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The Drone Market size is estimated to grow by USD 36.1 billion at a CAGR of 15.23% between 2023 and 2028. The market's expansion hinges on various factors, including increased drone applications, sensor advancements, the emergence of affordable drones, and the growing popularity of drone racing. These factors collectively drive market growth, reflecting the industry's dynamic nature and evolving trends. The rise in drone applications signifies their increasing utility across various sectors, from agriculture to logistics. Advancements in sensors enhance drone capabilities, enabling more sophisticated functionalities and applications. The emergence of low-cost drones has democratized access to drone technology, driving adoption among consumers and businesses. Additionally, the popularity of drone racing has created a new market segment, further stimulating drone sales and technological advancements. These factors contribute to the market's growth trajectory, shaping the future of the drone industry. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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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 4.90 billion in 2018. 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 42% 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.
The market is witnessing rapid growth driven by diverse applications across industries. Unmanned aerial vehicles and robots are revolutionizing sectors like construction and real estate, enabling efficient monitoring and inspection. Drones play a crucial role in traffic monitoring, videography, and delivery services, enhancing operations and safety. In the defense sector, they are used for border security and military operations, including search and rescue and aerial photography. Advanced features like autonomous capabilities and precision-guided bombs are transforming military operations, making drones indispensable in modern warfare and civilian applications alike. In the construction and real estate sectors, autonomous drones equipped with video recording capabilities are increasingly used for search and rescue operations, particularly in situations involving unstable roofs and electrical cables, powered by advanced computing technology, microcontrollers, and processors. The use of carbon fiber in drone construction enhances performance by significantly reducing weight while maintaining strength, leading to improved flight efficiency and longer battery life.
The advancements in sensors and the emergence of low-cost drones are notably driving the market growth. Companies 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 Market Customer Landscape
Companies 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.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing significant growth, driven by a wide range of applications across various industries. Drones are used for weather monitoring, aerial surveillance, and anti-aircraft target practice, among other purposes. In the military sector, they play crucial roles in intelligence gathering, artillery spotting, and combat operations, including the use of unmanned aerial combat vehicles and precision-guided missiles. Advanced sensors such as ultrasonic, laser, and LIDAR sensors enhance their capabilities in mineral exploration, crop health assessment, and environmental monitoring. Drones are also utilized in public services, delivery and logistics, and entertainment industries, showcasing their versatility and potential impact on various sectors.
The market is evolving rapidly, with applications ranging from weaponry and military drones to aerial surveying and delivery services. Originally developed for military purposes, drones have since found applications in oil and gas exploration, transportation, telecommunications, and entertainment. They are equipped with advanced technologies such as laser sensors, thermal imaging cameras, and artificial intelligence, enabling precise data capture and analysis. In the agriculture sector, drones are used for precision agriculture and harvesting, improving agricultural productivity. With advancements in electric propulsion and autonomous navigation, drones are set to play a crucial role in various industries, including emergency response and wildlife conservation.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.23% |
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Market growth 2024-2028 |
USD 36.1 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.86 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 42% |
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Key countries |
China, US, Germany, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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., Spirit AeroSystems Inc., SZ DJI Technology Co. Ltd., Teledyne Technologies Inc., Terra Motors Corp., The Boeing Co., Trimble Inc., 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, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our market 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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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