Drones Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Drones Market is segmented by Application (Construction, Agriculture, Energy, Entertainment, Law Enforcement, and Other Applications), Type (Fixed Wing Drones and Rotary Wing Drones), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa).

Market Snapshot

Drones Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 15.88 %
Drones Market Major Players

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Market Overview

The drones market was valued at USD 20,245.78 million in 2020, and the market is projected to register a CAGR of 15.88% during the forecast period (2021-2026).

Since drone procurement is a direct proponent of the demand from end-user industries, COVID-19 has severely impacted the market in focus. The ongoing global economic slowdown is anticipated to result in a subsequent decline in the demand for drones from end-user sectors that deploy drones for a variety of applications. However, the demand for drones has witnessed a rapid increment on account of their diverse application portfolio. However, due to existing regulations and controls, major US-based companies are less likely to bear the impact of the wider supply chain disruption caused by the pandemic. However, companies located in Asia-Pacific and South America are more vulnerable to supply chain disruptions and are envisioned to face operational constraints and high financial risk exposure due to supply chain bottlenecks.

The growing realization of drone deployment in military operations has encouraged vendors to offer drones that can be used in numerous commercial applications. Drones are also being adopted in other applications, including internet provision in remote places, aerial photography and video recording, survey and document wildlife, and public service missions. Several companies primarily offer small drones that are used in agricultural, aerial photography, and data collection applications. Home deliveries via drones have become a reality due to the efforts of logistics and retail companies such as Amazon and UPS toward rolling out the technology. As commercial drones can travel at up to 100 mph and deliver goods under 5lbs (2.3 kg), the delivery mechanism is expected to decrease delivery time and associated costs. Enhanced investments toward drone technologies are also anticipated to foster long-term growth of the market. However, the growth of the drones market can be hindered by technological constraints such as limited endurance, SWaP challenges, and the presence of non-uniform laws and regulations that can restrict the usage of such systems in the airspace of certain countries.

Scope of the Report

Drones are pilotless platforms that can be either remotely controlled by a human operator or navigated autonomously by a programmed onboard computer. Drones provide the tremendous potential to transform urban and rural infrastructure and enhance agricultural productivity in developing countries.

The drones market is segmented by application, component, and type. By application, the market is segmented into construction, agriculture, energy, entertainment, law enforcement, delivery, and other applications. The other applications segment of the drones market includes the deployment of drones for operations such as firefighting, aerial mapping, etc. By component, the market is segmented into hardware, software, and accessories. By type, the market is segmented into fixed wing drones and rotary wing drones.

The report also covers the market sizes and forecasts for the drones market in 19 countries across major regions. For each segment, the market sizing and forecasts have been done based on value (USD million).

Application
Construction
Agriculture
Energy
Entertainment
Law Enforcement
Other Applications
Type
Fixed Wing Drones
Rotary Wing Drones
Geography
North America
United States
Canada
Latin America
Brazil
Mexico
Rest of Latin America
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Europe
United Kingdom
Germany
France
Italy
Rest of Europe
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Israel
Rest of Middle-East and Africa

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Key Market Trends

Construction Segment to Dominate the Market During the Forecast Period

The proliferation of drones has revolutionized the operational processes in the construction industry. Drones are rapidly replacing the traditional land surveillance methods, as they offer a significant reduction in labor and time to capture the necessary data while eliminating the scope of human error. Drones are being increasingly utilized to perform the visual inspection of the high-risk areas of a construction site. The efficiency of on-site communication and management is also bolstered by the ability to collect real-time data from drones. Drones also help engineers and surveyors inspect high-rise structures and visualize the project's progress through aerial shots. Additionally, they provide site managers with an overview of potential issues and facilitate key decision-making aspects to streamline the operations at a construction site. The increasing demand has encouraged drone manufacturers to manufacture more drones, specifically for the construction industry. For instance, in October 2018, DJI launched its Phantom 4 RTK drone, for surveying and mapping, at the European Drone Summit in Frankfurt, Germany. The drones are designed to ensure significant improvement in surveying, mapping, and inspection. The German construction giant STRABAG, publicly showed its interest in Phantom 4 RTK for collecting aerial data for 3D modeling to reduce costs and improve operational efficiencies. Also, in April 2018, DroneDeploy Inc. launched its construction solution that allows users to intuitively plan photo flights, automatically capture corner images, immediately create a visual timeline of a job site, and generate a replicable weekly progress report. Such developments have resulted in a steady demand for drones from the construction sector.

Drones Market Revenue Share

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Asia-Pacific to Witness Highest Growth During the Forecast Period

The recent changes in drone regulations in several countries across the region are expected to support the growth of the market. China became the global hub for drone manufacturing in the past six years. About 70% of the global civilian drone market is supported by China, which had about 1,200 drone manufacturers at the beginning of 2019 (up from 130 manufacturers in 2013). The Chinese government is providing various subsidy schemes and other favorable domestic policies for drone purchases to promote the adoption of drones in various industrial sectors. The growing application areas of drones are simultaneously propelling the demand for these UAVs in China. Hobbyist drones had dominated the Chinese drone market in the past. However, the increasing demand for drones for monitoring, inspection, surveying, and surveillance applications in the construction, agriculture, infrastructure, energy, telecommunications, mining, and insurance industries is propelling the growth of commercial drones in the country.

