5.1.4.4Vertical

Unmanned Aerial Systems (UAS/Drone)

Companies designing and manufacturing commercial and military drone systems.

Market snapshot

These figures describe Avionics & Flight Systems (5.1.4), the segment that Unmanned Aerial Systems (UAS/Drone) sits within — not Unmanned Aerial Systems (UAS/Drone) on its own.

Market size
~$54B
Growth
~0.7%CAGR (2017–22, nominal)
Companies
~500
FragmentationConsolidatedEstimate

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 334511 (Search, Detection, Navigation, Guidance, Aeronautical & Nautical Systems) — broad, also covering defense electronics and C4ISR.

Business model & economics

Revenue model

Avionics and electronics sales plus aftermarket and upgrades

Key economics

Recurring revenue
Moderate

aftermarket and upgrade cycles

EBITDA margin
Technology- and program-margin-driven
Capex intensity
High

Characteristics

  • Spans commercial avionics and defense electronics.
  • Defense modernization drives the electronics side.
  • Consolidated and technology-intensive.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiKentuckyMichiganMississippiMontanaNew YorkOhioOregonTennesseeUtahVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandKansasIowaMarylandNew Hampshire

Avionics and flight-systems manufacturing concentrate in the established electronics hubs — Iowa (Collins Aerospace, Cedar Rapids), Kansas, Maryland, and New Hampshire.

IowaKansasMarylandNew Hampshire

U.S. Census Bureau — 2022 County Business Patterns (employment by state), NAICS 334511. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Avionics & defense-electronics primes
  • Technology strategics
  • PE-backed suppliers

What’s driving deals

  • Defense-electronics modernization.
  • Commercial-avionics recovery.
  • Technology acquisition and consolidation.

Find Unmanned Aerial Systems (UAS/Drone) acquisition targets

Search Acquisera’s index for companies classified under Unmanned Aerial Systems (UAS/Drone) (5.1.4.4) and build a targeted deal pipeline.

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