UAV (Drone) Propulsion Systems Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global UAV (Drone) Propulsion Systems Market size was estimated at USD 6,500.0 million in 2023 and is projected to reach USD 11,564.9 million in 2030 at a CAGR of 11.50 % during the forecast period 2024-2030.

The UAV (drone) propulsion systems market is an essential component of the rapidly growing drone industry. These propulsion systems are responsible for powering unmanned aerial vehicles, providing thrust and manoeuvrability for various applications such as surveillance, agriculture, delivery services, and military operations. With advancements in technology, the propulsion systems have evolved to meet the increasing demand for more efficient, longer-lasting, and lightweight solutions. This market includes a wide range of propulsion technologies, such as electric motors, internal combustion engines, and hybrid systems, tailored to different UAV sizes, from small consumer drones to large commercial and military-grade models.

The scope of the UAV propulsion systems market covers both commercial and defence sectors, with significant investments aimed at enhancing the performance and capabilities of drones. These systems are critical in ensuring flight stability, energy efficiency, and payload capacity, which are crucial for maximizing the operational potential of drones. The market also includes the development of advanced power sources, such as lithium-ion batteries, hydrogen fuel cells, and solar-powered systems, which extend the operational time and range of drones. Additionally, there is an increasing trend of integrating artificial intelligence and automation in propulsion systems to enable autonomous drone operations.

Several key trends are shaping the UAV propulsion systems market, including the increasing adoption of electric propulsion technology. Electric motors are becoming more popular due to their low maintenance requirements, reduced noise levels, and higher energy efficiency compared to traditional combustion engines. Furthermore, as drones are being deployed for longer missions, there is a growing trend toward hybrid propulsion systems that combine the benefits of electric motors and internal combustion engines to provide extended flight times and better fuel efficiency. The demand for quieter, more environmentally friendly drone operations is also contributing to the growth of these trends.

The drivers of the UAV propulsion systems market are closely tied to the increasing demand for drones in various industries. The surge in applications, including aerial photography, mapping, agriculture, and logistics, has driven the need for more reliable and advanced propulsion systems. In addition, the military and defence sectors continue to be a significant driver, with the increasing use of drones for surveillance, reconnaissance, and combat missions. Technological advancements in battery life, fuel efficiency, and overall system reliability are also pushing the market forward. Regulatory support and government initiatives, particularly in defence and commercial drone applications, further contribute to the growth of this market.

Delvens Industry Expert's Standpoint

Experts in the UAV (Drone) Propulsion Systems Market highlight several key trends driving growth and innovation. The UAV propulsion systems market is growing rapidly due to increasing demand for drones across various sectors, including commercial, military, and industrial applications. These systems are crucial for powering unmanned aerial vehicles, with advancements in electric, hybrid, and internal combustion technologies enhancing efficiency, flight time, and performance. Trends such as the adoption of electric propulsion, hybrid systems, and environmentally friendly solutions are driving market growth. The demand for longer-lasting, reliable, and efficient propulsion systems is fuelled by the expanding use of drones in surveillance, delivery, agriculture, and defence. Additionally, technological innovations in battery life, fuel efficiency, and government support further contribute to the market’s expansion.

Market Portfolio

Key Findings

• Based on application, the military & defence sector leads the market, holding the largest revenue share throughout the forecast period. The unmanned aerial vehicle (UAV) market is divided into military & defence, civil & commercial, logistics & transportation, construction & mining, and other applications. The military & defence segment continues to dominate, driven by increasing demand for tactical and strategic UAVs. Many countries have ramped up their purchases of specialized UAVs, such as Medium Altitude Long Endurance (MALE) and High-Altitude Long Endurance (HALE) models, for purposes like border monitoring, surveillance, and security. This demand is expected to grow in the coming years.

• Based on type, the fixed-wing UAV segment is experiencing significant growth in terms of compound annual growth rate (CAGR) during the forecast period. The market is segmented into fixed-wing and rotary-wing UAVs. Among these, the fixed-wing category is expanding rapidly, with sub-segments including Conventional Take-Off and Landing (CTOL) and Vertical Take-Off and Landing (VTOL). VTOL fixed-wing UAVs are increasingly utilized for both commercial and military missions due to their versatility in taking off and landing vertically, eliminating the need for runways. These UAVs offer longer endurance and can cover greater distances faster than multirotor UAVs.

