|By Marketwired .||
|January 10, 2013 03:08 AM EST||
With the expected growth in market demand and diversity in UAV applications, there is a growing requirement for the future UAV and payload design to combine multi mission, modular, open architecture features, capable of accomplishing diverse missions. In addition, with the drive towards austerity measures in defense budgets in developed countries, the UAVs are expected to be flexible enough for diverse operations than dedicated to a single mission.
In recent times, UAVs have attracted significant attention for use in both military and homeland security. As the best substitute to the otherwise used manned aircraft for surveillance and reconnaissance missions, UAVs are now attracting significant investment by several countries. Payloads are essential systems in the UAVs which are instrumental in carrying out various missions and the demand for UAV payloads is thus expected to increase proportionally with the UAVs.
Europe and North America account for an estimated 80% of global defense spending. These countries were, however, among the hardest hit by the global financial crisis. This has led to austerity measures being introduced by national governments, which in turn have resulted in reduced defense budgets and the cancellation and indefinite delay of various UAV and associated payload projects. All these factors have had a detrimental effect on the growth of the UAV payload industry.
The overall industry consists of approximately 36 companies dominated by a few large firms. The new entrants and smaller firms are encountered with substantially high barriers to secure a considerable share of the market. For example, in the UAV and payload industry of the US, a major share of more than half of the total market revenue is shared by the top four companies.
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