June 17, 2024
Ict

Drone Service Market Set for High Growth Due to Increasing Adoption of Commercial Drones


The drone service market provides various services including aerial photography, data acquisition and analytics, inspection, and other services utilizing drones. With the ability to reach difficult locations and capture images from angles not possible through conventional means, drones are increasingly being deployed for applications such as evaluating infrastructure conditions, monitoring crop growth, and filming movies.

The global Drone Service Market is estimated to be valued at US$ 12.57 billion in 2024 and is expected to exhibit a CAGR of 39% over the forecast period of 2023 to 2030.

Key Takeaways
Key players operating in the drone service market are Unmanned Experts Inc., Aerodyne Group, Terra Drone Corporation, Cyberhawk, Sharper Shape, Dronedeploy, Sensefly, Edall Systems, Precisionhawk, and Phoenix Drone Services LLC. These companies offer a range of services and have significant stakes in industries such as construction, agriculture, and government sectors.

The increasing demand for commercial drone imagery for applications such aerial monitoring and inspections present key opportunities in the market. For instance, drones are being widely used to monitor infrastructure and detect flaws at difficult to access locations. They are also employed for precision agriculture activities such as crop spraying and monitoring.

North America currently dominates the global drone service market. However, Asia Pacific is expected to witness the highest growth owing to increasing construction of smart cities and expansion of drone services market in developing countries such as China and India. Latin America and Middle East & Africa also offer lucrative prospects for drone service providers given ongoing infrastructure development drives in the regions.

Market Drivers
Growing adoption of commercial drones for applications across industries such as construction, energy, and agriculture is a key driver for the drone service market. Deploying drones helps save significant time and costs as compared to conventional methods of aerial inspections and surveys.

Regulatory norms permitting commercial drone operations and testing of advanced unmanned aerial systems in various countries have boosted the drone service market. This has paved way for new drone service models and applications.

Market Restraints
Presence of stringent regulations around drone operations, geo-fencing, and privacy in many countries limit the scope of applications. Addressing legal requirements associated with beyond visual line of sight (BVLOS) drone flights pose challenges to greater adoption of advanced drone services.

Higher upfront costs of acquiring professional drones, training pilots, and achieving regulatory certifications inhibit small enterprises from harnessing the benefits of drone services. Lack of standardization in drone safety features also negatively impacts the market expansion.

Segment Analysis:
The drone service market is dominated by the commercial segment which accounts for over 60% of the total market share. This is because drones are increasingly being used for applications such as aerial photography and videography, product and asset inspections, surveying and mapping, precision agriculture etc. by various industries. The agricultural segment is also gaining traction as a sub-segment with drones being used for crop health monitoring, crop spraying, analysis of farmland etc. This helps farmers improve farm productivity and optimize crop yields.

Global Analysis:
On the basis of region, North America dominates the global drone service market holding over 35% share due to rapid adoption of drone technology across various industries for commercial applications. However, Asia Pacific is expected to grow at the fastest rate during the forecast period owing to increasing investments by governments and private players in countries like China and India to develop their drone markets. Countries like China, Japan and South Korea are emerging as major drone hubs and contribute significantly to the growth of the regional market. Europe also captures a notable share in the market supported by favourable regulations regarding commercial drone operations.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it