Commercial Drones Global Market Report 2024

The commercial drones market size has grown rapidly in recent years. It will grow from $1.95 billion in 2023 to $2.17 billion in 2024 at a compound annual growth rate (CAGR) of 11.0%. The growth observed during the historical period can be attributed to several factors, including technological advancements in drone technology, the establishment of regulatory frameworks governing their use, the development of industry-specific applications, and the increasing awareness of the capabilities and benefits of commercial drones.

The commercial drones market size is expected to see strong growth in the next few years. It will grow to $2.88 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. The anticipated growth in the forecast period can be attributed to several factors, including the expanding range of use cases for commercial drones, their integration with data analytics and artificial intelligence, the emphasis on environmental and sustainability initiatives, increased investment and research in drone technology, and the ongoing process of urbanization and infrastructure development. Key trends expected in the forecast period encompass increased adoption of commercial drones across various industries, technological advancements in drone technology, the use of drones in e-commerce and delivery services, and the rise of the drone-as-a-service (DaaS) model as a business model.

Companies in the last-mile delivery business are increasingly exploring the use of commercial drones to enhance their operations. These drones offer the potential to reduce delivery costs and times, ultimately leading to increased profits. The adoption of commercial drones is a key driver behind the growth of the commercial drone market. According to a report by McKinsey, companies that can achieve a 40% reduction in delivery costs using drones may see a significant boost in their profit margins, up to 15%-20%, while also potentially lowering product or service prices by a similar percentage. An example of this trend can be seen in Amazon's Prime Air Service, which commenced operations in California, USA, in June 2022. This service utilizes drones to deliver packages weighing up to five pounds in under an hour, benefiting customers in Lockeford, California, and College Station, Texas.

The primary types of commercial drones include fixed-wing drones, rotary-blade drones, and hybrid drones. Fixed-wing drones are aircraft that do not have a human pilot on board. These UAVs can be controlled remotely by a human operator or autonomously by onboard systems. Different technologies are used for these drones, including remote operation, semi-autonomous operation, and full autonomous operation. They find applications in various industries, such as agriculture and the environment, media and entertainment, energy, government, construction, and archaeology, among others.

The commercial drones market research report is one of a series of new reports that provides commercial drones market statistics, including commercial drones industry global market size, regional shares, competitors with a commercial drones market share, detailed commercial drones market segments, market trends and opportunities, and any further data you may need to thrive in the commercial drones industry. This commercial drones market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The commercial drone market is expected to experience growth due to the increasing demand and budget allocated to the defense industry. This sector encompasses a wide array of companies, organizations, and government entities engaged in developing, producing, and supplying military equipment, technology, and services for armed forces. Commercial drones have found applications in defense through cost-effective means of conducting reconnaissance, surveillance, and data collection, which enhance situational awareness and reduce risks to military personnel. For instance, according to the Ministry of Defense (MOD) departmental resources 2022, published by the UK government in December 2022, defense spending for 2021-2022 reached $58.39 billion (£45.930 billion), marking an 8.4% increase compared to the previous year's $53.85 billion (£42.365 billion). Therefore, the rising overall demand and budget in the defense industry are significant drivers of growth in the commercial drone market.

The commercial drone market is facing limitations due to disruptions in supply chains and manufacturing caused by the COVID-19 pandemic. The pandemic has affected drone production schedules globally, with manufacturing disruptions in Chinese facilities. As a result, delays in drone production have become a challenge for manufacturers. An example of this impact can be seen in the case of Skydio, a California-based drone manufacturer, which discontinued its consumer drone offerings in August 2023 due to component shortages.

The financial challenges posed by investing in drones, many companies opt for drone leasing rather than full ownership. Drone leasing is an attractive option, particularly for entry-level companies with limited financial resources. Companies like Kespry and LiDARUSA specialize in offering commercial drone leasing solutions to other businesses.

Leading companies in the commercial drone market are focusing on innovation and product development, such as the Skydio X10, which is designed for thermal imaging applications. The Skydio X10 is tailored for enterprise-level customers and is equipped with a FLIR Boson+ sensor for high-quality thermal imaging. This drone boasts resolutions of 640 x 512 pixels and offers enhanced sensitivity down to < =30 mK. With a flight time of 40 minutes, a transmission range of 7.5 miles, and a maximum flight speed of 45mph, the X10 is well-suited for various applications. It is IP55-certified against dust and water and boasts a rapid deployment time of less than 40 seconds.

Their have been notable acquisitions in the commercial drone market, such as Ondas Holdings Inc.'s acquisition of Airobotics for $15.2 million in January 2023. This acquisition enhances Ondas Holdings' presence in the drone market and expands its capabilities for designing, developing, and offering a comprehensive range of commercial drone solutions. Airobotics, based in Israel, is a company specializing in drone systems and platform development, drone sales, and providing a wide array of commercial drone solutions.

Major companies operating in the commercial drones market include SZ DJI Technology Co. Ltd., Parrot SA, AeroVironment Inc., PrecisionHawk Inc., Draganfly Inc., 3D Robotics Inc., AsTec, XAIRCRAFT Technology Co. Ltd., ZeroTech Robotics, Yamaha Motor Co. Ltd., Lockheed Martin Corporation, Yuneec International Co. Ltd., DroneDeploy Inc., senseFly Ltd., Insitu a Boeing Company, Kespry Inc., LiDARUSA, EHang Holdings Limited, Delair, Nutel Communications Pvt Ltd., CyPhy Works Inc., Aerialtronics (Note: The company is now part of DroneMatrix), GoPro Inc., FLIR Systems Inc., Intel Corporation, Skycatch Inc., Raptor Maps Inc., DroneBase Inc., Cape Analytics Inc., Drone Volt, Cyberhawk Innovations Ltd., Flytrex Aviation Ltd., Volansi Inc., Flirtey, Skyfront, Vaayu Drones

North America was the largest region in commercial drones market in 2023. North America is expected to be the fastest-growing region in the commercial drones market during the forecast period. The regions covered in the commercial drones market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the commercial drones market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The commercial drones market consists of sales of commercial drones for surveying, mapping, imaging, and search and rescue purposes. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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