Drone Services Market

Drone Services Market Growth Outlook 2023 to 2033

The global drone services market is expected to reach a valuation of US$ 6,629.4 million in 2023.

Market is expected to progress at a CAGR of 14.3% to reach US$ 25,231.1 million by the end of 2033.

Report Attributes	Details
Market Size (2022A)	US$ 5,681.4 million
Estimated Market Value (2023E)	US$ 6,629.4 million
Forecasted Market Value (2033F)	US$ 25,231.1 million
Global Market Growth Rate (2023-2033)	14.3% CAGR
North America Market Share (2022)	~29%
North America Market Value (US$ Mn), 2023	US$ 1,922.7 million
Europe Market Share (%), 2023	~22.7%
Europe Market Value (US$ Mn), 2023	US$ 1,507.4 million
China Market Share (%), 2023	~ 17.2%
China Market Value (US$ Mn)	US $ 1,137.5 million
Market Share of Top 3 Countries	~45.8%
Key Companies Profiled	AgEagle Aerial Systems Inc. Agribotix LLC Cyberhawk Inc. Drone Deploy Inc. Globhe Drones Ab Identifies Technologies Phoenix Drone Services LLC SenseFly Ltd. Sharper Shape Sky features Skylark Drone Terra Drone Corporation Unmanned Experts Inc. Zipline

Deployment Analysis of Drone services (2018-2022) Vs. Market Outlook (2023-2033)

Drones are used to transport goods around the world for the needs of various industries such as tourism, logistics and the defense industry. The global drone services industry is expected to expand due to increased innovation and reduced drone costs, as well as the development of automation technology.

Drone services are becoming more affordable as the use and integration of new technology increases in many sectors and in the daily lives of consumers. Based on the above factors, Drone services revenue is projected to reach US$ 6,629.4 million in 2023, growing at a CAGR of 14.3%.

• Short Term (2023 Q1 to 2026): Increasing demand for UAV in expanding end-use sectors will positively impact drone services market growth.
• Medium Term (2026- 2029): North America and Europe are anticipated to witness comparatively high drone services demand due to increasing affordability and resultant deployment of advanced technology for inspection and surveying varied commercial projects.
• Long Term (2029- 2033): Constantly upgrading digital world knows no boundaries. Incorporation of advanced technology like AI and ML will boost the drone services market in longer run.

From 2018 to 2022, the global market for drone services registered a CAGR of 9.7%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 14.3% CAGR between 2023 and 2033.

Market share analysis of drone services based on drone type and region is provided in the above image. Under the application segment, inspection and maintenance sub-segment dominates with 19.8% market share in 2023.

What’s Driving High Demand for Drone Services Across the Globe?

“Expanding Applications of Drones in Varied End Use Sectors is Driving The Demand For Drone Services”

Drones boost agricultural productivity and increases its efficiency. The use of drone services in agriculture is expanding as a result of the growing demand for precision agriculture to boost crop productivity.

To increase drone efficiency, original equipment service providers (OEMs) are funding the research and development to create infrared cameras, multispectral sensors, and LiDAR. Drones equipped with these sensors fly at predetermined altitudes and produce analytical data.

Drones deliver high-quality data to end users because they are outfitted with top-notch cameras, sensors, and other components. Drones are able to take pictures of excellent quality for operations such as inspections. They are employed to make vegetation maps and monitor fields. These maps make it easier to spot illnesses, watering, and unusual activity. As a result, the market for drone services is projected to grow during the period of the forecast.

“Increasing Demand for Efficient Delivery Elevates the Deployment of Drone Services”

The demand for time-efficient shipping solutions for the international transportation of essential goods is driven by the expansion of the e-commerce and logistics industry. For example, in 2021 ANA Holdings Inc. and Wingcopter partnered to accelerate the development of drone delivery infrastructure essential for pharmaceuticals and other consumer products.

The Alliance's goal was to build a drone delivery system across Japan. Drone delivery systems have been adopted by two largest e-commerce and logistics companies, Amazon and DHL, to enable rapid delivery and delivery of products to locations unreachable by traditional transportation methods.

In addition, DHL Express and EHang entered into a strategic partnership in 2019 to launch intelligent, automated and smart drone delivery solutions in Chinese cities. Thus, under the influence of e-commerce and logistics industry demand the market growth for global drone services is expected to increase at a CAGR of 14.3% since 2023 to 2033.

What Do Drone Service Providers Need to Watch Out?

Concerns Regarding Cybersecurity Can Hamper the Market Growth”

The adaptability, low cost and great efficiency of drones are increasing their use in commercial and personal applications. The increasing use of drones, and thus increasing data collection through varied applications has also increased the risk to cybersecurity for users.

