Unmanned Traffic Management (UTM) Market

Unmanned Traffic Management (UTM) Market Outlook (2024 to 2034)

The valuation of the global unmanned traffic management (UTM) market is estimated at US$ 1.44 billion in 2024 and thereafter increases at 16.5% CAGR to climb to US$ 6.62 billion by the end of 2034.

Unmanned aerial vehicles, or drones, have diverse applications across industries including e-commerce, agriculture, and defense, increasingly replacing traditional methods. The expansion of drone usage necessitates effective unmanned traffic management (UTM) systems to manage airspace safely and securely, thereby driving market growth.

Key participants are actively expanding their infrastructure and investments to strengthen their market share. They focus on developing tools and systems to manage the growing complexity of UAV operations, ensuring regulatory compliance and safe integration into the airspace. Essential components of unmanned traffic management include real-time tracking, communication systems, airspace management, and collision avoidance technology.

Drone adoption is rising in sectors such as public safety, construction, logistics, and agriculture, further propelling the expansion of the unmanned traffic management market size.

Key Market Growth Drivers

• Drone operations are being regulated by an increasing number of regulatory laws and rules being produced globally and unmanned traffic management systems facilitate adherence to these rules, increasing their uptake.
• Ensuring the safety of both manned and unmanned aircraft is paramount. Unmanned traffic management systems employ technologies like real-time tracking, collision avoidance, and airspace management to mitigate risks and enhance safety.
• The integration of commercial drones into airspace, driven by their adoption across industries such as infrastructure inspection, logistics, and agriculture, underscores the need for robust unmanned traffic management systems.
• The key unmanned traffic management market trend is substantial investments by governments, aviation authorities, and private companies to enhance the capabilities of these systems.
• Advancements in artificial intelligence, machine learning, and sensor technologies are steadily improving the reliability and capabilities of unmanned traffic management systems.

Report Attribute	Detail
Unmanned Traffic Management (UTM) Market Size (2024E)	US$ 1.44 Billion
Forecasted Market Value (2034F)	US$ 6.62 Billion
Global Market Growth Rate (2024 to 2034)	16.5% CAGR
North America Market Share (2024E)	33%
East Asia Market Value (2024E)	US$ 337.9 Million
Persistent UTM Segment Value (2034F)	US$ 4.64 Billion
Navigation Infrastructure Segment Value (2034F)	US$ 2.12 Billion
Key Companies Profiled	Analytical Graphics, Inc.; Frequentis; Nova Systems; Thales Group; AirMap; Altitude Angel; Delair; PrecisionHawk; Unifly; Thales; Thaicom; CAL Analytics; Skye Air.

Why is Need for Unmanned Traffic Management Skyrocketing?

“Rising Investments in UTM Infrastructure and Advancements in Autonomous Vehicle Capabilities”

Demand for autonomous aerial vehicles is on the rise, particularly in sectors such as monitoring and surveillance, where their capabilities are crucial. This trend is expected to continue growing in the years ahead.

Proliferation of autonomous aerial vehicles worldwide is anticipated to increase air traffic complexity. Consequently, there is a rising demand for unmanned traffic management systems. These systems facilitate safe and efficient flying operations by integrating various aviation aspects into a unified traffic management framework.

What are the Key Challenges Faced by Providers of UTM Solutions?

“High Investments for Infrastructure and Increasing Certification Requirements”

Implementing comprehensive unmanned traffic management systems demands substantial investments in infrastructure development, deploying state-of-the-art technology like sensors and communication networks, and ongoing maintenance to ensure operational efficiency and safety. Small operators often struggle to demonstrate clear returns on investment (ROI) due to high initial costs and the challenge of aligning financial outcomes with operational benefits.

Governments globally are introducing regulations and certifications for UAVs and flying vehicles to control air traffic and airspace. These regulatory measures are adversely affecting the unmanned traffic management market. Increasing regulatory requirements and stringent certification processes are contributing to a decrease in UAV demand, thereby impacting the expansion of the unmanned traffic management market size.

Country-wise Insights

North America is set to hold 33% of the global unmanned traffic management market share in 2024. The UTM market in East Asia is projected to expand at a 17.7% CAGR through 2034.

Why is Requirement for Unmanned Traffic Management High in the United States?

“Rising Utilization of Drones for Agricultural Monitoring and Parcel Delivery”

Attribute	United States
Market Value (2024E)	US$ 211.1 Million
Growth Rate (2024 to 2034)	16.2% CAGR
Projected Value (2034F)	US$ 951.1 Million

In the United States, robust unmanned traffic management systems are becoming essential as commercial drone usage rises across industries like media, construction, agriculture, and logistics. The safe integration of drones into the National Airspace System (NAS) hinges on these systems. Unmanned traffic management systems provide vital functionalities such as real-time tracking, airspace management, and collision avoidance, supporting drone activities such as parcel delivery, agricultural monitoring, infrastructure inspection, and media coverage nationwide.

What is the UTM Market Outlook for South Korea?

