The global market for UAS traffic management (UTM) services will reach USD620 million a year by 2024, according to the latest research from www. unmannedairspace.info.
“Our Market for UAV Traffic Management Services – 2020-2024 forecasts USD1.65 billion of expenditure on UTM equipment and services over the next five years,” says Philip Butterworth-Hayes, Editor of the report. “This is a considerable increase on our 2019-2023 estimates.”
“This market is changing rapidly as draft regulations for implementing UTM systems in North America and Europe will force many suppliers to change their long-term business plans,” says Butterworth-Hayes. “Although the USA accounts for more than one-third of all drone operations globally its share of the UTM market is likely to be relatively low in the short term. This is because the FAA’s vision for UTM service provision will mean suppliers will be expected to pick up their own development, maintenance, operational and update costs, while fees-per-flight are set at a baseline level and income streams will depend on value-added services.
“In contrast, in Canada and Europe, UTM service suppliers are being paid – in most cases – to develop strategic UTM framework systems alongside national air navigation service providers (ANSPs) and further funds will be available via competitive tactical services, if allowed by the European Aviation Safety Agency.
“But the major revenue streams for UTM will probably start flowing after 2027, when cities around the world will need to start specifying their own UTM systems to support urban air mobility programmes,” says Butterworth-Hayes. “Some estimates point to spending levels of more than USD200 million between 2020-2040 for the development, operation and update of a single city UTM system – but this, we believe, is probably an over-estimation.”
Among other forecast and research findings the study concludes there are now 22 countries in the world where governments and air navigation service providers have formalised UTM development programmes with industrial partners and that by 2024, UTM revenues will total around USD266.6 million in Europe in contrast to just USD130.2 million in the USA.
The market for UAV Traffic Management Services – 2020-2024 provides an analysis of development plans, technology and standards roadmaps, UTM service supplier routes-to-market and UTM financing trends. The authors have gathered information first-hand from government and industry sources around the world to gain a country-by-country perspective on how UTM services are being developed and introduced.
“We look at how charging for UTM services is being planned and how UTM service providers, including ANSPs, are aligning their business plans to the changing market requirements,” says Butterworth-Hayes. “We then look at top-down forecasts for drone deliveries and expenditure and analyse the drivers for more complex services supported by UTM systems across the world. We take a deep dive into the regulations and standards, identifying where and how these are accelerating UTM deployments or, in many cases, holding them back. We report on the key technology drivers that are shaping the market and report on the companies that are winning the major contracts and how their technology and business plans are aligned to the market.”
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