Unmanned Traffic Management Market Size, Share, Trends, Growth, Analysis, Forecast, 2021–2028

According to Fortune Business Insights™, the global unmanned traffic management market size was valued at USD 0.79 billion in 2020 and is projected to grow from USD 0.92 billion in 2021 to USD 3.59 billion by 2028, exhibiting a CAGR of 21.40% during the forecast period. North America dominated the market with a share of 37.97% in 2020, driven by technological advancements and the increasing adoption of UAV applications across commercial and defense sectors.

The UTM market is witnessing robust expansion, fueled by the rising use of drones for logistics, surveillance, agriculture, disaster response, and military applications. NASA and the Federal Aviation Administration (FAA) are leading research to establish standardized UTM systems, with global stakeholders expected to follow suit.

Competitive Landscape

Key companies are focusing on mergers, acquisitions, product rollouts, and R&D to expand their market footprint.

Major Players:

• Frequentis (Austria)

• Leonardo S.p.A. (Italy)

• Thales Group (France)

• L3Harris Technologies Inc. (U.S.)

• Lockheed Martin Corporation (U.S.)

• Airbus SE (France)

• Raytheon Technologies Corporation (U.S.)

• Nova Systems (Australia)

• Unifly (Belgium)

• PrecisionHawk (U.S.)

• Altitude Angel Limited (U.K.)

Information Source:

https://www.fortunebusinessinsights.com/unmanned-traffic-management-market-106651

Market Growth Drivers

1. Rising Drone Adoption Across Industries
The potential of UAVs has grown significantly, with increasing applications in media, surveying, agriculture, environment monitoring, emergency response, and logistics. The demand for lightweight drones with rapid delivery capabilities, especially in the logistics sector, is expected to propel UTM adoption.

2. Increasing Defense Spending
According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached USD 1,981 billion in 2020, with the U.S., China, and India leading defense investments. The procurement of next-generation military drones and advanced air traffic management systems for border security is expected to further drive UTM demand.

Market Restraints

Strict Government Regulations on Drone Usage
Civil aviation authorities are enforcing stringent drone operation rules due to national security and safety concerns. Varied regulations across countries for pilot licensing, flight authorization, and UAV integration may hinder market growth.

Market Segmentation

By Type
The unmanned traffic management market is segmented into persistent and non-persistent systems. The persistent segment dominates the market, driven by the growing need for safe and continuous drone traffic management, particularly in logistics and medical delivery applications. Non-persistent systems, while less prevalent, serve specific operational requirements where continuous monitoring is not essential.

By Component
Based on components, the market is divided into software, hardware, and services. Software leads the segment growth due to its ability to provide real-time UAV tracking, detailed airspace mapping, and integration with restricted zone data. The services segment is also witnessing notable growth, supported by increasing government contracts for UTM planning and operational support. Hardware remains a critical enabler, providing the physical infrastructure needed for drone traffic management systems.

By Solution
In terms of solutions, the market includes communication infrastructure, navigation infrastructure, surveillance infrastructure, and others. Communication infrastructure accounts for the largest share, fueled by the need for reliable beyond visual line of sight (BVLOS) operations and real-time drone tracking capabilities. Navigation infrastructure and surveillance infrastructure are gaining traction as UAV adoption increases, while the others category covers emerging and specialized UTM solutions.

By End-Use
The market is segmented into logistics & transportation, agriculture & forestry, surveillance & monitoring, and others. Logistics & transportation holds the highest market share, driven by the rising use of drones for package and medical supply deliveries. Agriculture & forestry applications are expanding due to the demand for crop monitoring and precision farming, while surveillance & monitoring is seeing steady growth with increased UAV use in homeland security, border patrol, and infrastructure inspection. The others segment encompasses diverse applications across various industries.

Regional Insights

• North America – Valued at USD 0.30 billion in 2020, the region leads due to strong policy frameworks and the presence of major players like Lockheed Martin and L3Harris.

• Europe – Significant growth expected, led by companies such as Thales Group and Leonardo S.p.A., focusing on advanced aviation solutions.

• Asia Pacific – Fastest growth rate due to expanding drone manufacturing in China, India, and Japan for agriculture, photography, and infrastructure monitoring.

• Rest of the World – Growth driven by increasing UAV usage in oil & gas, medical logistics, and high-risk industrial operations.

Competitive Landscape

Leading Companies to Emphasize Strategic Approaches to Expand Footprint
Industry players in the unmanned traffic management market are focusing on strengthening their portfolios through mergers and acquisitions, product rollouts, research and development initiatives, and technological advancements. Current trends indicate that key market participants are likely to invest in strategic expansions to gain a competitive edge during the forecast period.

Key Industry Developments

• In November 2021, Thales’s TopSky announced that its UAS solution, already operational in Lille, northern France, had been adopted by air traffic controllers at Rennes Airport in Brittany to manage unmanned air traffic. This implementation streamlines the flight request process, enabling drone operators to gain easier and more efficient access to airspace.

• In December 2021, DroneUp revealed the acquisition of AirMap, Inc., a leading digital airspace and automation company. AirMap’s Unmanned Aircraft System Traffic Management (UTM) service will enhance DroneUp’s growing network of pilots and strengthen its expanding ground infrastructure.