Unmanned Aerial Vehicle (UAV) Market to Record CAGR of 17.3% Over 2025-2032; Increased Adoption of UAVs and Drones for Commercial Applications to Fuel Market Growth

The global Unmanned Aerial Vehicle (UAV) market size was valued at USD 36.41 billion in 2024 and is predicted to reach USD 41.26 billion in 2025. The market is anticipated to touch USD 125.91 billion, recording a CAGR of 17.3% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Unmanned Aerial Vehicle (UAV) Market Size, Share, Industry Analysis and Russia-Ukraine War Impact Analysis, By UAV Class (Micro UAVs (Below 2 Kg), Mini UAVs (2-20 Kg), Small UAVs (20-50 Kg), and Tactical UAVs (MALE & HALE)), By Operational Mode (Fully Autonomous, Semi-Autonomous, and Remotely-Operated), By Fully Autonomous (Individual Autonomous System and Drone-in-a-Box (DiaB)), By Solution (Aerostructures & Mechanism, Securing System, Operating Software, Tethering Cord, Power Sources & Management System, Payload, Propulsion System, and Others), By Application (Perimeter Security & Border Management, Combat and Combat Support Missions, Situational Awareness, Disaster Management & First Responders, Surveying, Mapping, & Monitoring, Precision Agricultural Management, Power Station Management, Asset & Operations Management, Emergency Medical Logistics, and Others), By End-User (Government & Defense, Energy, Power, Oil & Gas, Construction & Mining, Agriculture, Forestry & Wild Life Conservation, Public Infrastructure & Homeland Security, Hospitals & Emergency Medical Services, Transportation & Logistics, Event Management, and Others), and Regional Forecast, 2025-2032”.

Unmanned Aerial Vehicles (UAVs) are the onboard computers which remotely controlled using ground-based controllers. They have aerodynamic designs aimed at performing various functions, complemented by effective navigation systems. Military UAVs are fitted with missiles to strike precise targets while operating at high altitudes. Consumer drones are primarily used for filmmaking, surveying, and aerial mapping. However, the utilization of consumer drones has swiftly expanded into a wide range of applications, including business, scientific research, leisure, and other services. These factors are anticipated to drive market growth.

The COVID-19 pademic positively impacted the market as in various countries drones were used for door-to-door delivery of essential supplies, such as groceries, medicines, and others. The drone operators capitalized on this opportunity and expaned into new regions.

UAVS Demand Increased With the Start Of  Russia-Ukraine War, Positvely Impacting the Market

As Russia-Ukraine war was started in the early of 2022, there has been an increase in the military investments and heavily sided towards electronic equipment than pure gun firepower. Both the countries involved have been increasing their usage of drones to increase their offense while guaranteeing the safety of their personnel.

Tata Elxsi Partnered with CSIR-NAL to Advance Air Mobility

In January 2025, Tata Elxsi, a leading provider of technology services in India, and CSIR-National Aerospace Laboratories (CSIR-NAL) formed a strategic partnership to drive advanced air mobility innovations.

Increased Adoption of UAVs and Drones in Commercial Applications to Fuel Market Growth

UAVs (Unmanned Aerial Vehicles) and drones are increasingly being adopted for commercial applications. Numerous organizations view drones as a cost-effective and efficient solution for product delivery. By bypassing road traffic, drones can provide faster delivery times. Additionally, drone flying has become a popular recreational activity in multiple nations. Drones equipped with high-quality cameras and stabilization technology are utilized in the filmmaking and videography sectors, enabling aerial shots that were previously difficult to achieve with precision. They are also being used in the healthcare sector to deliver medicines, transport test samples, and various other tasks. Moreover, UAVs are valuable for remote sensing and Earth observation. They are also employed in agriculture to optimize crop management and monitor crop health. All these factors together fuel the Unmanned Aerial Vehicle (UAV) market growth.

However, these products are required to adhere to various guidelines, restricting the number of UAVs eligible for commercial use, which could impede market growth.

Strong Product Portfolio and Distribution Networks Help Major Players to Stay Ahead of Market Competition

The global Unmanned Aerial Vehicle (UAV) market is characterized by high fragmentation, with the presence of many manufacturing firms. The major players operating in the market include DJI (China), Parrot (Switzerland), and Yuneec (China). These players exhibit a strong product portfolio and distribution networks in both developed and developing nations, which helps them dominate the market and remain competitive.

Notable Industry Development:

• January 2025 - Acquisition, Technology & Logistics Agency (ATLA) secured a contract with Boeing Japan Co., Ltd. to conduct research and develop Unmanned Aerial Vehicles (UAVs) for combat applications, specifically engineered to operate in conjunction with manned aircraft.

List of the Companies Profiled in the Report

• AeroVironment, Inc. (U.S.)


• Autel Robotics (U.S.)


• Parrot Drone S.A.S. (Switzerland)


• Yuneec (China)


• BAE Systems PLC (U.K.)


• Boeing (U.S.)


• Elbit Systems Ltd. (Israel)


• General Atomics Aeronautical Systems (U.S.)


• Hexagon AB (Sweden)


• Israel Aerospace Industries (Israel)


• Lockheed Martin Corporation (U.S.)


• Northrop Grumman Corporation (U.S.)


• SZ DJI Technology Co. Ltd. (China)


• Teledyne Technologies Inc. (U.S.)


• Textron Systems Corporation (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/unmanned-aerial-vehicle-uav-market-101603

Further Report Findings

• The North American region led the global market in 2024 and is projected to account for the major Unmanned Aerial Vehicle (UAV) market share in the forthcoming years. This growth is owing to the strong presence of the majority of UAV manufacturers and rising Canadian exports.


• The Asia Pacific region is projected to grow rapidly in the coming years. The region’s growth is driven by the increased use of heavy-duty UAVs in China’s commercial and defense industry for combat and cargo applications.


• In terms of UAV class, the tactical UAVs (MALE and HALE) segment is projected to dominate the global market in the near future. This dominance can be attributed to the increasing need for tactical UAVs by leading nations such as China, India, Japan, and Australia.

Table of Segmentation