Artificial Intelligence (AI) in Drone Technology Market

The global artificial intelligence (AI) in drone technology market size was USD XX Million in 2022 and is likely to reach USD XX Million by 2031, expanding at a CAGR of XX % during the forecast period, 2023–2031. Rising demand for aerial goods supply and surveillance solutions among customers is boosting the market.

Artificial intelligence (AI) has enhanced the capabilities of drone devices, which is driving AI in drone technology market. The performance of drones becomes more efficient & versatile, such as efficiently detecting & avoiding obstacles, and accurately performing complex tasks.

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Drones, also known as unmanned aerial vehicles (UAVs) are integrated with AI to eliminate human assistance and speed up various industrial operations. Thus, due to minimal human involvement in drone operations, AI is gaining significant popularity across different industries, which is further fueling the market. Industries such as retail e-commerce companies and logistics are opting for AI-powered drones, which are likely to propel the market. For instance,

• As per a report published in May 2020, above one million drones are likely to be performing retail delivery operations by 2026. This growth is attributed to several retail package-delivering companies adopting AI-enabled autonomous drones, as it reduces operational costs by nearly 70% as compared to conventional delivery systems. Such factors are anticipated to accelerate the growth of the market

The research report finds that the COVID-19 pandemic propelled the AI in drone technology market. This growth is attributed to the governmental restrictions on travel & transport, which gave rise to e-commerce operations. Several retail e-commerce platforms invested in drones equipped with AI technology for their package delivery services.

In addition, the rising demand for the delivery of emergency medical supplies and necessities during the pandemic led to an upsurge in the adoption of AI-assisted drones, which further fueled the global market.

Artificial Intelligence (AI) in Drone Technology Market Dynamics

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Major Drivers

Surging adoption of drones in delivery services is expected to propel a market expansion, owing to the benefits such as the ability to avoid traffic congestion, take shorter routes, and fuel efficiency. Increasing disposable income among customers who prefer instant goods & service delivery is boosting the use of drone delivery solutions by eCommerce platforms. 

A specially designed UAV is used to transport medical supplies, packages, fresh food, and other goods, which perform highly accurate delivery and shortens the product delivery duration. This facilitated the market players to enhance their business using AI in drone technology.

Rising demand from several industries is anticipated to propel the market. Drones are becoming essential solutions in several industries such as defense, agriculture, and others. They are used for map planning, telecommunication, infrastructure monitoring, mining, inspection, and surveillance. This increasing demand for drones from such key industries is further likely to propel the market during the forecast period. For instance,

• According to a report published on 3^rd January 2023, the number of commercial drone deliveries across the globe in early 2022 was around 2,000 each day. As per the report. in these global numbers, Latin America held a largest contribution.

Existing Restraints

High cost of implementing artificial intelligence into drone operations is expected to hamper the market. Drone technology consists of complex software programs. The integration of AI into software is likely to be an intricate and time-consuming process that results to be expensive and affects the market.

Rising concerns for privacy and security are expected to restrain the AI in drone technology market. As AI drones are likely to breach the privacy and security of the people, numerous government regulations are made for the legal use of drones. This factor is likely to impede the market.

Emerging Opportunities

Consistent developments in drone designs and autonomy are anticipated to create lucrative opportunities in the market. Such developments are making drones highly efficient, which is beneficial for eCommerce players to provide accurate and speedier deliveries. The constant research and advancements in drone development aid key market players in helping end-user stay updated with new AI tools. For instance,

• On 10 November 2022, Amazon.com, Inc. announced a new design for its drone delivery service namely Prime Air. The novel design includes increased vision range, atmospheric temperature tolerance, and the ability to operate in slight rainy conditions. The updated design aims to offer package delivery services to customers’ doorsteps, which further increases the demand for drone goods delivery services.

Scope of Artificial Intelligence (AI) in Drone Technology Market Report

The report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Artificial Intelligence (AI) in Drone Technology Market Segment Insights

Type Segment Analysis

Based on type, the AI in drone technology market is trifurcated into rotary-blade drones, fixed-wing drones, and hybrid drones. The rotary-blade drone segment is expected to expand at a significant growth rate during the projection period. Rotary blades are capable of targeting a single object for a long duration of time, with effective hovering and maneuvering. Due to these features, they are highly implemented in inspection activities and digital photography for object tracking and advanced image capturing, which in turn boosts the segment.

