Drone Services Market Size, Share, Russia-Ukraine War Impact & COVID-19 Impact Analysis, By Service Type (Drone Platform Services, Drone MRO Services, and Drone Training & Simulation Services), By Application (Aerial Photography, Product Delivery, Surveillance & Inspection, Data Acquisition & Analytics, and Others), By End-use Industry (Agriculture, Infrastructure, Oil & Gas, Logistics, and Others), and Regional Forecast, 2023-2030

The global drone services market size was valued at USD 13.9 billion in 2022 and The market is projected to grow from USD 18.9 billion in 2023 to USD 189.4 billion by 2030, exhibiting a CAGR of 38.9% during the forecast period.

Drone services refer to the use of Unmanned Aerial Vehicles (UAVs) for various purposes, such as delivering packages, capturing images or video, conducting surveys, and so on. Drones are equipped with cameras, sensors, and other technologies that enable them to perform a wide range of tasks. These services are used in various sectors, including construction, agriculture, real estate, and others. 

Moreover, they offer a wide range of services, including aerial photography and videography, drone pilot training, drone maintenance and repair, drone-based data collection, and others. Additionally, they can be used in hazardous environments, such as inspecting oil rigs or power lines, which are quite difficult and dangerous to perform by man power. The increasing demand for drone services from various end-user industries is expected to drive the growth of the global market from 2023 to 2030.

RUSSIA-UKRAINE WAR IMPACT:

Russia-Ukraine War to Contribute to Market Growth Due to Rising Product Demand for Surveillance and Attack Operations

The Russia-Ukraine war is driving the global drone services market growth. The conflict has resulted in increased usage of drones for military purposes, with both countries utilizing them to monitor each other's military activities, equipment, and personnel. This leads to rise in demand for drones for surveillance and reconnaissance missions. For instance, in March 2023, the Ukraine government announced that it is expanding its drone services program for both reconnaissance and attacking enemy targets from longer distances. The government also announced that it is collaborating with more than 80 Ukraine-based drone manufacturers.

Moreover, in January 2023, the Ukraine government announced its decision to increase the procurement of UAVs for the Armed Forces of Ukraine by allocating almost USD 550 million toward purchasing drones. Before the war, AeroDrone manufactured drones for crop-dusting, but the company is also transporting supplies for Ukraine's armed forces using drones. Both Ukrainian and Russian forces have used various Unmanned Aerial Vehicles (UAVs), also known as drones, for reconnaissance and attack missions.

Additionally, in September 2022, according to the state-owned corporation Rostec, Russia's KUB and Lancet kamikaze drones have been extensively deployed during combat operations in Ukraine. ZALA Aero's UAVs are being actively employed by the Russian military. These drones are primarily used to strike remote ground targets.

Furthermore, Russian forces have employed these drones for surveillance and reconnaissance missions in the conflict zones of Ukraine. However, there has been a significant decrease in drone services from civilian and commercial purposes due to the impact of war.

COVID-19 IMPACT

Increased Product Demand from Healthcare, Logistics, and Other Industries Amid COVID-19 Aided Market Growth

The COVID-19 pandemic propelled the global drone services industry. Drones have been used to deliver medical supplies and to disinfect public spaces, reducing the risk of infection. Drones have also been used for contactless delivery of goods and for monitoring compliance with social distancing measures.

During the pandemic, drones were used in healthcare for delivering medical supplies and samples, enforcing quarantine measures, and disinfecting public spaces. For instance, Zipline, a drone delivery company, partnered with the Ghana government to deliver COVID-19 vaccines and other medical supplies to remote areas of the country.

Moreover, the logistics industry has also witnessed a surge in demand for UAV services during the pandemic. Drones have been utilized to deliver essential goods such as medical supplies and food during the pandemic due to lockdowns and travel restrictions. They have been particularly useful in covering the last-mile delivery, which is the final stage of the delivery process to the recipient's doorstep.

LATEST TRENDS

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Autonomous Drones and Increasing Adoption of Artificial Intelligence (AI) are Prominent Market Trends

Autonomous drones are UAVs that can operate without human intervention, using advanced software, sensors, and cameras. These drones have been playing an essential role in various industries such as agriculture, construction, mining, and logistics. Autonomous drones can serve various purposes such as checking crops, analyzing soil, and spraying pesticides in agriculture. They can also survey sites, inspect buildings, and monitor construction in the construction industry. Furthermore, they can deliver packages and manage inventory in logistics. 

For instance, in February 2023, XAG, a China-based company that uses advanced technology for agriculture, partnered with FarmInno, a top agricultural company in Thailand. They are introducing fully autonomous drones for farming purposes in Thailand. This aims to improve smart agriculture by providing advanced technology to Thai farmers and increase both productivity and quality in the agricultural sector. The drones are fully autonomous and powered by AI, which makes them highly efficient in terms of spreading and precision spraying.

Additionally, AI is playing a crucial role in the development of drones. AI algorithms can make drones able to recognize objects, examine information, and make decisions on their own. These AI-powered drones can assist businesses in automating different jobs and minimizing the requirement of human involvement. Furthermore, strategic partnerships and collaborations, product innovations, and developments are also key trends in the market.

