The Motley Fool has good news for U.S. investors: the U.S. will dominate the drone sector over the next 10 years.
Citing research by IHS Jane, specialist in the military, experts predict that while overall military spending will decrease, the drone sector will grow at an estimated 5.5% annualized to reach $10 billion by 2024. According to Jane’s, Israel is currently the leading exporter of drone technology, including major companies Israel Aerospace Industries and Elbit Systems.
Jane’s predicts, however, that the U.S. will overtake Israel quickly in the drone sector. Companies such as Honeywell, which produces turboprop engines, and Raytheon, which produces targeting systems, will benefit from the surge in worldwide military investment in drones. U.S.-based manufacturers Airbus, BAE Systems, General Atomics, and Northrup Grumman are all introducing new products and growing their existing drone product lines. These companies are developing technologies in the area of high altitude drones and, more importantly, the new arena of air-to-air combat drones.
While the news for all US-based drone related companies is good, the Motley Fool doesn’t hesitate to pick a winner:
Several U.S. companies have products in development, including both of Israel’s big drone builders, Airbus and BAE Systems in Europe, and General Atomics and Northrop Grumman here in the United States…That’s some formidable competition. But if I were a betting man, I’d still be putting my money on Northrop Grumman to take the lead in this sector as well — based on the success of its X-47B aircraft carrier-capable UCLASS drone, “UCLASS” standing for Unmanned Carrier-Launched Airborne Surveillance and Strike. Best of all for investors is that, unlike General Atomics and its rival Avenger combat drone, Northrop Grumman is a publicly traded company.
Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
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