Agriculture Drones Market Size, Share & Trends Analysis Report By Type (Fixed Wing, Rotary Wing), By Component, By Farming Environment, By Application, Competitive Strategies, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global agriculture drones market size is expected to reach USD 1.85 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 24.3% from 2023 to 2030. The rapid growth of the market can be attributed to drones offering precise and real-time data for precision agriculture, resulting in optimized crop yields and cost savings. Agricultural drones also known as unmanned aerial vehicles (UAVs) offer efficient and cost-effective solutions for crop monitoring, spraying fertilizers or pesticides, and mapping fields. Farmers can proactively improve crop management and minimize losses by identifying crop health issues. Drones also provide environmental benefits by enabling targeted application of resources, reducing chemical usage, and minimizing environmental impact. Technological advancements in drone capabilities, data analytics, and government support and regulations further contribute to the growth of the agriculture drones market.

In recent years, there has been an increasing momentum in government support for integrating drone technology into agriculture. Various initiatives and programs have been introduced to promote the adoption of drones in farming practices and stimulate market growth. For instance, in April 2022, the U.S. Department of Transportation's Federal Aviation Administration (FAA) announced that it would provide grants totaling USD 4.4 million to seven universities for research, education, and drone training. The research will focus on three important areas: electromagnetic compatibility, detecting and avoiding classifications, and cybersecurity oversight. This initiative highlights the recognition of the potential benefits of drones in farming practices and the commitment to furthering their development and implementation.

Continuous technological advancements in agriculture drone technology, characterized by extended flight times, improved sensor capabilities, and advanced data analysis software, are amplifying the utility of drones in modern farming. Longer flight durations enable drones to cover larger agricultural areas, reducing operational constraints. Enhanced sensors, including multispectral and thermal cameras, empower drones to capture highly specialized data on crop health and environmental conditions. Moreover, sophisticated software for data analysis translates this information into actionable insights, facilitating precise decision-making for farmers. These ongoing innovations collectively enhance the efficiency, accuracy, and overall value of drones in agricultural operations, fueling the growth of the agriculture drones market.

High implementation cost is a restraint for the market. While agriculture drones offer various benefits such as enhanced efficiency, precision farming, and cost-saving, the initial investment required for purchasing and setting up the necessary equipment can be considered high. The cost of drones and additional components such as sensors, cameras, and software can contribute to the overall implementation cost. Furthermore, training personnel to operate and maintain the drones and integrating the drone technology into existing farming practices may incur additional expenses.

COVID-19 Impact on the Agriculture Drones Market

The negative impact of COVID-19 on the market was primarily marked by disruptions in the supply chain, reduced investment, and decreased farm income. These factors have had a detrimental impact on adoption rates of agriculture drones, caused delays in regulatory approvals for the deployment of agriculture drones in specific regions, and resulted in a slowdown in research and development activities. These challenges hindered the industry's growth temporarily. However, the pandemic also highlighted the importance of automation and remote monitoring in agriculture, boosting interest in drone technology for tasks like crop management, field mapping, and crop spraying.

Additionally, the COVID-19 pandemic disrupted agricultural events, trade shows, and conferences, which are important platforms for companies to showcase their latest UAV technologies and interact with potential customers. The cancellation or transition to virtual formats for these events has made it difficult for the market to engage with its target audience. However, the market experienced a rebound after the pandemic-induced lockdown, with companies showcasing new products and participating in events to engage with their target audience. In November 2022, DJI announced the launch of Mavic 3 Multispectral, an advanced aerial surveying drone, for organizations, individual growers, and agronomists engaged in precision agriculture activities worldwide. This advanced drone is has a highly efficient multispectral imaging system that swiftly captures crop growth data, facilitating more productive and effective crop cultivation.

Type Insights

In terms of type, the market has been bifurcated into fixed wing and rotary wing. The fixed wing segment is anticipated to register the highest CAGR of 25.6% over the forecast period. Fixed wing drones have a higher payload capacity, which allows them to carry heavier sensors and cameras. This allows for integrating advanced imaging technologies, such as multispectral or hyperspectral sensors, which provide detailed and accurate data on crop health, soil conditions, and pest infestations. The availability of such high-quality data can assist farmers in making informed decisions about crop management, leading to improved yields and resource optimization.

The rotary wing segment held the largest revenue share in 2022 and is expected to dominate throughout the forecast period. Rotary-wing drones, such as quadcopters or multi-rotors, offer greater agility and maneuverability than fixed-wing drones. This allows them to navigate complex terrains, fly at lower altitudes, and hover in specific areas, making them suitable for various agricultural applications. Additionally, rotary wing drones can vertical takeoff and landing (VTOL), eliminating the need for runways or launch/recovery equipment. This simplicity in operation has contributed to their popularity among farmers and agronomists.