DRIVING FACTORS

Rising Demand for Drone Services from Various End-user Industries is Expected to Propel Market Growth

Drones are becoming smaller, lighter, and more reliable, which allows them to perform a wider range of tasks. The use of drones has become increasingly popular due to the benefits they offer, such as improved efficiency, cost-effectiveness, and safety. Due to the advancements in software and artificial intelligence, the increasing use of drones is making it easier to control and automate them. Drones are also used for environmental monitoring, disaster relief, and search & rescue operations.

Additionally, increasing demand for aerial inspection and surveying services also catalyze the market growth. Many industries, such as agriculture, construction, and energy, require regular inspection of their infrastructure and assets. Drones provide an efficient and cost-effective solution for these industries, as they can cover large areas quickly and safely, reducing the need for manual labor and minimizing the risk of accidents. Furthermore, Advanced Air Mobility (AAM), and Urban Air Mobility (UAM) are expected to drive the growth of the market.

Increasing Government Initiatives and Investments are Projected to Boost the Market Growth

The increasing government initiatives supporting drone technology are driving the growth of the market. Governments are investing in drone technology for various purposes such as agriculture, construction, environmental monitoring, and so on. For instance, in January 2022, the agricultural ministry of India announced a monetary grant program, Sub-Mission on Agricultural Mechanisation (SMAM), to facilitate the purchase of agricultural drones. As a part of the 2022 Union Budget, 'Drone Shakti' mission was announced with the aim to encourage drone-as-a-service and provide support to drone startups.

Additionally, governments are investing in drone technology to support their military and security operations. For instance, the U.S. Department of Defense has allocated over USD 3 billion in its budget for the development and deployment of drones in military operations. These initiatives help drone operators to grab further opportunities which, in turn, is predicted to boost the market growth.

RESTRAINING FACTORS

High Regulatory Framework and Safety Concerns are Expected to Hinder the Market Growth

High regulatory frameworks can significantly impact the growth of the drone industry. Governments around the world have recognized the potential of drones and have implemented strict regulations to ensure their safe operation. However, these regulations can often be complex and time-consuming, making it difficult for businesses to obtain the necessary permits and approvals to operate drones. For instance, in the U.S., the Federal Aviation Administration (FAA) requires businesses to obtain a Part 107 certificate before they can operate a drone commercially. This certificate requires passing a knowledge test, undergoing a TSA security screening, and maintaining ongoing compliance with FAA regulations.

Furthermore, safety concerns are a significant obstacle for the drone industry. Drones are often flown in crowded areas, and their potential to cause harm to people and property is a concern for governments and the public. This has led to a range of safety regulations, such as mandatory safety features, including geo-fencing, remote identification, and collision avoidance systems, to ensure the safe operation of drones. These factors are expected to hinder the growth of the market.

SEGMENTATION

By Service Type Analysis

Drone Platform Services Segment to Lead Due to the Growing Use of Drones for Emergency Response and Public Safety 

By service type, the market is bifurcated into drone platform services, drone MRO services, and drone training & simulation services. Drone platform services segment dominated the global drone services market share in 2022. Drone platform services refer to a range of software and hardware solutions that enable the safe and efficient operation of drones. This segment is also estimated to be the fastest growing during the forecast period due to the growing use of drones for emergency response and public safety.

Drone MRO services are a range of services that include maintenance, repair, and overhaul services for wind turbine blades, solar plates, oil & gas pipelines, and other inspection services that are situated in hard-to-reach areas. Drone MRO services segment is expected to register significant growth during the forecast period due to increasing demand for low cost and effective inspection services from various sectors.

By Application Analysis

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Owing to the Demand for Surveillance and Inspection Operations from Agriculture, Oil & Gas, Mining and Other Sectors, the Surveillance & Inspection Segment is Dominating 

By application, the market is categorized into aerial photography, product delivery, surveillance & inspection, data acquisition & analytics, and others. The surveillance & inspection segment dominates the market and is estimated to be the fastest growing segment during the forecast period, owing to rising demand for surveillance and inspection operations from agriculture, oil & gas, mining, and other sectors.

The product delivery segment held the second-largest share in the application segment. It refers to the use of drones to deliver goods to customers. It involves the use of specialized drones equipped with sensors and GPS technology to navigate and deliver packages to their intended destinations. The rising demand for fast and efficient delivery services is anticipated to boost the product delivery segment.

By End-use Industry Analysis 

Infrastructure Segment to Dominate Due to Rising Product Demand for Aerial Surveying and Mapping 

By end-use industry, the market is segmented into agriculture, infrastructure, oil & gas, logistics, and others. The Infrastructure segment dominated the market in the base year due to the usage of drones in aerial surveying and mapping in the construction industry across the globe.

The agriculture segment is predicted to witness significant growth during the forecast period. The segment's growth is due to the increasing demand for crop monitoring and spraying in agriculture. Additionally, increasing demand for aerial photography and videography is also expected to foster the growth of the segment over the forecast period.