The Japanese government recently implemented new regulations for drone manufacturers and users, which may support the Japanese drone market in the future. The government took initiatives to improve the country’s commercial drone industry and reach its goal of enabling drone delivery in Tokyo by 2020. The government announced its plans to establish a streamlined registry system by 2022 to offer more opportunities for drones. Besides, Australia is a major industry hub in Asia-Pacific, which is witnessing the rising importance of BVLOS testing. As of July 2019, there were more than 1,200 drone operators in Australia. These operators are rapidly developing technologies and services to support the large drone ecosystem. The supportive drone regulations in Australia, introduced by the Civil Aviation Safety Authority (CASA), in support of many domestic and international players, are helping the penetration of drones into several such applications. Such developments may render a positive outlook for the drone market in the region during the forecast period.

Drones Market Growth Rate By Region

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Competitive Landscape

Some of the prominent players in the market are SZ DJI Technology Co. Ltd (DJI), The Boeing Company (Insitu), Terra Drone Corporation, Intel Corporation, BirdsEyeView Aerobotics, Parrot Drones SAS, Yuneec, and Delair SAS. The market comprises a handful of established players, which enjoy a strong foothold in the market. SZ DJI Technology Co. Ltd (DJI) is one such company, which controls a significant market share. However, there are many small companies and startups that entered the market in the past few years due to the high profitability in the market. Companies are competing to gain market shares and are developing advanced technology-integrated drone hardware and software solutions that reduce human effort in applications, such as mining, construction, and aerial mapping. Additionally, the entry of companies, like The Boeing Company, Alphabet, and Intel, into the commercial sector of drones is expected to make the market fragmented over the coming years.

Since the payload, endurance, and flight range of a drone platform are the primary concerns of OEMs and operators alike, the emergence of alternative fuel-powered drones is expected to cause significant changes in the competitive scenario. Moreover, the use of composite-based materials for the construction of critical components and parts of drones would likely increase the capabilities of the drone platforms and fuel its widespread adoption across different industries.

Recent Developments

  • In October 2019, DJI launched the Mavic Mini, an ultra-light folding drone designed to be the everyday FlyCam.
  • In October 2019, Drone Delivery Canada (DDC) partnered with Air Canada and the Edmonton International Airport (EIA) to launch the world’s first airport-based drone delivery hub. Edmonton Regional Airports Authority and DDC will build flight routes from EIA using DroneSpot takeoff and landing zones and begin the operations by Q1 of 2020. Further, by the end of 2020, about 20 more routes will be added to develop a drone logistics network centered at EIA. This deal is an initiative to implement, promote, and market drone delivery services in Canadian-controlled airspace.
  • In April 2019, the University of Maryland Medical Center transplanted a kidney, which was later delivered by drone. This marked the first delivery of such kind in the United States and the reach to donor organ pool and access to transplantation delivery of organs like kidneys, heart, and livers, among others.
  • In August 2019, Flytrex and Causey Aviation Unmanned (CAU) received approval from the FAA to commence food deliveries by drone in Holly Springs, North Carolina.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Drone Regulations in Major Countries

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD million)

    1. 5.1 Application

      1. 5.1.1 Construction

      2. 5.1.2 Agriculture

      3. 5.1.3 Energy

      4. 5.1.4 Entertainment

      5. 5.1.5 Law Enforcement

      6. 5.1.6 Other Applications

    2. 5.2 Type

      1. 5.2.1 Fixed Wing Drones

      2. 5.2.2 Rotary Wing Drones

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Latin America

        1. 5.3.2.1 Brazil

        2. 5.3.2.2 Mexico

        3. 5.3.2.3 Rest of Latin America

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Europe

        1. 5.3.4.1 United Kingdom

        2. 5.3.4.2 Germany

        3. 5.3.4.3 France

        4. 5.3.4.4 Italy

        5. 5.3.4.5 Rest of Europe

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Israel

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BirdsEyeView Aerobotics

      2. 6.2.2 Delair SAS

      3. 6.2.3 Drone Delivery Canada

      4. 6.2.4 DroneDeploy Inc.

      5. 6.2.5 Guangdong Syma Model Aircraft Industrial Co. Ltd

      6. 6.2.6 Intel Corporation

      7. 6.2.7 Parrot Drones SAS

      8. 6.2.8 Pix4D SA

      9. 6.2.9 PrecisionHawk Inc.

      10. 6.2.10 SZ DJI Technology Co. Ltd (DJI)

      11. 6.2.11 Terra Drone Corporation

      12. 6.2.12 The Boeing Company

      13. 6.2.13 Yuneec

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Drones Market market is studied from 2018 - 2026.

The Drones Market is growing at a CAGR of 15.88% over the next 5 years.

The Drones Market is valued at 20245 Million USD in 2018.

The Drones Market is valued at 45587 Million USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

DJI, Yuneec International, DELAIR, Intel Corporation, Parrot Drones SAS are the major companies operating in Drones Market.

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