Smart Drone Services Market

Smart Drone Services Market Outlook (2023-2033)

The global smart drone services market is expected to reach a valuation of US$ 2.0 billion in 2023 and is predicted to accelerate at a CAGR of 17.7% to top a market size of US$ 10.5 billion by 2033.

The smart drone services market is about 30% of the overall drone service market valued at around US$ 5.8 billion in 2022.

Report Attributes	Details
Market Size (2022A)	US$ 1.7 Billion
Estimated Market Value (2023E)	US$ 2.0 Billion
Forecasted Market Value (2033F)	US$ 10.5 Billion
Global Market Growth Rate (2023-2033)	~17.7% CAGR
North America Market Share (2022)	~41.7%
East Asia Market Growth Rate (2023-2033)	~18.1% CAGR
United States Market Growth Rate (2023-2033)	~17.9% CAGR
Key Companies Profiled	AeroDyne Azur Drones Bentley Systems Deveron UAS Flirtey FlyTrex Measure Raptor Maps Sharper Shape Skeye Sky Futures SkySpecs Texo Drone Services The Sky Guys Zipline Other Key Players

Demand Analysis of Smart Drone Services (2018-2022) Vs. Market Forecast Outlook (2023-2033)

In the current scenario, smart drones are in the developing phase and therefore, services relevant to it is minimal in comparison with drones operated by humans. However, with continuous development in technology, smart drone procurement is expected to be substantially high in the forthcoming period.

The integration of advanced technologies like artificial intelligence and machine learning will escalate the demand for smart drones in assessment years and so on driving the demand for the smart drone services market. Smart drone services will be an add-on to the drone services with the advent of improvement in time & cost efficiency. These services will be of lesser errors and human intervention, projected to escalate the eliminate operation cost and enhance the profitability of the user.

• Short Term (2023 Q1-2026): Post-COVID-19 pandemic, the resumption of construction sites and development of smart drones have grown significantly. More demand for cost & time-efficient solutions from end-use industries will be a key driving factor for market development in the short term period.
• Medium Term (2026-2029): In the mid-term, mechanization of the agriculture sector and development of various industries will exhibit the demand for smart drone services demand. The E-commerce sector will accelerate the demand for these services to offer package delivery to the customer efficiently.
• Long Term (2029-2033): Infrastructure development will be at its peak in the long term. The refurbishment of older infrastructure and the development of new ones with rapid urbanization will escalate the demand for surveying & mapping technologies & services.

Over the 2018-2022 historical period, the global smart drone services market registered a CAGR of 8.6%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at a CAGR of 17.7% between 2023 and 2033.

Market share analysis of smart drone services market based on service and region is provided in a nutshell in the above image. Under the service segment, the mapping and surveying dominates with a 35.4% market share in 2023.

What’s Driving High Demand for Smart Drone Services?

“Technological advancement in drones”

The smart drone services market is driven by rising advancements in drone technology. The demand for drone technology is growing worldwide in various industry verticals due to its time and cost-efficiency features. Therefore, drone manufacturers are taking favourable steps leading toward more technologically advanced drone offering to enhance customer satisfaction levels and increase their consumer base. New technologies like Artificial intelligence, machine learning, 3D imaging, etc.

Using AI-powered drones has several benefits. They can be employed, for starters, in places where it would be too unsafe for people to go, such as catastrophes or conflict zones. Second, they can fly for longer periods without getting exhausted, which allows them to travel farther.

They can also be designed to make decisions on their own, which enables them to move fast in response to evolving circumstances. Also, machine learning allows drones to have smoother flight control and take a necessary decisions for desired outcomes.

“Improved time & cost efficiency from smart drone technology’

Smart drones are comprised of advanced technologies like Artificial intelligence and machine learning. These technologies help in improved drone automation. Also, the smart drone works on software and algorithms, and programming to virtually accomplish any mission.

Therefore, efficient take autonomous flights and initiate automatic target tracking. These are auto fitted with detachable hardware components, which are customizable to meet unique business and industrial needs.

Owing to all these factors, these drones require lower human intervention and could operate automatically as per the situation. These features substantially helped in the improvement of drones' time & cost efficiency and benefited the users in cutting down operational costs.

Key factors challenging the market growth

“Technological challenges associated with smart drones”

Drones that operate autonomously are those in which the pilot no longer actively controls the aircraft but instead controls it remotely and only intervenes when it is essential. While the hoopla is all about AI-controlled drones with vision, there are many controllers, sensor fusion algorithms, and sensors that work together to achieve autonomous flight while also providing redundancy.

