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The global drone surveillance market for energy & power size was USD 182.7 million in 2019 and is projected to reach USD 415.8 million by 2027, exhibiting a CAGR of 19.6% during the forecast period.
The use of drones for asset management and infrastructure inspection has recently increased at an exponential rate due to the cost-effectiveness of drone services, easy maneuverability at remote locations, accurate image capturing through infrared cameras, and data analysis and prediction through machine learning (ML) technology. The data collected through drones can be used to identify and predict defects such as corrosion in structures, coating failures, and any other structural damages. The oil and gas industry is largely focusing on the inspection and monitoring of rigs as they require regular checks for better performance and safety. According to our study, the global oil and gas industry invests around USD 50.76 billion yearly to monitor onshore and offshore pipelines.
Moreover, the numerous advantages associated with drone inspection over conventional helicopter inspection methods have facilitated its adoption for several applications such as pipeline monitoring and inspection, offshore platform inspection, wind turbine inspection, inspection of power distribution lines, power plant inspection, platforms and solar panels inspection, and others.
COVID-19 Pandemic to Drive Demand for Drone Surveillance Services
The COVID-19 pandemic has significantly affected various industries across the world. Several oil and gas plants have been closed down temporarily to stop the spread of the coronavirus. As a result, the drone surveillance market for energy & power industry had to deal with multiple shocks delivered by COVID-19 during the forecast period. After the outbreak of COVID-19, drone service operators experienced an increase in demand for drone surveillance services for applications such as pipeline monitoring and inspection and offshore platform inspection. Features such as the compact size, lightweight, and cost-effectiveness of drone services offer more efficient surveillance services than helicopter services. On the other hand, factors such as weakening economic growth, specifically in the US, Europe, and China, ongoing trade tensions that have created uncertainty, slow growth, and have led to alterations in the long-established supply chain strategies as well as given rise to political risks. Moreover, the outcome of Brexit in Europe and tensions in the Middle East have largely impacted the growth of the oil and gas industry and have had a significant impact on the energy and power drone surveillance market. According to the International Energy Agency (IEA), the global oil demand is anticipated to decline by a record 9.3 mb/d year-on-year in 2020.
Furthermore, the key market players are focusing on the adoption of partnership and collaboration strategies to overcome the impact of COVID-19. In September 2020, for instance, Aerodyne Group announced its partnership with Al-Babtain LeBlanc, a leading systems integrator and provider of power, security, mobility, and telecom infrastructure in the Middle East. This partnership aims to transform the Middle East drone inspection domain.
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Increasing Adoption of LiDAR Drones for Surveillance to Aid Market Growth
Light detection and ranging (LiDAR) drones are highly preferred for rig inspection operations as they are integrated with advanced laser and sensor technology-based components. These drones comprise of a global navigation system, a laser scanner unit, an inertial navigation system unit, and an inertial measurement unit, which allows the end-user to gain accurate, fast, and consistent inspection results.
Moreover, the integration of advanced sensor technologies such as warning systems and crash avoidance systems makes these drones ideal for use in various end-use industry applications. Furthermore, even though these drones have a higher cost than conventional drones, investments in R&D and offshore oil and gas monitoring and maintenance have increased, which is favoring the adoption of LiDAR technology in the oil & gas industry. Besides, the rising demand for drones powered by artificial intelligence (AI) to detect and analyze the intensity of rig structure coating breakdown and corrosion on ships is also driving the market growth.
Growing Number of Wind Turbines to Drive the Market
The rising number of installations of new wind turbines in North America and Europe is expected to propel the market growth during the forecast period. For instance, in 2018, Europe had installed 409 offshore wind turbines. With this new deployment of turbines, Europe has a total installed offshore wind capacity of 18,499 MW. Out of this total capacity, the UK accounted for a 44% share. These factors are expected to propel the market at a higher CAGR during the forecast period.
Moreover, the rising use of AI-driven drones for wind turbine inspection will further facilitate market growth during 2020-2027. For example, in September 2020, Aerodyne Group announced a joint venture agreement with Ecopulse, the leading renewable energy provider in Mexico. This deal empowers the Aerodyne Group to provide end-to-end AI-driven drone inspection and surveying solutions for clean energy assets management.
Increasing Preference for Drone Inspection Methods over Conventional Methods to Boost Growth
Conventional inspection methods such as helicopter inspection, scaffolding, and rope access are time-consuming, whereas the drone inspection method is time- and cost-saving. Therefore, drone inspection technology is widely preferred across industries, ranging from oil and gas to energy and utility to naval defense. According to Sky-Futures Ltd., the drones used for conducting inspection operations in the North Sea offshore structures resulted in an 80% cost saving for their oil and gas industry client. Besides, with drone inspection technology, the dependency on human operators and risks associated with their lives has reduced. These advantages associated with drone inspection methods have increased their adoption over conventional methods.