“Market Benefitting from Need for Enhanced Airspace Security Measures”

Attribute	South Korea
Market Value (2024E)	US$ 75.01 Million
Growth Rate (2024 to 2034)	18.2% CAGR
Projected Value (2034F)	US$ 397.7 Million

In South Korea, the government is actively establishing comprehensive laws and guidelines to promote the safe and effective use of drones. These regulations are critical for ensuring airspace security, safeguarding privacy, addressing public concerns, fostering innovation, and advancing the drone industry. There is a growing demand in the country for unmanned traffic management systems that offer features like real-time tracking, airspace management, and collision avoidance.

South Korea aims to leverage drone technology fully across sectors such as agriculture, logistics, and disaster relief, prioritizing operational integrity and safety standards.

Category-wise Insights

Based on end user, the UTM market is segmented into drone operators, drone pilots, recreational users, airports, and emergency service public & local authorities. Emergency service public & local authorities hold a significant share of the UTM market due to the growing use of drones for various purposes such as law enforcement, disaster relief, search & rescue, and others.

Why is Persistent UTM More Favored Over Non-Persistent UTM?

“Persistent UTM Offering Support Beyond Visual Line of Sight Operations”

Attribute	Persistent UTM
Segment Value (2024E)	US$ 963.4 Million
Growth Rate (2024 to 2034)	17% CAGR
Projected Value (2034F)	US$ 4.64 Billion

Demand for persistent unmanned traffic management is higher than for non-persistent UTM. In 2024, the persistent UTM segment is estimated to account for 67% of revenue share and is further forecasted to hold 70% by the end of 2034. Unmanned aerial vehicle (UAV) monitoring is made possible by persistent unmanned traffic management systems, which provide real-time tracking and administration of UAV activities. This is particularly important in situations where long-term UAV monitoring is required, such as long-distance flights, surveillance missions, or infrastructure inspections.

Beyond visual line of sight (BVLOS) operations in which UAVs fly outside of their operators' direct line of sight are better supported by persistent unmanned traffic management systems. Because of these qualities, persistent unmanned traffic management is more often used in the market and is better suited for demanding and complicated applications.

Why is the Demand for Communication Infrastructure Growing?

“Need for Efficiency in Long-Distance Communication”

Attribute	Communication Infrastructure
Segment Value (2024E)	US$ 330.7 Million
Growth Rate (2024 to 2034)	17.9% CAGR
Projected Value (2034F)	US$ 1.72 Billion

There is a global increase in demand for wireless communication devices due to their efficiency in long-distance communication. Another significant growth driver for this sub-segment is the integration of artificial intelligence and high-bandwidth integrated devices, which enhances user traction.

In the UAV sector, future market demand is expected to be driven by communication infrastructure. This infrastructure supports long-distance networks necessary for deploying persistent overhead surveillance services and handling geospatial data. A robust communication infrastructure enables efficient remote traffic management, reduces costs, and ensures reliable communication networks. Consequently, the demand for unmanned traffic management systems is rising across regions due to these efficient communication networks.

Competitive Landscape

Key players in the unmanned traffic management industry are heavily spending money on research & development activities to improve systems by using technologies such as artificial intelligence (AI), machine learning (ML), and real-time data analytics. These innovations are increasing the UTM system's efficiency, safety, and dependability, attracting a larger consumer base and higher-value contractors.

• In June 2024, the leading provider of UAS Traffic Management (UTM) solutions, Unifly, gave a presentation on June 19 at the Belgian National Positioning, Navigation, and Timing (PNT) Workshop regarding the status and initial findings of the NAVISP EL3-23: "SecureUTM" project. Leading business executives and technical specialists convened at the workshop, which was organized by the European Space Agency (ESA) and the Belgian Science Policy Office (BELSPO), to talk about developments in PNT solutions. The goal of the SecureUTM project, which is supported by NAVISP (the Navigation Innovation and Support Program) of ESA, is to provide a cyber-certification program for UTM systems.
• In February 2024, to facilitate the expansion of the drone industry in Thailand, Thales, and Thaicom, via Thaicom's subsidiary, a prominent Asian satellite operator and supplier of integrated satellite communications, lay the groundwork for an Unmanned Traffic Management (UTM) framework.
• In March 2024, to support statewide operations, CAL Analytics and the Ohio Department of Transportation (ODOT) together launched a low-altitude drone air traffic control system.
• In February 2023, India's first drone traffic management system was introduced on Tuesday by Gurugram-based Skye Air, a provider of drone solutions.

Fact.MR provides detailed information about the price points of leading unmanned traffic management solution providers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of UTM Market Research

• By Type :

  • Persistent UTM
  • Non-Persistent UTM

• By System :

  • Communication Infrastructure
  • Navigation Infrastructure
  • Surveillance Infrastructure
  • Spatial Infrastructure

• By Airspace :

  • Controlled
  • Uncontrolled

• By Environment :

  • Urban
  • Rural
  • ATM (Airport)

• By End User :

  • Drone Operators
  • Drone Pilots
  • Recreational Users
  • Airports
  • Emergency Service Public & Local Authorities

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa