Russian govt approves UAV development strategy for period until 2035

MOSCOW. June 28 (Interfax) - The unmanned aerial vehicle (UAV) development strategy, approved by the Russian government, envisages a phased growth of the Russian UAV market to around one million vehicles per year by 2035, and a gradual increase in Russian manufacturers' market share from 50% to 80%, the government said in a document.

Russian President Vladimir Putin tasked the government with drafting a UAV development strategy at the end of 2022. The strategy will prompt the commissioning of Russian companies to assemble drones, make materials and components, and develop software. Prime Minister Mikhail Mishustin has signed a resolution to approve the strategy.

"Alongside the elaboration of a UAV development strategy on the orders of the Russian president, the government is finalizing work on a national UAV development project. The national project will serve as the main mechanism for managing the implementation of the approved strategy," the government press service quoted Russian First Deputy Prime Minister Andrei Belousov as saying.

The government sets the emergence of a new economic sector in Russia within the next six and a half years for creating and using civilian drones, and the sector's development in the period until 2035, as the primary objective of the strategy. The authorities see the biggest potential for drones in agriculture, oversight of construction, the creation and updating of geospatial databases, and delivery of goods to hard-to-reach areas.

The strategy identifies five key areas. Firstly, it aims to stimulate demand for domestic unmanned aerial vehicles. The second area is the development and mass production of UAVs, alongside the establishment of large production centers to implement new drone production technologies. The third area is the development of infrastructure, including the construction of airfields, heliports and eventual drone ports. The fourth area is the training of UAV operators. The fifth area is fundamental and advanced research in unmanned aerial vehicles.

All of these areas are taken into account in the strategy's action plan. For instance, the creation of a network of research and production centers for drone expertise and testing will begin in 2023 to prepare for the development and mass production of drones. The Industry and Trade Ministry, the Moscow government, ANO National Technological Initiative, and some other entities have been assigned to supervise this area.

According to the strategy, the volume of the Russian market for drones and drone services neared 50 billion rubles in 2022, or less than 1% of the global market. Experts anticipate growth in 2023. The current output of the Russian drone sector stands at 16 billion to 20 billion rubles per annum. The average revenue structure in the Russian market consists of UAV services at 75% and sales of UAVs and their components, including software, at 25%.

The market is highly dependent on the government. Almost 2,000 public contracts totaling more than 13 billion rubles were signed between 2018 and 2022. The main buyers were the Emergency Situations Ministry, the Russian National Guard, the Federal Service for State Registration, the Agriculture Ministry, the Science and Higher Education Ministry, and the Education Ministry.

"Despite its insignificant contribution to the Russian gross domestic product, the Russian UAV market has a sizeable potential. The number of drones to be sold on the Russian market before 2030 is estimated at over 180,000. It may reach 200,000 by 2035. In monetary terms, this amounts to almost 200 billion rubles and over 220 billion rubles, respectively. If the progressive scenario comes true, Russian manufacturers will be able to meet 75% of the demand by 2030, except for educational UAVs," the strategy said.

The basic scenario for the strategy estimates the volume of the Russian UAV market, including drone services, at roughly 370,000 vehicles in 2023-2026, with an increase to around one million by 2031-2035. The share of Russian-made drones in the overall volume of the domestic market is supposed to grow from 52% to 80%.