With the increasing need for persistent surveillance across various conflict zones, the governments of numerous nations worldwide are shifting towards high altitude platforms that offer a wider coverage area with minimal costs. High altitude platforms (HAPs) are airborne systems operating in the high altitude category of more than 50,000 feet above the Earth’s surface.

The popular types of HAPs considered under the scope are airships, tethered aerostat systems and unmanned aerial vehicles (UAVs). These HAPs are largely used for surveillance systems using payloads such as surveillance radar and electro-optical/infrared (EO/IR) systems. Nevertheless, in the coming years, the HAPs are expected to witness strong demand from the communication sector.

HAPs are increasingly being used for delivering wireless communication services to remote areas. As a result, the market for HAPs is estimated to register strong growth in terms of revenue and adoption, in the coming years. The market is expected to expand with a CAGR of 9.5% during the forecast period from 2023 to 2030.

High altitude platforms refer to airborne systems (lighter-than-air (LTA) as well as heavier-than-air (HTA)) that are normally placed in the stratospheric layers ranging at altitudes of more than 50,000 feet from the surface of the Earth. The key purpose behind stationing these platforms at the mentioned altitude is the favorable conditions available at this stage coupled with increased coverage area. Layers at an altitude ranging more than 50,000 feet have lesser wind speeds which enable hassle-free operation for the HAPs. Additionally, this altitude range is higher than those in which the commercial aircrafts operate.

Thus, this eliminates the possibility of any casualties between HAPs and the commercial aircrafts. Furthermore, HAPs are also regarded as cheaper and reliable alternatives to satellites. Although satellites offer extremely larger coverage areas as compared to the HAPs, the cost involved in deploying and operating the satellite systems is exceptionally high. HAPs are capable of serving the same purpose within fractional cost of satellite systems. Hence, in the coming years, HAPs are expected to replace satellites in most of communication applications such as mobile phones, wireless broadband, digital television networks and others.

The history of airships and UAVs date back to several decades when these systems were intended to be used in wars. In the early 20th century, airships and UAVs were primarily used for carrying ammunition and targeting enemy base. However, these systems were used at lower altitudes due to lack of technology enabling high altitude platforms. Similarly, tethered aerostat systems were earlier used only for surveillance purposes in order to monitor any activities in conflict zones. However, during the course of time and advancements in technology, the HAPs are now capable of operating at high altitudes along with various payloads such as surveillance radar, electro-optical/infrared (EO/IR) systems, communication and navigation systems.

Currently, the government & defense segment dominates the high altitude platforms market, in terms of revenue and adoption. Most of the nations worldwide including the U.S., China, Russia, India, France, Japan, and others have high defense budgets with strong investment over HAPs. Due to threats from terrorists’ activities and border conflicts, the investment on HAPs for surveillance is estimated to prevail throughout the forecast period. Thus, the segment is estimated to retain its dominant position, in terms of revenue and adoption, throughout the forecast period, globally.

Apart from the government & defense segment, the commercial segment is projected to expand with the highest growth rate in the coming years. The commercial segment comprises communication and aerial imaging applications. The idea of providing high-speed internet and mobile communication to remote areas is the most prominent factor responsible for the high growth of this segment. Projects such as Internet.org and Project Loon are the most significant examples showcasing the delivery of HAP-based wireless communication.

In 2021, the global high altitude platforms (HAPs) market was dominated by the unmanned aerial vehicles (UAV) segment accounting for a market share of over 3/4th of the total market revenue.

The UAVs are the costliest types of HAPs with average cost ranging more than US$ 100 Mn. Despite high costs, these systems are used due to their competitive advantages such as larger coverage area and short deployment spell. Additionally, these systems are operated through ground based remote controllers making them easy to navigate in any direction. This makes UAVs suitable for various applications irrespective of the operating terrain.

