UAV surge expected in Asia – on par with U.S. by 2020
May 30, 2012 ByCarey Fredericks
May 30, 2012, Beijing, China - According to international consultancy Frost & Sullivan, the military unmanned aerial vehicle (UAV) market will mushroom throughout the decade. The firm expects the market value of UAV technology to grow by 60 percent to $7.3 billion by 2020. The Asia-Pacific market, which until now has largely lagged behind Western nations, is expected to be a leading growth engine over the next 10 years.
“Asia-Pacific countries clearly understand the advantages offered by UAVs. They have seen the benefits from recent [American] operations and are investing,” said Mahendran Arjunraja, the lead researcher for a new Frost & Sullivan report.
According to the report, UAV spending by the United States is expected to reduce from $5.09 billion in 2011 to $2.35 billion in 2020 – due in part to a drop in the high growth period of UAV investment in the U.S. over the last decade – while 26.3 percent growth is expected in Asia and 20.3 percent in Western Europe.
China is expected to account for most of the Asian surge. Its UAV market is thought to have been worth $210 million in 2010, and will likely reach $2.27 billion in 2020 – which would place it roughly on par with U.S. spending.