UAS Traffic Management (UTM) Market

UAS Traffic Management (UTM) Market Overview

The global UTM Market size was valued at USD 737.7 million in 2024 and is predicted to reach USD 3308.5 million by 2030 with a CAGR of 28.2% from 2025-2030. 

The unmanned aircraft system traffic management (UTM) market grows due to the various government plans to safeguard drones’ operation across various sectors that includes the activities of drone for delivery of goods and also for military operations. However, the high cost associated with the adoption of UTM system hinders the growth of the market. On the contrary, software development across various areas creates future opportunity for the market. 

Additionally, the major players operating in the market include Unifly and Terra Drone among others are adoption various business strategies including product launch and partnership to maintain their market presence and expand their product offering. With the software upgrade in air traffic management system for unmanned aircrafts the market is set for further revolution as the trend shifts towards the adoption of drones, the advanced software upgrades for data analysis and air space modelling will manage these drones to carry out the operations in an effective manner shaping the future of the market.  

Rising Government Initiatives Fuels Market Growth

The government initiatives including collaboration among globally agencies such as Federal Aviation Administration (FAA), NASA, federal agency and industry for the development of drone traffic management system drives for the UTM market growth. These organizations are working together to develop new concepts and requirements that enable safe drone operations beyond visual line of sight at low altitudes where traditional air traffic services are not available. 

As per the report published by Federal Aviation Administration, in March 2024, the FAA, NASA, other federal partner agencies, and industry collaborated to explore the concept of operation, data exchange and a supporting framework. This collaboration aims to support multiple drone operations, enhancing UTM system capabilities and safety, and expanding drone use across industries globally.  

Growing Drone Deliver Boosts Market Growth

The rising delivery of goods through drones globally drives the UTM market demand for solutions to efficiently manage the drones. Drone traffic management provides essential services such as flight planning, real-time communication, and conflict resolution, ensuring safe and coordinated drone operations. For instance, in May 2024, Ecom Express Limited, a logistics solution provider announced a partnership with Skye Air, a drone technology specialist to transform last-mile delivery solutions. This collaboration represents a significant advancement in the logistics industry and automation expertise with Skye Air's cutting-edge drone delivery technology.

High Cost for the Adoption of Drones Hinders Market Growth

The high cost associated with the adoption of the UTM infrastructure restrain the market growth, as it involves certain investment in technologies, training and regulatory compliance.

Development of Software for Traffic Management Creates Future Opportunity

The software development in areas such as data analysis, airspace modelling and artificial intelligence (AI) powered decision making is anticipated to create future opportunities for the UTM industry.

Market Segmentations and Scope of the Study

The UTM market report is segmented by type, component, solution, end-user and region. On the basis of type, the market is bifurcated into persistent and non-persistent. On the basis of component, the market is segmented into hardware, software, and services. On the basis of solution, the market is classified into communication infrastructure, navigation infrastructure, surveillance infrastructure, and others. On the basis of end-user, the market is divided into agriculture & forestry, logistics & transportation, surveillance & monitoring, and others.  Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant in UTM market share and is expected to continue its dominance during the forecast period. This is attributed to the presence of key market players in this region such as Raytheon Intelligence & Space and ANRA technologies keep achieving new heights by expanding their network with new range of products. 

For instance, in July 2022, Raytheon Intelligence & Space (RI&S) entered drone traffic management sector with its airspace integration solution called Integrated Transportation Airspace Mobility Services (ITAAMS). This solution aims to support the integration of new entrants into airspace, aligning with US FAA and NASA development plans for drones, eVTOLs, and commercial space vehicles.

Moreover, the increasing investments in military sector by various countries such as United States and Canada in this region for the advancement in their technology drives the demand for drones and special mission aircrafts. The increasing adoption of drones in military operations significantly drives the demand for UTM solution to efficiently manage the drones throughout the mission. 

As per report published by the World Bank Group, the military expenditure of the United States reached USD 876.94 billion in 2022 from USD 806.23 in 2021. With such rise in expenditure in military sector to equip with latest technologies, the demand for drone rises as drones are utilized for various purposes, such as surveillance, reconnaissance, and supply deliveries, often operating in complex and busy airspace.

