The commercial drone market refers to using unmanned aerial vehicles (UAVs) or drones for commercial purposes such as aerial photography, surveying, agriculture, inspection, and delivery services.
The market has grown recently due to technological advances, increasing demand for drones in various industries, and favorable regulations.
The market for commercial drone in 2021 was USD 8.15 billion, and by 2030, it will be worth USD 47.38 billion, at a 28.58% CAGR during the forecast period.
The demand for commercial drones is being driven by agriculture, construction, mining, and oil and gas industries, which use drones for surveying and mapping, monitoring and inspecting assets, and improving efficiency and safety. The use of drones for delivery services will drive the growth of the commercial drone market, particularly in the e-commerce sector.
Market Dynamics
Drivers
- Advancements in technology: The advancements in drone technology have enabled the development of more efficient and effective drones, which have expanded the use of drones in various industries. These advancements include improvements in battery life, sensors, imaging, and software.
- Increasing demand in various industries: There is an increasing need for drones in agriculture, construction, mining, oil and gas, and delivery services, among others. Drones are being utilized for surveying and mapping, monitoring and inspecting assets, improving safety and efficiency, and delivering goods.
- Favorable regulations: The regulations surrounding the use of drones for commercial purposes have become more favorable in recent years. This has enabled companies to operate drones more easily and has facilitated the development of new applications and technologies.
- Cost savings and operational efficiency: Using drones can help companies save costs and improve operational efficiency by lowering the need for manual labor and equipment, improving data accuracy and speed, and reducing risk and downtime.
Restraints
Drones are not allowed in NOAA or flight-restricted zones or to violate any security or privacy laws. However, laws are still being formed in many nations. As a result, the regulatory landscape for this industry is unclear. The risk to consumers’ online security has increased as drones are employed for more and more things. Hackers may take advantage of drones’ unencrypted Wi-Fi and GPS systems by gaining access to them. These security concerns will hamper the global expansion of commercial drones.
Market Segmentation
By product
The rotary blades market segment held a revenue share of nearly 73% in 2022. The inspection market for rotary-blade drones will grow due to its capacity to hover, maintain a fixed view of a single target for a lengthy period of time, and execute agile moves. These drones are often helpful for various business purposes, such as monitoring, surveillance, and filming. They are also easier to control than fixed-wing and hybrid counterparts
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By Application
The filming and photography segment generated around 31.0% of market revenue in 2022. Drones are becoming an integral element of the world of photography, and professional photographers are increasingly adopting them to get a competitive advantage. Professional photographers may use small drone cameras from companies like DJI to take high-resolution pictures. In addition, areas and landscapes that were once inaccessible are now easily reached.
By End-Use
The media and entertainment industry held almost 27.0% of the market share in 2022. Numerous media and entertainment applications exist for drones. Filmmakers are now using professional drones to get the best pictures for the least amount of money. The segment’s growth will be fueled by the increasing demand from customers and business owners for aerial photography to promote resorts, hotels, tourist destinations, open spaces, and amusement parks.
Regional Analysis
North America was the largest market contributor, with a revenue share of around 32.0% in 2022. It is due to the advancements in drone technology, supportive governmental initiatives, and rising demand from businesses across many industries. Additionally, the US Federal Aviation Administration (FAA) has published new rules to establish more logical and uniform guidelines for the safe and legal operating of UAVs in business settings. These laws and regulations would lower entry barriers and increase the use of local products.
Asia Pacific will expand rapidly at a CAGR of almost 40.0% from 2023 to 2030. Favorable regulatory environment, particularly in developed nations, will promote market development. Many countries are constantly creating new guidelines for using drones in commerce. Additionally, several startup companies are trying new commercial drone applications to enhance security.
Key Players
- AeroVironment Inc.
- Teal Drones
- AgEagle Aerial Systems
- 3D Robotics, Inc.
- Autel Robotics
- Aeronavics Ltd.
- Ehang Holdings
- Skydio, Inc.
- PrecisionHawk, Inc.
- Parrot Group
- FLIR Systems
- Holy Stone
- Intel Corporation
- SZ DJI Technology
- Yuneec Holding
The market for commercial drone in 2021 was USD 8.15 billion, and by 2030 it will be worth USD 47.38 billion, at a 28.58% CAGR during the forecast period. The key elements driving the market’s expansion are the rising demand for aerial services, rising smartphone use, and expanding use of unmanned aerial vehicles (UAVs) in various military applications.
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