Unmanned Ground Vehicle Market Size, Share & COVID-19 Impact Analysis, By Mobility (Wheeled, Tracked, Legged, and Hybrid), By Size (Small, Medium, Large, Very Large, and Extremely Large) By Mode of Operation (Tethered, Teleoperated, and Autonomous), By System (Payload, Controller System, Navigation System, Power System, and Others), By Application (Military, Commercial, Law Enforcement, and Federal Law Enforcement), and Regional Forecast, 2021-2028

The global unmanned ground vehicle market size was USD 2.68 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with unmanned ground vehicles witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of -4.75% in 2020. The market is projected to grow from USD 2.73 billion in 2021 to USD 4.34 billion in 2028 at a CAGR of 6.82% during 2021-2028. The sudden rise in CAGR is attributable to this market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

Unmanned Ground Vehicles operate without an onboard human presence and are used for various applications that may be inconvenient, dangerous, or impossible for human operators. Unmanned robots are also called UGVs, and are useful in military and civilian operations to perform different mission-critical assignments.

These vehicles have a variety of applications such as reconnaissance work, search and rescue missions, monitoring buildings and infrastructures, border surveillance, goods transport, explosive ordnance disposal, and mine clearance.

In February 2021, ADASI, an autonomous systems manufacturer, launched two new UGVs and an Armed Robotic Vehicle (ARV). The company launched SCORPIO-M and SCORPIO-S that can climb slopes and stairs at 40-45 degrees and communicate with the autonomous control station at a range of up to 3km. Furthermore, in March 2021, semi-autonomous robot dogs entered into service at Tyndall Air Force Base (AFB) in Florida.

COVID- 19 Pandemic Severely Impacted the Defense Industry Globally

The defense sector has faced unmatched challenges due to the covid-19 pandemic across the globe. Supply chain disruptions, production halts, and delayed UGVs deliveries hamper the unmanned ground vehicle market growth.

• Key players in the market such as General Dynamics Corporation, Rheinmetall AG, and others, faced a decline in revenue in 2020 compared to previous years.


• India, South Korea, Russia, and Thailand have reduced or paused their defense expenditure amid COVID-19.


• Thus, reduced procurement contracts from defense forces decreased defense budget from most countries, and reduced economy across the globe hampers the market growth.

LATEST TRENDS

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Introduction of Artificial Intelligence (AI) to Develop Intelligent UGVs is the Latest Trend

In recent years, key players started focusing on developing next-generation vehicles for efficient and reliable operations. The introduction of the latest technology, such as artificial intelligence in UGVs, enhances vehicle performance. Intelligent unmanned autonomous systems are man-made and capable of carrying out operations or management using advanced technologies without human intervention.

In February 2021, Torus Robotic Pvt Ltd., a Chennai-based startup, entered into a partnership with BEML to develop artificial intelligence (AI) based UGV. It can be used in terrain conditions, extreme weather, logistics, and surveillance.

DRIVING FACTORS

Growing demand for Autonomous Systems for Commercial and Defense Applications Propels the Market Growth

The rise in demand for autonomous Unmanned Ground Vehicles from the defense and commercial sector is due to their wide applications. These autonomous vehicles are used in the agricultural sector for soil sampling, mechanical weeding, irrigation management, crop harvesting, and precision spraying. Furthermore, these vehicles are widely adopted by defense forces for combat support, intelligence, surveillance, reconnaissance (ISR) activities, and others. Thus, the growing procurement of advanced robots from defense is driving the market growth.

Development of Smart Robots to Perform Combat Operations Propels the Market Growth

The introduction of advanced technologies such as machine learning, artificial intelligence, and advanced navigation systems to develop smart robots will aid market growth. The autonomous navigation system allows an unmanned vehicle to move from a pre-programmed location to another, avoid obstacles and follow other vehicles in convoy.