On the other hand, Asia-Pacific shows a steady rise in market. The presence of countries such as China, India and Japan in this region with large logistics using drones for delivering goods drives the market growth. As delivery drones become more prevalent, drone traffic management are required for preventing collisions and ensuring safe operations. For instance, in April 2024, Drone based delivery service launched in China aiming to reduce transport time and cost. The delivery of goods using drones is set to significantly drive the market by creating a need for advanced traffic management solutions to handle the anticipated surge in drone traffic.

Moreover, the presence of one of the largest agricultural sectors in the countries such as China, India and Japan adopting drones for tasks such as crop monitoring, pesticide spraying, and soil health assessment. By flying over fields, drones can gather valuable data on crop conditions, helping farmers make better decisions about irrigation, fertilization, and pest control drives the market growth. For instance, in May 2024, Drone Destination a drone company signed an agreement with cooperative major Indian Farmers Fertilizer Cooperative (IIFC) for spraying agricultural products on up to 30 lakh acres of farm land. Such initiatives is anticipated to boost the market growth.

Competitive Landscape

Various key players operating in the UTM industry are Raytheon Technologies Corporation, Lockheed Martin Corporation, Thales Group S.A, Airbus SE, Honeywell International Inc, L3Harris Technologies, Inc, Leonardo S.p.A, Frequentis AG, Indra Sistemas, S.A, NAV CANADA, NATS Holdings Limited, Saab AB, Terra Drone Corporation, ANRA Technologies, Inc, PrecisionHawk, Inc, Altitude Angel Ltd, OneSky Systems, LLC, DroneUp, LLC, Nova Systems LLC, Aloft, Inc. These companies are adopting various strategies such as product launches and collaborations to remain dominant in the market. 

For instance, in November  2022, Raytheon Technologies (RTX Corporation) Raytheon Intelligence & Space was selected by the FAA to participate in the UAS Traffic Management Field Test, alongside Virginia Tech’s MAAP and the Lone Star UAS Center of Excellence & Innovation. This involved UTM flight tests in complex environments, including updates for Remote ID data correlation and cybersecurity, and leveraging Raytheon’s Skyler radar for situational awareness and detect-and-avoid functionality.

Additionally, in December  2024, Thales Group S.A.Thales partnered with Avinor (Norwegian air navigation service provider) to deploy Norway’s next-generation nationwide UTM system, featuring the Topsky – UAS platform powered by AstraUTM. This system enables real-time traffic management, compliance monitoring, and safe integration of unmanned and manned aircraft, fully compliant with EU U‑space regulations.

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future unmanned aircraft system traffic management (UTM) market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Unmanned Aircraft System Traffic Management (UTM) Market Key Segments

By Component

• Hardware

  • Communication Systems

  • Navigation Infrastructure

  • Surveillance Solutions

• Software

  • Flight Planning

  • Dynamic Airspace Mapping

  • Conflict Management

• Services

  • UTM Integration

  • Maintenance & Support

  • Training

By System Type

• Persistent UTM

• Non-Persistent UTM

• Reactive Systems

By Application

• Logistics and Delivery

• Agriculture and Forestry

• Utilities and Infrastructure

• Public Safety and Emergency Response

• Defense and Homeland Security

• Research and Academia

By Operations Mode

• VLOS-Only

• BVLOS (Beyond-Visual-Line-of-Sight)

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific 

• RoW

  • Latin America

  • Middle East 

  • Africa

Key Players

• Raytheon Technologies Corporation

• Lockheed Martin Corporation

• Thales Group S.A.

• Airbus SE

• Honeywell International Inc.

• L3Harris Technologies, Inc.

• Leonardo S.p.A.

• Frequentis AG

• Indra Sistemas, S.A.

• NAV CANADA

• NATS Holdings Limited

• Saab AB

• Terra Drone Corporation

• ANRA Technologies, Inc.

• PrecisionHawk, Inc.

• Altitude Angel Ltd.

• OneSky Systems, LLC

• DroneUp, LLC

• Nova Systems LLC

• Aloft, Inc.

REPORT SCOPE AND SEGMENTATION: