Market Definition
A UTM is an automated workflow process that provides safe, efficient, and reliable flight operations, from preparation to monitoring, ensuring separation assurance, and handling collisions. Additionally, UTM operations are conducted below Visual Lines of Sight (VLoS) in low-altitude airspace. As UTM plays an increasingly important role in ensuring drone & aircraft safety, its popularity & importance is immensely growing worldwide. Moreover, drones are expected to positively influence the development of UTM systems in the coming years since they are becoming widespread across several sectors, including delivery, agriculture, surveillance, & security. Many countries are currently participating in the development and testing of this technology.
Market Insights
The Global Unmanned Traffic Management (UTM) Market is projected to grow at a CAGR of around 23.47% during the forecast period, i.e., 2021-26. Due to the growing use of drones in logistics, transportation, and other commercial applications, the market is expecting unprecedented growth in the coming years. Furthermore, UTM services are expected to expand in Europe and North America, owing to the favorable standards & regulations that would enable automated, regular, & commercial BVLOS operations. As a result, UTM services will become more sophisticated, and their greater demand is likely in the coming years. Furthermore, numerous data exchange requirements, operations, and a supporting framework are being addressed collectively to enable multiple UAS to operate beyond VLOS at altitudes below 400 feet above ground level.t.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 23.47% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy, Spain, Netherlands | |
| Asia-Pacific: China, India, Japan, South Korea, Australia | |
| South America: Brazil, and Argentina | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa | |
| Key Companies Profiled | Frequentis, Leonardo S.p.A., AirMap, Altitude Angel, Thales Group, Harris Corporation, Skyward IO, Lockheed Martin, Nova Systems, Unifly, PrecisionHawk, TAIWAN FLUORO TECHNOLOGY CO., LTD. |
| Unit Denominations | USD Million/Billion |
Moreover, the emergence of new regulations for UTM systems and the increased use of drones are other crucial factors driving the global market through 2026. Additionally, the UTM system will replace the current air traffic management system (ATM) that applies to manned & unmanned aircraft alike, which is why growing businesses will have several opportunities in the years to come.
Additionally, the market for UAVs & autonomous aerial vehicles has been booming across different industries, further contributing to the market's growth. Furthermore, manned aerial systems & drones can be benefitted from numerous end-user industries, including e-commerce, agriculture, and defense. These are acknowledged as alternative methods of performing in the future, which offer multiple advantages.
Impact of COVID-19 on the Global Unmanned Traffic Management (UTM) Market
The advent of Covid-19 in 2020 severely affected millions of businesses worldwide, with significantly decreased revenues, which began to increase gradually in 2021. Despite the pandemic, the Global Unmanned Traffic Management (UTM) Market was minimally impacted. Furthermore, the US suffered the least from the pandemic, while Asia-Pacific & South America were the most affected due to supply chain disruptions & operational problems.
Nevertheless, amidst the pandemic, the market witnessed an increasing demand for drones for purposes like transportation of medical supplies & lab samples. Furthermore, drones were used by the defense sector to broadcast messages & inform people, especially in backward areas, about the lockdown & the various measures they should take. In addition, these drones were also used for monitoring public spaces during quarantine periods and disinfecting contaminated areas with aerial sprays. In spite of these challenges, drones proved vital during the pandemic and positively influenced the growth of the UTM market.
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Market Segmentation
Based on Type:
Among the two, the demand for Persistent UTMs is expected to grow at the fastest rate in the Global Unmanned Traffic Management (UTM) Market. It owes primarily to the exponentially expanding industry of Unmanned Aerial Vehicles (UAVs) & drones and the increasing transportation & logistics activities across countries like Switzerland, the UK, & the US. Persistent UTMs assist in low altitude operations in an approved flying area while offering continuous automated coverage to aerial vehicles. As drones & UAVs are used increasingly for medical, agricultural, e-commerce, surveillance, security purposes, etc., due to their extensive applicability & high efficiency, persistent UTMs are gaining immense popularity worldwide.
Moreover, drones are also in high demand in the commercial market & the industrial sector for applications like vehicle traffic monitoring and searching & delivery services. Consequently, these aspects contribute significantly to the exponentially growing demand for persistent UTMs. On the other hand, the demand for non-persistent UTMs is also likely to surge substantially during the forecast period due to their ability to be moved between geographical regions for operations such as public safety & precision agriculture.
Based on End User:
Here, the Logistics & Transportation sector is anticipated to dominate the market in the coming years. The prime factor contributing to the market around this sector is the increasing number of e-commerce & retail and their use of small Unmanned Aerial Systems (UAS), i.e., below 25 kg in weight. In addition, Surveillance & Monitoring are anticipated to register the fastest revenue growth in the future, owing to the burgeoning use of small UAVs for monitoring purposes in both developed & developing countries.
Regional Landscape
Based on Region:
Of all regions globally, North America is estimated to dominate the Unmanned Traffic Management Market during 2021-26, owing to the rising drone activities, the increase in government funding for drones, and the extensive presence of the leading companies like AirMap, Lockheed Martin, and Harris Corporation across the region. Moreover, the surging use of UAVs & drones by the US defense department, coupled with massive investments in developing UTM systems, are other crucial aspects contributing to the regional market growth.
On the other hand, Europe is expected to account for the second-highest revenue share over the next few years, primarily due to the mounting deployment of UAVs & drones across different sectors, coupled with the rapid rise in conventional aircraft in the region. With this, air traffic is expected to surge exponentially over time, which, in turn, would contribute to the significant demand for UTM services in the coming years.
Recent Developments by the Leading Companies
Market Dynamics
Key Driver: Growing Demand for UAVs Worldwide
The momentum of Unmanned Aerial Vehicles (UAVs) is expected to continue to grow over the forecast period, with more than 22 nations partnering with UTM service providers to build a national UTM system, which, in turn, would drive the Global Unmanned Traffic Management (UTM) Market during 2021-26. In addition to the growing introduction of UTM elements, this will spur the growth of the overall market. UTMs are used as an integrated service by drone operators across several countries, such as Canada, the United States, and Australia, rather than being seen as a standalone feature operated by someone else. Moreover, the incr
easing demand for drones in multiple applications like construction monitoring, insurance investigation, monitoring of fires, and retail fulfillment, among others, is another crucial aspect projected to drive the market in the coming years.
Possible Restraint: Stringent Laws & Regulations Imposed by Aviation Authorities
Governments of different countries worldwide have imposed several regulations & certifications regarding UAVs & drones, along with different measures to regulate air traffic & flying zones, i.e., the prime aspect that may potentially restrain the Global Unmanned Traffic Management (UTM) Market during 2021-26. Increasing regulations & severe certifications have a tendency to decline the demand for UAVs and decreased air traffic. As a result, it would reduce the demand for unmanned traffic management services, thereby hampering the market growth.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Unmanned Traffic Management (UTM) Market is projected to grow at a CAGR of around 23.47% during 2021-26.
A. Persistent UTMs are anticipated to emerge as an opportunity area for the leading players in the Global Unmanned Traffic Management (UTM) Market during the forecast period.
A. The changing regulatory framework for drone operations and the rising participation by private companies are the key growth opportunities projected to drive the Global Unmanned Traffic Management (UTM) Market growth during 2021-26.