UAVs are popular in countries such as the U.S., China, Japan, Israel, France, India and others. Nevertheless, the market for UAVs is majorly hampered due to their high initial costs majorly in countries having less defense budget/expenditure on HAPs. As a result, market for HAPs such as airships and tethered aerostat systems is estimated to register the highest growth in the coming years worldwide.

Tethered aerostat systems and airships are extremely low in cost as compared to the UAVs and can satisfactorily serve the purpose of UAVs. Consequently, with emergence of projects such as the Project Loon, the demand for airships and aerostat systems is estimated to soar substantially in the coming years.

On the basis of application, the market for high altitude platforms (HAPs) is dominated by the government & defense segment with a market share of more than 70%, in terms of revenue, worldwide. The demand for HAPs, in government & defense segment, can be directly related to the budget of nations in defense and homeland security sectors. HAPs such as tethered aerostat systems and unmanned aerial vehicles (UAVs) provide excellent surveillance over large areas. Most of the countries worldwide are focused towards deploying reliable and persistent HAP-based surveillance systems so as to monitor any activities within/pertaining to their territories.

Due to rising threats from terrorists’ activities and border conflicts, the expenditure over HAPs for surveillance systems is predicted to remain strong in the coming years. Thus, the government & defense segment is likely to retain its dominant position, in terms of revenue and adoption, throughout the forecast period across the global market. Nonetheless, due to increasing adoption of HAP-based wireless communication, the commercial segment is expected to witness the highest growth in the coming years. The commercial segment is expected to witness strong growth majorly in Asia Pacific and Rest of the World segments where projects on HAP-based wireless communication are planned to be deployed in the near future.

On the basis of payload, the market for high altitude platforms (HAPs) was dominated by the surveillance systems segment with a market share of more than 70%, in terms of revenue, globally. Surveillance systems primarily comprise surveillance radar and electro-optical/infrared (EO/IR) imaging systems. Another significant factor behind the high revenue share of surveillance systems segment is their high cost as compared to other payloads thereby contributing to higher revenue.

Since surveillance is the most prominent application of the HAPs, the segment is estimated to retain its dominant position, in terms of revenue, throughout the forecast period. Nevertheless, communication systems segment is predicted to witness the highest growth in the coming years. During the forecast period, the communication segment is expected to expand with a CAGR of 11.4%, globally.

Communication is among the most integral components of HAPs and currently accounts for the second largest share, in terms of revenue, worldwide. Additionally, with introduction of HAP-based wireless communication service, the demand for communication systems is expected to rise substantially during the forecast period. For instance, the Project Loon by Google, Inc. has already been kicked off in New Zealand and has been proposed in India, Brazil and some of the African countries. This is expected to largely fuel the demand for communication system payloads in HAPs in the coming years.

Geography Segmentation Analysis

In 2021, the high altitude platforms market was dominated by North America accounting for over 34% of the total market revenue. The North America HAPs market is mainly governed by the U.S. which accounts for more than 3/4th of the total revenue generated in the region. Due to high spending over HAPs coupled with the presence of large number of players in the region, the North America segment is anticipated to hold its dominant position in the market throughout the forecast period. However, Asia Pacific is expected to emerge as the fastest growing region in HAPs market worldwide during the forecast period.

The demand for HAPs is mainly expected from countries such as China, India, South Korea and Japan. In addition to the surveillance systems, the demand for HAPs is also expected to be driven by the communication applications in Asia Pacific. For instance, the Project Loon by Google, Inc. has already launched its pilot project in New Zealand. The company plans to deploy its project soon in India and some of the Southeast Asia countries thereby driving the demand for high altitude aerostat systems in the coming years.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of High Altitude Platforms (HAPs) market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the High Altitude Platforms (HAPs) market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of High Altitude Platforms (HAPs) market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the High Altitude Platforms (HAPs) market?
• Which is the largest regional market for High Altitude Platforms (HAPs) market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving High Altitude Platforms (HAPs) market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the High Altitude Platforms (HAPs) market worldwide?