UAV (Drone) Avionics Market Size, Share, & Growth

UAV (Drone) Avionics Market By Solution (Flight Control Management, Communication, Navigation, Payload & Mission Specific), By Application (Military, Commercial), By Type (Fixed-Wing, Rotary Wing, Hybrid Wing) – Global Forecast to 2029

Report Code: UC-AS-6650 Mar, 2025, by marketsandmarkets.com

Overview

The UAV (Drone) Avionics market is projected to grow from USD 3.41 billion in 2024 to USD 5.40 Billion by 2029, at a CAGR of 9.6% from 2024 to 2029. The market is expected to grow significantly with advancements in navigation systems, communication modules, sensors, and data processing technologies, that are necessary for UAV operations. UAV Avionic systems provide precision navigation, secure communication, and efficient mission execution necesary for  of performance for drones used across a wide range of industries, from defense to logistics, agriculture, and infrastructure monitoring.  Avionics systems are being increasingly adopted in agriculture for crop monitoring, construction for inspection of sites, and energy sectors for the inspection of power lines, among others. Advanced avionics provide the flexibility to enhance UAV efficiency, autonomy, and operational safety, which is an important reason for their adoption.

UAV (Drone) Avionics Market Dynamics:

Driver: Advancements in Autopilot and Navigation Systems

The UAV Avionics Market is experiencing significant growth due to advancements in autopilot and navigation systems. Modern UAVs increasingly rely on avionics to enable precise autonomous operations in complex environments, such as urban areas or challenging terrains. Innovations like real-time obstacle avoidance, autonomous path planning, and integration with GPS and GNSS modules have enhanced the capability and reliability of UAVs. For example, in military applications, UAVs equipped with advanced navigation avionics can execute reconnaissance missions in GPS-denied environments, providing a critical edge. This growing demand for high-performance avionics systems is driving market expansion, especially as industries such as delivery, agriculture, and surveillance adopt autonomous UAV operations.

Restraint: High Costs Associated with Avionics Systems

A key restraint in the UAV Avionics Market is the high cost of developing and integrating advanced avionics systems. Components like inertial navigation systems (INS), SATCOM modules, and encrypted communication systems require extensive research, development, and testing to meet industry standards. These costs significantly increase the overall price of UAVs, making them less accessible for small and medium-sized enterprises or budget-conscious sectors like agriculture. For example, incorporating anti-jamming communication modules and AI-based flight controllers can raise the UAV's price by 20-30%. This cost factor slows adoption, particularly in commercial and civil applications where affordability is a critical factor.

Opportunity: Integration of AI in UAV Avionics for Autonomous Operations

The integration of artificial intelligence (AI) into UAV avionics presents a transformative opportunity for the market. AI-powered avionics systems enable UAVs to perform autonomous operations such as real-time decision-making, predictive maintenance, and adaptive flight control. For example, AI-enhanced flight control systems can dynamically adjust to wind conditions or avoid mid-air collisions without human intervention. In the defense sector, AI-based avionics systems improve mission capabilities by enabling UAVs to conduct autonomous surveillance, identify threats, and relay critical data in real time. As industries demand more autonomous UAV capabilities, the incorporation of AI into avionics is set to revolutionize UAV performance and expand its application scope.

Challenge: Regulatory Barriers for Avionics Integration

Regulatory challenges present a significant obstacle for the UAV Avionics Market. Many countries have stringent aviation safety standards and operational guidelines, especially for UAVs operating in controlled airspace. For avionics systems like autopilots, SATCOM, and encryption processors, compliance with these regulations requires exhaustive testing and certification processes, which can delay product launches and increase development costs. For instance, regulations mandating fail-safe avionics systems for Beyond Visual Line of Sight (BVLOS) operations impose additional technical requirements that many UAV manufacturers struggle to meet. Harmonizing global standards and ensuring interoperability between avionics systems remain critical challenges for market growth.

Ecosystem Map: UAV (Drone) Avionics Market

Exhaustive secondary research was done to collect information on UAV (Drone) Avionics Market, its adjacent markets, and its parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Demand-side analyses were carried out to estimate the overall size of the market. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the size of segments and subsegments.

Secondary Research

In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg, Business Week, and different magazines were referred to identify and collect information for this study. Secondary sources also included annual reports, press releases & investor presentations of companies, certified publications, articles by recognized authors, and research papers.

