The drones market was valued at USD 22.01 billion in 2020 and is projected to reach USD 43.3 billion by 2028, expanding at a CAGR of 12.5% during the forecast period, 2021 – 2028. The growth of the market is attributed to growing requirement in the military and defense industry to improve situational awareness.
Drones are self-flying platforms that can be commanded remotely by a human or guided autonomously by a computer program. Drones have enormous potential to improve agricultural output and revolutionize urban and rural infrastructure in poor countries. To reduce weight and improve agility during flight, the drone's frame is frequently made from lightweight and composite materials. Drones are also utilized for a variety of tasks, including internet connectivity in remote regions, aerial photography and video recording, animal surveying and documentation, and public service missions. Several companies specialize in providing small drones for aerial photography, agriculture, and data collection. The integration of cloud computing technologies into the drone creation process, as well as the introduction of the 5G delivery model, are expected to create growth opportunities for the drone market.
Market Trends, Drivers, Restraints, and Opportunities
- Technological advancements in terms of payloads and electronics are expected to drive the market.
- Several government and airspace rules are currently hindering the market growth in several countries.
- The efforts of logistics and retail businesses like Amazon and UPS to roll out the technology have made home deliveries using drones a possibility, which is estimated to fuel the market.
- Increased investments in drone technology are expected to boost the drone market.
- Technological restrictions such as limited endurance, SWaP problems, and the existence of non-uniform laws and regulations are estimated to hamper the market growth.
- The incorporation of advanced technologies such as machine learning (ML) and artificial intelligence (AI) in drones provides significant growth opportunities for the market.
Scope of the Report
The report on the global drones market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Drones Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Applications (Construction, Entertainment, Agriculture, Law Enforcement, Energy, and Others), Types (Rotary Wing Drones, Hybrid, and Fixed Wing Drones)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Yuneec; BirdsEyeView Aerobotics; The Boeing Company; Delair SAS; Terra Drone Corporation; Drone Delivery Canada; SZ DJI Technology Co. Ltd (DJI); DroneDeploy Inc.; PrecisionHawk Inc.; Guangdong Syma Model Aircraft Industrial Co. Ltd; Pix4D SA; Intel Corporation; Parrot Drones SAS
Market Segment Insights
The construction segment dominated the market in 2020
Based on applications, the market is segregated into construction, entertainment, agriculture, law enforcement, energy, and others. The construction segment dominated the market in 2020. The widespread use of drones has transformed the construction industry's operational processes. Drones are increasingly substituting traditional ground surveillance methods, as they save time and effort while removing the possibility of human error. Drones are gradually being used to do graphic checks of building sites at high-risk regions. Drones also assist engineers and surveyors in inspecting high-rise structures and visualizing project progress via aerial shots. The rising demand has prompted drone manufacturers to produce more drones, particularly for the construction industry.
For instance, Percepto a provider of drone-in-a-box solutions, announced the release of a new UAV (unmanned aerial vehicle) called Air Mobile in November 2021. Air Mobile, according to the company, is ideal for linear inspections as well as monitoring quick projects across multiple sites in industries such as construction. Such innovative devices are projected to earn client preference, during forecast period.
The hybrid segment is estimated to expand at a CAGR of around 63% during the forecast period
On the basis of types, the market is fragmented into rotary wing drones, hybrid, and fixed wing drones. The hybrid segment is estimated to expand at a CAGR of around 63% during the forecast period. To maximize their power and efficiency, hybrid commercial drones combine the advantages of batteries and fuel. Furthermore, even in bad weather, these drones can fly for longer periods of time with larger payloads. These drones are used by tech giants like Amazon and Facebook to deliver internet connectivity in rural places and for fast parcel delivery. The rotary wing drone segment held about 80% of the total revenue in 2020 and is projected to continue its dominance during the forecast period. Because of their capacity to maintain a sight on a single target for a long period, hover, and execute agile maneuvering, rotary blade drones are likely to become more popular for inspection purposes. Typically, these drones are thought to be a feasible solution for a variety of commercial applications such as surveillance, filming and photography, and monitoring.
Asia Pacific is projected to expand at high CAGR during the forecast period
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is projected to expand at high CAGR of around 63% during the forecast period. The demand for drones in the region is expected to reach 9 million units during the forecast period. A favorable regulatory environment, particularly among developed countries, is expected to boost market expansion. Furthermore, several start-up companies are testing new commercial drone applications and working to improve drone safety.
The global drones market has been segmented on the basis of
- Law Enforcement
- Rotary Wing Drones
- Fixed Wing Drones
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- BirdsEyeView Aerobotics
- The Boeing Company
- Delair SAS
- Terra Drone Corporation
- Drone Delivery Canada
- SZ DJI Technology Co. Ltd (DJI)
- DroneDeploy Inc.
- PrecisionHawk Inc.
- Guangdong Syma Model Aircraft Industrial Co. Ltd
- Pix4D SA
- Intel Corporation
- Parrot Drones SAS
Key players competing in the drones market include Yuneec; BirdsEyeView Aerobotics; The Boeing Company; Delair SAS; Terra Drone Corporation; Drone Delivery Canada; SZ DJI Technology Co. Ltd (DJI); DroneDeploy Inc.; PrecisionHawk Inc.; Guangdong Syma Model Aircraft Industrial Co. Ltd; Pix4D SA; Intel Corporation; Parrot Drones SAS. Some of these players are using several market strategies such as acquisitions, merger, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares and to generate revenue and raise their production line of the business in the coming years. For instance,
- XAG Co., Ltd., a Chinese agricultural drone manufacturer launched its V40 and P40 Agricultural Drones globally in November 2021.
- A2Z Drone Delivery, LLC has released the A2Z Drone Delivery RDSX, an RDSX commercial delivery UAV, in August 2021.