Unmanned Traffic Management (UTM) Market

Unmanned Traffic Management Market Outlook (2022-2032)

The global unmanned traffic management market will reach a valuation of US$ 1,057.9 million in 2022 and expected to progress at a CAGR of 18.4% to reach US$ 5,717.4 million by the end of 2032.

Deployment of unmanned traffic management in rural area accounted for nearly 1/4th of the global traffic management market at the end of 2022.

Report Attributes	Details
Unmanned traffic management Market Size (2021A)	US$ 905.8 million
Estimated Market Value (2022E)	US$ 1,057.9 million
Forecasted Market Value (2032F)	US$ 5,717.4 million
Global Market Growth Rate (2022-2032)	18.4% CAGR
North America Market Share (2022)	29.4%
North America Market Value (2022)	US$ 310.6 million
Europe Market Share (2022)	20.1%
Europe Market Value (2022)	US$ 212.9 million
China Market Share (2022)	9.8%
China Market Value (2022)	US$ 103.9 million
Market Share of Top 3 Countries	38.7%
Key Companies Profiled	AirMap Altitude Angel Wing Analytical Graphics, Inc. Delair Unifly DJI Frequentis Nova Systems PrecisionHawk Thales Group

Adaption Analysis of Unmanned Traffic Management (2017-2021) Vs. Market Outlook (2022-2032)

Due to a significant increase in air traffic over the assessment period, there has been a steadily rising demand for UAVs and autonomous aerial vehicles in relation to a variety of applications across numerous sectors. The number of conventional aircraft will increase as a result of changing preferences and rising disposable income, which is further projected to boost the growth of the unmanned traffic management market throughout the course of the forecast period.

Unmanned aerial vehicles or drones have countless uses in a variety of end-use industries, including e-commerce, agriculture, and defense, and they are increasingly being recognized as viable substitutes for traditional methods of operation in the years to come. Additionally, the use of unmanned aerial vehicles, or drones, as previously indicated, will in some way affect air traffic and necessitate an effective and secure traffic management system, ultimately driving the appeal for an unmanned traffic management system during the evaluation period.

Leading market participants are functioning vigorously and expanding their network and resources. extensive investments to strengthen their infrastructure with the goal of gaining a sizable market share.

• Short Term (2022 to 2025): The unmanned traffic management industry is expected to grow as a result of technological developments and higher defense spending. The UAV market is seen as the key investment area.
• Medium Term (2025-2028): Uncountable technological advancements are being backed by both developed and developing countries, US, China and India being under spotlight. This is expected to have a cascade effect to drone adoption and consequently the unmanned traffic management system.
• Long Term (2028-2032): In underdeveloped nations, UAVs are beginning to find a niche in the agriculture sector, and they have a sizable fleet in wealthy nations. Increased technical advancements and their application to agriculture are predicted to generate a trend for drone use.

From 2017 to 2021, the global market for UTM registered a CAGR of 14.8% Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 18.4% CAGR between 2022 and 2032.

Market share analysis of unmanned traffic management based on end user and region is provided in the above image. Under the end user segment, the drone operator sub-segment dominates with 25.9% market share in 2022.

What’s Driving High adaption for unmanned traffic management across Regions?

“Emerging Demand for UAV for Commercial & Logistic Application aids the UTM Market Growth”

Round the clock demand for UAV has been surged in the view of diverse application across multiple sectors. UAV has an immense growth opportunity by the end of assessment period. One of the major application where UAV are extensively deployed are commercial and logistic applications. UAV serves the purpose of both safe and efficient delivery of logistics. Escalating demand for UAV in multiple sectors is presumed to contribute potentially in the UTM Market during the forecast period.

Additionally, the increased usage of UAVs and drones by end-user industries other than logistics and transportation including agriculture and forestry, and surveillance and monitoring will increase air traffic and increase the need for effective and secure traffic management systems via UTM.

“Rising Autonomous Aerial Vehicles Propels the demand for UTM”

The demand for autonomous aerial vehicles is getting surged over the last half-decade. Autonomous vehicles are deployed in various sectors serving some severe applications such as monitoring and surveillance. Autonomous aerial vehicles are getting peaked and the dependency on such vehicles is expected to surge over the next decade.

The increasing number of autonomous aerial vehicles across the globe will eventually tend to hike the complex air traffic, resulting to fuel the demand for an unmanned traffic management system. UTM may enable safe and efficient flying operations with an integrated traffic management system consisting of various aviation aspects.

What Do Unmanned traffic management Service Provider Need to Watch Out for?

“Due to increased interference of government organization the market is restricting the new entrants”

Regarding UAVs and flying vehicles, regional governments have a number of laws and certifications. Governments all around the world have taken steps to control air traffic and flying zones, which might potentially drive the market for unmanned traffic management.

