Manufacturers of UAV Propulsion Systems to Switch to Fuel Cells from Extant Combustion Engines

Unmanned aerial vehicle (UAV) propulsion systems are witnessing commercial applications beyond their traditional relevance in the military and defense sector, and are likely to draw volume sales tantamount to ~5.8 Bn units by the end of 2027. According to a recently published report by Transparency Market Research (TMR), UAVs have recently captured a lot of interest with the rise in cold wars and trade wars among various countries, and are deemed indispensable for the armed forces. A large number of developed countries have already embraced this modern surveillance system; however, with the current environmental scenario, strategic incentives are directed towards the development of propulsion systems that are propelled by fossil fuels and not combustion engines.

The potential use of drones in the packaging industry to facilitate the same-day delivery of goods is likely to widen the clientele base for UAVs, thereby fortifying opportunities for manufacturers. However, manufacturers have been expending efforts towards controlling the development costs of propulsion systems, which otherwise directly gets added on to the product cost.

uav propulsion system market infographic

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Fuel Cells - The Next Frontier in the UAV Propulsion System Landscape

With environmental concerns being at the front-of-the-mind focus, market players are taking propulsion approaches other than extant combustion engines, which is driving the shift towards the development of fuel cell and solar power. Fuel cells are gaining high traction as a viable alternative to small internal combustion engines, given their low heat and noise profile.

With increasing research and development activities, fuel cell-based UAV propulsion systems will allow better mission time and longer range as compared to other propulsion systems, which has been established as the key manufacturing trend in the UAV propulsion system market. For instance, a key market player, Protonex PEM, announced the launch of UAV fuel cell propulsion systems that offer 100% throttle flexibility, along with mid-air start-stop capability.

Besides this, market players are rethinking the designs of these propulsion systems for the development of fuel-efficient, lightweight, and high payload capacity systems, to set products apart and reap better sales opportunities.

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Electric Propulsion System to Remain Standard

As currently envisioned by the TMR study, electric propulsion systems will account for ~85% market share by 2027, followed by thermal propulsion systems; however, the adoption of hybrid propulsion systems will witness an exponential rise. Electrical propulsion systems shrink carbon footprint with lesser emissions, and are hence, making it to the top-selling UAV propulsion system category. However, the operating regulations of UAVs in different countries vary, which implies that, market players need to study regional protocols well before venturing into a new market.

The report also shows the sustained lead of North America in the UAV propulsion system market during the forecast period, given the region’s generous investments in the military and defense sector. However, promising growth of consumer goods industry and demand for drone-based delivery services are likely to augur well for the Asia Pacific market during the forecast period.

uav propulsion system market segmentation

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Future of the UAV Propulsion System Market - Analysts’ Take

Authors of the report maintain an optimistic perspective on the future of the UAV propulsion system market. Despite high capital expenditure requisites for full-scale integration and an overall payback period of around 3-4 years for market entrants, the landscape boasts of numerous consolidation-seeking players, who leverage an effective pricing strategy to have better exposure in the market. Besides cost, quality remains a distinguishing criterion for end users. A market major, Orbital UAV, prioritizes on achieving both - reduced cost with superior performance - with its focus on improving aircraft range, reliability, and durability of the propulsion system. All-in-all, market players can look at a CAGR of ~13% during the forecast period.

  • According to Transparency Market Research’s latest research report on the global UAV propulsion system market for the historical period of 2017 - 2018 and forecast period of 2019 - 2027, increase in the demand for unmanned aerial vehicles (UAVs) for various commercial applications is expected to boost the global UAV propulsion system market during the forecast period.
  • In terms of revenue, the global UAV propulsion system market is estimated to reach a value of ~US$ 8.5 Bn by 2027, expanding at a CAGR of ~13% throughout the forecast period. 

Government Investments to Strengthen Military Forces: A Key Driver

  • Countries across the globe are spending more on their defense budgets for the deployment of UAVs as an integral and indispensable part of the armed forces, owing to the need for modern technology.
  • UAVs are applicable for air strikes on evasive targets, surveillance, target acquisition and reconnaissance, monitoring coastal waters for adversaries, supply emergency services, execute search & rescue operations, and various other military operations.
  • UAVs provide military troops the capability to collect data that facilitates them to move more rapidly and check if they are being followed during combat assessment tracking, tactical reconnaissance, and cartographic missions.
  • The market is expected to grow during the forecast period due to UAVs being one of the most advanced defense technologies, as well as the integration of AI with UAVs to get more advanced features such as dynamic target tracking capability and visual surveillance.
  • The above-mentioned initiatives taken by governments are likely to augment the global UAV propulsion system market in the near future. 

