US: The UAV payload and subsystem market will exceed USD2.9 billion this year, according to a forecast by market research firm ASD Reports. The study examined UAV payloads such as electro-optical and intelligence gathering sensors, as well as essential communications and navigation equipment. The market is expected to grow despite defense budget cuts. According to the report, recent defense budget cuts and realignment of priorities do pose a threat to UAV payloads and subsystems programs, but UAVs’ importance in current and future military operations could help overcome many of those issues. As UAVs are only as good as their sensors and other internal components, demand for UAV payloads and subsystems should see continued growth.