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The Commercial Drones Market size is estimated to grow by USD 44,850.06 million between 2022 and 2027 accelerating at a compound annual growth rate (CAGR) of 38.97%. The growth of the commercial drone market depends on several factors, such as rising applications of drones, rise in funding for Unmanned Aerial Vehicle (UAV) manufacturers, and increase in legal acceptance of drone operations for commercial applications.
This commercial drones 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). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our analysis of the adoption life cycle of the market, from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Commercial Drones Market Customer Landscape
Our researchers analyzed the data, with 2022 as the base year, and presented the key drivers, trends, and challenges for the market. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The rising applications of drones will fuel the commercial drones market growth during the forecast period. With technological advances, drones are being used in various applications, such as agriculture, construction, mapping, logistics, and surveillance. Several logistics companies are testing deliveries using drones. For instance, in September 2020, Zipline International Inc.(Zipline) partnered with Walmart Inc. (Walmart) for commercial drone delivery services in the US. Other companies, such as DHL International GmbH and Amazon.com Inc. (Amazon), also plan to adopt drone delivery services.
The increase in traffic congestion poses several issues in the delivery of goods by road. However, drones can overcome such limitations and deliver goods more quickly when compared to road transport. Several companies, such as Drone Delivery Canada Corp., Flirtey, and Flytrex Aviation Ltd., provide drone delivery services. Other logistics companies are also focusing on incorporating drones for deliveries. Such developments are expected to propel the global commercial drone market growth during the forecast period.
The development of lithium-metal batteries is a key trend influencing the commercial drones market growth. Lithium-ion and lithium polymer (LiPo) batteries are commonly used for powering drones. However, these batteries have low energy capacity and drain out within 30 minutes of application. Moreover, lithium-ion batteries use flammable organic solvents, which can lead to explosions caused by short circuits, overcharging, and high temperatures. This increases the risks related to operating drones in certain areas.
Lithium-metal batteries are alternatives to lithium-ion batteries, as they use a non-flammable electrolyte. In addition, they have a high energy density, which enables drones to operate for longer flight times. Moreover, these batteries are more compact when compared to lithium-ion batteries. The increasing range of drone flights is fueling the adoption of drones by e-commerce companies, logistics companies, and the construction and industrial sectors. This, in turn, will offer lucrative opportunities for the growth of the global commercial drone market during the forecast period.
Cybersecurity threats will challenge the commercial drones market growth during the forecast period. UAVs use several technologies for effective communication. They rely heavily on onboard sensors to determine flight parameters such as speed and altitude. Any external interference can affect one or more flight parameters. For instance, a UAV operating on an unencrypted Wi-Fi network is prone to external interference. The sender and receiver should use the same channel to ensure effective communication. However, hackers can flood the channel with data and prevent legitimate signal transmission. They can also send de-authentication packets to prevent the establishment of a connection between the controller station and the UAV.
Modern UAVs often use pre-programmed flight paths, which are handled by the onboard flight computer. This can allow hackers to introduce malware into the computer. Hackers can reprogram the flight computer or steal data from the computer. Such issues have led to reluctance toward the adoption of UAVs, which will hinder the adoption of commercial drones during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the commercial drone market.
Aeronavics - The company offers commercial drones such as Aeronavics Navi, Aeronavics Navi RX, and Aeronavics SkyJib.
Autel Robotics Co. Ltd. - The company offers commercial drones such as EVO II Enterprise V3, EVO II 640T Enterprise V3, and EVO II Pro Enterprise V3.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
The report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
This software and services segment held the largest commercial drones market share in 2022 and is expected to dominate the market during the forecast period. The growth of this segment is attributed to factors such as the increasing demand for software in drones. Software solutions help companies validate and analyze drone data.
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This software and services segment was valued at USD 1,688.62 million in 2017 and continued to grow until 2021. The high cost associated with manufacturing commercial drones, along with the competitive advantages and economic scales of established vendors such as DJI and Parrot, have forced many other vendors to stop manufacturing drones and shift to offering technical platforms and software solutions that are compatible with the drones available in the market. 3DR offers various drone software that can be used by end-users in the construction, mining, engineering, and other sectors to enable companies to capture data quickly and use it in estimating, designing, and tracking various processes. Such factors will increase segment growth during the forecast period.
The infrastructure segment is expected to grow significantly during the forecast period. This segment includes both commercial and residential construction, as well as real estate. The growth of this segment is attributed to factors such as the rising demand for commercial drones in the construction and mining industries. Infrastructure companies use commercial drones for various purposes, such as mapping and surveying real estate, mapping stockpile management, construction site monitoring and asset management, management of transport infrastructure, and inspection of structural components. Various government and non-government organizations have also started using drones. For instance, in August 2020, the US Department of Defense (DoD) selected five local firms to supply commercial drones to military and government entities. These factors are expected to propel the growth of the infrastructure segment during the forecast period.
North America is estimated to contribute 44% to the growth of the commercial drone market during the forecast period. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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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 commercial drones market during the forecast period.
In 2020, the COVID-19 pandemic adversely impacted the market due to lockdowns, which decreased the demand for commercial drones. However, the demand for commercial drones increased in H2 2020 due to the adoption of commercial drones for the no-contact delivery of goods. In 2021, successful vaccination drives and the resumption of operations of end-user industries helped the market gain momentum. During the forecast period, the development of smart cities, government investments in adopting drones, and the increasing application of drones will augment the growth of the global commercial drone market.
The commercial drones market report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Commercial Drones Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Commercial Drones Market Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 38.97% |
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Market growth 2023-2027 |
USD 44,850.06 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
35.0 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 44% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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