The small uav market comprises aerial vehicles that weigh less than 25 kilograms. These drones are primarily used for commercial applications such as inspections, deliveries, surveying and mapping. Their key advantages include easy deployment, maneuverability and cost-effectiveness compared to manned aircraft. Growing adoption of drones in commercial sectors such as agriculture, logistics and energy & utilities is a major driver for this market. Small uavs help farmers carry out crop spraying, recording crop health data and mapping farmlands efficiently. Similarly, companies use these drones for pipeline inspections, parcel deliveries and monitoring construction sites.
The small UAV market is estimated to be valued at US$ 6.67 billion in 2024 and is expected to reach US$ 14.23 billion by 2031, growing at a compound annual growth rate (CAGR) of 11.43% from 2024 to 2031.
Key Takeaways
Key players operating in the small uav market are Northrop Grumman, Bayer Tech, DJI, Parrot Drone SAS, Israel Aerospace Industry Ltd., AeroVironment, Inc., Lockheed Martin Corporation, Teledyne FLIR LLC, BAE Systems, Elbit Systems Ltd., AIRBUS, Textron Inc., Autel Robotics, Yuneec, PowerVision Inc., Teledyne Technologies Incorporated, Guangzhou Walkera Technology Co Ltd, Yuneec, Turkish Aerospace Industries, and Others.
The growing demand for Global Small Uav Market Demand from commercial sectors such as agriculture, oil & gas, logistics is driving the market growth. Farmers are increasingly adopting drones for crop health monitoring and spraying. Similarly, companies in logistics are deploying drones for parcel deliveries to reduce costs.
Leading manufacturers are expanding their global footprint by strengthening distribution networks worldwide. For instance, DJI has established distribution centers across North America, Europe, Middle East and Asia to facilitate fast delivery of products. Similarly, Parrot is focusing on emerging markets like India and Brazil for further growth.
Market Key Trends:
One of the key trends in the small uav market is the growing focus on delivery drones aimed at last-mile deliveries. Major e-commerce players such as Amazon are actively testing delivery drones to reduce costs and achieve faster deliveries. In 2020, Amazon received FAA approval to test Prime Air delivery drones for deliveries within few miles. Similarly, companies such as UPS, FedEx and Zipline are experimenting with drones for contactless medical deliveries during pandemic situations. The emergence of drone logistics is expected to be a major growth driver over the coming years.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of components from suppliers lowers the threat of new entrants. However, established market presence of key players poses a challenge.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price sensitivity. However, switching costs and differentiation keeps their power in check.
Bargaining power of suppliers: Component suppliers wield low bargaining power due to availability of substitutes and lack of differentiation. However, integration of key technologies gives some control.
Threat of new substitutes: Alternatives like fixed wing drones pose minimal threat due to inability to hover and vertical take off/landing capabilities of small UAVs.
Competitive rivalry: Intense competition among key players to gain market share keeps prices low and forces continual improvements.
Geographical Regions
North America holds the largest share in the small UAV market due to strong defense budget and increasing adoption across commercial applications like film making, infrastructure monitoring.
Asia Pacific is expected to witness the fastest growth during the forecast period led by China, India and other emerging countries. Increasing defense expenditure, rising commerce and low-cost manufacturing environment provides opportunities for market growth in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
