Batteries for UAVs or Unmanned Aerial Vehicles are expected to rise in demand significantly over the next 10 years. Last year, the Indian government approved manufacturing of drones within the country with a clear framework on security requirements. With countries like India taking the lead of allowing drone manufacturing, and growing demand for drones in a wide variety of industries and applications, the UAV battery market is expected to witness significant growth.

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Drones are widely in demand in various industries including construction, agriculture, emergency response, mapping, law enforcement, surveillance, and e-commerce as well. The drone technology may significantly surpass conventional ways of operation. For example, in e-commerce deliveries can be extremely expensive, sometimes outweighing the costs of ordered food or products. Moreover, the model may seem unsustainable to many over the long run. However, with the introduction of drones, vehicles and reliance on manual labor can be minimised to create significant opportunities for players in the UAV battery market.

Drones are also expected to be the next wave of innovation in major sectors like agriculture and defence. In agriculture, drones show tremendous potential in providing live-monitoring of crops for nutrition, diseases, and various cost-cutting measures. Moreover, inclusion of drones for surveillance in defence sector is also growing. Drones can also be ideal for providing insights from areas which are difficult to access during natural hazards. The expansion of drones in several key industries is expected to be a major boon for the UAV battery market.

The key pain point in the UAV battery market apart from performance and reliability is their ability to withstand heavy-duty applications. Drones are expected to undertake several important applications in a wide range of industries. Moreover, these applications will require them to withstand harsh weather conditions and operate without a fail. The demand for UAV batteries to withstand heavy humidity, pressure, and temperatures are expected to remain significant potential opportunities for players in the UAV battery market.

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In unmanned aerial vehicle (UAV), battery is an integral part of the system as energy stored in the battery is used to provide power during flight of an UAV. Most of the UAV batteries are small size and light weight as the presence of large number of small size drones requires compact battery, whereas, large size UAV has powerful engine which is powered by complex battery systems. In UAV, lithium based batteries are highly used, as they have higher energy density as compared to the older nickel based technologies due to which lithium based batteries provide more power per unit weight. The main parameter which is majorly focused while choosing a battery are capacity of battery, discharge rate, and voltage level. Also, there are other factors that affect section of battery which includes lifespan of battery, activation time, cost, and charging time. There are five types of unmanned aerial vehicles such as low-altitude long endurance (LALE) UAV, medium-altitude long endurance (MALE) UAV that flies at an altitude between 10,000 to 30,000 feet for 24 to 48 hours, high-altitude long endurance (HALE) UAV that flies at height of 60,000 feet, tactical UAV which is designed for the surveillance for military operations, and small UAV that are man portable. All these types of UAV are operated via battery. Furthermore, UAV are majorly used in surveillance, package delivery, construction, agriculture, and military applications.

One of the major driving factor for the growth of global UAV battery market is increasing use of unmanned aerial vehicle in military surveillance application. Additionally, government agencies such as, Federal Air Transport Agency (FATA) and Federal Aviation Administration (FAA), are continuously working on policies to improve the efficacy of battery performance and safety of unmanned aerial vehicle. Moreover, in UAV’s battery plays a vital role, as the flight time is dependent on battery life, and in dead stick condition when battery gets completely drained during flight it can be dangerous. To avoid these condition, battery management system are used to continuously monitor important parameters of battery such as current, voltage, temperature, state of health, state of charge, and may calculate additional information based on these parameters. Considering the advantages offered by battery, the demand of UAV battery in military applications is expected to drive UAV battery market during forecast period. Moreover, with growing demand of unmanned aerial vehicle for hazardous applications and technological advancement in fuel cell to improve the performance of UAV’s are anticipated to fuel the growth of UAV battery market in coming years. Furthermore, increasing need for longer fight duration and improved endurance in UAV is expected to offer an opportunity to UAV battery market. However, high cost, high discharge rate, and low payload capacity of UAV’s is expected to be the major restraining factor for growth of global UAV battery market.

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The global UAV Battery market has been segmented based on UAV type, battery type, and region. Based on UAV type, the global UAV battery market can be classified into low-altitude long endurance (LALE), medium-altitude long endurance (MALE), high-altitude long endurance (HALE), tactical, and small. Based on battery type the UAV battery market can be segmented into fuel cell, lithium-ion, nickel cadmium, and lithium polymer. Additionally, based on geography, the UAV battery market is further segregated into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Some of the key players operating in the global UAV battery market with significant developments include Ballard Power Systems, Denchi Power Limited, Sion Power Corporation, Tadiran Batteries, OXIS Energy, H3 Dynamics, Ultracharge, MicroMultiCopter Aero Technology Co. Ltd., and Hylium Industries INC. among others.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers’ or customers’ journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

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