• Based on system, the avionics segment is anticipated to see the fastest revenue growth in the UAV market over the forecast period. The UAV market is categorized into airframe, payloads, avionics, propulsion, and software. The avionics segment is expected to grow rapidly due to advancements in automated flight management systems, advanced electronics, and path control systems. Companies are focusing on enhancing Global Navigation Satellite Systems (GNSS) for better flight efficiency, object detection, collision avoidance, and autonomous flight control. The software systems, essential for wartime missions, logistics, and disaster relief, will also see increased demand for their real-time detection capabilities, airspeed monitoring, and positioning functions.

• Based on technology, the fully autonomous UAV segment is projected to grow at the highest CAGR during the forecast period. The UAV market is segmented into remotely operated, semi-autonomous, and fully autonomous technologies. Fully autonomous UAVs, which can operate without input from a ground operator, are expected to experience the highest growth. These UAVs are equipped with command delivery and flight planning systems that allow for pre-determined flight routes and operating ranges. The integration of remote sensing technology and Beyond Visual Line of Sight (BVLS) capabilities is expected to drive the rapid growth of this segment in the coming years

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as rising increasing demand for UAVs in military and commercial applications, rising investments in drone start-ups, ongoing modernization programs, technological advancements, growing use for surveillance and logistics, expanding regulatory frameworks, enhanced UAV capabilities, adoption in various industries, cost-effectiveness, have triggered the UAV (Drone) Propulsion Systems Market in the region.

Regional Analysis

North America to Dominate the Market

• North America is expected to maintain the largest market share throughout the forecast period. This dominance is driven by the increasing use of drones in the military for applications such as aerial mapping, forest monitoring, and infrastructure surveys. The US, as one of the leading producers of military UAVs, exports to numerous countries, further bolstering its market presence. Regional dominance is anticipated to persist due to the continued use of UAVs in municipal welfare programs. The US is expected to play a key role in the growth of the regional market, supported by the involvement of major companies. The extensive deployment of UAV systems in the defence sector is likely to keep the region at the forefront, with North America maintaining the largest market share for unmanned aerial vehicles (UAV) throughout the study period.

• The Asia-Pacific region is expected to witness the highest demand for UAV propulsion systems during the forecast period. This surge in demand is primarily driven by increased orders for various UAV configurations, serving both military and commercial purposes. Investments in drone start-ups across multiple countries in the region are anticipated to rise, highlighting the need for clear and effective regulatory policies. Several modernization programs are also underway to boost the capabilities of both commercial and military users in the region. For example, in June 2023, India's Defence Acquisition Council (DAC) announced the purchase of 31 MQ-98 Predator drones from General Dynamics Atomics Systems Inc. at a cost of USD 3 billion, aimed at enhancing India's surveillance capabilities beyond its borders.

Competitive Landscape

• General Dynamics
• Teledyne Marine
• Saab AB
• Aerovironment, Inc.
• Northrop Grumman Corporation
• Honeywell Aerospace
• Rolls-Royce Holdings PLC
• Safran
• BAE Systems
• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• L3Harris Technologies
• T-Motor
• RCX
• EMAX
• Vertiq
• UAV Propulsion Tech

Recent Developments

• In August 2023, Field Group chose Alva Industries for the ATLUS X60 electric propulsion system to enhance the safety and efficiency of infrastructure inspections. The system’s outstanding performance, reliability, and long lifespan made it an ideal option. Field Group made a significant initial purchase to integrate the systems into their UAV fleet.

• In December 2022, Orbital Corporation Ltd. and Animal Dynamics entered into a partnership to drive innovation in advanced propulsion systems for the Stork-STM UAVs. The collaboration aimed to develop initial concepts for heavy fuel engine systems for Animal Dynamics's heavy lift unscrewed aircraft systems.

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Report Scope