Sensors are not flawless. Drones using GPS may experience GPS signal loss. Based on the texture, reflectivity, kind, and quality of the utilized sensors, localization and mapping algorithms in GPS-denied or intermittent settings have constraints.

In particular, for prosumer category drones with low payload capacity and flight time, battery limits can hinder autonomous pathways and reduce flight duration. When a drone's battery runs out in the middle of a flight, it may be forced to land in difficult-to-recover terrain.

Country-wise Insights

Why U.S. is Expected to Poise the Demand for Smart Drone Services Market?

The United States is projected to hold the leading share in the smart drone services market. The country accounts for well-established and developed marketplace for drone technologies. With substantial growth in the number of drone manufacturing companies, the sale of autonomous drones has grown immensely in the region. Registration of drones for both commercial and recreational purposes is witnessed in the region.

Drone utility for spraying, mapping, and inspection in the agriculture industry, along with drone utility for package delivery and photography of real estate & properties is witnessed in the region with a significant amount. Owing to these factors, the smart drone service sector will rise at a substantial rate in the region..

Why Chinese Smart Drone Services Market Expected to Be Highly Lucrative?

China is one of the leading developing economies in the world with tremendous adoption of advanced technology. Time & cost-efficient solutions are also key points of attraction to the economy. With the presence of various large drone manufacturing organizations like DJI, the country has a prominent number of drone sales and adoption among different industry verticals.

China is a well-established country with food & beverage, eCommerce, and other sector. With rising urbanization in the region, this sector would be highly benefited from drone technology in meeting customer demand. Whereas, the market expansion in the region has gained traction during and after the post-COVID-19 pandemic, where smart drone solutions are utilized and approved by the government to monitor COVID-19 patients, delivering essential medicines and groceries to the people.

Category-wise Insights

Mapping and surveying: Leading service offering from smart drones

Smart drone services are highly adopted by the customer for mapping and surveying buildings, production sites, farms, lands, and others. Smart drone's cost & time-efficient solutions to the customer of which utility could enhance productivity, operating profit, and revenue increment of the businesses.

Traditionally approach of mapping & surveying was a costly and time taking process. The dangerous production and construction sites were also harmful to human life while conducting the mapping & surveying process. Owing to these factors, automated technologies which run on their own and taking necessary decisions as per data capture and analysed have gained lucrative popularity from customers.

Construction sector to hold leading share in smart drone services market

Smart drone services include mapping & surveying, inspection, photography & filming, delivery, and others. All these services are highly demanded in the construction sector, where customers can inspect, survey, photography, and film the property and track the work & labour.

The population is growing substantially worldwide and resulting in the growth of urbanization. Due to rapid urbanization, the construction sector is rising enormously and efficient solutions like smart drone services are witnessed with huge demand.

This service is a cost-efficient solution where the excessive cost incurred on inspection or surveying a site through traditional methods is prominently eliminated by the customer. Moreover, it is time efficient and takes lesser time compared to the traditional approach of surveying and mapping a construction site.

Competitive Landscape

Key market participants in the smart drone services market are AeroDyne, Azur Drones, Bentley Systems, Deveron UAS, Flirtey, FlyTrex, Measure, Raptor Maps, Sharper Shape, Skeye, Sky Futures, SkySpecs, Texo Drone Services, The Sky Guys and Zipline.

The market is highly fragmented with the presence of various service providers in the industry. These service providers are joining hands to introduce autonomous drone delivery services.

For instance :

• In 2022, KDDI SmartDrone and Aeronext Launch introduced AirTruck Starter Pack to offer drone package delivery services.
• In 2020, DHL-Sinotrans and EHang jointly introduced a fully-automated and intelligent urban drone delivery solution in China.

Fact.MR has provided detailed information about the provider of smart drone services market positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Smart Drone Services Market

• By Services :

  • Mapping & Surveying
  • Inspection
  • Photography & Filming
  • Localization & Detection
  • Delivery
  • Spraying & Seeding
  • Others (Not Covered Elsewhere)

• By End-use Industry :

  • Energy
  • Construction
  • Transportation & Warehouse
  • Agriculture
  • Mining, Oil & Gas Extraction
  • Public Administration
  • Information
  • Real Estate & Industrial Plant
  • Entertainment & Recreational
  • Safety & Security
  • Educational Services
  • Waste Management
  • Healthcare & Insurance

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa