Europe Unmanned Aerial Vehicle (UAV) Market is expected to reach USD 31.78 billion in 2024 and USD 98.67 billion by 2029, progress at a CAGR of approximately 25.43% over the forecast period.
Drones are useful to provide essentials, including water and food, in areas affected by natural disasters, including earthquakes and floods. Small unmanned aerial vehicles (UAVs) are used to locate hostages during search and rescue operations. They are often used in missions that are hazardous to human actions. Such instruments are rapidly becoming an essential part of modern warfare. They can be either remotely controlled, semi-autonomous, or fully autonomous. Increasing terrorism and natural disasters are leading to an increase in the number of rescue operations carried out each year. It is, in fact, has served for the good of the market.
The commercial use of UAVs has increased significantly over the last few years. The growing trend in delivering goods using these tools is expected to give rise to the industry. In addition, drone delivery services will likely provide ample opportunities for businesses in developing countries with insufficient transport infrastructure. The Commission Communication also stresses the significance of UAVs in the field of freight and multimodal transport within and beyond the urban regions.
Apart from this, a considerable increase in demand because of the rising necessity for effective and economical drone activities. Sectors like delivery services, Surveillance, agriculture and infrastructure inspection are adopting BVLOS drone technology to optimize their operations, hence accelerating the Europe Unmanned Aerial Vehicle (UAV) market growth rate.
The regional market also benefits from the emergence of new applications in several industries, including telecommunications, oil and gas, and mining. Further, the increased military budgets in European countries are anticipated to fuel the development of the unmanned aerial vehicle industry. Russia is investing to strengthen its combat UAVs.
Additionally, a growing focus on improving flight control systems is believed to boost their adoption for military operations. Besides all these, the upcoming move towards modern agricultural practices is also expected to boost market growth. UAV for monitoring livestock, crops, water levels, and crop spraying.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
25.43% |
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Segments Covered |
By UAV Size, Application, and Countries |
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Various Analyses Covered |
Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
Germany, UK, France, Italy, Denmark, Norway, Sweden, Finland, Switzerland, the Netherlands, Luxembourg, Iceland, and the rest of Europe. |
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Market Leaders Profiled |
The Boeing Company, Sz DJI Technology, Aerovironment Inc., Lockheed Martin Corporation, Elbit Systems Limited, BAE Systems, Northrop Grumman Corporation, General Atomics, Parrot Drones SA, Thales SA, Airbus SE, Microdrones GmbH. |
Small UAV
Medium UAV
Large UAV
The small UAV segment is expected to grow at the highest CAGR during the forecast period, due to the demand for surveillance and reconnaissance applications from the defense sector. The need for small UAVs from the commercial sector is also increasing, as these UAVs are used in precision agriculture, logistics & transport, wildlife surveys, search & rescue operations.
Military
Civil
Commercial
The commercial segment of the UAV market is projected to grow at the highest CAGR from 2024 to 2029. This rise can be due to the increased adoption of UAVs for various commercial applications, such as product delivery, tracking, surveying, mapping, and remote sensing.
Germany
United Kingdom
France
Rest of Europe
Germany's Unmanned Aerial Vehicle (UAV) market is rapidly growing and is expected to move forward during the forecast period. This is due to the amount of privately and commercially managed drones in the country is sharply surging. Moreover, the Association of Unmanned Aviation estimates that by 2030 the volume of commercial application UAVs will grow by 40 per cent. In comparison to the international standards, Germany stands as the fourth biggest industry for commercial drones. In addition, most German UAV players are situated in Berlin, North Rhine-Westphalia and Bavaria. Also, the market progressed substantially with an overall investment of about 124 million Euros in the past 10 years. In 2024, it is believed to earn around 137 million euros in the drone market.
France is witnessing a significant rise in its market share because of higher defence allocations in the domestic areas. The regional geopolitical crises are one of the prime factors behind the increased focus on UAVs. Further, it is also driven by examination and monitoring operations by armed forces, defence and other sectors such as mining and construction. This includes their application in ensuring compliance with laws, performing security assessments, infrastructure review and surveillance of industrial sites. Additionally, the Unmanned Aerial Vehicle (UAV) market size is expected to expand due to the 2024 Olympic Games. The French government is actively exploring the country’s ability to counter UAVs, especially the Parade event given the Olympic Games.
The United Kingdom’s economy is currently going through a rough patch. However, the country’s market share in the European Unmanned Aerial Vehicle (UAV) industry is moderately growing. The UK drone industry generated a revenue of approximately 94.66 million pounds in 2023. Though the nation’s market size between 2018 and 2023 saw irregular rise and fall, industry experts predicted it to become the 2nd-fastest growing country in the coming years. Additionally, the UK UAV market growth will move forward owing to the adoption of the new approach by the government for boosting the defence sector. For instance, a new strategy supported by an investment of at least 4.5 billion pounds for the next 10 years will speed up access to uncrewed systems for the country’s armed forces.
Spain is anticipated to gain a substantial market share of the Europe unmanned aerial vehicle (UAV) industry owing to the supportive regulatory environment, rapid adoption across sectors, talent pipeline and workforce development. Likewise, in April 2023, Madrid-based Alpha Unmanned Systems (AUS) announced the signing of a licenced manufacturing partnership with Indonesian company PT Indadi Venyro to increase its footprint all over Southeast Asia. Also, in 2022, the industry ministry allocated an initial 1.43 billion euros for the period between 2022 and 2028 for its share of the unmanned aerial vehicle program. Besides this, the country’s market size also increased due to its inclusion in the Chicago Convention and the adoption of the EU legislation regarding this.
The Italy unmanned aerial vehicle (UAV) market is likely to grow at a higher CAGR during the forecast period. This can be attributed to the expanding inter-government collaboration with other countries and the notable presence of prominent and start-up companies. Moreover, the country’s market size is estimated to surge with the UAV plan for ships of the Italian Navy. It declared the roadmap in February 2024 which includes various types of UAVs i.e. from rotary-wing UAVs to larger fixed-wing UCAVs incorporated into current and future ships. Apart from this, the industry market share is boosted by startups providing drones to move PV modules in distant regions. For example, FlyingBasket has designed and made a UAV that can transport up to 100 kg of payload across distances of 2.5 km and up to 5 kg throughout 25 km.
Frequently Asked Questions
UAVs in Europe are primarily used for military surveillance, agriculture, infrastructure inspection, emergency response, and environmental monitoring.
Key challenges include stringent regulatory requirements, privacy concerns, limited battery life, and the need for advanced air traffic management systems.
Technological trends include advancements in AI and machine learning for autonomous navigation, improved battery technology, enhanced sensor capabilities, and the integration of 5G networks for better connectivity.
The largest adopters include the agriculture sector for precision farming, the energy sector for infrastructure inspection, and the defense sector for surveillance and reconnaissance missions.
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