Unmanned Aerial Vehicle (UAV) Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

Share Article

While the defense spending situation is only projected to improve towards the end of the next five years, the DoD is still anticipated to pour billions into industry projects. For these reasons, industry research firm IBISWorld has updated a report on the Unmanned Aerial Vehicle (UAV) Manufacturing industry in its growing industry report collection.

News Image
Conflicts in the Middle East and the need for homeland security have bolstered revenue.

Over the past five years, the Unmanned Aerial Vehicle (UAV) Manufacturing industry experienced strong growth and sharp declines. Industry players develop and manufacture remotely piloted and autonomously operated aircraft typically called UAVs or drones. From 2009 to 2010, the industry experienced a boom in demand as the Department of Defense (DoD) poured billions of dollars on the acquisition and development of drones for surveillance and strike missions. “However, with combat operations in the Middle East coming to an end, and the government attempting to reduce the nation's debt, federal funding for defense began to decline,” according to IBISWorld Industry Analyst Maksim Soshkin. As a result, funding for industry projects began to be cut and industry revenue declined. Revenue is expected to drop 13.8% in 2014 alone. Nonetheless, the earlier surge in DoD spending, combined with continued military funding for UAV development and procurement, has meant that industry revenue is still greater than 2009 levels. Therefore, in the five years to 2014, industry revenue is expected to increase an annualized 2.7% to $3.4 billion.

“Outside the defense market, industry players have increased the focus on the development of UAVs for domestic use,” says Soshkin. Potential domestic uses for drones include border enforcement, humanitarian relief, search and rescue, scientific research, meteorology, firefighting, precision agriculture, infrastructure surveying, police surveillance, freight delivery, and communication signals relaying. However, domestic operations of drones is highly restricted by the Federal Aviation Administration (FAA). As a result, in 2012, Congress ordered the FAA to establish rules by which UAVs can be integrated into domestic airspace by 2015.

In the five years to 2019, industry revenue is forecast to climb, almost recovering from recent defense funding cuts. While the defense spending situation is only projected to improve towards the end of the next five years, the DoD is still anticipated to pour billions into industry projects. In particular, the government will seek to develop and procure next generation UAVs that will be able to operate in “contested” airspace. With the FAA anticipated to establish regulations for the domestic use of drones, demand from the civil market is projected to boom. Consequently, the number of industry enterprises is set to continue rising.

For more information, visit IBISWorld’s Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Industry firms manufacture and design unmanned aerial vehicles (UAVs) and related control systems for civilian and military applications. UAVs can be either autonomous or remote controlled, and are used in situations where the use of a human pilot is undesirable or dangerous.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.:

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
+1 (310) 866-5042
Email >
Visit website