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The global drone services market size was USD 7.12 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with drones witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global services market will exhibit a stellar growth of 41.32% in 2020. The market is projected to grow from USD 9.56 billion in 2021 to USD 134.89 billion by 2028 at a CAGR of 45.9% in the 2021-2028 period. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Unmanned Aircraft Systems (UAS) also known as a drone or UAVs, provides services that include surveillance, environment monitoring, aerial photography, mapping, and others. The drones provide solutions to multiple industries for making real-time strategies. The increasing use of drones has enabled the services provider industry to grow exponentially across the globe. The rising adoption of technological advancement in the UAVs is providing significant opportunities for the services providers. In April 2021, DJI launched the new DJI Air 2S drone. It is a portable camera drone with an all-in-one solution. It offers state-of-the-art camera upgrades, robust flight performance, and enhanced preprogrammed content creation tools.
Rising Demand for Delivery Drones in Healthcare Sector amid COVID-19 to Boost Growth
There is a positive impact of the COVID-19 pandemic on the drone services market. The market is witnessing a significant increase in demand for drones for commercial and military applications. The growing demand for drones in the healthcare sector boosts the market growth.
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Applications of Commercial Drones in Numerous Industries and Introduction of Advanced Technologies to Propel the Market Growth
An increase in penetration of data analytics, data acquisition, and real-time inspection through UAVs services to various industrial applications is driving the market's growth. The introduction of advanced infrared cameras in drones has helped farmers reduce crop damage and boost productivity due to its high precision image quality. The drone is used in different agriculture processes such as crop protection aquaponics, crop rotation, and organic farming. Furthermore, artificial intelligence, cloud computing services, and other technologies in drones boost the market growth. In July 2020, Skydio, a drone manufacturer in the U.S., launched Skydio X2. It includes advanced software that allows for a 360-degree super zoom for mapping and a 100x digital zoom down for target tracking.
Rising Use of Unmanned Aerial Vehicle in Agriculture Sector to Fuel Market Growth
The drone is used for various commercial applications such as filming and photography, environmental mapping, agriculture, and transportation of goods, and others. Drones improve farming techniques and achieve high productivity. The increasing need for precision farming to multifold the productivity of crops drives market growth rate.
The drone Original Equipment Manufacturers (OEMs) are investing in R&D for the development of thermal cameras, multispectral sensors, and LiDAR to improve the efficacy of the drones. The drones fly at a specific altitude with sensors to generate analytical data. They are used for monitoring fields and creating vegetation maps. These maps help in detecting diseases, irrigation, and irregular activity. Thus, it drives the market growth during the forecast period.
Growing Demand for Aerial Photography and 3D Scanning in Building Information Modelling (BIM) to Aid Growth
Photography has become popular for many applications by using high-resolution cameras due to the huge availability of low-cost drones. Aerial photography provides wider approaches in large township projects, multi-story building projects, and smart city projects. Thus, rising demand from the real estate and infrastructure industry is driving market growth.
Drones use camera sensors and 3D scanning for Building Information Modelling (BIM) applications, driving the drone services market growth. An increase in the popularity of drones, especially in advertisement and documentary making across the world, is projected to boost the market for drone technology services during the forecast period.
Stringent Government Regulations for Drones Hinders the Market Growth
The U.S. federal government has implemented stringent regulations for operating unmanned aircraft vehicles or drones due to the safety concerns from commercial and passenger planes. Some key restrictions have been implemented to avoid severe accidents from drones or UAVs. The government has restricted the flying or carrying operation of drones to a close perimeter of one kilometer. Furthermore, the U.S. federal government banned drones from flying at night or at no light period and restricted an altitude to above 400 meters. These factors hamper the market growth.
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High Demand for Next Generation UAVs is Projected to Boost Market
Based on the type, the Drone Service market is divided into fixed-wing and rotary-wing. The rotary-wing segment held the highest shares in 2020 and continue its dominance on this market during the forecast period. There is an increase in demand for these drones in the commercial sector due to the design that benefits in various applications such as transportation and drone deliveries. The rise in commercial drone services, especially remote sensing and environmental monitoring, is expected to grow rapidly during the forecast period.