Furthermore, these smart robots are used for military applications such as fire and bomb fighting, security, search and rescue, ISR activities, and others that drive the growth of this market. In October 2019, the Iranian Army developed the network-based smart robot, Heydar-1. It is a six-wheel-drive vehicle furnished with 360-degree rotating wheels that can detect obstacles in its path.

RESTRAINING FACTORS

Reduction in Defense Budgets and Issues Related to Reliability & Bandwidth Hampers the Market Growth

Reduction in military spending from various countries across the globe and reduced expenditure on research and development hinders the market growth. Interruptions in bandwidth with the wireless solutions and even with some wired solutions caused slow reaction time for the controller to the actual UGV. The bandwidth affects other interconnected vehicles due to slow reaction time. Moreover, UGVs cannot detect the location of enemy soldiers and even develop a detailed description of the enemy household. Thus, hampering the growth of the market.

SEGMENTATION

By Mobility Analysis

Tracked Segment Will Witness Highest Growth during 2021-2028 Due to Demand for Robust UAVs

Based on mobility, the unmanned ground vehicle market is segmented into wheeled, tracked, legged, and hybrid.

Among these, the tracked segment held the largest market share in 2020. The growth is attributed to the high power compared to wheeled UGVs. Tracked vehicles are the most powerful out of all the ground-based vehicles.

The wheeled segment is anticipated to show significant growth during the forest period as these vehicles are increasingly used for critical missions and are best suited for rough and unpredictable terrains. The hybrid segment will witness moderate growth as it has high speed, lightweight, low production cost, and other features.

By Size Analysis

An Increase in Use of Small UGVs for Military Combat Applications Boost the Market Growth

Based on the size, the market is divided into small, medium, large, very large, and extremely large.

The small segment dominated the market in 2020 and continued its domination during 2021-2028. The growth is due to the rising adoption of small UGVs for search and rescue, intelligence, surveillance, and reconnaissance (ISR) activities, combat operations, and other military applications. The medium segment is estimated to show significant growth owing to the features such as lightweight and affordable size. It can lift heavy loads and operate in rugged terrain.

The large UGV segment will witness moderate growth due to the deployment of ground-based military robots for logistics and cargo transportation, target acquisition, mine, and IED detection and disposal.

By Mode of Operation Analysis

Autonomous Segment Will Showcase Highest Growth Due to Rising Demand from Defense Sector

By mode of operation, the market is segmented into tethered, autonomous, and teleoperated.

The autonomous segment will witness the highest growth during the forecast period. Autonomous UGVs have the potential to be integrated into different military, commercial, and law enforcement applications. In April 2020, the U.K. armed forces signed a contract with Rheinmetall AG for four Mission Master cargo UGVs under the U.K.’s Robotic Platoon Vehicle program. Mission Master UGV is an autonomous unmanned ground vehicle (A-UGV) developed by Rheinmetall Canada.

The teleoperated segment is projected to grow significantly due to the growing demand for rescue operations and industrial inspection applications. These vehicles are widely used in Urban Search and Rescue (USAR) as these vehicles provide improved safety and efficiency.

The tethered segment will witness moderate growth during 2021-2028. These vehicles are used for applications where an uninterrupted power supply is needed. Most of the countries started investing in the development of autonomous troops for defense applications.

By System Analysis

Navigation System Held Significant Share Due to Introduction of Advanced Systems

By system, the market is classified into the payload, navigation system, controller system, power systems, and others.

Among these, the navigation system segment held the highest shares in 2020. The system is easy to operate and reduces operator workload by utilizing an intuitive image-based control system.

The payload segment will witness remarkable growth during the forecast period. Technological advancements in control, sensing, and computing enabled advanced technologies that improved the vehicles performance. The power system segment is estimated to show significant growth due to the increasing use of battery-operated Vehicles.

By Application Analysis

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Military Segment Will Grow with Highest CAGR Owing to Rising Demand for Smart UGVs for Defense Operations

By application, the market is divided into commercial, military, law enforcement, and federal law enforcement. The military application segment held the highest shares in the market and grew with the highest CAGR during 2021-2028. The growth is attributed to the growing defense budget, especially from Asian countries, and the rising procurement of advanced robots for critical military operations.

