The commercial drone market size is estimated to grow by USD 44.85 billion from 2022 to 2027, growing at a CAGR of 38.97%. In the North American region, a substantial 44% contribution is anticipated towards the global market’s growth over the forecast period, according to a report just published by technavio.
Notably, significant investments by the US Department of Defense (DoD) and the National Aeronautics and Space Administration (NASA) in advanced electronics and sensor research for military Unmanned Aerial Vehicles (UAVs) are poised to revolutionize avionics systems. Furthermore, governmental emphasis on bolstering national defense capabilities underscores the strategic importance of such developments.
Drones, extensively utilized by the DoD for surveillance and security operations, are witnessing heightened demand. For instance, the recent USD 15.4 million contract awarded to FLIR for its FLIR Black Hornet 3 personal reconnaissance systems exemplifies this trend. The efficacy demonstrated by drones in various operations augments their indispensability, thereby propelling market growth in the region.
For comprehensive details on the market size of the historic period(2017 to 2021) and forecast period (2023-2027) view the Sample Report
Key Companies
The commercial drones market report includes information on the product launches, sustainability, and prospects of leading vendors including Aeronavics, AeroTargets International LLC, AeroVironment Inc., Anadrone Systems Pvt. Ltd., Arc Sky LLC, Autel Robotics Co. Ltd., DELAIR SAS, Denel SOC Ltd., Draganfly Inc., Field Group AS, Geotech Environmental Equipment Inc., Guangzhou EHang Intelligent Technology Co. Ltd, iFlight Innovation Technology Ltd., Intel Corp., Parrot Drones SAS, Red Cat Holdings Inc., Skydio Inc., Teledyne Technologies Inc., The Boeing Co., and Yuneec International Co. Ltd.
The commercial drone market is fragmented; the vendors are competing with competitors and are trying to get a greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major vendors have well-established economies of scale and market presence and generally rely on positioning technological advances and the price of the products –
The rising applications of drones will drive the commercial drone market growth during the forecast period.
Technological advancements have led to the use of drones in various fields, including agriculture, construction, mapping, logistics, and surveillance. Moreover, numerous logistics companies are conducting tests and trials for drone-based deliveries. For Instance, the partnership between Zipline International Inc. and Walmart Inc. in September 2020, where commercial drone delivery services were introduced in the US. In addition, drones offer the advantage of enabling faster delivery of goods compared to traditional road transport. Hence, these advancements are expected to drive the growth of the commercial drone market during the forecast period.
Cybersecurity threats will challenge the commercial drone market growth during the forecast period.
The development of lithium-metal batteries is a key trend influencing the commercial drone market growth.
Technavio has identified key trends, drivers, and challenges in the market, which will help clients improve their strategies to stay ahead of their competitors.
Technavio has announced its latest market research report titled Global Commercial Drones Market 2023-2027
Market Segmentation
This commercial drone market research report extensively covers market segmentation by product (software and services and hardware), end-user (infrastructure, media and entertainment, public safety, agriculture, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America).
The software and services segment held the largest share of the market in 2022 and is expected to dominate the market during the forecast period. The increasing demand for software in drones is a key factor driving the growth of this segment. Software solutions help companies validate and analyze drone data. The high cost associated with manufacturing commercial drones has forced many other vendors to stop manufacturing drones and shift to offering technical platforms and software solutions that are suitable for the drones available in the market. Hence all these above-mentioned factors will increase the segment growth during the forecast period.
Anlayst Review
In today’s rapidly evolving landscape, the Commercial Drones Market stands as a beacon of innovation, revolutionizing industries and redefining possibilities. With technological advancements propelling the sector forward, drones have transcended their conventional roles, becoming indispensable tools across diverse domains.
Aerial photography and video recording capabilities have empowered businesses to capture breathtaking visuals with unparalleled precision, revolutionizing fields such as construction, surveying, and environmental monitoring. These aerial shots provide invaluable insights into project progress and enable engineers, surveyors, and site managers to make informed decisions in real-time.
Moreover, drones excel in documenting wildlife and monitoring environmental phenomena, aiding conservation efforts and promoting biodiversity preservation. Their versatility extends to inspecting high-risk areas and conducting visual inspections of high-rise structures, mitigating the dangers associated with human error and enhancing safety protocols.
In the realm of internet provision and telecommunications, drones offer innovative solutions to bridge the gap in developing economies, overcoming technological constraints and SWaP challenges. Companies like Percepto and Air Mobile are pioneering drone-in-a-box solutions, facilitating on-site communication and delivering real-time data for critical decision-making aspects.
The integration of drones in the construction industry has been particularly transformative, optimizing time and labor while minimizing costs and enhancing efficiency. From monitoring project progress to inspecting infrastructure, drones streamline operations and mitigate potential issues, fostering mass adoption across the sector.
The burgeoning demand for drones spans industrial sectors, including energy, mining, and insurance, where they play pivotal roles in monitoring, inspection, and surveying tasks. These applications not only boost productivity but also ensure compliance with laws and regulations, underscoring the importance of responsible drone usage.
As investments pour into the market, driven by technological advancements in electronics and payloads, the future of commercial drones appears boundless. With a focus on enhancing endurance and addressing SWaP challenges, stakeholders are poised to capitalize on the vast potential of drones in revolutionizing industries worldwide. Embracing innovation, harnessing the power of drones, we embark on a journey of limitless possibilities, reshaping the fabric of commerce and industry.
North America Holds a Prominent Position in the Market
North America is estimated to contribute 44% to the growth of the global market during the forecast period.In North America, the US DoD and the National Aeronautics and Space Administration (NASA) are investing strongly in the R&D of advanced electronics and sensors for military UAVs, which will replace the existing avionics systems. Moreover, the government of the nation is increasingly focusing on empowering the defense forces of the nation. Drones are widely used by the DoD for surveillance, security, and spying. For instance, in May 2021, the US Army awarded a contract of USD 15.4 million to FLIR for its FLIR Black Hornet 3 personal reconnaissance systems. Black Hornet 3 is a palm-sized drone used for surveillance, spying, and guiding small military units and platoons. The success of drone strikes has increased the reliability of governing bodies over drones, which is likely to propel their demand and subsequently fuel the growth of the regional market during the forecast period
Market Size, By Region, Global, 2017-2027
Market Overview
In today’s fast-paced world, internet provision and aerial photography are not just services; they’re necessities. Enter commercial drones, revolutionizing industries with their versatility. From video recording breathtaking landscapes to surveying inaccessible terrain, these unmanned aerial vehicles are invaluable tools. Moreover, they aid in documenting wildlife, supporting conservation efforts worldwide.
Public services missions like disaster relief benefit immensely from drone technology, while innovative payloads expand their capabilities further. Particularly in developing economies, drones offer cost-effective solutions for infrastructure development and resource management, paving the way for mass adoption. As the demand grows, the commercial drones market skyrockets, promising endless possibilities and lucrative ventures for those willing to seize the opportunity.
Source: Press Release