Global Drone Market Outlook to 2030

Global Drone Market Overview

• The global drone market was valued at USD 50 Bn in 2023, is driven by increasing adoption of drones across various industries such as agriculture, construction, and defense. The technology's ability to provide efficient and cost-effective solutions for tasks such as aerial photography, surveillance, and delivery services.

• The market is highly competitive, with key players including DJI, Parrot SA, AeroVironment, Inc., Boeing, and Lockheed Martin Corporation. These companies dominate the market through continuous innovation, extensive product portfolios, and strategic partnerships.
• In 2024, DJI launched an Intelligent 3D Model Editing Software DJI Modify compatible with DJIs enterprise drones and 3D modeling and mapping software, DJI Terra. The launch was scheduled to boost its offerings in aerial surveying, modeling, and model editing, to meet the operational needs for surveying, transportation, and emergency response such as firefighting, etc.

Global Drone Current Market Analysis

• North America as dominant region: North America stands as the most dominant region in the market, driven by a combination of advanced technological infrastructure, substantial defense expenditure, and progressive regulatory frameworks. The U.S. defense budget for 2024 is USD 2.13 Tn, facilitating increased investment in military technologies. The region's leadership in drone technology is underpinned by the presence of key industry players, extensive R&D investments, and robust support from governmental bodies.
• APAC as emerging region: The Asia-Pacific (APAC) region is rapidly advancing in the market, driven by agricultural uses in China, Japan, and India. Government initiatives like Australias AUD 100 million contracts for 2024 and South Koreas K-UAM roadmap are fostering innovation. Additionally, the rise in urbanization and infrastructure development is expanding drone applications in construction and logistics. These factors collectively boost the regions prominence in the global drone market.
• USA as dominant country: The USA is propelling the market, driven by technological advancements, substantial investments, and supportive regulations. Key contributors include $4.4 million in FAA research grants and a broadening range of applications, from healthcare to infrastructure inspections. The growing adoption in agriculture and public safety, combined with a favorable regulatory environment that promotes testing and deployment, further fuels market growth. These elements collectively enhance the USA's leading role in the global drone market.

Global Drone Market Segmentation

The Global Drone Market can be segmented based on several factors:

By Product Offering: Global drone market segmentation by component type is divided into hardware, software and services. In 2023, hardware dominates the global drone market by value, driven by advancements in components like sensors and cameras that enhance drone performance. High demand for these sophisticated hardware solutions across various sectors, coupled with their significant cost compared to software and services, reinforces hardware's leading market share.

By Type: In the Global drone market segmentation by type is divided into multi-rotor, fixed-wing, single rotor and hybrid. In 2023, single rotor drones lead the global market by value due to their efficiency, longer flight times, and greater payload capacity. Their advanced capabilities make them ideal for professional applications like surveillance and agricultural monitoring.

By Propulsion: Global drone market segmentation by propulsion is divided into electric, ICE and hybrid. In 2023, electric propulsion drones dominate the global market by value, primarily due to their efficiency, lower operating costs, and environmental benefits. Electric drones offer quieter operation and reduced maintenance compared to their gas-powered counterparts, making them highly attractive for both commercial and recreational use.

Global Drone Market Competitive Landscape

• Lockheed and Red Hat Collaborate to Enhance AI Capabilities: In 2022, Lockheed announced a collaboration with Red Hat to advance artificial intelligence for military missions. As part of this, Lockheed is equipping U.S. military platforms, such as the Stalker unmanned aerial system (UAS), with advanced software that was previously too large and complex for these systems.
• Northrop Grumman and Korea Aerospace Industries Sign MOU: In 2023, Northrop Grumman announced the signing of a Memorandum of Understanding with Korea Aerospace Industries, Ltd. (KAI), As per the MOU Northrop will provide technical cooperation to KAI for the development of vertical take-off and landing (VTOL) aircraft.
• Percepto's $67M Funding for Drones: In 2023, Percepto announced a combines USD67 million Series C in equity and debt funding, led by Koch Disruptive Technologies (KDT), alongside new investors Zimmer Partners. This funding is aimed to help Percepto boost its offerings to cater global demand for autonomous drones.

Global Drone Industry Analysis

Global Drone Market Growth Drivers:

• Need to Minimize Power Outages: The rising demand to reduce power outages is boosting drone use for grid monitoring and maintenance. Drones with advanced sensors can detect issues like corrosion, hot spots, and vegetation encroachment, which could lead to outages. With substantial economic losses from these outages, global investments in smart grid development are increasing, such as the European Commission's planned USD 633 Bn investment in electricity grids by 2030, including USD 184 Bn for digitalization.
• Implementation of Industrial 4.0 Technologies: The Industrial 4.0 revolution, driven by advances in automation, data analytics, and connectivity, is significantly boosting global drone demand. Drones enhance productivity, efficiency, and competitiveness by providing solutions for aerial inspection, monitoring, and inventory management. Governments in developing countries, like India with its Kisan Drones program offering up to 75% funding for the drone purchase cost for conducting demonstrations in farmers' fields, and others such as the USA and China, are also supporting drone adoption in agriculture through financial incentives.
• Burgeoning Use of Drones in Delivery Services: Drones are revolutionizing last-mile delivery with cost-effective solutions that navigate challenging terrains and bypass traditional infrastructure. This trend is especially pronounced in developing regions like Asia Pacific, Africa, and LATAM, where quick commerce services are expanding through technological advances. As e-commerce grows globally, companies like Amazon, DHL, and Wendy are integrating drones to meet consumer demands and enter new markets.

Global Drone Market Challenges:

• Data Protection & Security Restricts Adoption of Drones: Drones raise privacy concerns due to the potential for unauthorized access to sensitive data, as cameras may inadvertently capture private information and violate privacy regulations. Additionally, the vulnerability of drone communication networks to cyber-attacks poses risks to data integrity and operational safety, potentially leading to accidents or unauthorized access. These security issues hinder industries like law enforcement and emergency response from fully adopting drones until robust data protection and cybersecurity measures are established.
• Unfavorable Legal Regulations: Strict regulations on drone flights near airports, government buildings, and populated areas, along with complex licensing and certification requirements, limit drone applications and add costs. The lack of standardized regulations across jurisdictions further complicates international operations and market expansion, creating uncertainty and hindering global drone market growth.

Global Drone Future Market Outlook

The global drone market is expected to reach USD 100 Bn by 2029 driven by advancements in artificial intelligence and machine learning, which will enhance the capabilities of drones in areas such as autonomous navigation and real-time data processing, with increasing applications in smart cities, disaster management, and environmental monitoring.

Future Market Trends

• Autonomy and AI Integration: The integration of automation and AI technologies is revolutionizing the global drone industry, enabling autonomous flight, advanced data analytics, and intelligent decision-making capabilities. By automating tasks such as route planning, obstacle avoidance, and data processing, drones become more accessible and cost-effective for a wide range of applications, driving demand for drone solutions in sectors such as agriculture, construction, and infrastructure inspection.
• Propensity Towards Compact Drones: The demand for compact drones is surging due to their versatility, accessibility, and portability. Compact drones offer easy deployment in various sectors such as photography, agriculture, surveillance, and disaster management. Their small size enables maneuverability in tight spaces and simplifies transportation. Manufacturers like DJI, Parrot, and Autel Robotics are expanding in this landscape, capitalizing on the growing demand by offering advanced features like high-resolution cameras, longer flight times, and obstacle avoidance technology.