The global Commercial Drone Market size was valued at USD 13.44 Billion in 2022. It is expected to expand at a compound annual growth rate (CAGR) of 57.5% from 2023 to 2030.

Commercial Drone Market Overview

In terms of volume, it was estimated that there would be a demand for 689,4 thousand units in the year 2020. There are many different applications for drones today, including cinematography and the reaction to emergency situations. In addition, the real estate and construction industries are experiencing a high demand for these devices because of their capacity to survey lands, give continuous and accurate project alerts, increase safety, and prevent harmful accidents on work sites. Over the past few years, there has been a significant expansion in the number of commercial use cases for drones. Market participants such as companies that manufacture drones and companies that provide software solutions are always working on inventing, testing, and upgrading products that may be used in a variety of markets.

On the other hand, traditional use cases such as security, surveillance, and monitoring are anticipated to increase the most in industries that have high labour costs and crime rates. Search and rescue operations, as well as mapping out elevated infrastructure that may have damaged electrical lines and unstable roofs, are two of the most common uses for drones in hazardous and inaccessible areas. Drones are also commonly utilised in the construction industry.

As a result of the COVID-19 epidemic that occurred all over the world, there has been a notable increase in the employment of drone technology across a variety of scenarios. Drones have been shown to be of tremendous assistance in a variety of predicaments, and this has led to the growth. There has been a significant uptick in the use of drones in the medical field, particularly for the transportation of medical supplies and the collection and delivery of laboratory samples. This is done in order to shorten the amount of time needed for transportation turnaround and to reduce the risk of infection. According to the UNICEF, as of right now, more than eighteen different countries have begun using drones for the purposes of transportation and distribution during the pandemic.

Growth factors

The range of products offered by robot manufacturers has been modernised as a result of on-going specialised advancements in devices such as cameras, portable equipment, CPUs, microcontrollers, and modern personal computers. As a direct result of these enhancements, businesses now have the ability to create and operate within their own walls estimation and explanation tools for the purpose of determining distance, volume, and region. As a consequence of this, businesses from all over the world are increasingly looking for AI and man-made intelligence solutions in order to extract useful outcomes from a mountain of data and information that has been acquired from a vast number of data of interest.

UAVs are able to function more effectively as a result of advances in artificial intelligence technology, which monitor and store enormous amounts of data. Following the global COVID-19 pandemic, there has been a significant surge in the employment of robot technology in a variety of settings, with drones proving to be of great assistance in situations like these. Drones are increasingly being deployed in the medical care industry for a variety of tasks, including the pickup and delivery of lab tests, as well as the transportation of clinical supplies, in order to reduce the amount of time spent travelling and the danger of infection. According to the United Nations Children's Fund (UNICEF), more than eighteen countries have used drones as a mode of conveyance and transportation during the pandemic. The incorporation of cutting-edge technologies like as Artificial Intelligence (AI) and Machine Learning (ML) in rambles enables the company to take advantage of huge new business opportunities.

Drones that are equipped with AI technology have a much better chance of understanding the factors of their surrounding environment, producing accurate maps of those places, monitoring the growth of specific items, and providing precise and logical information. In addition to this, they provide continual decision-production for their customers based on the information that is provided to them, which they do by providing expeditious information catch, handling, and move. Customers are also able to coordinate and examine footage taken by several robots in a progressive manner when using drones operated by artificial intelligence. Customers are also able to track flight patterns for drones. Artificial intelligence and machine learning, when combined with predictive learning models, make it possible to process information more quickly and have more meaningful experiences. The introduction of the 5G transport model and the incorporation of distributed computing breakthroughs into the development cycle are both expected to be beneficial to the commercial drones industry.

Product Insights

In terms of volume, the rotary blade segment accounted for almost 80.0% of the market in 2020 and is anticipated to maintain its dominance during the forecast period. Due to its capacity to maintain a visual on a single target for an extended period of time, hover, and conduct agile manoeuvres, the market for rotary-blade drones for inspection purposes is likely to expand. Typically, these drones are a suitable solution for a variety of business uses, including filmmaking and photography, surveillance, and monitoring. In addition, they are simpler to manage than their fixed-wing and hybrid counterparts.

The hybrid segment is anticipated to record the highest volume CAGR of 64.0% between 2021 and 2028. Hybrid commercial drones enhance their power and efficiency by combining the benefits of batteries and fuel. In addition, these drones can fly for longer periods of time with greater payloads in harsh weather situations. Facebook and Amazon are utilising hybrid drones to provide internet connectivity in distant locations and to efficiently transport packages, respectively.