Focus on Enhancing UAV Propulsion System Capabilities to Boost Market

  • Rise in the popularity of UAVs across the globe has helped them spread across a wide array of industry verticals, from retail to manufacturing, military & security, mining, agriculture, and others. Currently, UAVs can be seen complementing various activities in military operations. An important challenge for UAV propulsion system makers is to achieve high level of mobility at varying altitudes as well as increase endurance.
  • However, manufacturers operating in the UAV propulsion system market are developing AI-enabled advanced UAV propulsion systems with sensors and guidance technology for easy control. Additionally, some manufacturers focus on increasing the endurance limits and mission capabilities of UAV propulsion systems.
  • The shift of the industry toward digitization and integration of AI with UAV propulsion systems to get more advanced features such as dynamic target tracking capability and visual surveillance is expected to play a key role in increasing the overall efficiency and capabilities of UAV propulsion systems.
  • These factors are expected to drive the global UAV propulsion system market during the forecast period.

UAV Export Control & Regulatory Challenges for Global UAV Propulsion System Market

  • UAV propulsion systems have become a major trend in the field of military, civil, and law enforcement due to various advantages provided by UAVs.
  • A complete set of UAV operating regulations has not yet been globally defined. In addition, unmanned aerial vehicle policies and regulations differ from country to country.
  • Therefore, manufacturers of UAVs need to follow various design constrains, periodic reviews, renewals, licenses, approvals, certifications, and other stringent norms of airworthiness prescribed by a number of civil aviation authorities or national aviation authorities.
  • All these factors are anticipated to hamper the global UAV propulsion system market during the forecast period. 

Global UAV Propulsion System Market: Competition Landscape

  • Detailed profiles of the providers of UAV propulsion system have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies.
  • Key players operating in the global UAV propulsion system market are -
    • Ballard Power Systems Inc.
    • LaunchPoint Technologies Inc.
    • Northwest UAV
    • ORIBTAL CORPORATION
    • Rotron Power Ltd
    • Safran SA
    • Sky Power GmbH
    • UAV Propulsion Tech
    • UAV Turbines, Inc.

Global UAV Propulsion System Market: Key Developments

Key providers of UAV propulsion systems focus on new product development and technological advancement. Some other key developments in the global UAV propulsion system market are as follows:

  • In Jan 2019, Sky Power GmbH launched SP-210 FI TS, a two-stroke engine for unmanned aerial vehicles (UAVs). It is equipped to rotate at a speed of 5,000 rpm, that is, around 480 gr/HP/hour.
  • In Jun 2018, Ballard’s subsidiary Protonex received an order from the U.S. Navy for a total of 13 fuel cell propulsion systems for unmanned aerial vehicles. The company is focused on offering low maintenance, long range, and reliable propulsion systems to continue a productive relationship with the U.S. Navy.
  • In March 2017, Rotron Power Ltd, successfully completed the simulation test of flight endurance for 1,000 hours. This is expected to set a new benchmark in the weight, performance, and reliability of UAV propulsion systems.

In the report on the global UAV propulsion system market, we have discussed individual strategies, followed by company profiles of providers of UAV propulsion system. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of the key players operating in the global UAV propulsion system market.

Global UAV Propulsion System Market: Scope of the Report

[181 Pages Report] A new study on the global UAV propulsion system market has been published by Transparency Market Research (TMR). It presents detailed information of key market dynamics, including the market drivers, market trends, and challenges, as well as structure of the global UAV propulsion system market. TMR’s study offers valuable information on the global UAV propulsion system market in order to illustrate how the market would expand during the forecast period of 2019–2027.

Key indicators of market growth, which include value chain analysis, supply chain analysis, and compounded annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the global UAV propulsion system market during the forecast period.

An extensive analysis of business strategies adopted by leading market players is also featured in TMR’s study on the global UAV propulsion system market. This can help readers understand the key factors responsible for the growth of the global UAV propulsion system market. In this study, readers can also find specific data on avenues for the qualitative and quantitative growth of the global UAV propulsion system market. This data would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Global UAV Propulsion System Market Study

  • What would be the Y-o-Y growth trend of the global UAV propulsion system market during 2019 and 2027?
  • What is the influence of the changing trend in technologies on the global UAV propulsion system market?
  • Would North America continue to remain the most profitable regional market for providers of UAV propulsion systems?
  • Which factors would hinder the global UAV propulsion system market during the forecast period?
  • Which are the leading companies operating in the global UAV propulsion system market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global UAV propulsion system market, and arrive at conclusions on the future growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary research sources referred to by analysts during the production of the report on the global UAV propulsion system market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who have contributed to the production of TMR’s study on the global UAV propulsion system market, as a primary research source.

These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global UAV propulsion system market. Access to an extensive internal repository as well as external proprietary databases allowed this report to address specific details and questions about the global UAV propulsion system market with accuracy. The study also uses a top-down approach to assess the numbers for each segment, and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on the future prospects of the global UAV propulsion system market more reliable and accurate.

Global UAV Propulsion System Market: Segmentation

TMR’s study of the global UAV propulsion system market includes information divided into four sections–by type, by range, by end user, and by region. Changing market trends and other crucial market dynamics that are associated with these four sections of the global UAV propulsion system market have been discussed in detail.

Type

Electric Propulsion Systems

Thermal Propulsion Systems

Hybrid Propulsion Systems

 

 

Range

Long Range

Mid-Range

Short Range

 

 

End User

Military & Civil

Commercial

Consumers

 

 

Region

North America

Europe

Asia Pacific

Middle East & Africa

South America

 

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