Drones as a Service (DaaS) Market

Global Drones as a Service (DaaS) Marketis valued at USD 14.61 Billion in 2022 and it is expected to reach USD 61.89 Billion by 2029 with a CAGR of 22.9% over the forecast period.

Global Drones as a Service (DaaS) Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2023-2029- The market will expand due to the Increasing demand for drone-based services across various industries, and the advancements in drone technology.

Scope of Global Drones as a Service (DaaS) Market Report-

Drones as a Service (DaaS) is a business model that offers drone-based services to end-users on a subscription or pay-per-use basis. This model allows customers to access drone services without having to purchase their own drone, hire a pilot or invest in drone-related technology. The DaaS industry has grown rapidly in recent years due to the increasing popularity of drones and the benefits they offer across a range of industries.

The idea of DaaS emerged in 2014, and the market has since then expanded globally. The commercial drone market experienced a significant boost due to the U.S. Federal Aviation Administration's decision to permit the use of commercial drones in 2016. This decision led to increased investment in the drone industry, and many companies began exploring new ways to offer drone-based services to businesses and consumers.

DaaS has a broad range of applications, including aerial photography, surveillance and security, inspection and monitoring, mapping and surveying, agriculture, and delivery services. Drones can capture high-quality images and videos from unique perspectives, making them ideal for use in film and TV production, real estate photography, and event photography. Drones equipped with thermal imaging cameras can be used for inspection and monitoring, such as in the oil and gas industry, power line inspections, and search and rescue operations.

DaaS is used by businesses across various industries, including agriculture, construction, energy, media, and telecommunications. Farmers use drones to monitor crop health, irrigation, and pests. Construction companies use drones for site inspections, surveying, and mapping. Energy companies use drones for pipeline inspections and monitoring of wind turbines. Media companies use drones to capture aerial footage for TV and film production, while telecommunications companies use them for tower inspections and infrastructure maintenance.

Covid-19 Impact on the Global Drones as a Service (DaaS) Market:

The Covid-19 pandemic had a mixed impact on the Global Drones as a Service (DaaS) market. On one hand, the pandemic led to disruptions in the supply chain and reduced demand for certain drone services, particularly those related to the construction and entertainment industries.

On the other hand, the pandemic also created new opportunities for the use of drones in areas such as healthcare, e-commerce, and public safety, leading to increased demand for drone services.

Overall, the pandemic accelerated the adoption of drone technology in various sectors, and the DaaS market is expected to continue growing in the post-pandemic period.

Key Players of Global Drones as a Service (DaaS) Market Report-

Some major key players for the global Drones as a Service (DaaS) Market report cover prominent players like AeroVironment, Inc., Altitude Angel, Airware, DroneDeploy, Flyability, CyPhy Works, Delair, DJI, Kespry, PrecisionHawk, Sky-Futures, Skydio, Vayu, AirMap, DroneBase, Measure, Parrot SA, Phoenix Drone Services LLC, Skysense, Aerodyne Group, AgEagle Aerial Systems, Agribotix, Airdata UAV, Avetics Global Pte Ltd, Drone Nerds, Dronifi, Dronotec, Easy Aerial, Edall Systems, Flytrex, Hazon Solutions, HoneyComb, Indshine, Involi, Matternet, and others.

Global Drones as a Service (DaaS) Market Segmentation:-

By Service:

• Platform Service
• Simulation & Training
• Maintenance Repair Overhaul

By Application:

• Aerial Photography
• Product Delivery
• Survellience & Inspection
• Data Acquisition & Analytics
• Others

By End-User:

• Agriculture
• Construction and Infrastructure
• Energy and Utilities
• Aviation
• Marine
• Mining
• Oil & Gas
• Media and Entertainment
• Others

Revenue Generation Model:

The revenue generation model of DaaS typically involves charging customers based on the number of flights or the amount of data collected. Some companies charge a flat monthly fee or offer customized pricing plans based on the customer's specific needs. Additionally, some companies offer value-added services, such as data analysis or training, to generate additional revenue.

Supply Chain Model:

The supply chain model for the Global Drones as a Service (DaaS) market typically involves the use of third-party drone service providers who are responsible for providing drone hardware, software, and support services to end-users such as governments, enterprises, and individual consumers. The service providers often partner with drone manufacturers, software developers, and logistics companies to ensure efficient delivery of services. The supply chain also includes regulatory bodies, who oversee the use of drones and ensure compliance with safety and privacy regulations.

Value Chain Model:

The value chain model for the Global Drones as a Service (DaaS) market consists of various activities, including drone hardware and software development, drone operations, data analysis and processing, and customer support services. The value chain starts with drone manufacturers who develop and produce drone hardware, which is then utilized by drone service providers to offer drone services to end-users.

The data collected by drones during their operation is processed and analyzed by data analytics firms, providing valuable insights to end-users. The value chain also includes customer support services, which ensure that customers receive prompt and efficient assistance for any issues or queries they may have.

Market Drivers:

Increasing demand for drone-based services across various industries: There has been a significant increase in the demand for drone-based services across various industries due to their ability to perform a wide range of tasks more efficiently, safely, and cost-effectively than traditional methods. Drones are being increasingly used for applications such as aerial mapping and surveying, infrastructure inspection, agricultural monitoring, search and rescue operations, and delivery services.