Limited Availability of Skilled Remote Drone Pilots to Hamper Market Growth
Experienced and skilled drone pilots are needed for the operation of drones for inspection of offshore and onshore structures, but the lack of such pilots is expected to hamper the growth of this market. As per the US federal regulations and guidelines, a drone pilot should have an authenticated remote pilot certificate authorized by the Federal Aviation Administration (FAA). Moreover, the stringent government regulations for drone utilization are also expected to hamper market growth during 2020-2027. For example, the State of Arkansas forbids the use of drones for the surveillance of critical infrastructures under Act 1019. These factors will affect the growth of the market.
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Rising Use of Multirotor Drones for Rig Inspection to Boost Segmental Share
Based on type, the market is divided into multirotor, fixed-wing, and hybrid. Among these, the multirotor drone type segment registered the highest market share in 2019. This segment is foreseen to remain the largest segment throughout the forecast period. The wide use of multirotor drones in various applications including pipeline monitoring and inspection, offshore platform inspection, wind turbine inspection, power plant inspection, and solar panel inspection, among others, are expected to drive the segment’s growth in the upcoming years.
On the other hand, the hybrid drone type segment is anticipated to grow at a significant CAGR during the projected period. This growth is owing to the rising investments for the development of hybrid VTOL fixed-wing unmanned aircraft systems (UAS).
Offshore Pipeline Monitoring and Inspection Segment to Account for Dominant Market Share
In terms of application, the market is segmented into pipeline monitoring and inspection, offshore platform inspection, wind turbine inspection, power plant inspection, solar panel inspection, and others. The pipeline monitoring and inspection segment is expected to have a significant market share and is expected to display a healthy growth rate during the forecast period. This is owing to the high adoption of drones for offshore product manufacturing.
The wind turbine inspection segment is projected to grow at the fastest rate due to the rising number of offshore wind farm installations in the Middle East region. The growth of the segment is further supported by the rising demand for offshore drone surveillance in the energy industry.
North America Drone Surveillance Market for Energy & Power Size, 2016-2027 (USD Million)
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In terms of geography, the market is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America North America dominates the drone surveillance for energy & power industry share. This dominance is attributed to the widespread adoption of drone technology in the U.S. for pipeline inspection and monitoring applications. The U.S. has the world's largest pipeline network, which favors market growth in North America.
The market in Europe has registered the second-largest share in the base year owing to the increased installation of wind turbines in France. For instance, from 2021 onwards, France-based Hautes Falaises (Fécamp) will be commissioning 75 new wind turbines that will facilitate market growth in Europe.
Asia Pacific is anticipated to exhibit the fastest growth in the market during the forecast period. This growth is attributed to the expanding number of unmanned aerial vehicle (UAVs) service suppliers in developing economies such as China and India. Besides, the region is home to several key players involved in the market such as Terra Drone Corp., Australian UAV Pty Ltd, and Sphere Drones, among others.
The market in Latin America and the Middle East & Africa is anticipated to display considerable growth during the forecast period. The presence of multiple offshore oil and gas companies is facilitating market growth in this region. Furthermore, rising installations of wind turbines platforms in Brazil is predicted to augment the market. According to the Brazilian Wind Energy Association, there are 7,738 wind turbines and 637 wind farms in Brazil.
Market Players to Focus on Providing Cost-Efficient Inspection Services to Customers
The drone surveillance for energy & power is highly fragmented with the presence of various key players such as Cyberhawk Innovations Limited, Airobotics Ltd., and Terra Drones, among others. These players are focusing on providing a wide range of cost-efficient services and solutions to oil and gas companies. Besides, factors such as strategic acquisitions, a focus on expanding simulation and training services, and increasing investments in R&D activities are enabling large market players to hold a considerable share in the market.
LIST OF KEY COMPANIES PROFILED:
An Infographic Representation of Drone Surveillance Market
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The drone surveillance for energy & power industry research report provides a detailed analysis of the market. It encompasses key aspects such as R&D capabilities and optimization of the manufacturing process. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report focuses on several factors that have contributed to the growth of the advanced market over recent years.
Value (USD Million)
Fortune Business Insights says that the global market for drone surveillance for the energy & power size was USD 182.7 million in 2019 and is projected to reach USD 415.8 million by 2027.
The market is anticipated to grow at a CAGR of 19.6% during the forecast period (2020-2027).
The pipeline monitoring and inspection application segment are anticipated to be the leading segment in this market during 2020-2027.
The increasing number of new wind turbines is the key factor that is driving the growth of the market.
Cyberhawk Innovations Limited, Terra Drone Corp., Aerodyne Group, Sky-Futures Ltd, and Avitas Systems, Inc. are the key players in the global market.
North America held the largest market share in 2019.
Providing cost-efficient services to customers and mergers & acquisitions are the top strategies adopted by the key players to sustain in the market.
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