Unmanned Aerial Vehicle Market Size, Share, Growth, Trends, Insights, 2032

The global Unmanned Aerial Vehicle (UAV) market size was valued at USD 36.41 billion in 2024. The market is projected to grow from USD 41.26 billion in 2025 to USD 125.91 billion by 2032, exhibiting a CAGR of 17.3% during the forecast period.

Unmanned aerial vehicles, or drones, are mainly controlled by ground-based controllers. The drones have aerodynamic structures that utilize various functions with appropriate navigation systems. Unmanned aerial vehicles are mainly used in the military sector to carry out several military missions.

Fortune Business Insights™ mentioned this in a report titled "Unmanned Aerial Vehicle (UAV) Market, 2025-2032."

List of Key Players Present in the Report:

• AeroVironment, Inc. (U.S.)

• Autel Robotics (U.S.)

• Parrot Drone S.A.S. (Switzerland)

• Yuneec (China)

• BAE Systems PLC (U.K.)

• Boeing (U.S.)

• Elbit Systems Ltd. (Israel)

• General Atomics Aeronautical Systems (U.S.)

• Hexagon AB (Sweden)

• Israel Aerospace Industries (Israel)

• Lockheed Martin Corporation (U.S.)

• Northrop Grumman Corporation (U.S.)

• SZ DJI Technology Co. Ltd. (China)

• Teledyne Technologies Inc. (U.S.)

• Textron Systems Corporation (U.S.)

Source:

https://www.fortunebusinessinsights.com/industry-reports/unmanned-aerial-vehicle-uav-market-101603

Segments:

Increasing Demand from Major Countries Drives Tactical UAVs Segment

By UAV class, the unmanned aerial vehicle market is segmented into micro UAVs (Below 2 Kg), mini UAVs (2-20 Kg), small UAVs (20-50 Kg), and tactical UAVs (MALE & HALE). The tactical UAVs (MALE & HALE) segment is expected to witness fastest growth during the forecast period owing to the rising demand for tactical UAVs by India, Japan, China, and Australia.

Presence of FPS and CDS in Fully Autonomous UAVs Segment’s Growth

By operational mode, the market is classified into fully autonomous, semi-autonomous, and remotely-operated. The fully autonomous segment will witness the fastest growth during the forecast period. The segment's growth is attributed to the increased presence of the flight planning system (FPS) and command delivery system (CDS) in fully autonomous drones or UAVs.

Drone-in-a-Box (DiaB) Segment to Garner Major Share Due to Increasing Demand

Based on fully autonomous, the market is divided into individual autonomous systems and Drone-in-a-Box (DiaB). The Drone-in-a-Box segment is estimated to have the fastest growth during the forecast period owing to the increasing use of Drone-in-a-Box (DiaB) in various plant operations by capturing aerial video and transferring real-time data to the operators.

Rising Securing System Demand Worldwide to Propel Segment Growth

By solutions, the market is classified into aerostructures & mechanisms, securing system, operating software, tethering cord, power sources & management system, and others. The securing system segment will be the fastest-growing segment during the forecast period. The demand for securing systems worldwide is increasing due to the increase in cyber-attacks on UAVs.

Increased Usage of Medical Drones During Pandemic Propelled Emergency Medical Logistics Segment

By application, the market is segmented into perimeter security & border management, combat, and combat support missions, situational awareness, disaster management & first responders, surveying, mapping, & monitoring, precision agricultural management, power station management, asset & operations management, emergency medical logistics, and others. Emergency medical logistics will register the fastest growth during the forecast period. The increasing popularity of medical drones during the pandemic to supply medical equipment has driven the emergency medical logistics segment.

Rising UAV Flight Experiments Worldwide to Bolster Hospitals & Emergency Medical Services

By end-user, the market is segmented into government & defense, energy, power, oil & gas, construction & mining, agriculture, forestry & wild life conservation, public infrastructure & homeland security, hospitals & emergency medical services, transportation & logistics, event management, and others. The hospitals & emergency medical services segment will have the fastest growth rate during the forecast period due to the increasing adoption of Unmanned Aerial Vehicle (UAV) experiments and tests for various medical applications worldwide.

Geographically, the market is studied across North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America.

Report Coverage-

The report offers:

• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.

• Comprehensive insights into regional developments.

• List of major industry players.

• Key strategies adopted by the market players.

• The latest industry developments include product launches, partnerships, mergers, and acquisitions.

Drivers & Restraints-

Rising Demand for Commercial Applications to Propel Market Growth

Unmanned Aerial Vehicle (UAV) or drones are being rapidly deployed for commercial applications, further propelling market growth during the forecast period. Several companies observe UAVs as more efficient and economical options for product delivery as they can avoid traffic and provide faster delivery.

However, strict rules and regulations for drone usage in certain countries may hamper market growth.

Regional Insights

Increased Airforce Defense Budget to Boost Market Growth in North America

North America holds the largest Unmanned Aerial Vehicle (UAV) market share. The region’s dominance is attributed to the increased Airforce defense budget, which raised the fixed-wing UAV demand in the U.S.

Asia Pacific is expected to experience fast growth during the forecast period owing to the high adoption rate of heavy-duty unmanned aerial vehicles (UAVs) in China's commercial and defense sectors.

Competitive Landscape

Growing Key Players Focus on Development of Advanced Technology to Drive Market Growth

The Unmanned Aerial Vehicle (UAV) market consists of major players, including DJI, Yuneec, and Parrot. These companies accounted for the largest market share in 2022. The companies are shifting their focus to developing advanced UAV technologies to strengthen their position in the market.

Notable Industry Development

• January 2025 – Tata Elxsi and CSIR–National Aerospace Laboratories (CSIR-NAL) signed a Memorandum of Understanding (MoU) to form a strategic collaboration aimed at advancing Advanced Air Mobility (AAM) technologies in India.

• January 2025 – Japan’s Acquisition, Technology & Logistics Agency (ATLA) entered into a contract with Boeing Japan Co., Ltd. to conduct research and development of Unmanned Aerial Vehicles (UAVs) intended for combat operations alongside manned aircraft.

• July 2024 – Thales and Garuda Aerospace signed a Memorandum of Understanding (MoU) to drive innovation in India’s drone industry. Under the agreement, Thales will contribute its expertise in Unmanned Traffic Management (UTM), UAV detection, and system integration, while Garuda Aerospace will leverage its capabilities in UAV manufacturing, deployment, and local market knowledge. The partnership aims to build a strategic foundation for strengthening the UAV ecosystem in India.