UNMANNED GROUND VEHICLE MARKET ANALYSIS

The global unmanned ground vehicle market size was valued at US$ 1,667.8 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 12.77% from 2023 to 2030. Increasing government spending on military modernization programs, the rising usage of UGVs in defense sectors, and the technological advancements in the UGVs are some of the key factors driving this market. The increasing utilization of UGVs in defense & civil sectors, the emergence of advanced technologies in the UGVs, and the need for reduced size, weight, and power (SWaP) in UGVs is also driving growth of this market.

Global Unmanned Ground Vehicle Market: Regional Insights

North America is projected to show substantial growth of the global unmanned ground vehicle market over the forecast period. This growth can be attributed to factors such as presence of major manufacturers of UGVs in the region, technological advancement, and technologically advanced infrastructure. Moreover, with increasing defense budget and growing use of UGVs in major commercial and defense applications is also expected to drive growth of the market during the forecast period. Along with this, growing R&D activities in Canada to develop unmanned ground vehicle is also likely to fuel the market growth in this region.

Europe is also projected to exhibit significant growth in the global unmanned ground vehicle market over the forecast period. The region is headquarter for major UGV manufacturers such as Roboteam, Elbit, and Milrem Robotics. With increasing competition among market players in the region, the region is witnessing signed contracts for providing UGVs. Moreover, the defense spending are increasing among countries across the region. These countries are majorly focused on developing AI for better use of unmanned ground vehicle system. These factors are thus anticipated to propel growth of the global unmanned ground vehicle market across the region.

Figure 1. Global Unmanned Ground Vehicle Market, Revenue Share (%), By Region, 2022

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Global Unmanned Ground Vehicle Market Drivers:

Increasing modernization and expenditure on defense industry to propel the market growth

The defense budget is increasing of several countries around the world to modernize their defense systems through procurement of defense-related services and products. The growing defense spending of countries such as Russia, India, the U.S., China, South Korea, Saudi Arabia, and South Africa is playing a major role in the defense modernization programs intended to strengthen their defense forces. Moreover, the increasing defense budgets around the world is also for boosting the economy. These factors in turn are driving the demand for UGVs in defense and security applications, which in turn is likely to augment growth of the global unmanned ground vehicle market over the forecast period.

Rise in capital investment for robotics technologies to fuel the market growth

Requirement of large funding is a major barrier in development of robotics technology. For development of the next generation UGVs, major amount of investment is needed for advancing the technology significantly. In recent years, the proliferation of investment has increased substantially in the robotic market. Three major sources that are making these investments are government programs, venture capital investments, and large market players such as Endeavor robotics, ECA group, and Israel Aerospace Industries. This factor in turn is expected to boost growth of the global unmanned ground vehicle market during the forecast period.

Global Unmanned Ground Vehicle Market Opportunities:

Emergence of fourth industrial revolution or Industry 4.0 is expected to bring multiple opportunities in the global unmanned ground vehicle market during the forecast period. The major aspect of Industry 4.0 revolutions is use of Internet of Things (IoT), data analytics, and big data to power autonomous production methods. The manufacturers are putting efforts for developing smarter unmanned ground vehicle for the commercial and defense industry. The unmanned ground vehicles can be automated and coordinated to a larger extent than ever. These factors are likely to bring growth opportunities in the global unmanned ground vehicle market during the forecast period.

Emergence of new commercial applications is anticipated to create growth opportunities in the global unmanned ground vehicle market during the forecast period. Several commercial applications for unmanned ground vehicle are emerging, such as surveillance, mapping, natural disaster management, oil and gas pipeline, and product delivery. The use of unmanned ground vehicle is increasing in oil and gas sector, as the companies in this industry continue to face problems related to air pollution with different substance, which includes hazardous gases and additives. UGVs having sensors, cameras, and radars can provide surveillance and transfer video footage to control center. Thus, such commercial applications of these systems is likely to augment growth of the market.

Global Unmanned Ground Vehicle Market Trends:

Growing military applications is a major trend

The investment in autonomous military systems has increased in recent years across several countries around the world. Despite the major focus on unmanned aerial vehicles, the investments for developing unmanned ground vehicles has increased significantly in recent years. In February 2021, the Military of Russia revealed that it has developed a functional prototype of its new Udar Unmanned Combat Ground Vehicle. This UGV can operate on various terrains. Thus, this trend is likely to continue in the global unmanned ground vehicle market during the forecast period.

Growing demand for UGVs in civilian applications is a recent trend

Civilian operations include rescue and home usage. Home usage involves harvesting crop and cleaning floors. Unmanned ground vehicles are utilized in rescue operations such as in a disaster. Moreover, the demand for civilian applications has increase with the growing need of perimeter and border security. This in turn is driving the demand for UGVs in civilian applications, which is expected to drive growth of the market.

Global Unmanned Ground Vehicle Market Restraints:

Need for developing reliable systems for critical missions to limit the market growth

Unmanned ground vehicle technology can be used for various potential applications. These systems are increasingly being used for military missions such as reconnaissance, intelligence gathering, combat support, mine clearance, and surveillance. These applications are highly critical for which UGVs have to have maximum reliability. UGV technology still poses issues related to its reliability due to which, adoption of this technology can be limited. This factor in turn is expected to hamper growth of the global unmanned ground vehicle market during the forecast period. However, with increasingly technological advancement and growing investment in UGV, market players are focused on developing highly reliable unmanned ground vehicles for such critical applications. This in turn is anticipated to aid in growth of the market.

