1 Introduction 1.1 What is this Report About? 2 SWOT Analysis 2.1 Strengths 2.1.1 Rise in asymmetric conflicts leading to an ever increasing demand for ISR capabilities, thus auguring sustained demand for UAV Payloads 2.1.2 Technological advancements ensure continued operational demand 2.1.3 Reforms in defense spending to favor investment in UAV Payloads 2.1.4 Rapid growth of UAV market necessitating large scale payload system integration 2.2 Weaknesses 2.2.1 High entry barriers to new entrants in the UAV and payload market 2.2.2 Small UAVs challenging payload providers with stringent Size, Weight and Power (SWAP) requirements 2.2.3 UAV Payload systems require strong hardware support 2.2.4 Vulnerability of communication payloads to cyber attacks 2.3 Opportunities 2.3.1 Use of UAVs in civilian airspace to boost the growth of UAV Payload demand 2.3.2 Weaponry- an emerging payload segment 2.3.3 Interoperability issues to provide new avenues of growth for UAV Payloads systems 2.4 Threats 2.4.1 Withdrawal of coalition forces an impediment to the UAV Payload market growth 2.4.2 US and European economic crisis 3 Appendix 3.1 Methodology 3.2 Definitions 3.3 About SDI

Table 1: SWOT Analysis of the UAV Payload Market