Commercial Drone Market Analysis

Commercial Drone Market Analysis

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Based on offering, the market is divided into fixed wing drone, rotary blade drone, and hybrid drone. In 2023, the rotary blade drone accounted for a revenue share of over 75%. Rotary blade drones, characterized by their ability to take off and land vertically and hover in place, are used in diverse sectors, including agriculture, construction, surveillance, and logistics. It has high demand from media, entertainment, and real estate sectors for aerial imagery and video. This technology is utilized for crop monitoring, spraying, field analysis, site surveys, progress monitoring, and structural inspections.
 

The key market players are focused on entering contracts with governments and multinational companies to increase market share and generate revenue. For instance, in September 2022, Garuda Aerospace deployed fixed wing drones to map and digitize land records under the UP governments Svamitva Scheme. The company also aims to gain more such government contracts in the coming years.
 

Based on mode of operation, the commercial drone market is categorized into remotely operated, semi-autonomous, and autonomous. Autonomous drones are expected to hold around USD 15 billion revenue by 2032.  These devices operate with minimal human intervention using advanced AI, machine learning, and navigation systems, thus rapidly transforming the commercial drone landscape. The capability of drones to land and take off vertically enables its management within a small vicinity with the need for a significant landing or takeoff area. The market players operating in the industry are focusing on securing funding from various venture capital companies to develop new autonomous technologies for drones, helping market growth. For instance, in July 2022, Wonder Robotics announced that it raised around USD 4 million under its latest funding round from Elron Ventures. This will help the company to launch new autonomous drone solutions.
 

In 2023, North America has a significant share in the market with around 35% of the market share. The growth and early adoption of commercial drones in the region is supported by government regulations along with a strong presence of drone manufacturers and service providers. Further, it is widely adopted in agriculture for crop monitoring and in infrastructure for inspection and maintenance. In June 2024, The FAA updated BVLOS guidelines to support commercial drone operations, making it easier for companies to deploy drones for delivery and inspection. The FAA continues to advance regulations that support commercial drone operations, including beyond-visual-line-of-sight (BVLOS) and remote identification.
 

Furthermore, governments in the APAC region are actively promoting drone technology through subsidies, grants, and regulatory frameworks. These devices are being integrated into urban planning initiatives and smart city projects for mapping, surveillance, and traffic management. In Feb 2023, XAG announced the expansion of its drone services for agriculture in Southeast Asia, focusing on crop spraying and monitoring. It provides data analysis services collected by drones, helping farmers make informed decisions about their crops.
 

The European Union is advancing drone integration through U-Space regulations, aiming to manage drone traffic and ensure safety. Drones are increasingly used for monitoring environmental changes, inspecting infrastructure, and supporting sustainable practices. In April 2021, The EU introduced U-Space regulations to manage drone traffic and ensure safe integration of autonomous drones in the airspace. It provides information to drone operators about airspace restrictions and potential hazards. It enables communication and coordination between drones and manned aircraft to prevent collisions.