market players must be focused on the development of technologically advanced anti-drone products.

References

Appendix

UAS= Unmanned Aircraft System
UAV= Unmanned Aerial Vehicle
USD= United States Dollar
CAGR= Compound Annual Growth Rate