Small Drone Global Market Report 2024

The small drone market size has grown rapidly in recent years. It will grow from $5.16 billion in 2023 to $5.84 billion in 2024 at a compound annual growth rate (CAGR) of 13.2%. The historical growth in the small drone industry can be attributed to several factors, including the adoption by consumers and hobbyists, cost reductions in drone manufacturing, the development of regulatory frameworks governing drone usage, increased awareness of the capabilities of drones, the emergence and popularity of drone racing as a sport, as well as the integration of drones into agricultural practices for various applications.

The small drone market size is expected to see rapid growth in the next few years. It will grow to $9.43 billion in 2028 at a compound annual growth rate (CAGR) of 12.7%. The anticipated growth in the small drone industry for the upcoming period is expected to be driven by various factors, including the development of urban air mobility, the implementation of package delivery services utilizing drones, expanded use in environmental monitoring efforts, utilization in emergency medical services, surveillance, and border security applications, as well as the integration of drones into education and training programs. Key trends projected for this period encompass the increased integration of artificial intelligence (AI) capabilities into drone systems, wider adoption of drones in public safety initiatives, the popularity of consumer photography drones, the advancement of drone swarming technology allowing coordinated actions of multiple drones, and ongoing advancements in camera technology enhancing the capabilities of drone-based imaging systems.

The anticipated increase in military and defense expenditure is poised to drive the growth of the small drone market in the future. This expenditure encompasses both current and capital spending on armed forces, including defense ministries, government agencies involved in defense projects, and trained paramilitary forces. Small drones have significantly enhanced global military capabilities by improving reconnaissance, surveillance, target acquisition, flexibility, cost-effectiveness, situational awareness, crew safety, and deployment speed. Notably, according to the National Defense Magazine, a US-based industrial association, global military drone research and procurement spending is expected to increase by nearly 30%, rising from an estimated $11.1 billion in 2020 to $14.3 billion in 2029. Research and development spending is projected to grow from $3.2 billion in 2020 to $4 billion in 2029, while procurement funding is anticipated to increase from $7.9 billion in 2020 to approximately $10.3 billion by the end of the decade. Hence, the upsurge in military and defense expenditure is a driving force behind the growth of the small drone market.

Government initiatives focused on drones, including small drones, are poised to fuel the growth of the small drone market in the coming years. These initiatives represent specific actions, programs, or policies undertaken by government authorities to address various issues, achieve specific goals, or create positive societal changes. In May 2023, the introduction of the National Drone and Advanced Air Mobility Initiative Act, as reported by the American Action Forum, a US-based non-profit organization, exemplifies such initiatives. This act aims to boost domestic production and deployment of Unmanned Aircraft Systems (UAS) and Advanced Air Mobility (AAM) technology to compete with Chinese technological dominance. The act authorizes the establishment of a Network of Institutes dedicated to Drone and Advanced Air Mobility Research, expands the workforce for seamless UAS integration across industries, and establishes a center of excellence to enhance responses to potential threats posed by adversaries using unmanned systems. Government initiatives of this nature are significant catalysts for the growth of the small drone market.

The adoption of Light Detection and Ranging (LiDAR) technology represents a notable trend gaining traction in the small drone market. LiDAR is a remote sensing sensor that utilizes pulsed light to measure distances to the Earth, producing precise three-dimensional information about the Earth's surface and target objects when combined with airborne systems. LiDAR-equipped drones, known as LiDAR drones, have become increasingly popular for data collection. For example, in August 2021, Redtail LiDAR Systems, a US-based company specializing in microelectromechanical systems mirror-based LiDAR technology, introduced the RTL-450 LiDAR sensor to the market. Weighing just over 4 pounds, the RTL-450 incorporates a lightweight MEMS mirror and a precision navigation system to generate accurate data for aerial surveying missions. The LiDAR system's three-dimensional point clouds and high resolution provide operators with exceptional capabilities for advanced analytics of both manmade and geographic features on the Earth's surface. Its design, allowing independent operation of the LiDAR system from a drone platform, enhances flexibility for integration with small drones. This innovative LiDAR technology contributes to the ongoing evolution of the small drone market.

Prominent players in the small drone market are strategically developing innovative products, particularly small drones equipped with upgraded sensors, to bolster their revenues. These compact unmanned aerial vehicles leverage advanced sensor technologies, enhancing their capabilities for superior navigation, data collection, and situational awareness. A notable example is Teledyne, a US-based company specializing in sensing technologies, which introduced the Black Hornet 4 Personal Reconnaissance System in May 2023. As the latest iteration of the Black Hornet nano-drone, this next-generation device improves covert situational awareness for small units. The Black Hornet 4 features a new 12-megapixel daytime camera with exceptional low-light performance, a high-resolution thermal imager, and an advanced software-defined radio (SDR) datalink, enabling it to capture crisp video and still images. Weighing merely 70 grams, the Black Hornet 4 boasts a flying time exceeding 30 minutes, a range exceeding two kilometers, and the ability to navigate in 25-knot winds.

In April 2021, Anduril Industries, Inc., a prominent US-based defense product company, acquired Area-I Inc. for an undisclosed amount. This acquisition is poised to expand Anduril's portfolio of unmanned aerial systems, introducing new applications for its software-defined capabilities, including intelligent teaming and mission autonomy. The strategic move is expected to significantly accelerate Anduril's long-term growth within the small drone market. Area-I Inc., a US-based company operating in the small drone market, brings its expertise and technology to complement Anduril's capabilities in unmanned aerial systems.

Major companies operating in the small drone market report are Dai-Jing Innovations, Parrot SA, AeroVironment, Elbit Systems, lockheed Martin Corporation, Israel Aerospace Industry Limited, BAE Systems plc, 3D Robotics, Textron Inc., Saab AB, Delair, Yuneec International, Applied Aeronautics, The Boeing Company, Thales Group, Skydio, Autel Robotics, Airobotics, BRINC DronesLLC., Citadel Defense Company, Corvus Robotics, Dedrone, DroneDeploy, DroneUp, DroneSeed, DroneSense, Propeller Aero, SkyCatch, Skyword, Valqari, Volansi, WiBotic, Wing, Zipline, Censys, Inspired Flight, Skyfish, Hitec Commercial Solutions, Vantage Robotics, RangePro X8P, C-Astral Aerospace.

Asia-Pacific was the largest region in the small drone market in 2023. Asia-Pacific is expected to be the fastest-growing region in the small drone market report during the forecast period. The regions covered in the small drone market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the small drone market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary classifications of small drones are fixed-wing and rotary-wing variants. Fixed-wing drones are characterized by wings that remain stationary rather than rotating. They are powered by either fuel or batteries and are operated remotely, optionally with a pilot, or autonomously. These small drones find applications in various fields including military and commercial sectors.

The small drones market research report is one of a series of new reports that provides small drones market statistics, including small drone industry global market size, regional shares, competitors with a small drones market share, detailed small drones market segments, market trends, and opportunities, and any further data you may need to thrive in the small drones industry. This small drone 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 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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