EUROPE SMALL UNMANNED AERIAL VEHICLES (UAVs) MARKET

Market Shares, Forecasts& Trends

2014 - 2020

mordorintelligence.com

1.2. RESEARCH METHODOLOGY

The research methodology can be put into the following sequence:

1) Secondary Research: Information was collected from a number of public and paid data sources.

Public sources involved government sites, company annual reports, white papers and research

publications by recognized industry experts. Paid data sources include authentic industry

databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were

conducted with stakeholders at different points of the value chain like manufacturers, companies

producing parts for UAV, end-product users and key opinion leaders of the industry. Primary

research was used both to validate the data points obtained from secondary research and to fill the

data gaps after secondary research.

3) Market Engineering: The market engineering phase involves analysing the data collected, market

breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches

are used to arrive at a complete set of data points that give way to valuable qualitative and

quantitative insights. Each data point is verified by the process of data triangulation to validate the

numbers and arrive at close estimates.

4) Expert Validation: The market engineered data is verified and validated by a number of experts,

both in-house and external.

5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the

analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to

visualize the entire ecosystem in a single report.

Mordor Intelligence

2. EXECUTIVE SUMMARY

Small UAV is becoming a game changer in terms of use and affordability for various governments around the

world. USA and Israel are the largest producers of the UAVs in the world. USA uses the production in house

and exports less, while Israel has fast become the largest exporter of UAV in the world. Europe is one of the

largest importers of UAVs from Israel accounting for more than half of the exports of Israel. Countries like

United Kingdom, France, Germany and Italy already use Small UAV for different purposes. In the Afghanistan

war, United Kingdom used drones for intelligence, surveillance and reconnaissance missions which were very

successful. Seeing the success of United Kingdom and United States of America, other nations also started

inducting UAVs in their arsenal. This created a huge demand and thus a growing market for Small UAV

started in the world.

Research done by various agencies and companies across the globe has come to the phase where we have

armed UAV which can strike from a far distance safely or UAV which can stay in the air for more than 20

hours. This has helped the governments around the world to do covert operations sitting thousands of

kilometres away.

The use of Small UAV in Europe has broadened now to various fields apart from the military use. It is being

used for disaster relief operations, anti-piracy operations, border patrolling, and movie shooting among

various other things.

Small UAV is a growing market and the demand from European region is also increasing, there will be a lot of

potential of huge growth in the Europe market.

Mordor Intelligence

DESCRIPTION

Europe is one of the world’s most technologically advanced regions. It is home to big aerospace giants who

are involved in cutting edge research and innovation. The region also has big military spenders like UK,

France, Italy etc. The small UAV market is growing with the countries using it for commercial purposes also.

Many countries in this region were a part of the NATO forces that was involved in war in Afghanistan and Iraq.

Technological innovations like Small UAV were used extensively and still used in harsh terrains like the ones

found in Afghanistan. Small UAV market has a huge demand in this region.

Small UAV market is likely to be one of the major game changers of modern technological era. With its wide

range of applications it is likely to have a high adoption rate with enterprises across different industries

investing in these products. Though, military has been using these vehicles for surveillance and gathering

secret data, its usage is now being found in retail, healthcare and other industries as well. Technological

advancements and reducing costs are some of the major factors contributing to the market growth. However,

some of the concerns still there like security issues and strict airspace regulations which are acting as a

barrier to the market growth. Addressing these concerns can provide huge boost to market which is still to

reach its full potential.

The market growth of small UAVs will be defined by adoption by countries throughout the world and how they

define policies which reduce the market barriers. In future, micro and nano UAVs will be used for different

applications. With reducing costs and size, these will play a major role in defense and commercial

applications and providing opportunity for OEMs to expand their offerings. Some of the major vendors

mentioned in the report are Thales SA, Boeing Corporation, Lockheed Martin and Airbus Group.

Mordor Intelligence

3.2 Drivers

3.2.1 Common Use of the Small UAV

Small UAV started out with being a key asset for defence industries and militaries around the world. It is

being used in various parts of the world for intelligence, surveillance and reconnaissance missions across the

world. It is used by various countries in battlefield or on their borders. It is a safer option for troops getting

eyes in the sky to get vital information like terrain, number of hostiles on the ground and number of friendlies.

The troops get the time and intelligence to prepare for the operation beforehand. It gives the forces a buffer

of not going in blindly and having casualties. It also gives a bird view eye of the operation in action by which

the headquarters viewing it in action can plot the next move.

