Automotive Industry Today
Unmanned Ground Vehicle Market to Reach USD 4.45 Billion by 2031, Driven by Military and Commercial Automation Trends - Mordor Intelligence
Introduction
The unmanned ground vehicle (UGV) market is experiencing steady expansion as both military and commercial sectors increasingly adopt robotic ground solutions to enhance operational efficiency and safety. Defense applications remain the primary growth driver, with UGV platforms widely deployed for missions such as casualty evacuation, reconnaissance, and counter-IED operations. At the same time, demand from civil and commercial sectors is accelerating, particularly across warehouse logistics, mining operations, and precision agriculture, where automation improves productivity and reduces human risk.
Market momentum is further reinforced by declining costs of key components such as sensors and batteries, alongside advancements in software interoperability that simplify system integration. In parallel, the rising adoption of robotics-as-a-service (RaaS) business models is lowering entry barriers, allowing mid-sized and cost-sensitive users to deploy UGV solutions without significant upfront capital investment.
Key Market Trends
- Deployment of counter-IED robot fleets for safer route-clearance operations
- Rising military use of casualty-evacuation UGVs in high-risk environments
- Mining industry adoption of unmanned haulage to support zero-harm goals
Geography Analysis
North America led the unmanned ground vehicle market in 2025 with a 39.12% share, driven by US DoD autonomous-system funding, Canadian mining automation, and commercial deployments like Amazon’s warehouse robots. Europe, growing at a 10.19% CAGR, benefits from robotic-platoon programs in Germany, France, and the UK, along with compliance-driven contracts under the EU AI Act and Rheinmetall’s multi-country orders. Asia-Pacific, the Middle East, South America, and Africa are rapidly adopting UGVs for defense, perimeter security, and mining, likely reducing North America’s market share despite rising global volumes.
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Major Players
The unmanned ground vehicle market is led by established defense and technology companies, including Rheinmetall AG, L3Harris Technologies, QinetiQ Group plc, Teledyne FLIR (a Teledyne Technologies company), and General Dynamics Corporation, all of which focus on advanced mobility platforms, sensing technologies, and mission-ready robotic systems for military and security applications.
Conclusion
The unmanned ground vehicle market is set for steady growth, driven by military applications, commercial logistics, and industrial use cases. With North America leading and Asia-Pacific emerging, advancements in autonomous operation and reduced sensor costs are making UGVs more accessible across sectors. By 2031, the market is expected to reach USD 4.45 billion, reflecting sustained demand for efficient, safe, and versatile ground robotic solutions.
Industry Related Reports
Small UAV Market: https://www.mordorintelligence.com/industry-reports/small-uav-market?utm_source=Industrytoday.co.uk
Fuel Cell UAV Market: https://www.mordorintelligence.com/industry-reports/fuel-cell-uav-market?utm_source=Industrytoday.co.uk
Drones Market: https://www.mordorintelligence.com/industry-reports/drones-market?utm_source=Industrytoday.co.uk
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