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The drone data link system market is estimated to grow at a CAGR of 27.05% between 2022 and 2027. The size of the market is forecast to increase by USD 4,644.21 million. The growth of the market depends on several factors, including the advancements in electronic warfare, the augmented application profile of UAVs, and the miniaturization of payloads and subsystems.
This report extensively covers market segmentation by end-user (military, civil, and commercial drones), application (fixed wing, rotary wing, and hybrid), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global drone data link system market as a part of the Aerospace & Defense. The parent, global aerospace and defense market covers products and companies engaged in the production of aerial platforms used under commercial and general aviation, defense platforms used under naval, land, and air domains, arms and ammunition, defense electronics; defense logistics equipment, and space platforms, equipment, and launch vehicles. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The advancements in electronic warfare are notably driving the market growth, although factors such as the non-uniformity in laws and regulations regarding the scope of UAV utilization may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Drone Data Link System Market Driver
The advancements in electronic warfare are notably driving the drone data link system market growth. Over the past few decades, significant transformations have taken place in warfare strategies amid the emergence of new technologies and platforms. Countries such as the US, Russia, and China are making concerted efforts to develop sophisticated and powerful weapons capable of expediting the impact of destruction with cost-efficient and reliable resources. Drones are being used extensively in present-day warfare scenarios for their visual superiority and capability of performing preemptive strikes and surveillance over specific locations. As modern UAVs deliver the performance characteristics of fighter aircraft and are capable of self-defense against air-to-air attacks and electronic attacks, the integration of modern datalinks enhances the provision of assimilating critical ISR data to the command center.
At present, drones are used as air defense systems, but with countries trending toward asymmetric warfare, UCAVs are expected to be deployed in large numbers to combat enemies. Countries and prime defense contractors are significantly increasing investments in R&D to enhance their capability of avoiding anti-air weapons. As part of this development, countries are also investing in stealth technology, which would have a greater impact on both manned and unmanned combat platforms. The use of stealth technology, also known as low-observable technology, began in the late 1960s. Over the years, this technology has undergone marked changes in the selection of materials, aerodynamic designing, and operational techniques of combat platforms. Therefore, the increasing trend toward electronic warfare is expected to drive demand for superior datalinks onboard UAVs and fuel the growth of the global drone datalink system market.
Key Drone Data Link System Market Market Trend
The use of artificial intelligence (AI) for autonomous UAVs is the major trend in the drone data link system market. Drones have redefined and enhanced the productivity of numerous industries in a short span of time. They have been deployed for security monitoring, safety inspections, border surveillance, and storm track, armed with missiles and bombs in military attacks, quick delivery of goods, broadly studying the environment, and scanning remote military bases.
The next generation of drones is envisioned to be powered by artificial intelligence. Aerial AI is capturing tons of data on a real-time basis and opening a new world for looking over complex physical structures and analyzing the data captured for defects. According to current FAA regulations, all drones in the US must have a pilot at the controls and be within the pilot's line of sight. Companies in the country are petitioning the FAA for waivers to the line-of-sight rule. Currently, nano-drones may be lacking the autonomous navigation capabilities of their larger counterparts since their computational power is constrained by their size, but with the advent of AI, such limitations can be overcome.
Key Drone Data Link System Market Market Challenge
The non-uniformity in laws and regulations regarding the scope of UAV utilization is a primary challenge impeding the drone data link system market growth. Drones possess a wider operational range than manned aircraft and have many differentiating physical and operational characteristics. Although governments and commercial bodies use UAS for a variety of applications, the scope of using such systems depends on the existing laws and regulations of a country. Numerous regulations restricting the scope of operations of drones act as major hurdles to their mass adoption.
The Drone Bill is on the verge of being made effective by the UK government, and certain laws are already being enforced across the country. In addition, proposals are afoot authorizing the police to confiscate drones and issue on-the-spot fines to irresponsible pilots. Such regulatory hurdles are expected to prevent the mass adoption of UAVs and adversely affect the demand for associated subsystems such as drone data links during the forecast period.
Key Drone Data Link System Market Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Drone Data Link System Market Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AeroVironment Inc. - The company operates under multiple segments including unmanned Aircraft Systems (UAS) and medium Unmanned Aircraft Systems (MUAS) with a high focus on unmanned aircraft systems (UAS). The company under this segment?offers primarily the design, development, production, delivery, and support of a technologically advanced portfolio of intelligent, multi-domain robotic systems and related services for government agencies, and businesses. The company's key offerings include?a drone data link system.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the military segment will be significant during the forecast period. UAVs play a pivotal role as operational and tactical tools for the armed forces. In the military sector, the demand for UAVs is driven by threats of militancy, territorial and border disputes, and modernization initiatives undertaken by armed forces globally.
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The military segment shows a gradual increase in the market share of USD 601.82 million in 2017 and continued until 2021. Vendors across the globe are investing significantly in the R&D of technologies to augment the processing power, endurance, and sustainability of UAVs. The growing application of UAVs in modern warfare requires uninterrupted data transmission with minimal loss of data quality to execute a comprehensive field assessment. Thus, modern datalinks capable of high-speed data transfer rates and secured by end-to-end encryption are required for military applications. All these factors will contribute to accelerating the drone data link market during the forecast period.
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North America is projected to hold a share of 44% in 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America constitutes a major portion of the global demand for UAVs and is one of the largest operators of military-grade, remotely piloted aircraft globally. Moreover, the high deployment of tactical UAVs for military applications supports the region UAV sub-systems market.
The US Department of Defense and the National Aeronautics and Space Administration (NASA) are investing strongly in the R&D of state-of-the-art electronics and sensors for military UAVs, which will replace existing avionics systems. Growing demand for UAVs has seen the forging of strategic alliances for efficiently utilizing potential growth opportunities the market has to offer.
The COVID-19 pandemic adversely impacted several countries in North America in 2020. However, in the first half of 2021, as the vaccination programs progressed in the region, the demand for drone data link systems increased. The regional market growth improved due to the rise in the demand for drones in contactless deliveries in the commercial sector in 2021. Moreover, the stimulus packages announced by the US government to revitalize its economy are expected to positively impact the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (Military, Civil, and commercial drones), Application (Fixed wing, Rotary wing, and Hybrid), and Geography (North America, APAC, Europe, Middle East and Africa, and South America).
Drone Data Link System Market Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.05% |
Market growth 2023-2027 |
USD 4,644.21 million |
Market structure |
Fragmented |
YoY growth (%) |
22.1 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 44% |
Key countries |
US, China, India, Russia, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
911Security, AeroVironment Inc., Airbus Group SE, BERTEN DSP SL, Censys Technologies Crop., Commtact Ltd., CP Technologies LLC, Cubic Corp., Elbit Systems Ltd., IMC Microwave Industries Ltd., Inmarsat Global Ltd., Meteksan Defence Industry Inc., Octopus ISR Systems, Silvus Technologies Inc., Space and Defence Technologies Inc., SZ DJI Technology Co. Ltd., Thales, UAV Navigation SL, UAVOS Inc., and UAVRADIO |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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