The Global UAV payload market has been valued at around $2bn (£1.5bn) as the industry stands in 2017 and is expected to grow at a rate of almost 3.5% over the next 10 years.
The financial forecast for the period to 2027 expects the market to reach almost $3bn (£2.2bn) due to an increase in the use of commercial UAVs.
The demand for UAV payloads will be driven by increased UAV procurements by several countries across the world and persistent demand in areas such as long duration surveillance, the suppression/destruction of enemy air defence (SEAD/DEAD), and communications relays and combat search and rescue (CSAR).
Global UAV payload market is expected to be dominated by North America, followed by Asia-Pacific and Europe. The US is the highest spender in the global UAV payload market, with the highest expenditure directed towards enhancing UAV radar and communication capabilities, followed by sensors and detection, and weaponry payloads.
The Middle East region expenditure on UAV payloads is expected to account for over 6.5% share of global spending during the forecast period. The global UAV Payload market is dominated by North America, with the US being the largest defense spender in the sector. Overall, North America is predicted to spend over $10.5bn (£7.8bn) on UAV payload during the forecast period.
The radars and communication sector is expected to be the largest segment in the global UAV payload market with a market share of close to 80%, followed by sensors and detection segment with around over 11% share and weaponry segment with almost 9.5% share.
The market for radars and communication segment is driven by technological advancements that have been achieved in terms of innovations focusing on developing smaller and lighter versions of existing systems while improving their core capabilities.
It is also expected that with the growing demand for sophisticated UAV payloads, areas such as Synthetic Aperture Radar (SAR) will witness substantial R&D investment over the next decade which in turn will augment the market for radars and communication.