Primary Research

Extensive primary research was conducted after obtaining information about the current scenario of the UAV (Drone) Avionics Market through secondary research. In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. Primary sources from the supply side included industry experts such as vice presidents (VPs); directors from business development, marketing, and product development/innovation teams; related key executives from Cloud solution provider; military sensor manufacture; memory and graphics processing unit manufacturers, military AI service providers; integrators; and key opinion leaders. The primary sources from the demand side included defense agencies and departments, armed forces, defense contractors, and military research institutions.

Market Size Estimation

The top-down and bottom-up approaches were used to estimate and validate the size of the UAV (Drone) Avionics Market. The figure in the below section is a representation of the overall market size estimation process employed for the purpose of this study.

The research methodology used to estimate the market size includes the following details.

  • Key players in the markets were identified through secondary research, and their market shares were determined through primary and secondary research. This included an extensive study of top market players' annual and financial reports and interviews with CEOs, directors, and marketing executives.
  • All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
  • All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
  • Market growth trends were defined based on approaches such as the product revenues of the major 10-15 companies from 2020 to 2023, R&D expenditure, contract by different companies from 2020 to 2024, historic growth patterns between 2020 to 2024, among others.

Data Triangulation

After arriving at the overall market size from the market size estimation process explained above, the total market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for market segments and subsegments, the data triangulation and market breakdown procedures explained below were implemented wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.

Report Objectives

  • To define, describe, and forecast the size of the UAV (Drone) Avionics Market based on Type, Application, and Solution from 2023 to 2029.
  • To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the UAV (Drone) Avionics Market.
  • To strategically analyze micro markets with respect to individual growth trends, prospects, and their contribution to the UAV (Drone) Avionics Market.
  • To analyze opportunities for stakeholders in the UAV (Drone) Avionics Market by identifying key market trends.
  • To analyze competitive developments such as contracts, acquisitions and expansions, agreements, joint ventures and partnerships, product launches, and R&D activities in the UAV (Drone) Avionics Market.
  • To provide a detailed competitive landscape of the UAV (Drone) Avionics Market, in addition to an analysis of business and corporate strategies adopted by leading market players.
  • To strategically profile key market players and comprehensively analyze their core competencies.

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Scope of the Report

Report Metric

Details

Market size available for years

2020–2029

Base year considered

2023

Forecast period

2024-2029

Forecast units

Value (USD Million)

Segments covered

By Solution, By Application, By Type.

Companies covered

Advanced Micro Devices, Inc. (US), Meteksan Defence Industry Inc. (Turkey), Scandinavian Avionics A/S (Denmark), BAE Systems (United Kingdom), FLIR Systems, Inc. (US), UAV Navigation (Spain), uAvionix (US), Emberion (Finland), Garmin Ltd. (US), Safran (France).

 The study categorizes the UAV (Drone) Avionics Market based on Application, Solution and Type.

  • By Solution
    • Flight Control Management
    • Communication
    • Navigation
    • Payload & Mission Specific
  • By Application
    • Military
    • Commercial
  • By Type
    • Fixed-Wing
    • Rotary Wing
    • Hybrid Wing

Available Customizations

MarketsandMarkets offers the following customizations for this market report:

Company Information

  • Profiling of additional market players (up to 5)

Product Analysis

  • Product matrix, which provides a detailed comparison of the product portfolio of each company in the military telescopic masts market.

Exclusive indicates content/data unique to MarketsandMarkets and not available with any competitors.

