Commercial drones, also known as unmanned aircraft systems, provide useful solutions across various industries. They perform functions like delivery of goods, agricultural monitoring, infrastructure inspection, disaster management, and transportation among others. Their ability to automate operations at reduced costs compared to manned alternatives is driving their increased usage. The market offers drones equipped with advanced cameras, sensors and software for automated data collection, analysis and decision making. Their use boosts productivity and efficiency across sectors while minimizing risk to human lives.
The Global commercial drones market Demand is estimated to be valued at US$ 22.29 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the commercial drones market are Lockheed Martin Corporation, Northrop Grumman., The Boeing Company, BAE Systems PLC, Airbus S.A.S., FLIR Systems, Inc., Aero Vironment, Inc., Textron Inc., Aeryon Labs Inc., General Atomics, Thales, Quantum Systems, Elistair, Delair, DJI and Ehang.
The growing demand for commercial drones across several industries such as agriculture, insurance, energy, infrastructure and transportation is fueling market growth. Their ability to automate processes, gather data efficiently and monitor assets remotely is boosting their adoption. Furthermore, reduced operational costs achieved through drone usage is fostering greater demand.
The commercial drones market is witnessing increased global expansion with developing regions witnessing higher growth. Aggressive investments by leading manufacturers in emerging markets of Asia Pacific and Middle East & Africa for development of innovative drone solutions will further drive the commercial drones market growth globally over the forecast period.
Market key trends
One of the prominent trends in the commercial drones market is growing adoption of autonomous and automated technologies. Integration of artificial intelligence, internet of things, advanced cameras, and other technologies is boosting autonomous flight capabilities. This is allowing drones to conduct surveys, monitor assets, patrol borders and perform deliveries without human intervention. Adoption of automated technologies simplifies commercial drone operations while improving safety, productivity and efficiency. The trend towards autonomous drones is expected to accelerate commercial drones market expansion over the coming years.
Porter’s Analysis
Threat of new entrants: The adoption of new technologies and certifications required pose a barrier for new players.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to the presence of several drone manufacturers.
Bargaining power of suppliers: Suppliers have moderate bargaining power with established relationships with drone manufacturers.
Threat of new substitutes: New substitutes pose moderate threat with new technologies being introduced for various applications.
Competitive rivalry: Intense competition exists between established players to gain market share through product innovation and mergers & acquisitions.
Geographical Regions
North America accounts for the largest share of the commercial drones market in terms of value mainly due to increasing demand from applications such as agriculture, infrastructure, energy & power, media & entertainment and others. Asia Pacific is expected to grow at the fastest CAGR during the forecast period driven by developing economies like China and India gradually adopting commercial drones for various applications along with initiatives by governments.
Geographical Regions
Europe commercial drones market is showing significant growth owing to supportive regulations for drone operations and increasing adoption across agriculture, insurance, infrastructure inspection and surveillance industry verticals especially in countries like UK, Germany, France and Italy. Middle East & Africa region is anticipated to provide lucrative opportunities propelled by oil & gas, mining industry applications and government initiatives regarding infrastructure development projects. Latin America market is driven by agriculture, mining, energy & power industries as drones provide cost-effective solutions for monitoring and inspection activities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it