The fixed-wing drones segment is anticipated to account for a significant market share during the forecast period, attributed to the presence of wings that give them a vertical lift. This results in less fuel consumption, which implies that it requires fuel only to move forward. Thus, the fuel efficiency feature drives the segment. In addition, they are suitable for long-distance usage, which further propels the demand for these drones.

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Technology Segment Analysis

On the basis of technology, the global market is bifurcated into computer vision and motion planning. The computer vision segment is projected to register a considerable CAGR during the forecast period, as they have cameras and sensors for analyzing the environment and obstacles effectively. This helps in easy navigation and movement through complex geographical structures such as terrains, which boosts the segment.

Additionally, with consistent updates available in the machine learning algorithms of the drone AI, the performance of the drone becomes more efficient with time and results in segment growth.

The motion planning segment accounts for a significant market share, as it helps drones in navigating safely between two objects without colliding. This is done by setting two different pre-determined routes to a destination. These factors help protect the drone device from any damage, lower the complexities, and further help in the segment's growth.

End-user Segment Analysis

On the basis of end-user, the AI in drone technology market is segmented into agriculture, military and defense, media and entertainment, e-commerce, and others.

The military and defense segment is expected to register a robust growth rate during the projection period, as AI drones are widely used in defense missions such as intelligence, surveillance, and reconnaissance (ISR) applications and air combat. Increasing investments by various national governments in air and land defense are projected to boost the segment in the market. For instance,

• According to a news report published in January 2021, the government of Japan announced that it is developing a remote-controlled, unmanned fighter aircraft, with the capability of breakneck maneuvers by 2035. Japan’s defense ministry is investing 2.5 billion yen (USD 24.3 million) into flight and remote control technology, and additional 200 million yen for integrating AI technology.

The agriculture segment is expected to hold a significant share of the market, as AI-integrated drones assist farmers in capturing high-quality field images, monitoring crop conditions, and analyzing areas requiring attention. This helps farmers to utilize a measured number of fertilizers and pesticides, rather than using them in bulk, which leads to wastage and hampers crop health.

Additionally, drones help in spraying fertilizers and pesticides. As these chemicals are harmful, drones help to reduce their contact with humans. These factors are further projected to propel the segment.

Regional Analysis

In terms of region, the global AI in drone technology market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period, due to increasing demand for AI-equipped drones for different industry applications.

In addition, the presence of favorable government regulations for using drones with authorized licensing is expected to attract a significant number of key players to invest in the countries of the region. For instance,

• As per a news report published by the Indian Defence Research Wing (IDRW) on 27 June 2023, the United States Department of Defense and Space Force has announced partnering with two Indian-based startups namely 114ai and 3rditECH. The partnership aims to collaborate with General Atomics for co-developing drone components by leveraging the presence of advanced AI and semiconductor technologies. Such large-scale investments in the emerging countries of the region are driving the regional market.

The market in North America is anticipated to expand at a rapid pace during the forecast period, owing to the surging demand for effective delivery systems across different industries. The evolving retail e-commerce industry in the region demands rapid delivery functions, which is projected to boost AI-powered drone adoption in this sector. Moreover, the presence of major key players in the region is further likely to boost the market in the region.

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Segments

The AI in drone technology market has been segmented on the basis of

Type

• Rotary-Blade Drones
• Fixed-Wing Drones
• Hybrid Drones

Technology

• Computer Vision
• Motion Planning

End-user

• Agriculture
• Military & Defense
• Media & Entertainment
• E-commerce
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• DJI
• Field
• PrecisionHawk
• 3D Robotics and Automation
• Applanix
• GLP Robotics
• Drone Aviation Corp
• Talon Aerolytics Inc
• Swift Navigation, Inc.
• Betterview

Competitive Landscape

Key players operating in the global AI in drone technology market include DJI; Field; PrecisionHawk; 3D Robotics and Automation; Applanix; GLP Robotics; Drone Aviation Corp; Talon Aerolytics Inc; Swift Navigation, Inc.; and Betterview.

These companies adopt strategies such as acquisitions, partnerships, collaboration, mergers, R&D investments, and product launches to boost their market share. With the rise in awareness about the benefits of drone technology, various industries are keenly adopting them for a variety of applications, which is boosting their development and manufacturing from the key market players.  For instance,

• On 29 March 2023, Field, a leading Europe-based digital reality service provider merged with PrecisionHawk, a leading high-quality data collection and end-to-end solutions provider. The merger aims to provide the US with AI and machine learning-based analytics and inspection solutions, which are further expected to be applied in drone systems.