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The drone payload market is estimated to grow at a CAGR of 13.82% between 2022 and 2027. The size of the market is forecast to increase by USD 8,795.43 million. The growth of the market depends on several factors, including rising drone applications, increasing defense spending on unmanned technologies, and the rise in the popularity of drone racing.
This report extensively covers market segmentation by type (sensors, weaponry, radar, and others), end-user (defense and commercial), 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. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global drone payload market as a part of the global aerospace and defense market within the global capital goods market. The parent, global aerospace and defense market covers products and companies engaged in the production of aerial platforms used under commercial and general aviation; defense platforms used under naval, land, and air domains; arms and ammunition; defense electronics; defense logistics equipment; and space platforms, equipment, and launch vehicles. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising drone applications are notably driving the market growth, although factors such as non-uniform laws and regulations 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.
Key Drone Payload Market Driver
The rising drone applications are notably driving market growth. Earlier the defense and military industry was the primary adopters of drones. Eventually, sectors like agriculture, construction, mapping, logistics, and surveillance started using drones owing to technological advances. The logistics sector is witnessing expanding applications of drones. Several logistics companies have either tested or are testing deliveries using drones. The use of drones can effectively deliver goods in a shorter time than that required by road transport.
Drones are also intensively being deployed in disaster management applications. They can be used to deliver food, medical kits, and other packages to people stuck in disasters. Drones are also witnessing increased applications in the field of agriculture, weather forecasting, town planning, mining, surveying, and several commercial uses. Hence, such factors will boost market growth during the forecast period.
Significant Drone Payload Market Trend
Technological advancement is an emerging trend in the market. To meet the growing demand from consumer and end-user industries manufacturers are highly focused on developing advanced drone technologies. Furthermore, advanced technologies and solutions such as cloud computing, artificial intelligence (AI), deep learning (DL), and machine learning (ML) are used by vendors to offer next-generation drones.
Vendors are launching new drones that use AI. According to Microsoft and DJI, drones powered by AI have a wide range of applications. For example, business entities owning huge warehouses can easily check their stock using AI-equipped drones. Also, real estate companies can easily inspect buildings for cracks, holes, and rust formation. The launch of such new AI-equipped drones during the forecast period is expected to boost the adoption of drone payload. Hence, such factors will positively influence the global market during the forecast period.
Major Drone Payload Market Challenge
Non-uniform laws and regulations are major challenges impeding the market. Irrespective of the drone usage by various governments and commercial bodies the scope of such systems' usage is dependent on certain rules and regulations of a country. The numerous regulations that restrict the scope of operations of drones act as a major threat to the mass adoption of drones.
Several regulations have been levied by the FAA that impede the growth of the global market. The most prevalent of the aforementioned restrictions is the line-of-sight rule, which mandates that drone operators keep the UAS within their scope of vision during flight. Though there are different FAA norms for commercial and recreational uses of drones, with recreational drone laws being more relaxed than commercial ones, the line of sight remains pivotal and applicable throughout. Such regulatory hurdles are expected to prevent the mass adoption of UAVs. therefore, these factors will hinder the market growth during the forecast period.
Key Drone Payload Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from 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 Payload 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.
Advanced Technology Labs AG - The company operates under one segment. The company under this segment offers technological solutions such as cameras, sensors, cases, and others for drones, to its associate partners. The key offerings of the company include drones.
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 sensors segment will be significant during the forecast period. A sensor is a device that allows a camera to convert photons - that is, light - into electrical signals that can be interpreted by these sensors.
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The sensors segment was valued at USD 2,598.62 million in 2017 and continued to grow until 2021. A sensor is a device that is used majorly in standalone or embedded digital cameras and imaging devices. Generally, when light strikes the lens of a camera, the sensor captures that light converts it into an electronic signal, and then transmits it to the camera or imaging device processor, which transforms the electronic signal into digital imaging. There are two main types of sensors: charged coupled devices (CCD) and complementary metal oxide semiconductors (CMOS). They operate much more like a standard integrated circuit, with logic-level voltage supplies, on-chip imaging processing, and digital output data. CCDs have lower noise, better pixel-to-pixel uniformity, and a general reputation for superior imaging quality. Owing to such uses the segment is expected to grow during the forecast period.
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Europe is estimated to contribute 32% 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.
The drone payload market in North America was led by the US in 2020. The US has been a rapid and massive adopter of advanced technologies. The expanding use of drones in various commercial applications, such as agriculture and oil and gas pipeline surveys, construction purposes, and logistics, is predicted to fuel their demand across the country during the forecast period. Besides, the region has several vendors that offer various advanced drone hardware and software solutions to end-user industries.
Furthermore, the use of drones in the US public safety sector is increasing. Various fire rescue teams have started using drones to detect fire, and hazardous materials and find potential victims. Such advances in drones and their increased adoption in different industries are expected to boost the demand for drone payload in the US during the forecast period.
In 2020, the COVID-19 outbreak has had a significant impact on the regional market. The demand for drones has risen rapidly due to their wide range of applications. Drones have been purchased by law enforcement forces all over the world to help maintain social distance norms and carry out situation-monitoring tasks without risking exposure. Therefore, such factors are expected to boost the regional market 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. The market has been segmented by Type (Sensors, Weaponry, Radar, and Others), End-user (Defense and Commercial), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
Drone Payload Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.82% |
Market growth 2023-2027 |
USD 8,795.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.45 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 32% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Technology Labs AG, Aerialtronics DV B.V., AeroVironment Inc., Autel Robotics Co. Ltd., BAE Systems Plc, Draganfly Inc, Elbit Systems Ltd., Flyability SA, Headwall Photonics Inc., Imsar LLC, Israel Aerospace Industries Ltd., Lockheed Martin Corp., Parrot Drones SAS, Sphere Group, SZ DJI Technology Co. Ltd., Teledyne Technologies Inc., Thales Group, The Boeing Co., Yuneec International Co. Ltd., and Northrop Grumman Corp. |
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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