Application Insights

In 2020, the filming and photography category accounted for approximately 31.0% of the market's revenue and is anticipated to maintain its dominance throughout the forecast period. Drones are becoming an integral component of professional photography, and photographers are increasingly accepting them to gain a competitive advantage. Companies such as DJI are producing small drone cameras capable of capturing high-quality images for professional photographers. Additionally, formerly unreachable landscapes and regions can now be easily acquired. When the FAA authorised commercial drone flight in September 2014, filmmakers were not among the first in line. However, there is already a whole subsector of drone pilots who provide services to the film and entertainment industries.

The precision agriculture segment is expected to experience the greatest CAGR of over 60.0% between 2021 and 2028, as drones have become one of the most important parts of controlling key farm operations. Farmers around the world are attempting to decrease agricultural expenses and increase output. Farmers and agriculture employees can collect farm data and automate duplicate activities with the aid of drones, thereby maximising efficiency. In addition, drones assist farmers with a variety of duties, including field monitoring and analysis, as well as the planning of crop plantations to determine the crop's development and health. Raptor Maps, a U.S.-based provider of agriculture analytics, utilises drones to help farmers better comprehend their potential yield.

End-use Insights

The media and entertainment sector held almost 27.0% of the market share in 2020 and is anticipated to maintain its dominance over the market throughout the projected period. There are a variety of media and entertainment applications for drones. Filmmakers have begun utilising professional drones to capture exact frames in the most cost-effective manner. The increased demand from clients and owners for advertising resorts, hotels, tourist locations, public spaces, and amusement parks via aerial photography is expected to fuel the segment's expansion.

The distribution and logistics segment is projected to have the largest CAGR between 2021 and 2028, at over 60%. Due to the rise of the e-commerce business, drones will revolutionise the global delivery and logistics sector. In response to the rising demand for rapid delivery of goods, e-commerce warehouses are increasingly employing drones for product storage and delivery. Globally, warehouses are investing substantially to increase the level of automation. UAVs are handy for operations and jobs that demand more man-hours. In warehouses, barcode scanning is one of the primary applications for drones.

Regional Insights

In terms of volume, North America held the largest market share of approximately 37.0% in 2020 and is expected to experience significant growth over the next seven years due to favourable government initiatives, advancements in drone technology, and the rising demand from businesses in a variety of industries. In addition, the U.S. Federal Aviation Administration (FAA) has issued new regulations to give clearer and more uniform guidance for the legal and safe operation of UAVs in commercial environments. It is anticipated that these laws and regulations will minimise entry barriers and enhance product acceptance in the region.

From 2021 to 2028, Asia-Pacific is anticipated to record the highest volume growth, with a compound annual growth rate of 63.1%. By 2028, the regional demand for commercial drones is expected to top 9 million units, exceeding North America. The expansion of the market is predicted to be driven by favourable regulatory conditions, particularly in developed nations. Multiple governments are continually drafting new restrictions for the commercial use of drones. In addition, various start-up companies are evaluating potential commercial applications of drones and seeking to improve their safety.

Scope Analysis:

Recent Developments

• February 2022 - Saudi Arabia and a significant territorial media communications organization declared a cooperation to foster commercial drone’s innovation. An update of understanding was endorsed between the King Abdulaziz City for Science and Technology and Zain Saudi Arabia. The two will cooperate on drone innovative work, as indicated by the Saudi Press Agency.
• Under the Trade Initiative's Joint Working Group Air Systems andDefense Technology, the United States and India's Ministry of DefenseDepartment of Defense settled on a Project Arrangement for an Air-Launched Unmanned Aerial Vehicle in September 2021.

Market Segmentation

This portion of the study on the Commercial Drone Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Product

• Fixed-wing
• Rotary Blade
• Hybrid

By Application

• Filming & Photography
• Inspection & Maintenance
• Mapping & Surveying
• Precision Agriculture
• Surveillance & Monitoring
• Others

By End-use                

• Agriculture
• Delivery & Logistics
• Energy
• Media & Entertainment
• Real Estate & Construction
• Security & Law Enforcement
• Others

By Companies

• Yuneec Holding Ltd
• Skydio, Inc.
• Parrot Group
• Intel Corporation
• Teal Drones
• Ehang Holdings Limited
• AeroVironment Inc.
• 3D Robotics, Inc.