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The Global Drone Market size is estimated to grow at a CAGR of 13.58% between 2022 and 2027. The size of the market is forecast to increase by USD 27.78 billion. The growth of the market depends on several factors, including a rise in applications of drones, advancements in sensors and the emergence of low-cost drones, and a rise in the popularity of drone racing.
This report extensively covers market segmentation by application (industrial, terrestrial imagery and mapping, precision agriculture, inspection and monitoring, and others), type (rotary blade, fixed wing, and hybrid), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The advancements in sensors and the emergence of low-cost drones are notably driving the market growth, although factors such as restrictive laws and regulations governing UAV use may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The advancements in sensors and the emergence of low-cost drones are notably driving the market growth. Vendors are capitalizing on the availability of mobile, intelligent, and connected sensors to improve the capabilities of their offerings. Drones are majorly equipped with GPS, inertial, image, and ultrasound-based range sensors. With improvements in functionalities and features, drones are increasingly equipped with thermal, hyperspectral, and multispectral sensors. As the price of sensors continues to fall, more drones will emerge during the forecast period.
Furthermore, drones will increasingly witness demand from beginners, who are yet to get acquainted with the technology and features of drones. While their battery life and endurance to winds are low, they have increased penetration in the consumer segment. Advantages such as no need for registration (as per the US FAA), 720p HD cameras with satisfactory stability, and compatibility with virtual reality (VR) headsets are major factors that will increase their adoption rate among consumers around the globe during the forecast period.
One prominent market trend is the continuous development and release of commercial drones. These drones have transformed various industries due to their ease of deployment, cost-effective maintenance, high mobility, and hovering capabilities. They find applications in wireless coverage, remote sensing, search and rescue, goods delivery, security, surveillance, precision agriculture, and civil infrastructure inspection, among others.
Commercial drone manufacturers are diversifying their product offerings to attract customers from various sectors. For instance, Chinese manufacturer DJI has expanded its portfolio with multiple drone models and solutions tailored for hobbyists, professional filmmakers, and industrial users. This growing drone adoption is driving advancements in the global commercial market, leading to increased market growth during the forecast period.
A significant obstacle to market growth is the stringent regulations governing UAV (Unmanned Aerial Vehicle) use. Concerns arise from the potential misuse of drones by criminals and terrorists, who can exploit these aircraft for illicit activities. Relaxed regulations on drone applications could provide an advantage to such individuals, leading to increased risks. Consequently, many governments worldwide have imposed bans on UAV operations in highly sensitive areas.
For instance, India's Ministry of Civil Aviation implemented strict drone rules in August 2021. These regulations include mandatory type certification, drone pilot licensing, and training from authorized remote pilot training organizations. Another pressing challenge is the vulnerability of commercial drone flight management systems to hacking, necessitating enhanced security measures. These factors may deter widespread commercial drone adoption, potentially hampering global market growth in the forecast period.
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Drone Market Customer Landscape
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 market.
Autel Robotics Co. Ltd.- The company under this segment offers professional drones with a camera. The key offerings of the company include drones such as EVO NANO Series.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the industrial segment will be significant during the forecast period. The real-time airborne inspection makes it possible to quickly assess construction sites or find errors. Hence, the industrial segment is expected to witness rapid growth during the forecast period.
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The industrial segment was valued at USD 4.56 billion in 2017 and continue to grow by 2021. Drone-monitored construction sites saw a 91% reduction in potentially dangerous mishaps. Since 2016, the drone manufacturer 3D Robotics has received repeated investments from Autodesk, a market leader in software for architecture and construction, through its Forge Funds. Forge Platform from Autodesk is being used by 3D Robotics to offer a UAV-to-cloud solution. Their drones may gather site information that is then analyzed using the Autodesk software. The drone serves as a little replacement cell tower that can be used to distribute the load on static towers at catastrophe scenes or during major events. Therefore, such factors are expected to drive demand for drones in industrial applications during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC accounted for the dominant share of the global market in 2022. China is the main revenue contributor to the market in the region. The country is witnessing the swiftly growing adoption of drones in the agriculture, construction, defense, and mining industries. Several farmers in China utilize drones for spraying pesticides on their farms. The availability of drones at a considerably lower cost, the lack of availability of labor, and the increase in technological adoption across the agriculture sector are fueling the demand for drones in the agriculture sector in China. Moreover, several other sectors, especially the photography, event organization, construction, mining, surveying, and industrial sectors, are likely to propel the demand for drones in the country soon. Owing to these factors, the market in China is expected to grow during the forecast period.
Additionally, Japan, India, and South Korea are witnessing the rapid adoption of drones. In June 2019, the Government of Japan adopted a draft bill to create advanced cities called Supercity. The government is aiming at deploying product deliveries by drones, autonomous driving, novel services, and cashless payment services in these cities using sophisticated technologies, such as AI and big data. Furthermore, India has a large consumer base with high technology adoption potential. Therefore, several technology companies and service providers are focusing on deploying drone-based services across the country, which is likely to generate attractive growth opportunities for manufacturers and, subsequently, for drone flight management system suppliers. Hence, such factors are likely to propel the regional market during the forecast period.
In 2020, the outbreak of COVID-19 had a negative impact on the aerospace and defense industry in the region. However, in 2021, the advent of vaccines and the easing of lockdown measures positively impacted the aerospace and defense industry in the region. This is expected to foster the growth of the market in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Drone Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.58% |
Market growth 2023-2027 |
USD 27.78 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.05 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AeroVironment Inc., Autel Robotics Co. Ltd., DELAIR SAS, Drone Delivery Canada Corp., DroneDeploy Inc., EHang Holdings Ltd., Intel Corp., Kespry Inc., Kitty Hawk Corp., Leptron Unmanned Aircraft Systems Inc., Parrot Drones SAS, Pix4D SA, PrecisionHawk Inc., Skydio Inc., SZ DJI Technology Co. Ltd., Teledyne Technologies Inc., Terra Motors Corp., The Boeing Co., Trimble Inc., and Yuneec International Co. Ltd. |
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. |
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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