June 18, 2024
Commercial Drones

Commercial Drones Market is Estimated to Witness High Growth Owing to Advancements in Autonomous Technology

Commercial drones, also known as unmanned aerial vehicles (UAVs), are aerial vehicles that do not have a human pilot onboard. Commercial drones are equipped with cameras and sensors that provide various advantages like aerial photography, inspection of infrastructure, precision agriculture, surveillance and monitoring. The growing adoption of commercial drones across various industries like construction, agriculture, insurance, media & entertainment is driving the demand for these aerial platforms. Key functions performed by commercial drones include mapping, surveying, thermo inspection, field monitoring, crop spraying and product delivery.

The Global Commercial Drones Market 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 2024 to 2031.

Some of the key opportunities in the Global Commercial Drones Market Growth include their use for product delivery applications, disaster management, firefighting and public safety operations. With further advancement in autonomous technologies, commercial drones are expected to take on more complex tasks with limited human intervention.
Advancements in autonomous technologies like computer vision, deep learning and navigation technologies have enabled commercial drones to perform critical inspection and monitoring functions with minimal human supervision. Drones can now sense-and-avoid obstacles, follow predetermined flight paths and even land autonomously. This level of autonomy is increasing the scope of applications for commercial drones.

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.

Market Drivers
Growing adoption across industries: The use of commercial drones is growing across industries like construction, insurance, agriculture, infrastructure inspection and media & entertainment due to their benefits in terms of cost, time savings and high quality aerial data collection.
Advancements in technologies: Continuous innovations in areas such as computer vision, deep learning, navigation sensors and improved battery technologies are increasing the autonomous capabilities and functionalities of commercial drones. This, along with declining costs, is further driving market growth.

Current Challenges in Commercial Drones Market

The commercial drones market is growing at a rapid pace. However, there are still some challenges that are limiting its widespread adoption. One major challenge is regulations around the use of drones, especially in urban areas. Most countries have strict rules about flying drones in cities due to safety and privacy concerns. Getting approvals and permits is a long process, restricting commercial applications. Another challenge is the limited battery life of drones. The flight time per charge is still quite low which hampers long duration inspection, monitoring and delivery jobs. Technologies to improve battery capacity are improving but yet to scale up fully. Lack of adequate pilots and skilled workforce trained in operating commercial drones professionally is also hampering large scale deployments. Companies have to invest heavily in training to build internal expertise. Similarly, issues around sense and avoid technologies and integrating drones safely in the national airspace with manned aircrafts needs further advancement. Overall, challenges around regulations, technology and skills are slowing down the advance of commercial drones but with ongoing innovations, the hurdles are expected to reduce in coming years.

SWOT Analysis

Strength: High resolution camera and sensors enable detailed inspection of infrastructure, crops and mining sites without safety risks. Ability to reach remote areas for assessment increases productivity and efficiency.

Weakness: Limited battery life restricts flight time. Regulations and approvals add legal complexities for commercial use.

Opportunity: Growing industries like utilities, agriculture,logistics need drones to assess, monitor assets and transport supplies efficiently and safely. Local regulations are evolving as technologies advance enabling new business models.

Threats: Strict rules in some nations and increased geopolitical tensions pose risks. Alternative technologies like Satellites and AI drones can reduce reliance on specific drone providers.

Geographical Regions by Market Value

North America accounts for around 35% of commercial drones market value currently led by United States where drone flights have increased rapidly for infrastructure inspection, land surveys, search and rescue operations. Asia Pacific region growing at fastest pace and expected to surpass North America led by China, Japan and South Korea where adoption in industries like mining and construction is high. Europe is third largest region driven by commercial usage in agriculture sector across Western and Nordic nations for crop spraying and analysis. Latin America and Middle East & Africa markets also have strong potential for monitoring of large farms, mines and oil fields.

Fastest Growing Geographical Region

Asia Pacific region is growing at fastest pace and expected to accelerate further given development focus and initiatives by governments in countries like China, India, Japan, Singapore and South Korea. Large infrastructure and construction projects, expanding urbanization and availability of skilled engineers, programmers and pilots are major factors driving demand for drones. Wide scale agricultural usage on large farms for spraying, planting and analysis also contributes significantly. Supportive domestic policies aimed at boosting advanced manufacturing and digital technologies are also enabling Asia Pacific to lead commercial drone space globally over coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it