1... INTRODUCTION

1.1        OBJECTIVES OF THE STUDY

1.2        MARKET DEFINITION

1.3        MARKET SCOPE

1.3.1               MARKETS COVERED

1.3.2               REGIONs Covered

1.3.3               YEARS CONSIDERED

1.4        INCLUSIONS & EXCLUSIONS

1.5        CURRENCY consideration

1.6         MARKET STAKEHOLDERS

2... RESEARCH METHODOLOGY

2.1        RESEARCH DATA

2.1.1               SECONDARY DATA

2.1.1.1             KEY DATA FROM SECONDARY SOURCES

2.1.2               PRIMARY DATA

2.1.2.1             KEY DATA FROM PRIMARY SOURCES

2.1.2.2             BREAKDOWN OF PRIMARIES

2.2              Factor Analysis

2.2.1               Introduction

2.2.2               Demand-side Indicators

2.2.3               Supply-side indicators

2.3        market size estimation & Methodology

2.3.1               Bottom-up approach

2.3.2               top-down approach

2.4        MARKET BREAKDOWN & DATA TRIANGULATION

2.5        RISK ANALYSIS

2.6        RESEARCH ASSUMPTIONS

2.7        LIMITATIONS

3... EXECUTIVE SUMMARY

4... PREMIUM INSIGHTS

5... MARKET OVERVIEW

5.1        INTRODUCTION

5.2        MARKET DYNAMICS

5.2.1               DRIVERS

5.2.2               RESTRAINTS

5.2.3               OPPORTUNITIES

5.2.4               CHALLENGES

5.3        pricing analysis

5.3.1               AVERAGE SELLING PRICE TREND of key players,  by APPLICATION

5.3.2               AVERAGE SELLING PRICE Trend, BY REGION

5.4        VALUE CHAIN ANALYSIS

5.4.1               RESEARCH & DEVELOPMENT

5.4.2               EQUIPMENT AND MANUFACTURING

5.4.3               CONFIGURATION

5.4.4               SYSTEM INTEGRATION

5.4.5               END USER

5.5        ECOSYSTEM analysis

5.5.1               PROMINENT COMPANIES

5.5.2               PRIVATE AND SMALL ENTERPRISES

5.5.3               END USERS

5.6        technology analysis

5.6.1               KEY TECHNOLOGIES

5.6.2               ADJACENT TECHNOLOGIES

5.6.3               COMPLIMENTARY TECHNOLOGIES

5.7        DISRUPTION IMPACTING UAV (DRONE) AVIONICS MARKET

5.7.1               REVENUE SHIFT & NEW REVENUE POCKETS FOR UAV AVIONICS SYSTEM MANUFACTURERS

5.8        trade analysis

5.8.1               IMPORT SCENARIO

5.8.2               EXPORT SCENARIO

5.9        REGULATORY LANDSCAPE

5.9.1               REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS

5.10     CASE STUDY ANALYSIS

5.11      VOLUME Data

5.12     key stakeholders & buying criteria

5.12.1             key stakeholders in the buying process

5.12.2             buying criteria

5.13     key conferences & events in 2024-2025

5.14      Investment & Funding Scenario

5.15     Operational Data

5.16      macroeconomic outlook

5.16.1             introduction

5.16.2             north america

5.16.3             europe

5.16.4             asia pacific

5.16.5             middle east & africa

5.16.6             latin america

5.17     Technology Roadmap (TRM)

5.18     Total Cost of Ownership (TCO)

5.19      Business Models

5.20      bill of materials

5.21      Impact of AI/Gen AI

6... INDUSTRY TRENDS

6.1        INTRODUCTION

6.2        technology trends for UAV (DRONE) AVIONICS MARKET

6.3        Impact of megatrends

6.4        PATENT Analysis

7.... UAV (DRONE) AVIONICS MARKET, BY solution

7.1        INTRODUCTION

7.2        FLIGHT CONTROL MANAGEMENT

                     7.2.1           AUTOPILOT

                     7.2.2           ENVIRONMENTAL SENSORS

                     7.2.3           SYSTEM HEALTH & DIAGNOSTICS

                     7.2.4           POWER MANAGEMENT

7.3        COMMUNICATION

                     7.3.1           DATA LINK

                           7.3.1.1           TRANSMITTERS & RECEIVERS

                           7.3.1.2           ANTENNAS

                     7.3.2           SATCOM

                     7.3.3           TELEMETRY

                           7.3.3.1           TRANSCEIVERS

                           7.3.3.2           SIGNAL AMPLIFIERS

                     7.3.4           OTHERS

                           7.3.4.1           TRANSPONDERS

                           7.3.4.2           ADS-B

                           7.3.4.3           ENCRYPTION PROCESSOR

                           7.3.4.4           ANTI-JAMMING MODULES

 

 