The fixed-wing segment is anticipated to show significant growth owing to its features such as time-consuming, higher altitude, high payload capacity, and others. In March 2021, Nordic Unmanned teamed up with Textron Systems Corporation to enter the fixed-wing segment of the European drone market.
Aerial Photography Segment Would Witness Remarkable Growth Due to Rising Demand for Filming & Photography and 3D Imaging
Based on the application, the market is segmented into aerial photography, delivery & pick up, surveillance & inspection, data acquisition & analytics, remote sensing & environment monitoring, and others.
The surveillance & inspection segment was the largest segment in 2020. It is due to the growing use of drones for border security, site monitoring, and inspection activity. An increased internal threat in China, the U.S., India, Brazil, and Mexico have fueled demand for the remote-control surveillance solution for the security-providing authorities.
The aerial photography segment will witness the highest growth during the forecast period. The growth is attributed to the large landscape via enhanced camera scope and numerous angles for photography. The emergence of digital photography, aerial photography, and 3D Imaging drive the market growth.
Homeland Security Segment Dominated the Market in 2020 Owing to Rising Demand for Surveillance and Monitoring Applications
Based on end-use, the market is classified into agriculture, homeland security, oil & gas, logistics, infrastructure, media & entertainment, and others.
The homeland security segment held the highest shares in 2020. Drones are used to identify security and terrorist activities and find vulnerable areas prone to various risks. Drones improve the capabilities of security forces to counter-terror challenges in homeland security and defense operations.
The agriculture segment is projected to show significant growth during 2021-2028. The growth is due to the rising demand for UAVs services in emerging economies such as India and China as they are large producers of pulses, fruits, grain, legumes, and vegetables.
North America Drone Services Market Size, 2020 (USD Billion)
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The market of drone services is classified into North America, Europe, Asia Pacific, the Middle East, and the rest of the world.
North America stood at USD 2.46 billion in 2020. The growth is attributed to the rising adoption of advanced drones for commercial as well as defense applications. The presence of key players such as Aerodyne Group, Flirtey, Matternet, and others drive the market growth across North America.
Asia Pacific will showcase remarkable growth during 2021-2028 due to multiple UAV service providers in this region, such as Skylark Drone, Terra Drone, and Australian UAV. In addition to that, increasing demand for advanced drones, rising spending on research & development from China and India boost market growth.
In Europe, the drone services market will witness significant growth during the forecast period owing to the substantial rise in commercial drone service providers in the U.K., Germany, Spain, and others. According to the European Commission’s Aviation Strategy for Europe, the global number of mass-market drones is estimated to reach 35 million units, of which 25% are in Europe.
The Middle East is projected to show moderate growth owing to the significant number of oil & gas companies in these regions. Furthermore, the growing investment in the construction, infrastructure, and logistics sector propel the market growth across the region. The drone service market in the rest of the world is anticipated to showcase significant growth owing to the increase in global automation services in Brazil and African countries.
Key Players Focus on Business Expansion Through Agreement, Merger & Acquisitions, and Strategies
The competition landscape of the market depicts the domination of top players such as Terra Drones, Cyberhawk, Zipline, and others. Key players focus on growing investment in research and development, a diversified product portfolio of drone services solutions, and strategic acquisition. These companies focus on business expansion strategies such as agreements, mergers and acquisitions, product- folio expansion, and long-term contracts with multinational companies. In April 2021, Delta Drones acquired WeeSure and became the world leader in drone security services.
An Infographic Representation of Drone Services Market
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The drone services market research report provides a detailed analysis and focuses on key aspects such as leading companies, different types, competitive landscape, and end use applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the developed market in recent years.
Value (USD Billion)
Type; Application; End-Use, and Geography
Rest of the Middle East (By Type, Application, and End-Use)
Fortune Business Insights says that the global market size was USD 7.12 billion in 2020 and is projected to reach USD 134.89 billion by 2028.
Registering a CAGR of 45.9%, the market will exhibit steady growth during the forecast period (2021-2028).
The rotary-wing in type segment is the leading segment in the market
Aerodyne Group, Terra Drone, Cyberhawk, and Zipline are the leading players in the global market.
North America dominated the market in terms of share in 2020.
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