REGIONAL INSIGHTS

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In terms of geography, the market is divided into North America, Europe, Asia Pacific, the Middle East, and the Rest of the World.

North America dominated the market in 2022 and was valued at USD 4.75 billion. This growth is attributed to the presence of major OEM’s in the region and the increasing investments in research and development of next-generation drone technologies. For instance, in March 2023, Wing, a U.S.-based subsidiary of Alphabet, launched its new delivery system. The system includes cost effective, customizable pickup stations and numerous charging hubs. By implementing these changes, Wing aims to shift the focus of its drones from being similar to standard delivery vehicles to resembling workers in a gig economy. 

The market in Europe held the second-largest share in the base year. This growth is due to surge in demand for inspection services. Drones are increasingly used to inspect hard-to-reach areas such as wind turbines, pipelines, and bridges. Furthermore, the European Union Aviation Safety Agency (EASA) has developed regulations that allow for the use of drones in commercial operations, which creates a favorable regulatory environment for the growth of the market in Europe.

Asia Pacific is expected to be the fastest growing region during the forecast period. This region's high market growth is attributed to the rising usage of drones in the agriculture sector. Additionally, the regulatory environment for drones in agriculture is becoming increasingly favorable in this region, with several countries introducing regulations and guidelines to facilitate the use of drones in agriculture. For instance, in India, the government has launched a program to promote the use of drones in agriculture, while in Japan, the government has introduced regulations to allow for the use of drones in rice cultivation.

The Middle East is anticipated to witness significant growth during the forecast period due to growing product use in the oil & gas industry. For instance, in January 2023, Saudi Aramco, the world's leading oil producer, plans to invest USD 14 million in Terra Drone, a Japanese company specializing in drone and air mobility technology. Terra Drone will use the funds to establish a subsidiary, Terra Drone Arabia, which will offer oil and gas inspection services to Saudi Aramco.

The rest of the world is anticipated to witness moderate growth in the market during the forecast period. The growth is owing to increasing partnerships and collaborations of companies to enhance their services.

KEY INDUSTRY PLAYERS

Expansion of Services and Technological Advancements by Leading Players to Propel Market Expansion

The global market is highly fragmented with key players, such as Aerodyne Group, Terra Drone, AgEagle Aerial Systems Inc., Cyberhawk, DroneDeploy, and others. Major players are focusing on expansion of services, product innovations, and expansions into emerging markets to increase their market share. Drone operators are expanding their services to the renewable energy industry, providing services such as solar panel inspections, wind turbine inspections, and oil and gas pipeline inspections, reducing the need for manual inspections that are costly and time-consuming.

LIST OF KEY COMPANIES PROFILED:

• Aerodyne Group (Malaysia)


• Terra Drone (Japan)


• AgEagle Aerial Systems Inc. (U.S.)


• Cyberhawk (U.K.)


• DroneDeploy (U.S.)


• Matternet (U.S.)


• PrecisionHawk (U.S.)


• Phoenix Drone Services LLC (U.S.)


• SenseFly (Switzerland)


• Sky Futures Ltd (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – Skyports Drone, a U.K.-based provider and operator of eVTOL drone solutions for cargo drone deliveries, survey, and monitoring, collaborated with Pyka Inc., for heavy payload drone logistics. With this collaboration, Skysports leverages Pyka’s best-in-class heavy payload aircraft to provide best-in-class drone delivery services.


• September 2022 – Safe Pro Group Inc, a U.S.-based developer of safety & security solutions for people and infrastructure, acquired Airborne Response for an undisclosed amount. This acquisition helps Safe Pro Group to expand its capabilities to offer commercial and government customers with mission critical solutions and enhance its services. Airborne Response, a U.S.-based provider of mission critical aerial intelligence UAV services.


• June 2022 - Delta Drone International Limited, an Australia-based drones-as-a-service provider, announced that the company had signed a contract worth USD 0.9 million for drone surveying services with Red 5 Limited for three years. Red 5 Limited is an Australian ASX listed gold producer.


• April 2022 - Zipline, a U.S.-based logistics company designs, manufactures, and operates delivery drones, is increasing its geographical presence by announcing a partnership with Japan-based Toyota Tsusho Corp., a subsidiary of the eponymous automotive group. The companies together launched drone delivery services of medical supplies to Japan’s Gotō Islands.


• January 2022 – Spright, a U.S.-based division of Air Methods, signed a contract worth USD 16 million with Wingcopter GmbH, a Germany-based aerospace company that specializes in designing and manufacturing of unmanned eVTOL delivery drones. As part of the partnership, the companies are focusing to expand the medical UAV services by building up a drone-based delivery network for healthcare covering more than 300 locations across the U.S.

REPORT COVERAGE

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The global drone services market research report provides a detailed market analysis. It comprises all major aspects such as R&D capabilities and optimization of the operating services. Moreover, the report offers insights into market analysis, trends, regional analysis, and primarily highlights key industry developments. In addition to the above-mentioned factors, it mainly focuses on several factors that have contributed to the global market in recent years.

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