Navigating through unmanned regions and complexity of UGVs to hinder the market pace

With evolving navigation and mapping techniques, unmanned ground vehicles have made a promising progress in recent years. However, these systems still need major research and development for future UGVs to work in unmapped environment. Moreover, installing and integrating robots takes time, as the entire process entails development and design of routes that lead to different designated points required to be travelled. Such complexities of these UGVs are also one of the factors expected to hamper growth of the global unmanned ground vehicle market during the forecast period.    

Figure 2. Global Unmanned Ground Vehicle Market, Revenue Share (%), By Size, 2022

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Global Unmanned Ground Vehicle Market Segmentation:

The global unmanned ground vehicle market report is segmented into Mobility Type, Mode of Operation, Size, System, and End User.

Based on Mobility Type, the market is segmented into Wheeled, Tracked, Hybrid, and Legged. Out of which, Wheeled is expected to dominate the global market over the forecast period and this is attributed to the rise adoption of automation in commercial and defense applications. Wheeled unmanned ground vehicles make use of any number wheels such as four, three, or two, for navigating without any human intervention. The demand for these wheeled UGVs is increasing various applications across commercial and defense sector. This factor in turn is expected to drive growth of this segment.

Tracked segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for tracked UGVs, as they focus on navigating through hard terrains that are toxic and unsafe. The demand for these robotic vehicles is growing in military operations, and other applications such as intelligence gathering, search operations, and explosive handling. Thus, the segment is likely to grow rapidly in the coming future.

Based on Mode of Operation, the market is segmented into Tele-Operated, and Autonomous. Out of which, Tele-Operated is expected to dominate the global market over the forecast period and this is attributed to the growing implementation of tele-operated UGVs in various activities. These robotics vehicles are used for monitoring hazardous situations such as bomb and explosive disabling vehicles, and are utilized in special weapons and tactics team (SWAT), the department of Defense, and homeland security.

Autonomous segment is also expected to witness significant growth in the near future and this is owing to the increasing security and defense applications of autonomous unmanned ground vehicles. These vehicles have several applications in surveillance, military intelligence collection, oil and gas, reconnaissance, and agriculture domestic, target acquisition, and firefighting missions.

Based on Size, the market is segmented into Small (10-200 LBS), Medium (200-500 LBS), Large (500-1000 LBS), and Very Large (Above 1000 LBS). Out of which, Small (10-200lbs) is expected to dominate the global market over the forecast period and this is attributed to the rising demand due to small size and maneuverability in commercial and defense applications. These vehicles are utilized for intelligence, reconnaissance, and surveillance applications in defense and most domestic applications.

Medium (200-500 lbs) segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of medium sized unmanned ground vehicles in security and defense applications requiring deployment of these vehicles in road conditions lacking rigid surface. For instance, in October 2018, General Dynamics launched a new UGV called IRONCLAD, which is designed for reconnaissance, surveillance, and target acquisition missions for increasing the safety of personnel manning forward locations.

Based on System, the market is segmented into Payloads, Navigation and Control System, Power System, Others. Out of which, Payloads is expected to dominate the global market over the forecast period and this is attributed to the high demand for payload systems from advanced defense applications such as reconnaissance, surveillance, and intelligence. Payloads mainly consists of components such as radars, sensors, cameras, lasers, articulated arms, encoders, and GPS. The demand for sensor is high due to its growing defense applications. These factors in turn drive growth of this segment.

Navigation and Control System segment is also expected to witness significant growth in the near future and this is owing to the increasing UGV demand for hazardous missions. The navigation and control systems offer the real position of UGV in absolute coordinates. These system use inertial measurement unit and GPS to track the UGV. Thus, demand for these systems is in turn growing, which is likely to boost growth of this segment.

Based on End User, the market is segmented into Defense and Security, Commercial. Out of which, Defense and Security is expected to dominate the global market over the forecast period and this is attributed to the growing automation in different military applications such as EOD, ISR, combat support, and transportation. Moreover, due to the reduced exposure of law enforcement officers and soldiers to life threatening tasks such as reconnaissance and explosive disposal, the demand for UGVs is high in this sector.

Commercial segment is also expected to witness significant growth in the near future and this is owing to the growing use of UGVs in numerous commercial applications for various purposes. These vehicles are used for strip mine haulage, underground mining, oil and gas, crop harvesting and various other purposes. Due to growing applications of these vehicles such as agriculture, transportation, and manufacturing, the segment is likely to show strong growth in the coming years.

Global Unmanned Ground Vehicle Market: Key Developments

In January 2021, FLIR Systems received a contract of US$ 30.1 million from the U.S. Army for sustainment efforts associated with the Common Robotic System-Heavy (CRS-H) unmanned ground vehicle (UGV) and Man Transportable Robotic System Increment II program.

In 2020, Sharp Claw-1-UGV was deployed with Liberation Army Ground Force of People to track and reconnaissance operations.

In April 2022, UnmannedSystemsTechnology.com collaborated with BAE Systems for encouraging and facilitating engagement in the AMEs for development of advanced technologies for unmanned systems applications.

In March 2020, Horiba Mira received a US$ 3.25 million contract from the U.K. Defense Science and Technology Laboratory for supplying VIKING autonomous unmanned ground vehicles.

Global Unmanned Ground Vehicle Market: Key Companies Insights

The global unmanned ground vehicle market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global unmanned ground vehicle market are Northrop Grumman Corporation, BAE Systems, Lockheed Martin Corporation, Clearpath Robotics Inc., John Bean Technologies Corporation, ECA Group, Israel Aerospace Industries Ltd., Endeavor (Now a part of FLIR system), Harris Corporation, and General Dynamics.

*Definition: Unmanned Ground Vehicle (UGV) is an autonomous machine that moves across the surface of the earth without carrying a human. It can be used in a wide variety of applications such as agriculture, mining, and environmental monitoring.