Drone Services Market to Hit USD 189.4 Billion by 2030 | With a CAGR 38.9%
Fortune Business Insights
Updated 8 min read
Fortune Business Insights
The Global Drone Services Market Covered Major Segments 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.
Pune, India, June 20, 2023 (GLOBE NEWSWIRE) -- The global drone services market size was valued at USD 13.9 billion in 2022 and 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 capturing images or video, delivering packages, conducting surveys, and so on. Drones are equipped with sensors, cameras, and other technologies that enable them to perform a wide range of tasks. These services are useful in several applications including agriculture, construction, real estate, and others.
Moreover, they can also be used in hazardous environments such as to inspect power lines and oil wells. This is propelling their demand and driving market expansion in the forthcoming years. This information is provided by Fortune Business Insights, in its report titled, “Drone Services Market, 2023-2030.”
Drone Platform Services Segment to Dominate Owing to the Rising Use of Drones for Public Safety
Based on service type, the market is divided into drone platform services, drone MRO services, and drone training & simulation services. Among these, the drone platform services segment lead the market in 2023. Drone platform services refer to a range of hardware and software solutions that enable the efficient and safe operation of drones. The rising use of drones for public safety and emergency response further attributed to segment growth.
Surveillance & Inspection Segment to Hold Major Share Stoked by Surging Use in Oil and Gas Sector
As per application, the market is divided into aerial photography, product delivery, surveillance & inspection, data acquisition & analytics, and others. The surveillance & inspection segment captured the largest market share due to the rising demand of drones for surveillance and inspection operations in agriculture, mining, and oil and gas sectors.
Infrastructure Segment to Dominate Due to Rising Product Demand for Aerial Surveying and Mapping
According to the end-use industry, the market is arrayed into agriculture, infrastructure, oil & gas, logistics, and others. The infrastructure segment held the largest market share due to the usage of drones in aerial mapping and surveying in the construction industry.
Geographically, the market is segregated into North America, Europe, Asia Pacific, the Middle East, and the Rest of the World. Russia-Ukraine War Impact:
Growing Government Initiatives to Procure More Drones for Military Use Boosted Market Growth During the War
The Russia-Ukraine war has significantly boosted the usage of drone services for surveillance and attack missions. This has encouraged both governments to invest in procuring more drones. For instance, in January 2023, Ukraine government announced its decision of increasing the procurement of UAVs for the Armed Forces of Ukraine by allocating almost USD 550 million toward purchasing drones. Additionally, in September 2023, according to Rostec, Russia's KUB and Lancet kamikaze drones were extensively deployed during combat operations in Ukraine. Thus, the extensive usage of drones especially in the military sector aided market expansion during the Russia-Ukraine war. However, the demand for drones declined in the commercial sector.
COVID-19 Impact:
Application of Drones in Healthcare, Logistics, and Other Sectors Aided Market to Expand Amid COVID-19 Outbreak
The spread of COVID-19 worldwide resulted in the implementation of stringent travel restrictions, social distancing norms, and lockdowns. Drones were extensively used by the logistics sector for delivery of goods in a contactless manner. Moreover, they were used in the healthcare sector for disinfecting public spaces and delivering medicines to remote areas. For instance, Zipline partnered with the Ghana government to deliver COVID-19 vaccines to remote areas of the country. Drones have proven to very useful in last-mile delivery, which is the final stage of the delivery process to the recipient's doorstep. These applications of drones attributed to market proliferation amid the pandemic.
The report entails valuable insights regarding growth stimulants and restraints affecting market dynamics. The market is studied at both micro and macro levels by dividing it into segments and regions. Market share, growth rate, and valuation of each region and segment is also given in the report. Moreover, the impact of COVID-19 and the Russia-Ukraine War is analyzed as well.
Drivers and Restraints:
Surging Demand for Drone Services from Agriculture, Construction, and Other End-use Industries to Drive Market Growth
Drones are becoming lighter and smaller making them more reliable to perform a wide variety of tasks such as disaster relief, search and rescue, and monitoring. They offer various benefits such as cost-effectiveness, safety, and efficiency. Moreover, technological developments such as artificial intelligence are making it easier to automate drones making them ideal for use for inspection and surveying purposes in construction, agriculture, and energy sectors. They can cover large areas safely and quickly reducing the risk of accidents and need for manual labor. These factors are driving the drone services market growth over the forecast period.
On the other hand, concerns regarding the safety of drones and stringent government regulations regarding their usage will hinder market expansion in the forthcoming years.
Regional Insights:
North America to Lead Due to the Presence of Major OEMs in the Region
North America captured majority of the drone services market share in 2023 owing to rising investments in R&D of advanced drone technologies and presence of leading OEMs in the region. For example, in March 2023, Wing launched its new delivery system. The system includes customizable, cost-effective pickup stations, and numerous charging hubs.
The Europe market is projected to grow significantly in the forthcoming years owing to the growing demand for introspection services. Moreover, the European Union Aviation Safety Agency (EASA) has developed regulations to allow the usage of drones in commercial operations, thus creating a favorable regulatory environment contributing to regional market growth.
Competitive Landscape:
Product Innovations by Leading Companies to Aid Market Augmentation
Leading companies in the global market are focusing on product innovations and geographical expansions to earn higher profits and hold the largest market share. They are expanding their services to the renewable energy industry, providing services such as wind turbine inspections, solar panel inspections, and oil and gas pipeline inspections.
February 2023– Aerodyne Group invested in Aiviewgroup, a leading drone services provider based in Italy. Through this deal, both parties can harness synergies from their respective areas of expertise and technologies and enhance their geographical reach.
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