Tethered Drones Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027

Tethered Drones Market Forecast 2023-2027

The Tethered Drones Market size is estimated to increase by USD 21.64 million between 2022 and 2027, and the size of the market is forecast to grow at a CAGR of 5.72%. The growth of the market depends on several factors, including growing demand for drones in telecommunications, advances in drone stabilization techniques, and expanding application scope.

What will be the Size of the Tethered Drones Market During the Forecast Period?

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Technavio’s Exclusive Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the 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 Market Customer Landscape

Key Drivers, Trends, and Challenges

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.   

Key  Driver

The growing demand for drones in telecommunications is the key factor driving the market growth. Drones are used to perform tower inspections, as they are capable of capturing images, videos, and data about the tower and automatically transmitting them to the carrier network, saving inspection time and manual labor. Drones are also used by carriers for radio planning and line-of-sight testing to determine ideal locations and heights to install antennas. They help create ad-hoc networks, improve cellular coverage, and provide connectivity in remote areas. Additionally, they can carry antennas and other transmitting equipment and also serve as temporary transmission towers in the event that a natural disaster causes irreparable damage to the transmission towers.

In October 2018, AT&T used these products to restore communications over Mexico Beach and the surrounding area, allowing first responders, including police, first responders, and firefighters, to re-establish communications and assist in coordinating rescue efforts. The Flying COW drone can serve its 6,500 customers at any given time, allowing AT and T customers to receive updates on their storm recovery and connect with their families after the damage caused by Hurricane Michael. Thus, the demand for tethering drones is expected to increase during the forecast period, thereby driving the growth of the market. 

Significant Trends

The emergence of miniaturized EO/IR systems will fuel the global market growth. Drones enable high-definition surveillance, long-range precision strikes, and dogfights. This has prompted the technology providers to develop EO/IR payloads that are small enough to provide adequate heat dissipation without sacrificing performance and comply with industry standards. Increased integrated processing power is expected to improve the capabilities of integrated infrared cameras, facilitating the adoption of such systems in the aerospace and defense industry.

The miniaturization of commercial off-the-shelf technology (COTS) enables the development of low ISR products for the smallest UAVs on the market. This has led to the procurement of mini and micro UAVs by both defense and private operators. The immense tactical advantages offered by a small UAV on the battlefield have resulted in significant investments in R&D and procurement of such technologies. Designers of infrared sensors for aerospace and defense applications are focusing on the R&D of EO and IR sensors. They are focused on improving the resolution of IR sensors to match those of visible-light sensors, multispectral sensing and imaging, blending IR sensors with laser range finders, and reducing the size of IR sensor packages for unmanned vehicles and other miniature applications. The emergence of advanced integrated computing systems allows the integration of more advanced payload systems on tethered drone platforms, making them suitable for a variety of mission profiles on different terrain/environments. This is anticipated to further drive the adoption in multiple industries, resulting in subsequent demand and associative systems. Thus, the global tethered market is expected to grow during the forecast period. 

Major Challenge

Inadequately trained drone pilots can majorly impede the growth of the market. Drones have been widely adopted in the routine operations of some industries. However, the drone industry is still being affected by a shortage of trained pilots. Trained pilots are essential to properly control drones, both in military and commercial use, as improper handling can result in a risk to life and property. The current shortage of trained drone pilots can be attributed to the backup training system, creating a situation where demand for trained pilots has outstripped the number of newly trained pilots. In addition, although defense agencies are focused on developing a growing fleet of drones, drone operators face a lack of opportunities for advancement into the ranks.

Governments around the world have issued guidelines regarding license requirements to operate drones to ensure public safety. Meeting these requirements requires rigorous training, an expensive and time-consuming process that has deterred many potential applicants, adding to the scarcity of available talent. Training is relatively expensive and time-consuming. While they require limited control over flight, they perform many important operations, such as damage monitoring and cleaning up dirt and dust buildup.  Such operations require proficient handling of the operator and therefore require adequate training. The lack of trained pilots could reduce the use of drones during the forecast period. 

Who are the Major Tethered Drones Market Players?

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.

AeroVironment Inc.: The company offers tethered drones such as Juma 20, Raven, and Wasp AE.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

• COMSovereign Holding Corp.
• Dragonfly Pictures Inc.
• Elistair Sas
• Flyfocus sp. z o.o
• Groupe Gorge
• Hoverfly Technology Inc.
• Menet Aero LLC.
• Mistral Solutions Pvt. Ltd.
• Novadem
• Perspective Robotics AG
• Sky Drones Technologies Ltd.
• Sky Sapience Ltd.
• Skyshot Pte Ltd
• Spooky Action Inc.
• Teledyne Technologies Inc.
• UAVTEK Ltd.
• Volarious
• Yuneec International Co. Ltd.
• Zenith Aerotech

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Segmentation by End-user, Type, and Geography

The defense segment will contribute a major share of the market. The defense segment was valued at USD 34.51 million in 2017 and continued to grow until 2021. Innovations in microelectronic components and other technological advances in the aerospace sector have led to the development of modern tactical UAVs. They offer better performance characteristics than their predecessors and can be used for highly demanding ISR missions.

