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4
First Quarter 2015
0
5,000
10,000
15,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Marine
Air Force
Navy
Army
Unmanned systems utilization by government and commercial entities
continues to grow in number and effectiveness as sensor and automation
technologies mature. The global defense industry increasingly invests in R&D
for Unmanned Aerial Systems (UAS), Autonomous Underwater Vehicles
(AUVs), Marine Unmanned Surface Vehicles (USV) and Autonomous Ground
Systems which has led to enhanced system endurance, survivability and
usability with increased applications for both military and security as well as
industrial and commercial. Unmanned systems M&A was steady over the last
few years, but is likely to increase as technical maturity continues to drive
wider adoption and give birth to new applications.
Growth outlook for UAS systems is particularly strong. According to
Department of Transportation (DoT) estimates, UAS operations are expected
to surpass manned aircraft operations, for both military and commercial
domains, by 2035 with 250,000 vehicles in operation, half of which are
expected to be commercial. By 2035, the Department of Defense is projected
to add 14,000 unmanned aerial vehicles to its inventory, representing as
much as 70% of its entire aerial vehicle fleet. Low-cost Micro and Small UAS
dedicated to specific new and emerging tactical market applications are
forecasted to undergo rapid commercial market growth. In Q1, the FAA and
DoT released a regulations framework that would allow routine use of certain
small UAS. As UAS usage evolves and commercial demand becomes more
sophisticated, current DoD suppliers are expected to seriously enter the
commercial marketplace. This move has the potential to drive business
model changes, especially in UAS service demand, as well as introduce
more capable unmanned or optionally manned aircraft.
Industry Trends
(Unmanned Systems Update)
Recent Unmanned System M&A
2
Source:
1
US Department of Transportation ”Unmanned Aircraft System (UAS) Service Demand 2015 – 2035”,
2
S&P Capital IQ, DACIS and Industry Newswires
DoD Unmanned Aircraft Vehicle Forecast 2015 -2035
1
Unmanned Aerial Systems
Buyer
Target
M&A Close Date and Strategic Rationale
May ‘15:
Airborne military ISR applications able to
solve 2D and 3D geospatial problems
Feb ‘15:
UAV hardware design and controls ranging
from autopilot to onboard image processing
Jan ‘15:
UAS solutions for intelligence and SOCOM,
leader in expendable remote sensing
May ‘14:
Unmanned system services for
government, civil, and commercial customers
May ’14:
Winch Aerostat Small Platform (WASP) and
Blimp in a Box for military and commercial markets
Titan Aerospace Apr ’14:
Solar powered UAV designer, advanced
HALE technology for low earth orbit satellites
Acenta Limited Mar ’14:
Solar powered UAV designer, advanced
HALE technology for low earth orbit satellites
Unmanned Aircraft
Programs Business
Jun ‘13:
UAS design and manufacturing, ground
support equipment, sensors, software and services
Nov ’12:
UAS design, development, integration,
manufacturing, and support services
Marine AUVs and USVs, Autonomous Ground Systems
Buyer
Target
M&A Close Date and Strategic Rationale
Undersea Solutions
Jan ’15:
Designer and builder of UUVs for US Navy,
specialized covert and defense applications
Nov ‘14:
Designer and manufacturer of mini ROVs in
maritime security, search and rescue , research
Oct ‘14:
Designs and manufactures marine sensor
platforms and USVs for marine mapping
Dec ‘13:
Design and build mobile and off-road
robotics technology
Jul ‘12:
AUV instrumentation for underwater vision,
monitoring, survey, detection and navigation