This demand is being driven by the need to improve efficiency, reduce costs, and enhance safety in various industries, which can be achieved through the use of drones. For example; the Federal Aviation Administration (FAA) in the United States projects that the number of drones in use for commercial purposes will increase from 110,000 in 2017 to over 450,000 by 2022. This growth is expected to be driven by industries such as construction, agriculture, and infrastructure inspection.

Advancements in drone technology, such as longer flight times and better sensors: Advancements in drone technology, such as longer flight times and better sensors, have led to improved capabilities and increased efficiency in a wide range of applications. Longer flight times allow drones to cover larger areas and complete more tasks in a single flight, reducing the need for multiple flights and increasing productivity. In 2021, there are over 873,000 registered UAS in the United States.

Better sensors, such as high-resolution cameras and thermal imaging sensors, enable drones to collect more accurate and detailed data, which can be used for tasks such as aerial mapping, inspection, and monitoring.

For example, the American Society of Agricultural and Biological Engineers (ASABE) found that the use of drones equipped with high-resolution cameras and other sensors can significantly improve the accuracy and efficiency of crop monitoring and yield estimation.

Market Restraints:

Stringent government regulations and restrictions on drone usage: Governments around the world have implemented regulations to ensure the safe and responsible use of drones, which can include restrictions on where drones can be flown, limits on the weight and size of drones, and requirements for registration and licensing.

These regulations can create barriers to entry for new companies in the drone industry, and can also limit the range of applications for which drones can be used. In addition, concerns around privacy and security can lead to further restrictions on drone usage, which can limit the growth potential of the industry. According to a report by the International Civil Aviation Organization (ICAO), as of November 2021, 116 countries have established regulations for drones.

Market Opportunities:

• The increasing adoption of cloud computing, machine learning, and artificial intelligence technologies can enhance the capabilities of drone-based services and create new opportunities for DaaS providers.
• The growing trend of data-driven decision-making across industries can create demand for drone-based data collection and analysis services, which can be provided through DaaS.

Market Trend:

Product and Technology Development:

Development of autonomous drones: DaaS providers are increasingly investing in the development of autonomous drones that can perform complex tasks without human intervention.

Use of artificial intelligence (AI) and machine learning (ML): DaaS providers are leveraging AI and ML technologies to improve the accuracy and efficiency of drone-based services, such as aerial mapping and surveying.

Customer Trends:

Increasing demand for customized solutions: Customers are increasingly seeking customized drone-based solutions tailored to their specific needs, creating opportunities for DaaS providers to differentiate themselves in the market.

Focus on data analysis: Customers are placing greater emphasis on the data generated by drone-based services, creating opportunities for DaaS providers to offer value-added services, such as data analysis and insights.

Market Competition Nature:

The DaaS market is highly competitive, with a large number of players offering a range of drone-based services. Key market players are adopting various strategies to gain a competitive edge, including:

Strategic partnerships: Many DaaS providers are forming partnerships with other companies to expand their service offerings and reach new markets.

Investments in technology: DaaS providers are investing in the development of new technologies and solutions, such as autonomous drones and AI-based analytics, to differentiate themselves in the market.

Focus on customer experience: DaaS providers are placing greater emphasis on delivering a superior customer experience, including fast turnaround times, high-quality data, and customized solutions, to gain a competitive edge in the market.

Expansion into new markets: DaaS providers are expanding their services into new markets, such as oil and gas, mining, and emergency response, to diversify their revenue streams and capture new opportunities.

Geography Analysis:

North America:

North America is a significant market for DaaS providers, with the United States being the largest market in the region. The market is driven by the increasing adoption of drones in various industries, such as agriculture and construction, and the rising investments in the drone industry by governments and private companies. For example; in 2020, drone company Skydio raised $100 million in funding, marking the largest-ever venture-backed financing round in the drone industry.

Moreover, the Federal Aviation Administration (FAA) has implemented regulations for commercial drone usage, creating opportunities for DaaS providers to offer their services. The increasing demand for drone-based services in the United States has led to the establishment of several companies offering drone-based solutions, driving market growth.

Europe:

The DaaS market in Europe is expected to grow significantly due to the increasing adoption of drone-based services in various industries, including agriculture, construction, and transportation. The European Union Aviation Safety Agency (EASA) estimates that the drone market in Europe will grow to over €15 billion by 2025, with the majority of the growth coming from drone-based services. The European Union has also introduced regulations for the safe use of drones, which is expected to further fuel the growth of the market.

The UK is one of the largest markets for DaaS in Europe, with a growing number of companies offering drone-based services in the country. Germany is also showing significant growth potential, with increasing investments in the drone industry by the government and private companies. In 2021, the German government allocated €30 million for the research and development of drone technology through its National Aerospace Research Programme.

Key Benefits of Global Drones as a Service (DaaS) Market Report–

• Global Drones as a Service (DaaS) Market report covers in-depth historical and forecast analysis.
• Global Drones as a Service (DaaS) 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 Drones as a Service (DaaS) Market report helps to identify opportunities in the marketplace.
• Global Drones as a Service (DaaS) Market report covers extensive analysis of emerging trends and competitive landscape.