Commercial Drone Market

Global Commercial Drone Market is valued at USD 24.89 Billion in 2022 and it is expected to reach USD 216.40 Billion by 2029 with a CAGR of 36.2% over the forecast period.

Global Commercial Drone Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2023-2029: The market is set to grow extensively with the high usage of commercial drones in various industries attributed to the growing investments and rapid technological advancements in these industries.

Scope:

Commercial drones are unmanned aerial vehicles (UAVs) that are used for commercial purposes, such as aerial photography and videography, surveying, mapping, inspection, agriculture, delivery, and security. These drones are equipped with cameras, sensors, and other devices that allow them to perform various tasks.

The history of commercial drones dates to the early 2000s when the first commercial drone was used for aerial photography. In the following years, drones were used mainly for military purposes until the late 2000s when commercial Drones began to emerge.

The applications of commercial drones are diverse and expanding rapidly. These can be used for aerial photography and videography, surveying, an inspection of buildings and infrastructure, delivery of goods, and many other purposes. In agriculture, drones can be used for crop monitoring and analysis, and for spraying pesticides, and fertilizers. In construction, drones can be used for surveying and mapping, monitoring job sites, and inspecting infrastructure.

The end-users of commercial drones include various industries, including agriculture, construction, mining, surveillance, and delivery, among others.

Market Revenue Generation Model:

The software is used to plan, track, and manage drone operations, including flight planning, risk assessment, and compliance with regulations. The revenue generation model of check-in software in the commercial drone market is based on the subscription or licensing fees charged for the use of the software.

Supply Chain Analysis:

The supply chain model of the commercial drone market involves the production and distribution of drones, which includes components such as batteries, sensors, cameras, and software. The supply chain also includes the distribution of drones to end-users, including manufacturers, service providers, and government agencies.

Value Chain Analysis:

The value chain model of the commercial drone market includes the creation of value-added products and services by drone manufacturers, software providers, and service providers. The composition of this value chain incorporates the design, development, production, and distribution of drones and software, as well as the provision of services such as aerial surveying, inspection, and monitoring.

Covid-19 Impact :

Covid-19 had a mixed impact on the commercial drone market. With the outbreak of the Covid-19 pandemic, there was an increase in demand for contactless delivery services. Delivery drones emerged as a solution to this problem, leading to an increase in demand for commercial drones for delivery purposes.

During the pandemic, drones were especially used for surveillance and monitoring purposes to ensure social distancing measures were followed and to monitor large gatherings. This led to an increase in demand for commercial Drones in the surveillance and monitoring industry.

However, the Covid-19 pandemic also disrupted the global supply chain, including the manufacturing of commercial drones, leading to a shortage of drones in the market. Furthermore, the pandemic also resulted in restrictions on travel and movement, leading to a decreased demand for commercial drones in certain industries such as tourism and event management.

Key Players:

• DJI
• Parrot SA
• AeroVironment Inc.
• PrecisionHawk Inc.
• 3D Robotics Inc.
• Yuneec International
• Autel Robotics USA
• Airobotics Ltd.
• Insitu Inc.
• DroneDeploy
• EHang Holdings Limited
• Skydio Inc.
• Kespry Inc.
• Flyability SA
• FLIR Systems Inc.
• Intel Corporation
• CyPhy Works Inc.
• Walkera Technology Co. Ltd.
• Zipline International Inc.
• Delair Tech SAS
• Uvionix Corporation
• UbiQD Inc.
• Freefly Systems Inc.
• Hoverfly Technologies Inc.
• SlantRange Inc.
• Sentera Inc.
• Avitas Systems
• Unifly NV
• Airware Inc.
• FlyNex GmbH
• Flytrex Aviation Ltd.
• Impossible Aerospace Corporation
• AirMap Inc.
• Altavian Inc.
• senseFly SA
• Quantum Systems GmbH
• IntelinAir Inc.
• Matternet Inc.
• Voloc

Segmentation:

By Product:

• Fixed-wing drones
• Rotary-wing drones
• Hybrid drones

By Mode of Operation:

• AI Control
• Autonomous Control
• Semi-Autonomous Control
• Remote Control

ByEnd-User:

• Healthcare
• Retail
• E-Commerce
• Agriculture
• Energy & Utilities
• Media & Entertainment
• Real Estate & Construction
• Logistics & Transportation
• Security & Surveillance
• Others

Distribution Channel:

• Online Retail
• Direct Sales
  • Third-party resellers
  • Enterprise sales
  • Rental services

Market Drivers:

Rapid advancements in drone technology: Drones are becoming increasingly sophisticated and are now equipped with advanced sensors, high-resolution cameras, and GPS systems, making them more efficient and easier to operate. In 2020, DJI, a leading drone manufacturer released the Mavic Air 2, which includes features such as 4K video, 48-megapixel photos, and a 34-minute flight time. The technological advancements in the commercial drone market have led to the development of new applications, such as aerial surveying, inspection, and mapping.

Additionally, advancements in battery technology have enabled drones to fly for longer periods, increasing their range and making them more practical for commercial use. In industries such as construction and infrastructure, drones are being used to inspect and survey sites, reducing the need for workers to climb scaffolds or other dangerous structures. The use of drones in these industries has led to increased safety and efficiency, as well as cost savings.

Growing investment in drone technology: Investors are increasingly funding drone startups and companies that are developing innovative drone technologies. This investment is helping to drive innovation in the drone industry and is leading to the development of new and more advanced drone technologies. For instance; in 2020, Skydio, a U.S.-based drone manufacturer, raised USD 100 million in a funding round led by Next47, with participation from other investors. As the investment in drone technology continues to grow, the commercial drone market is expected to experience significant growth.

