Boots off the ground: After defense budget cuts, relaxed regulations may open new growth markets

Over the past five years, the Unmanned Aerial Vehicle (UAV) Manufacturing industry experienced volatile growth. With combat operations in the Middle East winding down and congressional focus shifting to reducing the federal debt, funding for defense began to decline. The government began cutting funding for industry projects, and industry revenue declined from its 2008 peak. Outside the defense market, however, industry players have increasingly focused on the development of UAVs for civil and commercial use. Over the five years to 2022, industry revenue is forecast to climb, almost fully recovering from recent defense funding cuts...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • As the government began cutting funding for industry projects, revenue declined from its post-recession peak
  • Strict regulations have stopped the industry from entering the export market in any significant way
  • In order to offset uncertain demand from the DoD, manufacturers will seek foreign orders
  • Industry Report - Industry Locations Chapter

    The industry's geographical spread has not changed significantly over the past few years due to its low number of establishments (100 in 2017). The industry is mainly concentrated in states with high-tech industries and locations that are close to suppliers and highly skilled labor. As a result, companies tend to cluster around aerospace industry hubs.The industry is concentrated in the West, which accounts for 25.8% of all industry establishments. Within this region, a large portion of industry activity is located in California, which is consistent with the state's high number of defense contractors and large aerospace industry. Major companies General Atomics Aeronautical Systems Inc. and Northrop Grumman Corporation's Aerospace Systems subsidiary are based in California. UAV...purchase to read more.

    Additional Insights for the Unmanned Aerial Vehicle (UAV) Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Unmanned Aerial Vehicle (UAV) Manufacturing Industry are

  • Undertaking technical research and development
  • Ability to take advantage of government subsidies and other grants
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and Regulation in the Unmanned Aerial Vehicle (UAV) Manufacturing industry impact industry performance..

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    What's in this report

    What is the Unmanned Aerial Vehicle (UAV) Manufacturing Industry?

    Industry operators manufacture and design unmanned aerial vehicles (UAVs) and related control systems for civilian and military applications. UAVs can be either autonomous or remote-controlled and are used in situations where the use of a human pilot is undesirable or dangerous.

    Industry Products
  • Low altitude UAVs
  • Medium altitude UAVs
  • High altitude UAVs
  • Industry Activities
  • Manufacturing UAVs for armed attack
  • Manufacturing UAVs for surveillance
  • Manufacturing UAVs for research
  • UAV research and development
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • Regulation
  • Federal funding for homeland security
  • National debt/deficit to GDP
  • Price of semiconductor and electronic components

  • Current Performance
  • Defense spending drives demand
  • The civil and export market
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • The defense market
  • Civilian market
  • Profitability and other trends
  • Table: Unmanned Aerial Vehicle (UAV) Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Unmanned Aerial Vehicle (UAV) Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Public Administration

  • Key Selling Industries
  • Circuit Board & Electronic Component Manufacturing
  • Computer Manufacturing
  • Engine & Turbine Manufacturing

  • Products & Services
  • Medium altitude UAVs
  • High altitude UAVs
  • Low altitude UAVs
  • Chart: Unmanned Aerial Vehicle (UAV) Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • US Navy
  • US Air Force
  • US Army
  • Other defense markets
  • Civilian commercial markets
  • US Marine Corps
  • Chart: Major Market Segmentation for the Unmanned Aerial Vehicle (UAV) Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent, utilities and marketingOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Unmanned Aerial Vehicle (UAV) Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Unmanned Aerial Vehicle (UAV) Manufacturing Industry

  • Industry Globalization
    Northrop Grumman Corporation, General Atomics Aeronautical Systems Inc., Textron Inc.,
  • Table: Northrop Grumman Corporation - financial performance
  • Table: General Atomics Aeronautical Systems Inc. - financial performance
  • Table: Textron Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Unmanned Aerial Vehicle (UAV) Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Unmanned Aerial Vehicle (UAV) Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal Funding for Defense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Technology designed to reduce an aircraft's radar cross section.
  • Unmanned Aerial Vehicle (Uav)
  • Also known as drones, any aircraft without a pilot that operates either autonomously or via remote control to perform missions considered too dangerous or tedious for human pilots.
  • Unmanned Aircraft System (Uas)
  • The sum of the components required to operate UAVs, including the unmanned aircraft, control system, control link or specialized datalink and other equipment.
  • Unmanned Combat Air Vehicle (Ucav)
  • A UAV with offensive capabilities, such as onboard missiles that can be fired remotely.
  • What Our Customers Say

    Why buy this report?

    The Unmanned Aerial Vehicle (UAV) Manufacturing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Unmanned Aerial Vehicle (UAV) Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Unmanned Aerial Vehicle (UAV) Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Unmanned Aerial Vehicle (UAV) Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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