Unmanned Aerial Vehicle (UAV) Manufacturing in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS OD4424Revenue
$5.5bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
11,640
Businesses
79
Wages
$X.Xbn
Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry analysis
The Unmanned Aerial Vehicles (UAV) Manufacturing industry has grown slightly, as overall federal funding for defense has rose in recent years. Industry companies produce and develop UAVs, or drones, which are remotely piloted or autonomously operated aircraft. Since most demand for drones comes from the US military, fluctuations in defense funding for UAVs has largely determines industry revenue, dwarfing demand for civilian drones. Demand for new UAVs has rose as a previous generation of drone programs has begun to reach the end of their respective lifecycles. Industry revenue has rose at an expected CAGR of 1.1% to reach an estimated $5.5 billion in 2023, when revenue is set to grow 38.9%.
The industry has continued to receive US military funding for key development and production programs, including the Global Hawk, stealth combat and surveillance drones, aircraft carrier-launched UAVs and many other initiatives, including top-secret projects. The United States' large operational fleet has created demand for replacement parts and aircraft, thus supporting industry manufacturers. Rising purchase costs have impacted profit as many manufacturers have long term contracts. The easing of US civil drone regulations has allowed for the segment to see swift growth. Still, most consumer and low-end drone demand has been met by lower-cost imports.
Moving forward, with certain programs reaching maturity, a shifting military drone budget will impact industry revenue. For example, funding for a new generation of UAV programs, including the Army's Rucksack Portable Unmanned Aircraft System (RPUAS) Family of Small Unmanned Aircraft Systems (FoSUAS) (one of which is meant to replace the RQ-7Bv2 Shadow assets), will aid the industry. In the meantime, the civil segment is set to continue growing as regulations loosen and commercial applications for products in this segment expand. Still, industry revenue is set to fall at a CAGR of 5.5% to $4.1 billion in 2028 as federal funding is in flux, import competition remains and prices may fall.
Trends and Insights
- Military UAV spending has rose overall. This has led the overall UAV manufacturing industry to see revenue growth as military spending dwarfs civilian spending.
- Most of the UAV's Industry’s revenue comes from defense spending. Military spending also goes to R&D, driving innovation and future spending.
- The West region provides physical access to Asian-sourced input costs, making transportation and per-unit costs more affordable, leading to a larger number of industry establishments in the region.
- Technological advancement is paramount for defense-focused manufacturers. Government contracts go to whichever company can provide the military with the most cutting-edge equipment.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.1 % over the past five years, to reach an estimated $5.5bn in 2023.
Trends and Insights
Defense spending on UAVs has seen an overall decline
- With strong growth in 2022 and 2023, defense spending on UAVs has seen overall growth as certain programs have matured and operations in the middle east have declined.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Defense spending on UAVs is set to fall
- Military budgets are currently for declining UAV spending in coming years, which will drive down overall UAV manufacturing industry revenue.
Biggest companies in the Unmanned Aerial Vehicle (UAV) Manufacturing in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
General Atomics | 737.7 | 75.0 | 10.2 | |
Northrop Grumman Corp | 666.1 | 67.1 | 10.1 | |
Textron Inc. | 575.8 | 58.2 | 10.1 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Tactical and low altitude UAVs, MALE UAVs and HALE UAVs. Tactical and low altitude UAVs is the largest segment of the Unmanned Aerial Vehicle (UAV) Manufacturing in the US.
Trends and Insights
High-altitude, long-endurance UAVs has been out paced by smaller UAVs
- This segment accounts for high-altitude, long-endurance (HALE) UAVs. These UAVs fly at altitudes of above 50,000 feet and are primarily used for surveillance operations, with some used for scientific purposes.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Aircraft, Engine & Parts Manufacturing in the US
Complementors
- Space Vehicle & Missile Manufacturing in the US
- Tank & Armored Vehicle Manufacturing in the US
International industries
- Global Military Aircraft & Aerospace Manufacturing
- Aircraft, Engine & Parts Manufacturing in Canada
- Aircraft Manufacturing and Repair Services in Australia
- Aircraft Manufacturing and Repair Services in New Zealand
- Aircraft, Engine & Parts Manufacturing in the UK
Table of Contents
About this industry
Industry definition
Industry operators manufacture and design unmanned aerial vehicles (UAVs) and related control systems for civilian and military applications. UAVs can be either autonomous or remote-controlled and are used in situations where the use of a human pilot is undesirable or dangerous.
What's included in this industry?
Manufacturing UAVs for armed attackManufacturing UAVs for surveillanceManufacturing UAVs for researchUAV research and developmentCompanies
General AtomicsNorthrop Grumman CorpTextron Inc.Purchase this report to view all 5 major companies in this industry.
Related Terms
UNMANNED AERIAL VEHICLE (UAV)UNMANNED COMBAT AIR VEHICLE (UCAV)UNMANNED AIRCRAFT SYSTEM (UAS)STEALTHIndustry Code
NAICS 33641 - Unmanned Aerial Vehicle (UAV) Manufacturing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Military UAV spending has rose overall. This has led the overall UAV manufacturing industry to see revenue growth as military spending dwarfs civilian spending.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Most of the UAV's Industry’s revenue comes from defense spending. Military spending also goes to R&D, driving innovation and future spending.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The West region provides physical access to Asian-sourced input costs, making transportation and per-unit costs more affordable, leading to a larger number of industry establi...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Technological advancement is paramount for defense-focused manufacturers. Government contracts go to whichever company can provide the military with the most cutting-edge equ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The financial health of many defense companies is closely tied to geopolitics. Fears of further Russian aggression have boosted many companies’ evaluations as military spendi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of General Atomics's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Northrop Grumman Corp's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Textron Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for General Atomics, and factors influencing its performance in the industry
- Description and key data for Northrop Grumman Corp, and factors influencing its performance in the industry
- Description and key data for Textron Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The federal government has extensive oversight over UAV manufacturing. Even commercial products meant for hobbyists are subject to FAA regulations.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases make up over half of industry revenue. This can damage profit when long-term contracts prevent manufacturers from raising prices.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States in 2024?
The market size of the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States is $5.5bn in 2024.
How many businesses are there in the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in 2023?
There are 79 businesses in the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States, which has grown at a CAGR of 5.3 % between 2018 and 2023.
Has the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States grown or declined over the past 5 years?
The market size of the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States has been growing at a CAGR of 1.1 % between 2018 and 2023.
What is the forecast growth of the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States is expected to decline.
What are the biggest companies in the Unmanned Aerial Vehicle (UAV) Manufacturing in the US market in United States?
The biggest companies operating in the Unmanned Aerial Vehicle (UAV) Manufacturing market in United States are General Atomics, Northrop Grumman Corp and Textron Inc.
What does the Unmanned Aerial Vehicle (UAV) Manufacturing in the US in United States include?
Manufacturing UAVs for armed attack and Manufacturing UAVs for surveillance are part of the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry.
Which companies have the highest market share in the Unmanned Aerial Vehicle (UAV) Manufacturing in the US in United States?
The company holding the most market share in United States is General Atomics.
How competitive is the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States?
The level of competition is high and increasing in the Unmanned Aerial Vehicle (UAV) Manufacturing in the US industry in United States.
