Unmanned Traffic Management Market Size, Share, Growth by 2030

The unmanned traffic management (UTM) sector is projected to expand from US$ 867.99 million in 2022 to US$ 3,217.40 million by 2030, reflecting a compound annual growth rate (CAGR) of 17.8% during this period.

The anticipated growth in demand for unmanned traffic management systems is largely driven by the increasing deployment of drones across various industries, including commercial, logistics, and aviation. The rise in the use of autonomous aerial vehicles, electric aircraft, flying taxis, and delivery drones presents substantial opportunities in air mobility, thereby intensifying the necessity for effective unmanned traffic management systems to oversee these fleets. The Federal Aviation Administration (FAA) is actively working with industry partners and stakeholders, including NASA, to create a comprehensive drone traffic management framework and to establish operational guidelines for drone usage. The FAA forecasts a significant increase in the number of small unmanned aircraft systems (UAS) utilized for commercial purposes, predicting a rise of over 60% from approximately 488,000 in 2016 to around 784,000 by 2024. Furthermore, it is estimated that more than 1.5 million small UAS will be employed for recreational activities by 2024, underscoring the urgent need for robust traffic management systems throughout the forecast period.

However, the evolving regulatory landscape governing both recreational and commercial UAV operations is still being shaped, leading to a degree of uncertainty within the industry. A report from the Government Accountability Office (GAO) released in January 2021 highlighted that the FAA's UTM system was lacking in stakeholder communication and did not provide adequate metrics for assessing progress. The FAA recognizes that the UTM ecosystem encompasses a variety of stakeholders, and the establishment of operational regulations will require time. Flight operators face challenges in obtaining a Special Flight Operations Certificate (SPOC) for beyond-visual-line-of-sight (BVLOS) missions due to the uncertainties surrounding these operations. Additionally, incidents such as the June 2021 crash of an Amazon Prime delivery drone prototype (model MK27), which resulted in a fire affecting 23 acres, have prompted stricter regulations regarding drone operations. These factors collectively pose challenges to the growth of the unmanned traffic management market.

The unmanned traffic management market is categorized into four primary regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World. In 2021, North America dominated the market, holding a significant share of the revenue, followed by Europe and Asia Pacific.

Key players identified in the unmanned traffic management market analysis include Lockheed Martin Corp, Leonardo SpA, Thales SA, Raytheon Technologies Corp, Altitude Angel Ltd, Frequentis AG, AirMap Inc, Unify NV, OneSky Systems Inc, and Thales SA. The market report offers in-depth insights that assist these key players in formulating their growth strategies for the upcoming years. Major vendors contributing to market expansion in North America include Slingshot Aerospace, AirMap, Unifly NV, Frequentis AG, OneSky, L3Harris Technologies, Inc., and PrecisionHawk, Inc. To adapt to the evolving market demands, companies in this region are focusing on launching innovative unmanned traffic management solutions and forming strategic partnerships. For instance, in August 2022, IN-FLIGHT Data, a prominent operator of advanced drones, collaborated with AirMatrix, a leading provider of remote traffic management software, to successfully conduct one of the first "SAIL 4" urban drone operations, which included BVLOS operations over urban areas.

The unmanned traffic management market is further segmented based on type, component, application, and end use. In terms of type, the market is divided into persistent UTM and non-persistent UTM. By component, it is categorized into persistent hardware and software. Regarding application, the market is segmented into communications, navigation, surveillance and monitoring, among others. Finally, by end use, the market is divided into agriculture and forestry, logistics and transportation, surveillance, and other sectors.

The overall size of the unmanned traffic management market has been determined through a combination of both primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to collect qualitative and quantitative data pertinent to the market. This approach provided a comprehensive overview and forecast of the unmanned traffic management market across all its segments. Additionally, numerous primary interviews were conducted with industry experts and stakeholders to validate the data and gain further analytical insights. Interviewees included vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the unmanned traffic management sector.