Vietnam Drone Farming Market Outlook to 2030

Vietnam Drone Farming Market Overview

• In recent years, the Vietnam Drone Farming market has experienced substantial growth, this is reflected by the Vietnam drone farming and robots market reaching a valuation of USD 247 million in 2023 by the increasing adoption of precision agriculture techniques to improve crop yield and reduce labor costs.
• The key players in the Vietnam drone farming market include DJI, Parrot, Trimble Inc., Yuneec International, and AeroVironment, Inc. DJI dominates the market due to its innovative products and strong distribution network.
• In 2023, DJI launched the Agras T30, a high-capacity drone designed for large-scale farming operations. The drone features advanced spraying systems and AI-powered sensors for precise application of fertilizers and pesticides.
• Hanoi and Ho Chi Minh City dominate the Vietnam drone farming market due to their advanced infrastructure and higher adoption rates of modern technologies. Hanoi, being the capital, has numerous government-led agricultural research institutes that promote drone usage.

Vietnam Drone Farming Market Segmentation

The Vietnam Drone Farming Market is segmented by various factors like application, product, and region.

• By Application: Vietnam's drone farming market is segmented by application into crop monitoring, soil analysis, and irrigation management. In 2023, crop monitoring dominated the market due to the increasing need for real-time data on crop health and growth stages. The integration of drones with advanced imaging technologies like multispectral and hyperspectral cameras allows farmers to detect crop diseases and nutrient deficiencies

• By Product: Vietnam's drone farming market is segmented by product type into fixed-wing drones, rotary blade drones, and hybrid drones. In 2023, rotary blade drones dominated the market due to their versatility and ease of use in various agricultural tasks. These drones are preferred for their ability to hover and perform precise tasks like spraying pesticides and fertilizers.

• By Region: Vietnam's drone farming market is segmented by region into North, South, East, and West. In 2023, the Northern region dominated the market share due to the presence of large-scale farms and government support for modern farming techniques. The Northern region's diverse crop cultivation and significant investment in agricultural technology make it a leader in adopting drone farming solutions.

Vietnam Drone Farming Market Competitive Landscape

• Parrot: In February 2024, Parrot introduced the ANAFI Ai, a drone with 4G connectivity and enhanced imaging capabilities. This drone is particularly suited for detailed crop analysis and real-time data transmission, addressing the needs of precision agriculture. Parrot also announced a partnership with a local Vietnamese distributor to expand its market reach.
• Trimble Inc.: In May 2024, Trimble, a technology company, has acquired Flashtract, a privately-owned construction billing software firm based in the US, for an undisclosed sum.

Vietnam Drone Farming Market Analysis

Vietnam Drone Farming Market Growth Drivers

• Increased Crop Yields and Efficiency: The integration of drone technology in farming has significantly increased crop yields and operational efficiency in Vietnam. In 2023, studies from the Ministry of Agriculture and Rural Development showed that farms using drones for monitoring and spraying experienced a substantial increase in crop yields compared to traditional methods. In 2023, rice had the highest yield volume among the selected annual industrial crops in Vietnam in 2023, remaining stable at 27 million tons followed by 19 million vegetables compared to the previous year.
• Labour Shortages and Rising Labor Costs: Vietnam has been facing a labor shortage in the agricultural sector due to urban migration and an aging workforce. In 2023, the share of employment in agriculture has been declining, with a net movement of 900,000 workers per year transitioning from agriculture to non-farm sectors. This shortage, coupled with rising labour costs, has driven farmers to adopt drone technology to maintain productivity.
• Increased Focus on Sustainable Agriculture: The growing emphasis on sustainable farming practices is driving the adoption of drone technology in Vietnam. Drones help monitor crop health, optimize resource use, and reduce environmental impact by enabling precise application of inputs Vietnam has approved a proposal for the sustainable development of 1 million hectares of high-quality, low-emission rice production in the Mekong Delta by 2030.

Vietnam Drone Farming Market Challenges

• High Initial Investment Costs: The initial investment required to purchase and maintain drones is a significant barrier for many farmers in Vietnam. In 2023, the average cost of an agricultural drone ranged from USD 5,000, depending on the features and capabilities. This cost can be prohibitive for small-scale farmers who operate on tight budgets. Additionally, the expenses associated with training, maintenance, and repairs further add to the financial burden, making it challenging for widespread adoption of drone technology.
• Lack of Technical Expertise: The effective use of drones in agriculture requires a certain level of technical expertise, which many farmers in Vietnam currently lack. According to a 2023 survey by the Vietnam Agricultural University, a very small propotion of farmers who own drones have received formal training on how to operate them efficiently. The lack of skilled operators can lead to suboptimal usage of drones, reducing their effectiveness and potential benefits.

Vietnam Drone Farming Market Government Initiatives

• Smart Agriculture 2025: In 2023, the Vietnamese government launched the "Smart Agriculture 2025" initiative, which focuses on integrating advanced technologies, including drones, into the agricultural sector. The initiative includes subsidies for farmers purchasing drones and grants for startups developing innovative agricultural technologies. With an allocation of USD 50 million, the project aims to modernize the agricultural sector and increase productivity by promoting the use of precision farming techniques.
• Training and Capacity Building Programs: To address the skills gap in drone operation, the government, in collaboration with various agricultural universities, initiated training and capacity-building programs in 2023. These programs aim to equip farmers with the necessary skills to operate and maintain drones effectively.

Vietnam Drone Farming Future Market Outlook

The Vietnam drone farming market is poised for remarkable growth, driven by increased adoption of autonomous drones, expansion of drone-as-a-service (DAAS) model, and integration with Internet of Things (IOT).

Future Market Trends

• • Increased Adoption of Autonomous Drones: By 2028, the adoption of fully autonomous drones in Vietnam's agriculture sector is expected to rise significantly. These drones, equipped with advanced AI and machine learning capabilities, will perform tasks such as planting, spraying, and monitoring without human intervention. Autonomous drones will enhance precision, reduce labor costs, and increase operational efficiency, driving further growth in the drone farming market.
  • Expansion of Drone-as-a-Service (DaaS) Model: The Drone-as-a-Service (DaaS) model, where farmers can access drone services on a subscription basis, is projected to gain traction by 2028. This model provides farmers with cost-effective access to the latest drone technologies and services without the need for significant capital investment.