Vertical Take-Off And Landing (VTOL) UAV Global Market Report 2025

The vertical take-off and landing (vtol) uav market size has grown rapidly in recent years. It will grow from $7.87 billion in 2024 to $9.18 billion in 2025 at a compound annual growth rate (CAGR) of 16.6%. The growth in the historic period can be attributed to environmental monitoring, disaster response and relief, military demand, and global security concerns.

The vertical take-off and landing (vtol) uav market size is expected to see rapid growth in the next few years. It will grow to $17.05 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. The growth in the forecast period can be attributed to energy infrastructure inspection, autonomy and artificial intelligence, electric propulsion, and commercialization of new applications. Major trends in the forecast period include rapid technological advancements, electric propulsion dominance, integration of artificial intelligence, and sustainability and green initiatives.

The forecast of 16.7% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through supply chain disruptions for distributed electric propulsion systems, sourced from key regions such as Germany, China, and the UK, which could slow eVTOL development.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing military and civil applications are expected to propel the growth of the vertical take-off and landing (VTOL) UAV market going forward. Military and civil applications refer to the various applications in which technologies, products, or services are utilized, either by military organizations or civilian entities such as businesses, governments, or individuals. Military and civil applications use VTOL UAVs to inspect structures such as bridges, power lines, and pipelines. Vertical take-off and landing (VTOL) unmanned aerial vehicles (UAVs) are utilized in a wide range of military and civil applications for intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) purposes due to their versatility, maneuverability, and operational flexibility. For instance, in April 2023, according to the Peter G. Peterson Foundation, a US-based nonpartisan organization, between 2021 and 2022, U.S. defense spending increased by $71 billion. Therefore, the growing military and civil applications are driving the growth of the vertical take-off and landing (VTOL) UAV market.

Major companies operating in the vertical take-off and landing (VTOL) UAV market are integrating their efforts in developing advanced solutions equipped with highly reliable power systems and locking propeller designs to gain a competitive edge in the market. A highly reliable power system and locking propeller design allow for efficient missions while maintaining vertical takeoff and landing capability. For instance, in June 2023, T-DRONES, a China-based manufacturer of industrial UAVs, launched the VA25, a new fixed-wing VTOL UAV (unmanned aerial vehicle). This innovative VA25 is a long-endurance fixed-wing VTOL drone designed for industrial use. It has a wingspan of 2.5m, a takeoff weight of 13kg, and a flight time of up to 210 minutes with a 1kg payload. The frame is made of carbon fiber composite PVC, and it features a highly reliable power system and a locking propeller design, which greatly prolongs the flight time. The standard drone includes the frame and T-MOTOR power system.

In October 2022, Sierra Nevada Corporation, a US-based aerospace and defense company, acquired Volansi Inc. for an undisclosed amount. This acquisition aims to expand its portfolio and capabilities in the unmanned aerial vehicle (UAV) space, particularly in the vertical takeoff and landing (VTOL) drone segment. This strategic move allows Sierra Nevada to integrate Volansi's assets and expertise into its existing UAV solutions, reaffirming its commitment to delivering next-generation VTOL platforms and expanding its offerings in the UAV market. Volansi Inc. is a US-based developer of autonomous vertical takeoff and landing (VTOL) UAVs.

A vertical take-off and landing (VTOL) unmanned aerial vehicle (UAV) refers to a type of aircraft that can take off, hover, and land vertically without the need for a runway. They are developed to save time and money, improve operational efficiencies, and streamline operational procedures. They are recommended for inspection since they can hover steadily and make fluid-airborne transitions.

The main types of vertical take-off and landing (VTOL) UAVs are helicopters, multicopters, and hybrids. A helicopter is a type of aircraft that achieves vertical take-off and landing (VTOL) by using one or more large horizontal rotors. They are available in various sizes, including large, medium, small and micro. Several payloads include intelligence surveillance and reconnaissance (ISR), cameras, telemetry, sensors, and autopilot. These are used in various applications such as military, home and security, civil, and commercial.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp increase in U.S. tariffs and resulting trade disputes in spring 2025 are significantly affecting the aerospace and defense sector. Prices for key materials such as titanium, carbon fiber composites, and avionics primarily sourced from international suppliers have surged. Defense contractors, constrained by fixed-price government contracts, are forced to absorb these rising costs. Meanwhile, commercial aerospace companies are encountering resistance from airlines over increased aircraft prices. In addition, customs delays are disrupting already tight production timelines for jets and satellites. In response, the industry is stockpiling essential materials, pursuing import waivers for defense-related goods, and working with allied nations to diversify supply chains.

The main types of vertical take-off and landing (VTOL) UAVs are helicopters, multicopters, and hybrids. A helicopter is a type of aircraft that achieves vertical take-off and landing (VTOL) by using one or more large horizontal rotors. They are available in various sizes, including large, medium, small and micro. Several payloads include intelligence surveillance and reconnaissance (ISR), cameras, telemetry, sensors, and autopilot. These are used in various applications such as military, home and security, civil, and commercial.

Major companies operating in the vertical take-off and landing (VTOL) UAV market are Boeing Co., Airbus SE, Honeywell International Inc., Thales Group, Bell Textron Inc., Textron Systems, SZ DJI Technology Co. Ltd., Yuneec International Inc., AeroVironment Inc., Joby Aviation Inc., Lilium GmbH, Volocopter GmbH, Aurora Flight Sciences, Vertical Aerospace, Quantum Systems GmbH, Wingcopter GmbH, Elroy Air Inc., SkyDrive Inc., Terrafugia Inc., 3D Robotics Inc., Urban Aeronautics, Kitty Hawk Corporation, ALTI UAS, EHang Holding, Zero Zero Robotics Inc.

North America was the largest region in the vertical take-off and landing (VTOL) UAV market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vertical take-off and landing (VTOL) UAV market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the vertical take-off and landing (VTOL) UAV market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vertical take-off and landing (VTOL) UAV market consists of sales of multirotor UAVs, fixed-wing VTOL UAVs, tail-sitter UAVs, and tiltrotor UAVs. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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