GPS, USB ports, and other technologies found in today's drones can be used by hijackers to quickly hijack them. Drones can be an important cybersecurity target for hackers who can also exploit drones by accessing the unencrypted Wi-Fi and GPS technology that it uses for conversations. An increase in cybersecurity attacks has hampered the deployment of drones by governments and private organizations before and still stands as a key barrier in the market expansion.

Country-wise Insights

Why United States is Expected to Drive Drone Services Demand?

United States is expected to dominate the regional market, expanding at a CAGR of 12.6%. There is a significant proliferation of innovative Unmanned Autonomous Systems (UAS) technologies in this country, eliminating the need for human labor and improving production quality in multiple end use industries.

To increase operational efficiency, US is investing heavily in the use of drone services and its R&D. For example, Dragonfly Inc. announced that it has signed a $1 million service contract with Windfall Geotek Inc. to implement EagleEyea AI flight services in 2021. Air Service uses artificial intelligence to identify potential mining targets for Windfall Geotek Inc. Therefore, the United States value is expected to reach US$ 1,677.7 million in 2023.

Why Germany Drone Services Market Expected to Be Highly Lucrative?

The European Regional Political and Economic Union is helping to revitalize the drone services industry. The European Union has taken several steps to develop a viable drone services industry in the region. For example, the European Union implemented EU-wide legislation in 2021 to replace country-specific national regulations regulating the use of drones.

The market for drone services specifically in Germany is growing due to new regulations. The EU is also working on an initiative to use drones to survey and monitor infrastructure under construction in the region. Therefore, the German drone services market is expected to reach a valuation of US$ 221.6 million by 2023.

Category-wise Insights

Why is Mapping & Surveying Type a Driving Segment in Drone Services Market?

The mapping and survey segment will acquire a market share of 18.9% in year 2023. Drones are primarily practiced as specialized tools that allow surveyors and cartographers to collect critical data and measurements for terrain mapping, site planning, and other applications, saving personnel, money, and time.

This segment is very important as, drones are used in several major industries, leading to market growth. Drones provide the ability to obtain information about a target without making contact with the target. This will increase the demand for drones in remote mapping applications, leading to the market growth.

Owing to the above facts, the mapping & surveying type sub-segment of the drone services market is expected to reach valuation of US$ 1,253 million by the end of 2033.

How Commercial Drones are Poised to Drive Drone Services Market?

Increasing prevalence of data analysis, data collection, and real-time inspection by UAV services for various industrial applications is driving the market growth. With the introduction of advanced thermal imaging cameras on drones, farmers have been able to reduce crop damage and increase productivity with highly accurate image quality.

Moreover, advanced technology of drones is boosting the growth of the market. As a result, the demand for commercial drone services has increased and its market value is expected to be around US$ 1,133.6 million by 2023.

Competitive Landscape

Prominent drone service providers are the Aerodyne group, AgEagle Aerial Systems Inc., Agribotix LLC, Cyberhawk Inc., Drone Deploy Inc., Globhe Drones Ab, Identifies Technologies, Phoenix Drone, Services LLC, SenseFly Ltd., Sharper Shape, Sky features, Skylark Drone, Terra Drone Corporation, Unmanned Experts Inc., Zipline

Key players are focusing on increasing R&D investments, diversifying product portfolios of drone service solutions, and strategic acquisitions. These companies focus on business expansion strategies such as mergers and acquisitions, agreements, expanding product portfolios, and long-term contracts with multinational corporations.

Some of the key developments are :

• In April 2021, Skyports and Kenya Airways had signed a Memorandum of Understanding (MoU) to begin permanent unmanned aerial vehicle (UAV) operations in Kenya. This collaboration aims to study the commercial effectiveness and feasibility of different use cases for logistics, inspection and medical drones.

Fact.MR has provided detailed information about the price points of key Service Providers of drone services positioned across regions, Deployment of services, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Drone Services Industry Research

• By Product type :

  • Fixed Wing
  • Rotary Wing
  • Hybrid Wing

• By Drone Type :

  • Commercial
  • Civil
  • Military

• By Application :

  • Filming & Photography
  • Inspection & Maintenance
  • Mapping & Surveying
  • Precision Agriculture
  • Surveillance & Monitoring
  • Others

• By End Use :

  • Agriculture & Forestry
  • Delivery & Logistics
  • Media & Entertainment
  • Construction & Mining
  • Oil & Gas
  • Security & Law Enforcement
  • Recreational Activity
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East and Africa (MEA)