7.4        NAVIGATION

                     7.4.1           GPS/GNSS MODULES

                     7.4.2           INERTIAL NAVIGATION SYSTEM

                     7.4.3           OTHERS

                           7.4.3.1           OBSTACLE DETECTION SENSORS

                           7.4.3.2           AUTONOMOUS PATH PLANNING

7.5        PAYLOAD & MISSION SPECIFIC

                     7.5.1       SENSORS

                           7.5.1.1           THERMAL & INFRARED SENSORS

                           7.5.1.2           MULTISPECTRAL & HYPERSPECTRAL CAMERAS

                           7.5.1.3           GAS & CHEMICAL DETECTION SENSORS

                     7.5.2       DATA PROCESSING & STORAGE

                           7.5.2.1           ONBOARD PROCESSORS

                           7.5.2.2           DATA STORAGE MODULES               

8.... UAV (DRONE) AVIONICS MARKET, by application

8.1        Introduction

8.2        military 

                     8.2.1           Tactical

                     8.2.2           Strategic

8.3        commercial 

                                        8.3.1           Medium

                                        8.3.2           large

9.... UAV (DRONE) AVIONICS MARKET, by TYPE

9.1        Introduction

9.2        Fixed-Wing

               9.2.1           CTOL

               9.2.2           VTOL

9.3        Rotary Wing

                                   9.3.1           Single Rotor

                                   9.3.2           Multirotor

                                   9.3.3           Bicopter

                                   9.3.4           Tricopter

                                   9.3.5           Quadcopter

                                   9.3.6           Hexacopter

                                   9.3.7           Octocopter

9.4        Hybrid Wing 

10.. UAV (DRONE) AVIONICS MARKET, BY region

10.1     INTRODUCTION

10.2     North America

10.2.1                                                                                                    PESTLE ANALYSIS: NORTH AMERICA

10.2.2             US

10.2.3             Canada

10.3     europe

10.3.1                                                                                                                   PESTLE ANALYSIS: europe

10.3.2             UK

10.3.3             FRANCE

10.3.4             ITALY

10.3.5             GERMANY

10.3.6             SWEDEN

10.3.7             Rest of Europe

10.4     asia pacific

10.4.1                                                                                                          PESTLE ANALYSIS: asia pacific

10.4.2             CHINA

10.4.3             INDIA

10.4.4             japan

10.4.5             South korea

10.4.6             Rest of Asia Pacific

10.5     MIDDLE EAST & AFRICA

10.5.1                                                                                        PESTLE ANALYSIS: MIDDLE EAST & AFRICA

10.5.2           GCC COUNTRIES                 

                           10.5.2.1           UAE

                           10.5.2.2           SAUDI ARABIA

10.5.3             Turkey

10.5.4             ISRAEL

10.5.5             AFRICA

10.6     LATIN AMERICA

10.6.1                                                                                                      PESTLE ANALYSIS: LATIN AMERICA

10.6.2             BRAZIL

10.6.3................................................................................................. MEXICO 

11. COMPETITIVE LANDSCAPES

11.1     introduction         

11.2     KEY PLAYERS STRATEGIES/RIGHTS TO WIN

11.3     MArket share analysis of leading PLAYERS, 2023

11.4     REVENUE Analysis of TOP 5 MARKET PLAYERS, 2023

11.5     COMPETITIVE overview

11.6     COMPANY EVALUATION MATRIX: key players, 2023

11.6.1             StarS

11.6.2             Emerging Leaders

11.6.3             Pervasive PLAYERS

11.6.4             ParticipantS

11.6.5             COMPANY FOOTPRINt: key players, 2023

                            11.6.5.1  COMPANY FOOTPRINT

                            11.6.5.2  REGION FOOTPRINT

                            11.6.5.3  TYpe FOOTPRINT

                            11.6.5.4  application FOOTPRINT

                            11.6.5.5  solution  FOOTPRINT

11.7     COMPANY EVALUATION MATRIX: Start-up/SME, 2023

11.7.1             progressive companies

11.7.2             responsive companies

11.7.3             dynamic companies

11.7.4             starting blocks

11.7.5              competitive benchmarking: START-UPS/SMEs, 2023

                            11.7.5.1   Detailed list of key startups/SMEs

                        11.7.5.2 Competitive benchmarking of key startups/SMEs

                   11.8       COMPANY VALUATION AND FINANCIAL MATRIX

 11.9    BRAND/PRODUCT COMPARISON

 11.10  competitive scenario

11.10.1          product launches

11.10.2          Deals

11.10.3          others

12. COMPANY PROFILES

12.1     INTRODUCTION

12.2........................................................................................................ KEY PLAYERS

12.2.1             Advanced Micro Devices, Inc.

12.2.2             Meteksan defence industry inc             

12.2.3             Scandinavian Avionics A S

12.2.4             BAE Systems

12.2.5             Flir Systems, Inc.

12.2.6             UAV Navigation

12.2.7             uAvionix

12.2.8             EMBENTION

12.2.9             gARMIN lTD.

12.2.10............................................................................................... SAFRAN

12.3     Other Key players

  1. APPENDIX

13.1     Discussion guide

13.2     company long list

13.3     KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL

13.4     AVAILABLE CUSTOMIZATION

13.5     RELATED REPORTS

13.6     AUTHOR DETAILS


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