Enjoy complimentary customisation on priority with our Enterprise License!
The commercial drones market size is forecast to increase by USD 126.87 billion between 2023 and 2028, accelerating at a CAGR of 57.74%. The market is experiencing significant growth due to the increasing applications of unmanned aerial vehicles (UAVs) in various industries. This trend is further propelled by substantial funding for UAV manufacturers and the expanding legal acceptance of drone operations for commercial applications. However, market expansion is hampered by stringent laws and regulations governing the use of Unmanned Aerial Vehicles. Additionally, cybersecurity threats pose a significant challenge, as drones are increasingly targeted by hackers. Furthermore, the short battery life and limited payload-carrying capacity of drones are constraints that need to be addressed to fully unlock their potential in commercial applications. Despite these challenges, the future of the commercial drones market looks promising, with continued innovation and advancements expected to overcome these hurdles.
To learn more about this report, Download Report Sample
The rising applications of drones are a key factor driving the market growth. Historically, drones were primarily utilized by the defense and military sectors. However, technological advancements have diversified their applications, including agriculture, construction, mapping, logistics, and surveillance. The logistics industry, in particular, is increasingly adopting drones for various applications, with companies like Zipline partnering with Walmart for commercial drone deliveries in the US. Unlike traditional rotorcraft, Zipline employs fixed-wing drones, offering larger payload capacity and longer range, albeit with more complex operations.
Drones enable faster deliveries compared to road transport, especially in areas affected by traffic congestion and limited maneuverability. With companies like DHL and Amazon planning drone delivery services, the global demand is poised for significant growth. The ongoing development in drone technology is expected to drive the global market in the forecast period.
Software and Service is the Leading Segment to Dominate the Market
This software and services segment holds the largest commercial drone market is expected to dominate the market during the forecast period. The growth of this segment is attributed to factors such as the increasing demand for software in drones. Software solutions help companies validate and analyze drone data. The high cost associated with manufacturing drones, along with the competitive advantages and economic scales of established vendors such as DJI and Parrot, have forced many other vendors to stop manufacturing drones and shift to offering technical platforms and software solutions that are compatible with the drones available in the market. 3DR offers various drone software that can be used by end-users in defense, construction, mining, engineering, and other sectors to enable companies to capture data quickly and use it in estimating, designing, and tracking various processes. Such factors will increase segment growth during the forecast period.
North America is estimated to contribute 43% to the growth of the global market during the forecast period. In North America, the US DoD and the National Aeronautics and Space Administration (NASA) are investing strongly in the R&D of advanced electronics and sensors for military UAVs, which will replace the existing avionics systems. Moreover, the government of the nation is increasingly focusing on empowering the defense forces of the nation. Drones are widely used by the DoD for surveillance, security, and spying. For instance, in May 2021, the US Army awarded a contract of USD 15.4 million to FLIR for its FLIR Black Hornet 3 personal reconnaissance systems. Black Hornet 3 is a palm-sized drone used for surveillance, spying, and guiding small military units and platoons. The success of drone strikes has increased the reliability of governing bodies over drones, which is likely to propel their demand and subsequently fuel the growth of the regional market during the forecast period.
To understand geographic trends Download Report Sample
The market encompasses a range of aerial vehicles, including quadcopters, octocopters, and hexacopters, which are increasingly being utilized for various purposes. Flight control systems, firmware, middleware, computer vision, and artificial intelligence are essential components of these drones. Commercial applications span across industries such as the energy sector, where drones are used for pipeline inspection and oil tank monitoring. In the environmental arena, hydrogen-powered and self-charging drones contribute to awareness and data collection. The defense sector also leverages drone technology for decision-making and surveillance. Furthermore, advancements in 5G delivery, computing, microcontrollers, processors, mobile hardware, cameras, and machine learning are driving innovation in this sector. Applications in public transportation, self-driving taxis, drone waitstaff, and flying assistants are also emerging. 3D mapping and photography are other significant areas of application for commercial drones.