Market Restraints:

Limited battery life and flight time: Most commercial drones can only fly for 20-30 minutes on a single charge, which limits their range and the amount of work these can do in a single flight. This limitation is particularly challenging in industries such as aerial surveying and inspection, where drones need to cover large areas and fly for extended periods. As a result, companies may need to invest in additional batteries or multiple drones, which can increase costs and reduce efficiency.

Moreover, extreme weather conditions such as rain or strong winds can significantly reduce a drone's flight time and range, further limiting their use in certain industries.

Safety and security concerns: Drones can pose a significant safety risk to people and property if not operated properly, and they can also be used for malicious purposes such as spying or delivering contraband. As a result, governments and regulatory bodies have implemented strict guidelines and regulations for the use of drones in commercial applications.

Market Opportunities:

Increasing demand from agriculture sector: The agriculture sector is one of the key opportunities for the commercial drones market. Farmers are increasingly adopting drones for crop mapping, soil analysis, and yield monitoring, among other applications. The use of drones in agriculture helps farmers to optimize crop yields, reduce costs, and improve overall efficiency. As the demand for food continues to grow, the adoption of drones in agriculture is expected to increase, presenting a significant growth opportunity for the commercial drones market.

Construction and Infrastructure: Drones can be used for aerial surveys, mapping, and inspection of construction sites and infrastructure, such as bridges and power lines. They can provide real-time data, improving safety and efficiency in the construction process.

According to a report by DroneDeploy, a leading provider of drone mapping software, the use of drones for aerial photography and videography in the construction industry has increased by 239% in the past year.

Market Trends:

Product and technology development: The commercial drones market is witnessing a rapid pace of technological advancements, and there are several trends that are shaping the product and technology development in this industry. One of the significant trends is the development of more advanced sensors and imaging technologies that enable drones to capture higher-quality data. For instance, companies are developing drones with advanced camera systems, including thermal and multispectral cameras, which can capture more detailed images and detect hidden issues.

Another trend is the integration of artificial intelligence (AI) and machine learning (ML) technologies, which are making drones more intelligent and helping them make informed decisions. The development of autonomous drones that can operate without human intervention is another significant trend that is gaining traction in the market. Such drones can fly longer and cover more areas, resulting in improved efficiency and cost reduction. Finally, the development of new battery technologies is extending the flight time of drones, enabling them to cover longer distances and perform more complicated tasks.

Customer Trend: The commercial drones market is witnessing an increasing demand for drones that are easy to use and require minimal training. This trend is driven by the growing adoption of drones in various industries, including agriculture, construction, and public safety, where users often have little or no experience with drones. Another trend is the growing preference for drones that are portable and can be easily transported. Many users require drones that are lightweight and compact, which can be quickly deployed to remote locations.

The demand for affordable drones that provide a good return on investment is also increasing. Customers are looking for drones that can deliver high-quality data and insights at a reasonable price point. Finally, data privacy and security are becoming a significant concern for customers, which is driving demand for drones that have secure data transmission and storage capabilities. Overall, customers are seeking drones that are reliable, easy to use, and provide valuable data insights that can improve their operations.

Market Competition Nature:

The commercial drones market is highly competitive, with a large number of players operating in the market. Some of the key players in the market include DJI, Parrot SA, 3D Robotics, Yuneec International, and GoPro, among others. These companies are competing on the basis of product features, price, and customer service, among other factors.

To stay competitive, key market players are adopting various strategies, such as mergers and acquisitions, partnerships, and product launches. For example; in 2020, DJI launched the Mavic Air 2 drone, which features advanced imaging capabilities and a longer flight time.

Geography Analysis:

North America

North America is expected to show  a significant growth in the commercial drone market owing to the increased use of drones and favorable government regulations. The growth of the commercial drone market in North America can be attributed to the increasing adoption of drones in various industries, including agriculture, construction, and public safety. The United States, in particular, has been at the forefront of drone adoption, with the Federal Aviation Administration (FAA) relaxing regulations for commercial drone usage in recent years. The FAA's Part 107 regulations, which allow for the commercial operation of drones weighing less than 55 pounds, have encouraged businesses to adopt drones for various applications.

According to a report by the Association for Unmanned Vehicle Systems International (AUVSI), the economic impact of the drone industry in the United States is expected to reach $82 billion by 2025, with the creation of over 100,000 jobs. The report also highlights that the agriculture and public safety sectors are expected to be the largest adopters of drones in the United States.

Europe

Conducive regulatory frameworks are stimulating growth in the commercial drones market across Europe. In Europe, the use of drones is regulated by the European Union Aviation Safety Agency (EASA). The agency has issued regulations for the safe operation of drones in the region, which has helped to increase the adoption of drones in various industries. According to estimates from the European Commission, the European drone services industry could be worth €14.5 bn and create 145,000 jobs by 2030.

The regulatory framework for commercial drones in Europe is also evolving, with the European Union's new drone regulations, which came into effect in December 2020. The new regulations are expected to increase the adoption of drones in Europe, as they provide a standardized framework for drone operations across the European Union member states. In addition, the European Commission has launched several initiatives to support the growth of the commercial drone market in Europe, including funding for research and development, and support for the development of drone-related services.

By Regional & Country Level:

• North America
  • US.
  • Canada
• Europe
  • K.
  • France
  • Germany
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • GCC
  • Africa
  • Rest of Middle East and Africa

Key Benefits of Global Commercial Drone Market Report–

• Global Commercial Drone Market report covers in-depth historical and forecast analysis.
• Global Commercial Drone Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Commercial Drone Market report helps to identify opportunities in the marketplace.
• Global Commercial Drone Market report covers an extensive analysis of emerging trends and the competitive landscape.