Market Insight-Global Commercial Drones Market Overview 2022
Global commercial drone market size was valued at USD 3.75 billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 21.25% from 2021 to 2028.– Bossonresearch.com
Commercial drones, also known as unmanned aerial vehicles (UAVs), are aircraft that are used for business and industrial purposes. These aircraft are sophisticated in function and are well equipped to handle complex tasks. Drones are remotely controlled from the ground by trained and professional pilots. As previously mentioned, drones are helping various industries to become safer, as well as more efficient, productive, and secure, including Agriculture, Construction, Public Safety & Emergency Services, Mining, Surveying, and more.
The global commercial drone market size was valued at USD 3.75 billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 21.25% from 2021 to 2028. In terms of volume, the demand was recorded at 1294.9 thousand units in 2021. Drones are used for multiple applications ranging from filmmaking to emergency response. Additionally, these devices are witnessing a high demand in the real estate and construction sector owing to their ability to survey lands, provide continuous and precise project notifications, improve safety, and prevent dangerous incidents on construction sites. Business use cases for drones have witnessed considerable growth over the past few years. Market participants such as drone manufacturers and software solution providers are constantly engaged in designing, testing, and improving solutions for various markets.
Figure Global Commercial Drones Market Size
Source: Bossonresearch.com, 2022
COVID-19 Impact
The rapid spread of COVID-19 has had a significant impact on the global commercial drones market globally, owing to the implementation of strict lockdown measures across the world. COVID-19 pandemic led to several challenges for the commercial drones industry such as disruption in the supply chain of raw materials, logistics challenges, and others. On the other hand, the commercial drones technology manufacturers had to reduce expansion and R&D investments to withstand the decline in revenue and operating performance of various companies. The challenges in the procurement of commercial drones for various commercial applications were observed throughout the year, which, however, are expected to alleviate in a few years.
Market Insights
Increased application areas for GIS, LiDAR, mapping services, and others
An increase in demand for GIS, LiDAR, and mapping services from sectors such as Agriculture, construction, infrastructure, and inventory management fuels the growth of the market. Commercial drones are now making a significant effect in applications that take advantage of their abilities to capture localized visual data quickly and affordably. In addition, with the use of LiDAR, GIS, and other mapping services, the agriculture industry is seeing effective changes in yield output, improved crop health management, and improved soil conditions. Real estate and civil engineering sectors are advancing in terms of new technology adoption such as multidimensional modeling, architectural planning, and monitoring civil engineering projects. In addition, Drone-based solutions save time and increase workflow and are used for various purposes, including research & exploration, archeological surveys, mining, cargo management, telecom network management, oil & gas resource management, and others. In addition, the rise in application areas creates demand for advanced drone systems and is expected to boost market growth during the forecast period.
Privacy and security concerns
Aerial imaging, green mapping, LiDAR, GIS services, and other such applications are concerned with capturing landscape information including photographs and imagery solutions through drones with the help of EO/IR and other systems. To protect the private space of the public and issues related with national security, governments of various nations have formulated laws, which restrict the growth of this market. For instance, in the North American market, Federal Aviation Administration (FAA) has stated that UAVs can fly only up to 500 ft. above ground level and are not allowed in a radius of 3 miles around airports or flying strips. In addition, because of the cyber-security risks involved with drones, many administrations have enacted bans or limits on drone possession. For instance, in April 2021, Legislator Huang Kuo-shu of the Democratic Progressive Party (DPP) of Taiwan has issued a guideline warning against the procurement of drones for made-in-China aerial photography, robots, and coding platforms and subsequent phasing out of the existing equipment. The announcement was made owing to the cybersecurity loophole on consumer electronics manufactured in China.
Moreover, they are not allowed to violate any privacy acts, security laws, and cannot invade flight restricted and National Oceanic & Atmospheric Administration (NOAA) zones. However, regulations stated by FAA and other governments are still under development, hence, no proper regulatory framework is defined for this market. The rise in the implementation of drones in multifaceted applications has also increased the cyber-security threat for its users. Hackers can potentially take advantage of drones by gaining access to the drones' unencrypted Wi-Fi and GPS technologies.
On the other hand, traditional use cases, including security, surveillance, and monitoring, are expected to grow primarily in sectors where labor costs and crime rates are high. Drones are widely used at dangerous and inaccessible places for mapping out elevated infrastructure that may have damaged power lines and unstable roofs as well as for search and rescue activities.
The integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) in drones offers significant growth prospects to the market. Drones integrated with AI technology can better understand their surroundings; map areas accurately, track and monitor the movement of specific objects, as well as offer precise analytical feedback. Additionally, they offer real-time, data-driven decision-making ability to their users by ensuring rapid capturing, processing, and transferring of data. AI-powered drones also enable users to collaborate and access feed captured by other drones and trace drone flight patterns in real-time. AI and ML, coupled with predictive learning models, facilitate faster data analysis to offer actionable insights.
The advent of the 5G delivery model and integration of cloud computing technology with the drone development process is anticipated to provide lucrative growth opportunities to the commercial drone market. The availability of high-speed internet in drones enables users to communicate in high demanding environments to perform operations such as media sharing, command and control, and autonomous flying. The provision to practice efficient 5G network sharing enables service providers to offer seamless mobile broadband connectivity, ultra-low latency communications, and massive Machine-to-Machine (M2M) type communications deployment. This facilitates service providers to offer Drone-as-a-Service (DaaS) model to their users, thus ensuring continual business expansion and generation of new revenue streams.
Global Commercial Drones Market: Competitive Landscape
The market is fragmented with several major companies. These important players are concentrating on improving their product portfolios, pricing strategies, and marketing efforts to increase revenue share in the next few years. With a dominant revenue share in 2021, DJI,Yuneec International Co. Ltd., XAG Co., Ltd, Holy Stone, Yamaha are now leading the market.The top10 Commercial Drones players have surpassed USD 2.8 billion in sales,which accounts for more than 75% of the total market in 2021.
Key players in the Commercial Dronesics Market include:
DJI
Yuneec International Co. Ltd.
XAG Co., Ltd
Holy Stone
Yamaha
Autel Robotics
AeroVironment
Precision Hawk
Hi-Target
Skydio
Parrot SA
Flyability SA
Wingtra AG
Ehang
Delair
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