The Unmanned Aerial Vehicles (UAV) Market 2012-2022: Technologies for ISR & Counter

Table 5.43 Italian UAV Market Forecast 2012-2022 ($m, AGR %, units) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales $m 92 95 98 73 63 63 68 82 82 92 113 155 AGR(%) 3.3 3.2 -25.5 -13.7 0.0 7.9 20.6 0.0 12.2 22.8 37.2 Units 2 5 3 11 11 12 11 4 2 4 25 26

Source: Visiongain 2012

Table 5.44 Italian UAV Market Forecast CAGR (%) 2012- 2022, 2012-2017, and 2017-2022 2012-2022 2012-2017 2017-2022 CAGR (%) 5.0 -6.5 17.9 Source: Visiongain 2012

Figure 5.42 Italian UAV Market Forecast 2012-2022 ($m) 160

140

120

100

80 Sales $m Sales 60

40

20

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year

Source: Visiongain 2012

www.visiongain.com Page 176 The Unmanned Aerial Vehicles (UAV) Market 2012-2022: Technologies for ISR & Counter Insurgency

Figure 5.44 Italian UAV Submarkets Forecast 2012-2022 ($m) 160

140

120

100

80

Sales $m Sales 60

40

20

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year

HALE MALE UCAV Tactical Small

Source: Visiongain 2012

Figure 5.45 Italian UAV Submarkets Forecast 2012-2022 (units) 30

25

20

15 Units

10

5

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Year

HALE MALE UCAV Tactical Small

g Source: Visiongain 2012 www.visiongain.com Page 179 The Unmanned Aerial Vehicles (UAV) Market 2012-2022: Technologies for ISR & Counter Insurgency 7. Expert Opinion

7.1 AeroVironment

AeroVironment is a leading maker of small UAVs, which include the Raven, Puma AE and Wasp. It is also developing the Global Observer HALE UAV that can stay aloft for several days, the Nano UAV and the Switchblade miniature loitering munition. The US company’s corporate headquarters are located in Monrovia, California. Mr Steven Gitlin is Vice President for Marketing, Strategy and Communications of AeroVironment. Visiongain interviewed Mr Gitlin in April 2012 and we are grateful to him sharing his insights.

7.1.1 Impact of Coalition Forces’ from Iraq and Afghanistan on Small UAVs Visiongain: With the end of coalition forces’ combat operations in Iraq and the withdrawal from Afghanistan over the next two years, how much of a drop in demand for UAVs from previous levels will we see in the future?

AeroVironment’s Steve Gitlin: It’s not entirely clear because what we’ve seen with our systems was that as our troops were drawn down, those who remained were using our systems more. So it’s possible we might see an acceleration in the use of our systems. The underlying demand for our small unmanned aircraft systems (UAS) appears to be dependent on the ’s strategy and their planning. From that perspective, they have long-term acquisition targets, which at least in the case of the US Army, have not been fully met yet. Based on recent budget document, we expect procurement of (AeroVironment’s) Raven (small UAS) at least up to, and potentially beyond, 2016.

Some customers are also electing not to purchase hardware but instead, are purchasing services from us. That involves our people operating our systems and providing the information to our customers. So, even with the drawdown and departure (from Afghanistan), we could see continued use of small UAS, and UAS in general.

www.visiongain.com Page 277 The Unmanned Aerial Vehicles (UAV) Market 2012-2022: Technologies for ISR & Counter Insurgency 8. Leading Companies in the UAV Market

The following chapter profiles some of the major vendors in the UAV market. Given the complexity of the market and the relative lack of space in this report, we offer the following as a representative sample rather than an exhaustive one. We acknowledge the potential for oversights in attempting to create such a survey. In a fluid market, we have endeavoured to ensure that all information was accurate at the time when our research was originally undertaken.

8.1 AAI Corporation

AAI Corporation is a defence company that is a subsidiary of US defence company Textron. AAI's best known unmanned aircraft product is the RQ-7 Shadow, a tactical UAV widely used by both the US Army and Marines. The US Army is sponsoring an ongoing programme of technical enhancements including new payloads and a heavy-fuel engine. The type was adopted by the US Marine Corps to replace its ageing Pioneer. AAI, a company founded in 1950, is based in Hunt Valley, Maryland. AAI's Australian unit Aerosonde also produces a tactical UAV named after that company.

8.2 Aeronautics Ltd

Aeronautics Ltd is a defence company based in Yavne, that produces UAVs, along with intelligence, surveillance and reconnaissance (ISR) systems. Aeronautics has developed the Dominator, a MALE UAV that has a maximum take-off weight of 800 kg. It is also developing the Picador VTOL UAV. The company also produces the Aerostar tactical UAV, which can aloft for over 12 hours and has a range of up to 300 km, the Aerolight UAV, intended for training and light tactical roles, and the Orbiter mini UAV, which is launched by a light catapult and has an endurance of two to three hours.

8.3 AeroVironment

AeroVironment is a leading developer of mini UAVs. The US company is based in Monrovia, California. Its RQ-11A/B Raven is the US Army and Marine Corps's standard small UAV, with thousands of units ordered. The US Special Operations Command (SOCOM) has also acquired AV's small Wasp III UAV as well as the Puma AE, which can on land or water.

AeroVironment has also developed the Switchblade manportable lethal UAV and the Global Observer, a stratospheric UAV that can loiter for five to seven days. It is also developing the 10- gram Nano Air Vehicle (NAV). www.visiongain.com Page 281