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Border Patrol is equipped with state-of-the-art optical and infrared cameras, but extreme weather limits their functionality and effectiveness. They assist border guards by providing continuous surveillance and better communication between dispersed armies. This includes real-time team tracking and map marker sharing for effective attack planning. They also enable tracking of moving targets for border patrol. The effectiveness of these drones can be maximized by connecting them to mobile control stations such as police cars. This allows US to gather critical information about sensor payloads to monitor and protect critical infrastructure sites such as borders, airports, and seaports. For example, in 2023, India announced it needed 130 New Age He drones, to increase surveillance and combat capabilities. Therefore, the defense segment is anticipated to drive the growth of the global tethered drone market over the forecast period.

Type Analysis

The multi-copper segment refers to the use of multi-copper cables for tethering drones. Multi-copper cables are highly conductive and can transmit data and power over long distances with minimal signal loss. They are widely used in various industries, such as aerospace, defense, communications, and energy. In addition, the multi-copper of tethered drones increases the demand for high-speed data transmission and long flights. Multi-copper cables can support high data transfer rates, allowing drones to transmit real-time video and other sensor data to ground stations. The multi-copper cable can also power the drone, allowing it to fly longer without the need for frequent battery changes. This is especially important in applications such as surveillance and security, where drones need to fly uninterrupted for long periods of time. Using multiple copper cables in a tethered drone has several advantages over other cable types, such as fiber optic and coaxial. These cables are highly durable and highly resistant to environmental factors such as temperature and humidity, making them ideal for outdoor use. It also offers more flexibility and manageability than other cable types, making them more convenient and efficient. Therefore, the multi-copper segment of the global tether market is expected to grow during the forecast period.

Regional Analysis

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North America is estimated to contribute 51% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Commercial drones have achieved high growth rates due to miniaturization and numerous innovations driven by COTS technology. There is a growing wave of mini and micro UAV procurement by commercial operators offering small UAVs for agriculture, aerial imaging, and data collection applications. Full-size unmanned drones are also used for geological surveys, ocean surveillance, weather observations, and wildfire prevention missions. Additionally, in North America, especially the United States, is one of the top drone markets due to flexible drone regulations and robust infrastructure in the region. The vast geographic borders of countries like the United States require the use of drones to provide continuous coverage in areas with difficult terrain that limits the reach of patrol units. This has increased the demand for unmanned automated aircraft system with high durability and low operating costs to meet the operational needs of the U.S. Border Patrol.

Tethered drones are increasingly being used by the military as they offer virtually unlimited durability at the cost of limited mobility. Tethered unmanned automated aircraft system are widely used by the US Department of Defense (DoD) for surveillance and security. The Black Hornet is a palm-sized drone used for surveillance, intelligence gathering, and command of small military units and platoons. The ability to integrate powerful optics into tethered unmanned automated aircraft system will also facilitate military adoption to monitor remote areas and strategic military bases for signs of trespassing. Therefore, increasing procurement rates will drive the tethered drone market in the region. Canada and Mexico also use drones for various civilian and military purposes. Although acceptance in these countries is relatively lower than in the United States, tethered drones can be used in many missions. This includes providing security at social events and monitoring traffic at major intersections. This includes assisting emergency responders after natural disasters such as hurricanes commonly seen in the United States. Deployment of drones across the US-Mexico border is underway, creating many business opportunities for Tethered's drone supply chain in the region.

Segment Overview

The market 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. 

• End-user Outlook (USD Million, 2017 - 2027)
  • Defense
  • Telecommunication
  • Inspection and others

• Type Outlook (USD Million, 2017 - 2027)
  • Multi-copter
  • Quadcopter

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

The Market is witnessing substantial growth driven by advancements in technology and the increasing demand for real-time data transmission in various sectors such as precision agriculture and telecommunications. Companies like Easy Aerial are leading the way with innovative products like the Raptor drone, offering solutions for market drivers like enhanced maneuverability and easy aerial surveillance. However, market restraints including regulatory challenges and tether failure pose significant hurdles. Despite this, there are ample opportunities for growth, especially in precision agriculture, where tethered unmanned automated aircraft can overcome operational challenges and provide valuable insights. Regulatory compliance, legislation, and guidelines play a crucial role in shaping the market landscape, ensuring safety and reliability in tethered drone operations, particularly in sectors like telecommunications and agriculture. Efficient base stations and ground control units further enhance the capabilities of UAVs, facilitating their integration into various industries.

Tethered Drones Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.72%
Market growth 2023-2027	USD 21.64 million
Market structure	Fragmented
YoY growth 2022-2023(%)	5.5
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 51%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	AeroVironment Inc., COMSovereign Holding Corp., Dragonfly Pictures Inc., Elistair Sas, Flyfocus sp. z o.o, Groupe Gorge, Hoverfly Technology Inc., Menet Aero LLC., Mistral Solutions Pvt. Ltd., Novadem, Perspective Robotics AG, Sky Drones Technologies Ltd., Sky Sapience Ltd., Skyshot Pte Ltd, Spooky Action Inc., Teledyne Technologies Inc., UAVTEK Ltd., Volarious, Yuneec International Co. Ltd., and Zenith Aerotech
Market dynamics	Parent market analysis, Market forecasting, 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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