Research PREVIEW for

US DoD Unmanned Aerial Systems Market

Demand for Upgrades and Support

Services Lend Wing to US DoD

Unmanned Aerial Systems Market

Key Highlights

• High altitude, long endurance (HALE) vehicles are the largest UAS segment

with a 2015 budget request of $2.50 billion.

• The top 5 DoD UAS market participants contributed 84.8 percent of total

market revenue.

• The DoD will continue to emphasize the importance of acquiring UASs that

provide multi-mission capabilities.

• US-based UAS market participants will form more partnerships with foreign

competitors.

Source: Frost & Sullivan

Drivers and Restraints

Defense contractors are still struggling with the

move toward interoperability and open architecture

for controlling and operating UAS.

Processing, exploitation, and dissemination (PED)

of sensor data from UASs continues to be a

challenge for the DoD.

DoD budget reductions and continued scrutiny of

contract cost overruns will reduce market

investments.

1-2 years 3-4 years 5+ years

The number of ongoing world crises and their

potential to quickly escalate drives the continued

and increasing need for UAS capabilities.

The continuing need for persistence and maritime

use is driving both the development of new

platforms and upgrades to existing platforms.

Manned/unmanned teaming (MUM-T) is driving the

need for upgraded systems in both manned and

unmanned aircraft.

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Impact: High Medium Low Source: Frost & Sullivan

Total DoD UAS Market: Key Market Drivers and Restraints, US, 2014—2019

Executive Summary — CEO’s Perspective

2

While US demand for military UASs is

decreasing, global demand is increasing.

Trade restrictions continue to hamper the

ability of US companies to compete globally.

3 Competition in the global market for military

UASs is increasing as more foreign

companies develop highly capable systems.

4 Included in full research access.

1

There will be very few new start UAS

procurement programs. Growth will be seen

in the market for support systems and

upgrades.

Source: Frost & Sullivan

The Full Analysis Features the Following Content

Section Slide Number

Executive Summary 5

Market Overview 11

Total Market -

• Drivers and Restraints 19

• Forecasts and Trends 34

• Market Share and Competitive Analysis 51

CEO’s 360 Degree Perspective 62

Group 5/HALE Segment Breakdown 64

Group 4/MALE Segment Breakdown 68

Group 3/Tactical Segment Breakdown 72

Group 2/SUAS Segment Breakdown 76

Group 1/MUAS Segment Breakdown 79

Targets Segment Breakdown 83

UAS Sensors/Subsystems Segment Breakdown 87

The Full Analysis Features the Following Content

(continued)

Section Slide Number

UAS Support Segment Breakdown 93

The Last Word 97

Appendix 100

Key Questions the Analysis Answers

Is the DoD UAS market growing, how long will it continue to grow, and at what rate?

What segments, technologies, and services make up the market?

What are the leading market drivers, restraints and challenges?

What are the top programs for the DoD UAS market?

What technologies and services will be emphasized?

What companies are leading the market?

Source: Frost & Sullivan

Total DoD UAS Market: Key Questions the Analysis Answers, US, 2014—2019

Partial List of Companies Interviewed

• Aerovironment

• Aeryon Labs

• Northrop Grumman

• Prioria Robotics

• UAV Solutions

• UMS Group

Source: Frost & Sullivan

Interested in Full Access? Connect With Us

Kayla Belcher Corporate Communications – North America

210.247.2450

kayla.belcher@frost.com

Research Authors

Michael Blades

Senior Industry Analyst

Aerospace & Defense

Wayne Plucker

Research Director

Aerospace & Defense

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