The commercial drone market size is estimated to grow by USD 44.85 billion from 2022 to 2027, growing at a CAGR of 38.97% according to a report published by Technavio. In the North American region, a substantial 44% contribution is anticipated towards the global market’s growth over the forecast period. Notably, significant investments by the US Department of Defense (DoD) and the National Aeronautics and Space Administration (NASA) in advanced electronics and sensor research for military Unmanned Aerial Vehicles (UAVs) are poised to revolutionize avionics systems. Furthermore, governmental emphasis on bolstering national defence capabilities underscores the strategic importance of such developments. Drones, extensively utilized by the DoD for surveillance and security operations, are witnessing heightened demand. For instance, the recent USD 15.4 million contract awarded to FLIR for its FLIR Black Hornet 3 personal reconnaissance systems exemplifies this trend. The efficacy demonstrated by drones in various operations augments their indispensability, thereby propelling market growth in the region, says the press release.
Technological advancements have led to the use of drones in various fields, including agriculture, construction, mapping, logistics, and surveillance. Moreover, numerous logistics companies are conducting tests and trials for drone-based deliveries. For Instance, the partnership between Zipline International Inc. and Walmart Inc. in September 2020, where commercial drone delivery services were introduced in the US. In addition, drones offer the advantage of enabling faster delivery of goods compared to traditional road transport. Hence, these advancements are expected to drive the growth of the commercial drone market during the forecast period.
Cybersecurity threats will challenge the commercial drone market growth during the forecast period.
The development of lithium-metal batteries is a key trend influencing the commercial drone market growth.
Technavio aims to identify key trends, drivers, and challenges in the market.
Key Companies
The commercial drones market report includes information on the product launches, sustainability, and prospects of leading vendors 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., Guangzhou EHang Intelligent Technology Co. Ltd, iFlight Innovation Technology Ltd., Intel Corp., Parrot Drones SAS, Red Cat Holdings Inc., Skydio Inc., Teledyne Technologies Inc., The Boeing Co., and Yuneec International Co. Ltd.
The commercial drone market is fragmented; the vendors are competing with competitors and are trying to get a greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major vendors have well-established economies of scale and market presence and generally rely on positioning technological advances and the price of the products .
Market segmentation
The commercial drone market research report covers market segmentation by product (software and services and hardware), end-user (infrastructure, media and entertainment, public safety, agriculture, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America).
The software and services segment held the largest share of the market in 2022 and is expected to dominate the market during the forecast period. The increasing demand for software in drones is a key factor driving the growth of this segment. Software solutions help companies validate and analyze drone data. The high cost associated with manufacturing commercial drones has forced many other vendors to stop manufacturing drones and shift to offering technical platforms and software solutions that are suitable for the drones available in the market. Hence all these above-mentioned factors will increase the segment growth during the forecast period.
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