With advancement in the Small UAV, companies have made armed it which can either support the ground

forces or attack on their own. They can fire air to ground or even latest technology is air to air which has

helped forces across the world to covertly attack in any area without losing any lives.

3.2.2 Use by law enforcement agencies

Later with advancement and full scale research by different governments, the usage of the UAV has

broadened into various other fields. Some of the areas it is being used prominently are for border patrolling.

With the various sensors on board like infrared sensors the heat signature of illegal immigrants forcing

through the borders can be identified easily. The countries with long coastlines often have a problem of

guarding the borders with vast waters in front. Here Small UAVs help the coastal border patrol to lookout for

illegal immigrants and piracy operations.

Mordor Intelligence

3.2.3 Use by different industries

With regular natural and man-made disasters occurring around the world, Small UAVs have helped the

government authorities to handle situations and accurately tell the relief authorities where to go and how to

go. It also helps the authorities to coordinate relief efforts.

It has helped authorities to do exploration of oil, gas and mineral in various places. Cameras attached to the

UAV are used for watching over the pipelines and to also observe if any illegal activities are occurring in the

area. The scientists are using the UAVs to analyse areas which are dangerous to reach by manned flights. In

2013, Jeff Bezos announced that Amazon is planning to start delivery of goods by UAVs in the near future.

Once the usage of UAVs is started by companies like Amazon, there might be a time when all the goods

delivered to the home will be done by drones.

3.2.4 Lower Cost of Small UAV

Small UAVS are also cost effective compared to the bigger ones. They are faster to produce and are easier to

maintain.

Mordor Intelligence

SMALL UAV IMPORT MARKET

Israel is one of the biggest exporters in the world of UAVs. It has earned billions of dollars by exporting the

UAVs to different regions, in which Europe is the major importer.

Europe 51% Asia Pacific

33%

Latin America

11%

USA 4%

Africa 1%

Israel UAV export to different regions

Mordor Intelligence

8. SMALL UAV MARKET IN EUROPE REGION

8.1 Europe

8.1.2 United Kingdom

United Kingdom market is a growing market with lot of investment coming from the government to expand

the usage of UAV in different fields. It is estimated the growth of the UK’s UAV market will be XX%. UK used

UAVs like Tarantula Hawk extensively in the war in Afghanistan for intelligence purposes. The military

application of the UAV is growing in UK with the acquisition of drones like Reaper which can fire guided

bombs and hellfire missiles. This gives the Royal Air Force a potent arsenal to be used from high altitudes in

dangerous areas to fire from a safe distance. With research and testing of drones like Taranis which can fly at

speeds more than sound and carry missiles which can fire both on the ground and in air will give UK an edge

over other countries in Europe.

In UK apart from military applications it is being used for civilian purposes also. It is being used in varied

purposes such as movie shooting to oil and gas exploration. It is being used by the authorities for disaster

relief purposes as well. It provides eyes in the air for the authorities to coordinate relief teams in the times of

disasters.

BAE Systems based out of UK are one of the biggest defence contractors. They are investing heavily into the

drones market.

Mordor Intelligence

ABOUT US

Mordor Intelligence is a global market research and consulting firm. Our singular focus is to provide research

insights for business success.

Our research team has expertise in diverse fields like Agriculture, Healthcare, ICT, Chemicals, Manufacturing,

Logistics, Electronics and Automotive. However diverse the expertise maybe, everyone in our team shares one

common trait - we love data and we love providing solutions to clients using that data even more. Seeing your

business flourish based on our solutions and strategy is what we love the most.

DISCLAIMER

Mordor Intelligence Reports and their contents, including all the analysis and research containing valuable market

information, are provided to a select group of customers in response to orders. Our customers acknowledge when

ordering that Mordor Intelligence strategic analysis services are for our customers’ internal use and not for

general publication or disclosure to third parties.

Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. Mordor

Intelligence takes no responsibility for any incorrect information supplied to us by manufacturers or users.

No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written

permission. Reproduction and/or transmission in any form and by any means including photocopying,

mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited.

For information regarding permissions and sales, please contact: info@mordorintelligence.com

7 | Mordor Intelligence !

!

Mordor Intelligence LLP No. 30, Padma Nilaya, Chola Nagar Bangalore, Karnataka, India 560032

+1 781 881 1110 | info@mordorintelligence.com

Copyright © 2014 Mordor Intelligence LLP All Rights Reserved. This document contains highly confidential information and is the sole property of Mordor Intelligence LLP. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of Mordor Intelligence LLP.