The global Unmanned Traffic Management (UTM) market is expected to witness a robust growth rate of more than 16% during the forecast period. Unmanned traffic management (UTM) is an air traffic management ecosystem for autonomously managing the operations of unmanned aerial systems (UAS). UTM enables new aerial vehicles, including air taxis and delivery drones, to safely access and share future airspace. These are developed to keep drones and different aircraft from colliding. This flexible and contemporary approach to air traffic control is anticipated to speed up the adoption of unmanned aerial vehicles for recreational purposes and commercial applications in a safe manner. UTM can be used by the government as well as private sector operators including aviation, logistic, and surveying companies to handle and fulfill the rising demand for safe operations of UAS.
The growing need for drones in logistics & transportation and the growing need for UTM solutions to integrate Unmanned Aerial Vehicles (UAVs) into commercial airspace are some of the factors driving the global UTM market. Moreover, the increasing urban air mobility industry all across the globe is also a major factor contributing to the market growth. The rapid urbanization along with increased road congestion has led the manufacturers and service providers to offer efficient and less time-consuming goods-delivery systems. Urban air mobility offers a cost-effective mode of travel and enhances consumer travel experience at a relatively lesser time as compared to traditional transportation services. The UTM market is driven by the expanding use of drones across a variety of industries and the development of more advanced drones during the forecast period.
Increased demand for improved surveillance and a growing defense budget to propel the market growth
Governments of major economies like the US, China, India, and other nations are investing heavily in their respective defense budget. Increasing spending on drones or unmanned aerial vehicles has resulted from the rise in terrorism threats and security concerns across the globe. This has increased the use of drones for industrial surveillance and is expected to augment the need for UTM systems to conduct drone operations more safely. Drones can conduct covert operations, work at night, operate everywhere, and are simple to deploy, due to which there are now more drones being used in law enforcement and commercial surveillance activities. However, government regulations and policies restrict the use of UAVs, which will affect the demand for UTM, air traffic, and robots ultimately hampering the growth of the market in the long run.
However, regarding UAVs and flying vehicles, regional governments have several laws and certifications in place which need to be complied with by service providers for efficient operations. Governments across the globe have their policies governing flying zones and air traffic, which can potentially reduce the necessity for unmanned traffic control. Global demand for UAVs is expected to be hampered as a result of harsh certification requirements and escalating regulations. Reduced demand for UAVs will result in less air traffic and, consequently, less need for UTM.
North America constitutes a huge market share in the global UTM market
North America led the global market in 2021 and is further expected to maintain its dominant trend over the forecast period. The regional growth of the market is attributed to the favorable investment by government agencies in drone operations. The strong presence of major companies will further ensure the growth of UTM in the region. Moreover, the presence of organizations such as the National Aeronautics and Space Administration (NASA), Federal Aviation Administration (FAA), and other federal partner agencies and industry players make this region prone to advancing technological innovations and developments.
France was among the first countries to set a national framework based on the reports of larger aviation bodies such as the FAA and the European Union Aviation Safety Agency (EASA). Moreover, several countries and regions like the US, the EU, India, South Korea, Japan, and Australia, among others are working on new regulations, ranging from BVLOS (beyond visual line of sight) operations to UTM activities. In India, the policy framework by the Ministry of Civil aviation defines the mechanism for traffic management of unmanned aircraft in Very Low Level (VLL) airspace up to 1000 feet above ground level. Not only the Indian Government but the Australian Government continues to develop policies, processes, and regulations to improve appropriate access to counter-drone capabilities which will include improved coordination of capabilities between agencies and governments to ensure a range of users have access to data on drone activity to manage security risks.
Market Structure and Competitive Landscape
There are various companies providing UTM systems including Airmap Inc., Altitude Angel Ltd., Analytical Graphics Inc., SZ DJI Technology Co. Ltd., Frequentis AG, Harris Corp., Leonardo S.p.A., Lockheed Martin Corp., Microdrones GmbH, and Qualcomm Inc. among others. These players adopt various strategies to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, product launches, partnerships and collaborations are some of the strategies followed by industry players. Some of the key developments in the Global UTM Market include,
- In Mar 2021, Altitude Angel unveiled GuardianUTM Enterprise, a next-generation airspace management solution. The product offers a ‘one-stop’ solution to empower the airport to start designing and providing UTM Services for drone companies and drone operators, using Altitude Angel’s proven digital authorization and flight management technology.
- In December 2020, H3 Dynamics and Thales combinedly trialed a real-time autonomous drone flight monitoring system in Singapore in an urban environment. It has combined H3 Dynamics’ DBX autonomous drone charging box and a drone under the management and monitoring of the Thales UAS Airspace Management solution
- In December 2020, Altitude Angle entered into collaboration with Inmarsat, a mobile satellite communication, and A-techSYN, a foremost manufacturer of next-generation UAVs to jointly develop the Pop-Up UTM platform.
Key Market Segmentation
RationalStat has segmented the global UTM market based on component type, type, solution type, end user, and region.
- By Component Type
- By Type
- By Solution Type
- Communication Infrastructure
- Navigation Infrastructure
- Surveillance Infrastructure
- By Application
- Agriculture & Forestry
- Logistics & Transportation
- Surveillance & Monitoring
- Others (Recreational Activities etc.)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for UTM solution providers, UAV operators, UTM software developers, civil aviation authorities, air navigation service providers, government organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Global Unmanned Traffic Management Market is expected to grow at a CAGR of approximately 16% during the forecast period 2022-2028.
The global market for Unmanned Traffic Management was US$ 800 Million in 2021.
Increasing government spending and growth in terrorism is one of the major trends in the global Unmanned Traffic Management market.
North America holds the major share of this market.
Major companies operating in the Global Unmanned Traffic Management Market Qualcomm Inc., Airmap Inc., Altitude Angel Ltd., Analytical Graphics Inc., SZ DJI Technology Co. Ltd., Frequentis AG, Harris Corp., Leonardo S.p.A., Lockheed Martin Corp., and Microdrones GmbH, among others.