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The drone services market size is estimated to grow at a CAGR of 24.16% between 2023 and 2028. The market size is forecast to increase by USD 36.10 billion. The growth of the market depends on several factors growing applications of drones, the increase in legal acceptance of drone operations for commercial applications, and the growing demand for time-efficient delivery services.
The report includes a comprehensive outlook on the drone services market offering forecasts for the industry segmented by Type, which comprises drone platform services, drone MRO services, and drone training and simulation services. Additionally, it categorizes Application into aerial photography, product delivery, surveillance and inspection, data acquisitions and analytics, and others, and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Drone Services Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Drones were initially adopted by the defense and military industry. However, technological advances led to the use of drones in diversified applications such as agriculture, construction, mapping, logistics, and surveillance. The application of drones is becoming more widespread in the logistics sector. A number of logistics companies have already carried out tests or trials with drone deliveries. For instance, in September 2020, Zipline International Inc. (Zipline) partnered with Walmart Inc. (Walmart) on drone delivery to bring drone delivery services to the US. Zipline uses fixed-wing drones rather than rotorcraft, which provides them with a comparatively large payload capacity and extremely long range at the price of a substantially more complicated launch, landing, and distribution operation.
Moreover, an increase in traffic congestion has reduced the degree of vehicle maneuverability and poses several limitations to the delivery of goods by road. The use of drones for delivery will help in overcoming such limitations. Such development in drones is expected to propel demand for drones, thereby driving the global drone services market during the forecast period.
The growth of precision farming, which is strengthening the global drone services market, also has a positive impact on agriculture. The possibility of increasing crop yields is possible through precision farming. Using drone services to help farmers optimize the use of seeds, fertilizers, water, and the rest of others to get rid of weeds, pests, or fungi by taking suitable action can be beneficial for agriculture. The utilization of drones in farming likewise helps in spraying fertilizers, herbicides, and desiccants precisely. As more precise images become available, drones in the agricultural sector are becoming an effective tool for crop and livestock surveillance that enables a wide range of data to be collected.
In addition, the benefits of employing drones in agriculture are that they save time, provide better data and cost savings from better images, and help in troubleshooting potential problems. Thus, the farmers are adopting drone technology, which, in turn, will fuel the growth of the global drone services market during the forecast period.
UAVs employ several technologies to ensure effective communication and relay of information between the platform and the controller. As UAVs lack manual support, they rely solely on parameters transmitted by onboard sensors to determine flight parameters such as speed and altitude. Therefore, any external interference caused by altering the data (commands) sent through UAV datalinks can affect one or more flight parameters and lead to catastrophic results. For instance, a UAV operating on an unencrypted wireless fidelity (Wi-Fi) network is susceptible to external interference, and the device will fail to verify the integrity of the data transmitted.
However, most modern UAVs use pre-programmed flight paths, wherein the onboard flight computer is responsible for autonomous flight. Although remote control is mandatory, it is only used as backup control. Once malware is introduced, the hacker can reprogram the flight computer or steal data from the computer. Such threats have increased the skepticism regarding the adoption of UAVs and may hinder the adoption of drones, thereby hampering the market during the forecast period.
The market share growth by the drone platform services segment will be significant during the forecast period. The drone platforms services segment held the largest market share in the global drone services market in 2023. The drone platform services include flight piloting and operation, data analysis, and data processing.
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The drone platform services segment was the largest and was valued at USD 4.38 billion in 2018. The use of drones for various commercial purposes includes agriculture, transport, mapping, aerial photography, and videography. Involving drones helps to increase productivity and enhance methods of farming in the agriculture sector. The farming industry is driven by increasing demand for precision agriculture. Also, precision farming may be able to improve the yield of crops. With the assistance of drone analytics software, enterprises are able to view, use, and analyze aerial data generated by drone data services, which is beneficial to end-users. In view of the high adaptability of data collection to different commercial sectors, drone platform services are expected to grow significantly in the drone services market during the forecast period.
Based on application, the market has been segmented into aerial photography, product delivery, surveillance and inspection, data acquisitions and analytics, and others. The aerial photography segment will account for the largest share of this segment.? The demand for aerial photography is high in the military and defense sectors. Aerial photography has many benefits, including capturing hard-to-reach angles and locations, gaining new perspectives on familiar subjects, and surveying large areas quickly. Additionally, in the defense sector, aerial photographs help to make plans and disclose the enemy's information. In cases of emergency and in remote areas, drones are extensively used owing to their convenience. Thus, the convenience, safety, cost-effectiveness, wide coverage, and more are expected to fuel the aerial photography segment, which, in turn, will fuel the global drone services market during the forecast period.
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North America is estimated to contribute 38% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The drone services market in North America is expected to grow significantly during the forecast period. The US is one of the earliest and largest consumers of advanced technology. It is estimated that, over the forecast period, demand for drone data services across the region will rise due to their increased usage in various commercial applications, such as surveys of agricultural, oil and gas pipelines, and construction purposes or logistics.
Furthermore, the expanding applications of drone data services in the agriculture, oil and gas pipeline survey, construction, logistics, and commercial sectors are expected to fuel the demand for drone services in the region, thereby driving the regional drone services market during the forecast period.
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.
Aerodyne Group - The company offers drone services such as Aerodyne DT3 with drone technology, data technology, and digital transformation enterprise solutions provider, used for wind turbines industries, solar power industries, and power grid and tower inspection industries.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including: Aerodyne Group, AgEagle Aerial Systems Inc., Areion UAS LLC, Cyberhawk Innovations, Deveron Corp., DroneDeploy Inc., Field Group AS, Guangzhou XAG Co. Ltd., ICR Group, Identified Technologies, iFlight Innovation Technology Ltd., Matternet, Phoenix Drone Services LLC, Safe Pro Group Inc., Sharper Shape Inc., Skydio Inc., Skydrop LLC, Skyports Ltd., Terra Drone Corp., and Zipline International Inc.
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.
The drone services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Drone Services Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.16% |
Market Growth 2024-2028 |
USD 36.10 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
22.39 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aerodyne Group, AgEagle Aerial Systems Inc., Areion UAS LLC, Cyberhawk Innovations, Deveron Corp., DroneDeploy Inc., Field Group AS, Guangzhou XAG Co. Ltd., ICR Group, Identified Technologies, iFlight Innovation Technology Ltd., Matternet, Phoenix Drone Services LLC, Safe Pro Group Inc., Sharper Shape Inc., Skydio Inc., Skydrop LLC, Skyports Ltd., Terra Drone Corp., and Zipline International Inc. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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