Key Market Driver
Commercial drones have seen significant expansion in their applications beyond the defense and military industry. Quadcopters, Octocopters, and Hexacopters are among the popular drone types employed for commercial purposes. Flight control and firmware are crucial components ensuring stable and efficient drone operations. Technological advances have led to the development of drones with computer vision, environmental awareness, hydrogen-powered, and self-charging capabilities. In the logistics sector, drones are poised to revolutionize delivery services, with companies like DHL and Amazon exploring their potential.
Drones can deliver goods faster than road transport, mitigating the challenges posed by increasing traffic congestion. The energy sector is another significant area of application, with drones used for 5G delivery, pipeline inspection, and monitoring oil tanks. Moreover, drones are increasingly being used in the construction sector for 3D mapping, project alerts, safety monitoring, and accident prevention. They are particularly useful for inspecting unstable roofs, inaccessible positions, and elevated infrastructure. Drones can also be employed as flying assistants, drone waitstaff, self-driving taxis, and public transportation solutions. IIT Hyderabad is among the institutions researching drone applications in various industries. Drones are also being explored for security purposes, including monitoring construction sites, surveillance, and accident prevention. With the growing demand for commercial drones, there is a need for middleware, software, and hardware solutions to support their integration into various industries. The use of drones in photography, surveillance, and security is expected to continue growing, offering numerous opportunities for businesses and entrepreneurs.
The Commercial Drones Market is fragmented in nature. Some significant players include Aeronavics, AeroTargets International LLC
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Aeronavics, AeroTargets International LLC, AeroVironment Inc., Anadrone Systems Pvt. Ltd., Arc Sky LLC, Autel Robotics Co. Ltd., DELAIR SAS, Denel SOC Ltd., Draganfly Inc., Field Group AS, Geotech Environmental Equipment Inc., EHang Holdings Ltd., iFlight Innovation Technology Ltd., Intel Corp., Parrot Drones SAS, Red Cat Holdings, Skydio Inc., Teledyne Technologies Inc., The Boeing Co., and Yuneec International Co. Ltd.
The commercial drones market 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 due to the increasing adoption of these technologies in various industries. Key applications include agriculture, construction, filmmaking, and delivery services. The market is driven by factors such as the need for efficient and cost-effective solutions, advancements in technology, and regulatory approvals. Drone components, including cameras, sensors, and propulsion systems, are essential for their functionality. Companies are focusing on developing innovative drone designs and improving their capabilities to cater to diverse industry requirements. The market is expected to continue its growth trajectory in the coming years, with an increasing number of applications and industries adopting commercial drone technology. The global market for commercial drones is expanding, with key players investing in research and development to stay competitive. The demand for drones is particularly high in sectors such as construction and infrastructure, where they offer significant benefits in terms of efficiency and cost savings. The market is also witnessing increased investment from venture capitalists and private equity firms, further fueling its growth. The use of drones in sectors such as mining, oil and gas, and utilities is also gaining momentum, as they offer advantages in terms of safety, cost savings, and operational efficiency. The market is expected to reach new heights in the coming years, with increasing applications and industries adopting commercial drone technology.
Commercial Drones Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 57.74% |
Market growth 2024-2028 |
USD 126.87 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
39.9 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 43% |
Key countries |
US, China, France, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aeronavics, AeroTargets International LLC, AeroVironment Inc., Anadrone Systems Pvt. Ltd., Arc Sky LLC, Autel Robotics Co. Ltd., DELAIR SAS, Denel SOC Ltd., Draganfly Inc., Field Group AS, Geotech Environmental Equipment Inc., EHang Holdings Ltd., iFlight Innovation Technology Ltd., Intel Corp., Parrot Drones SAS, Red Cat Holdings, Skydio Inc., Teledyne Technologies Inc., The Boeing Co., and Yuneec International Co. Ltd. |
Market dynamics |
Parent market analysis, market trends, market trends and analysis, market growth analysis, market research and growth, market growth and forecasting, Market forecasting, market growth and trends, market forecast, market analysis and report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.