Increased regulation and stringent certification tend to have a negative impact on the market, which lowers the demand for UAVs globally. Air traffic will decrease sequentially as UAV demand declines, which will have a negative impact on the unmanned traffic management business.

The market for unmanned traffic management is expensive, and more infrastructure is needed for this service. Radars and navigation systems, among other sophisticated architecture, are widely used to track and control air traffic.

The increasing number of autonomous aerial vehicles across the globe will eventually tend to hike the complex air traffic, resulting to fuel the demand for an unmanned traffic management system. UTM may enable safe and efficient flying operations with an integrated traffic management system consisting of various aviation aspects.

Country-wise Insights

How unmanned traffic management skyrocketing in American Region?

Due to the widespread use of autonomous aerial vehicles and UAVs, the North American area, notably the United States, has the most potential for growth in the unmanned traffic management industry. The U.S. defiance department is also encouraging the use of unmanned aerial vehicles, or drones, which has fueled the rising demand for unmanned traffic management systems in the years to come. Thus, North America unmanned traffic management market is expected to reach US$ 2,093.1 million by 2032.

Why is the Europe and Middle East Africa Unmanned Traffic Management Market Expected to Be Highly Lucrative?

Due to the widespread use of unmanned aerial vehicles, or drones, in numerous industries and the increase in conventional aircraft, the Europe region appears to be the most lucrative after North America. Due to this, it is anticipated that air traffic will increase significantly over the course of the assessment, which will eventually fuel the market for unmanned traffic management.

However, the unmanned traffic management market in East Asia is anticipated to expand with a CAGR of around 20% throughout the anticipated time frame. Due to its advantage in terms of infrastructure development and technical improvement, China is the region most likely to drive the growth of the unmanned traffic management market. Such a technological advantage will accelerate the expansion of the East Asian unmanned traffic management market over the long term.

Category-wise Insights

Why is the demand for communication infrastructure is expected to surge the market?

Globally the demand for wireless communication device is increasing as they are more efficient in long distance communication. The other key factor to influence the sub-segment’s growth are deployment of artificial intelligence and integrated instruments with high bandwidth driving the end user’s traction.

In UAV the communication infrastructure is going to create the future market demand. The communication infrastructure can be used for long distance network by deploying persistent overhead surveillance services and geospatial data. The good communication infrastructure helps in getting efficient remote traffic management which also helps in reducing cost and reliable communication network. Hence, due to efficient communication network across region demand for UTM will increase in long run.

Why is Market Growth Being Led by the Government Organization?

With the advancing technologies, remote delivery services or the use of unmanned gadgets have increased drastically, especially since the pandemic. Emergency services, food deliveries, and other drones have high adoption rates nowadays, due to their service efficiency. However, with the growing use of drones across diverse sectors at the global level.

The need for unmanned vehicles traffic management system is arising to manage the unmanned vehicles and prevent losses due to their collisions or path deviations. UTM also enables drone operators to track down possible accidents and prevent them timely, any cyber hacking of vehicles can be detected easily, and others.

Such factors ensure the need for the UTM to manage the emerging and evolving unmanned vehicles used in various industries and with the power of R&D and innovation unmanned vehicles will explore more prominent applications which ensure their growth in the near future. This, in turn, expands the UTM market's growth.

Competitive Landscape

All the industry leader in ICT are making their own strategy to stand out from other competitors in the unmanned traffic management market. The brands like AirMap, Altitude Angel, Wing, Analytical Graphics, Inc., Delair, Unifly, DJI, Frequentis, Nova Systems, PrecisionHawk, Thales Group, Leonardo and others other leading players have rolled up their sleeves to enter the market and make their brand presence in the segment.

In order to reduce maintenance costs and operating costs, the global market for unmanned traffic management is mostly consolidated with few small and medium sized players.

Fact.MR has provided detailed information about the price points of key market players of unmanned traffic management positioned across regions, sales growth, service capacity, and speculative technological expansion, in the recently published report.

Segmentation of Unmanned Traffic Management Industry Research

• By Type:

  • Persistent UTM
  • Non Persistent UTM

• By System:

  • Technical Infrastructure System
    • Communication Infrastructure
    • Navigation Infrastructure
    • Surveillance Infrastructure
    • Spatial Infrastructure
  • Human Interface Components
    • Unmanned Aircraft System
    • UAS Registration System
    • UAS Traffic Management System

• By Airspace:

  • Controlled
  • Uncontrolled

• By Environment:

  • Urban
  • Rural
  • ATM (Airport)
  • Others

• By End User:

  • Drone Operators
  • Drone Pilots
  • Recreational Users
  • Airports
  • Emergency Service Public and Local Authorities

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA