Military Drone Market To Touch $30 Bn By 2029, India To Buy 30 UAVs For $3 Bn
The global military drone market was valued at USD 10.25 billion in 2021 and is expected to grow at a CAGR of 14.82 per cent from USD 11.73 billion in 2022 to USD 30.86 billion by 2029, according to Fortune Business Insights (FBI).
According to the FBI, however, due to the Covid-19 pandemic, the global market fell by 1.42 per cent in 2020 compared to 2019.
Unmanned Aerial Vehicles (UAVs) are increasingly being used in the defence and security industries for a variety of applications such as surveying, mapping, transportation, combat operations and monitoring, which will drive demand for military UAVs in the coming years.
The increase in defence spending by various countries to acquire modernised and technologically advanced military drones or UAVs for enhanced combat capability is expected to drive the market growth globally.
With the introduction of Artificial intelligence (AI), drone technology has witnessed strong growth in the past years due to continuous research and development and innovation enhancing its capabilities.
Several countries have made significant investments in strengthening their defence forces, which is expected to drive market growth. According to the Stockholm International Peace Research Institute (SPIRI), total global military spending will reach USD 1,981 billion in 2020, up 2.6 per cent from 2019. In 2020, the top five countries with the highest defence budgets were the United States (USD 778 billion), China (USD 252 billion), India (72.9 billion), Russia (61.7 billion), and the United Kingdom (59.2 billion).
Over the last several years, Russia, India, China and Saudi Arabia have made significant investments in purchasing and upgrading the overall defence system. These factors are expected to drive demand for military unmanned aerial vehicles in the coming years.
According to the report of The Wall Street Journal, India is close to approving a deal to buy high-altitude armed drones from the United States to counter a more assertive Chinese stance on the Line of Actual Control (LAC).
The acquisition of advanced MQ-9B drones, which are outfitted with antisubmarine warfare capabilities as well as land-attack and antiship missiles, would also help the Indian navy's surveillance efforts in the Indian Ocean, where China's naval presence has grown.
Citing sources, the report said that the acquisition decision-making process is gaining traction and could be approved in the coming weeks.
India also plans to purchase 30 drones for around USD 3 billion. According to a security official, the number could be reduced to between 18 and 24 following a recent assessment by a panel comprised of representatives from all three military branches. The acquisition must be approved by two government committees, one led by Defence Minister Rajnath Singh and the other by Prime Minister Narendra Modi.
“If the deal is completed, it will represent a new level of comfort that the two countries have with each other, where cutting-edge defence technology cooperation is becoming the norm rather than the exception,” said Harsh V Pant, vice president of New Delhi-based think tank, Observer Research Foundation.