The commercial segment is anticipated to show significant growth due to the growing use of smart robots for mapping, monitoring, agriculture operations, construction sites, and others. The law enforcement segment will showcase moderate growth during the forecast period owing to the use of this type vehicle for bomb disposal units and surveillance activities.

REGIONAL INSIGHTS

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The market is segmented into North America, Europe, Asia Pacific, the Middle East, and the rest of the World.

North America dominated the market in 2020 and is valued at USD 903.3 million. This growth is attributed to the highest defense expenditure from the United States and growing contracts with UGV OEMs for next-generation robots. The presence of key players such as Oshkosh Defense, Northrop Grumman, Lockheed Martin Corporation, and General Dynamics Corporation is projected to drive market growth.

The Asia Pacific is anticipated to show remarkable growth during 2021-2028. The growth is due to the rising investments in the defense sector from China, India, South Korea, and others. Furthermore, increasing procurement of advanced UGVs for strengthening defense forces drives the market across the Asia Pacific. In November 2020, the South Korean Army signed a contract with Hyundai Rotem to supply two Multi-Purpose Unmanned Ground Vehicles (MUGVs) to the Republic of Korea Armed Forces.

In Europe, the market will showcase significant growth due to rising defense expenditure from Russia, the U.K, Germany, and others. In addition, the presence of key players such as BAE Systems, HORIBA MIRA Ltd, QinetiQ Group Plc, and others. In April 2021, the Russian Ministry of Defense announced that the Russian military would deploy its first unit of strike robots, five Uran-9 robotic systems. The vehicle is equipped with a 7.62mm PKTM machine gun, a 2A72 30mm cannon, and 2 Ataka and 6 Shmel-M or 12 Shmel-M thermobaric flamethrowers.

The Middle East is estimated to show significant growth due to rising defense spending from Saudi Arabia, Turkey, Israel, and others. An increasing number of military modernization programs and rising partnerships with UGV manufacturers for next-generation robotic systems boost the region's market growth. The rest of the world will witness moderate growth during the forecast period. This growth is due to increasing expenditure on defense and strengthening of military forces by several countries.

KEY INDUSTRY PLAYERS

Key Players Introduce Advanced Technologies to Develop Next-Generation Robots

Major companies in the market are focusing on business expansion by introducing advanced UGVs, and long-term contracts with defense forces. In March 2021, Hanwha Defense upgraded its multi-purpose UGVs for overseas sales. The vehicles improved the combat capability and viability of infantry units. Furthermore, in June 2021, XAG launched the R150 unmanned ground vehicle. It can carry up to 150 kg (330 lbs) and is specially built for agriculture applications.

LIST OF KEY COMPANIES PROFILED:

• ASELSAN A.S. (Turkey)


• BAE Systems (U.K.)


• General Dynamics Corporation (U.S.)


• L3Harris Technologies, Inc. (U.S.)


• Lockheed Martin Corporation (U.S.)


• Northrop Grumman (U.S.)


• Oshkosh Defense, LLC An Oshkosh Corporation Company (U.S.)


• QinetiQ (U.K.)


• Rheinmetall AG (Germany)


• Teledyne FLIR LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2021 – The U.S. Army signed a contract worth USD 30.1 million with FLIR Systems for sustainment efforts connected to the Man Transportable Robotic System Increment II and Common Robotic System-Heavy (CRS-H) UGV programs.


• April 2021 – The U.S. Army signed a contract worth USD 31.6 million with FLIR Systems to build the Man Transportable Robot System Increment II (MTRS Inc. II). It can detect, identify, confirm, and dispose of concealed explosives.

REPORT COVERAGE

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The report provides a detailed analysis of this market and focuses on key aspects such as top defense companies, UGV types, mode of operation, and leading applications. Moreover, the report offers insights into market trends and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the market's growth over recent years.

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