Component Insights

In terms of component, the market is classified into hardware, software, and services. The hardware segment dominated the market with a revenue share of about 51%. The hardware segment is further segmented into frames, flight control systems, navigation systems, propulsion systems, cameras, sensors, and others. The hardware segment plays a crucial role in the market as it encompasses the physical components and systems that enable the operation and functionality of agricultural drones. The hardware in agriculture drones is continually evolving to enhance the capabilities and efficiency of these aerial tools for farmers. Advancements in materials, propulsion systems, sensors, and communication technologies are driving the development of more sophisticated and specialized agricultural drones.

The services segment is anticipated to register a significant CAGR over the forecast period. The services segment is further bifurcated into professional services and managed services. The segment's growth can be attributed to the rising adoption of drones in agriculture, which necessitates services such as drone operation, data analysis, customization, and regulatory compliance assistance. With many farmers lacking the expertise to fully harness drone technology's potential, the demand for specialized services to enable effective drone utilization and data interpretation is rising, making the services segment a focal point for rapid growth.

Farming Environment Insights

Regarding the farming environment, the agriculture drones market has been segmented into indoor and outdoor farming. The outdoor farming segment dominated the market with a more than 80% share in 2022 and is expected to dominate throughout the forecast period. Outdoor farming typically involves large-scale agricultural operations, such as crop farming and livestock management, which require extensive monitoring and management. Agriculture drones offer an efficient and cost-effective solution for gathering data and providing real-time insights over large areas.

The indoor farming segment is anticipated to register the highest CAGR over the forecast period. Indoor farming includes vertical farming and greenhouse operations, which are highly controlled environment that allows for precise monitoring and management of crops. Agriculture drones provide valuable data on temperature, humidity, lighting, and nutrient levels, helping indoor farmers optimize crop growth and yield. The demand for precision agriculture techniques in indoor farming drives the adoption of drones in this segment.

Application Insights

In terms of application, the market has been segmented into crop spraying, crop management, variable rate application (VRA), field mapping, livestock monitoring, and others. The crop management segment held the largest revenue share in 2022. Drones with advanced sensors and imaging technologies can provide real-time data on crop health, growth patterns, and potential issues such as nutrient deficiencies or pest infestations. This enables farmers to monitor their crops more efficiently and make timely interventions, leading to improved crop management practices and higher yields.

The field mapping segment is anticipated to register the highest CAGR of 25.7% over the forecast period. Field mapping is crucial in modern agricultural practices as it empowers farmers with precise and reliable information about their fields. By creating comprehensive maps that depict the layout, characteristics, and variations within their agricultural land, farmers can gather and analyze spatial data. This allows them to make well-informed decisions about crop management, resource allocation, and overall field planning. The field mapping process enables farmers to understand their fields better, facilitating efficient and effective agricultural operations.

Regional Insights

North America dominated the market in 2022 and is anticipated to maintain its dominance over the forecast period. North America has been an early adopter of precision farming and smart agriculture practices. Farmers in the region have recognized the potential benefits of using UAVs for field mapping, crop monitoring, and resource management. Additionally, governments in North America have shown support for the use of drones in agriculture. They have implemented favorable policies and regulations that encourage the adoption of drone technology in the agricultural sector. In February 2023, the U.S. Department of Agriculture's National Institute of Food and Agriculture (NIFA) unveiled a USD 70 million investment in sustainable agricultural initiatives. These projects aim to integrate research, education, and extension efforts to develop strong, resilient, and climate-smart food and agricultural systems.

Asia Pacific is expected to register the highest CAGR of 25.4% over the forecast period. The Asia Pacific region includes emerging economies such as India and Japan, experiencing rapid industrialization and urbanization. As a result, there is a growing need to enhance agricultural productivity and efficiency to meet the increasing food demand. Agriculture drones offer a technologically advanced solution to address these challenges, leading to higher regional adoption.

Key Companies & Market Share Insights

The market has a highly competitive landscape featuring various global and regional players. Leading industry players are adopting strategies such as partnerships & collaborations, mergers & acquisitions, and agreements to survive the highly competitive environment and enhance their business footprints. Moreover, agriculture drone providers offer comprehensive data analytics platforms, enabling farmers to visualize and analyze drone-generated data easily. These platforms often feature user-friendly dashboards and tools for decision-making.

Key players in the market are engaging in various growth strategies. For instance, in June 2023, Sentera announced that the FAA approved its UAS Remote Identification solution and is fully aligned with the latest regulations. It is specifically designed to seamlessly integrate with all new PHX fixed-wing drone systems, guaranteeing effortless adherence to the requirements. Moreover, existing customers can opt to acquire and install the UAS Remote Identification solution separately, granting them the ability to achieve regulatory compliance. Some of the key players in the global agriculture drones market are:

• DJI

• Parrot Drone SAS

• AgEagle Aerial Systems Inc

• AeroVironment, Inc.

• PrecisionHawk

• Trimble Inc.

• DroneDeploy

• Autel Robotics

• Draganfly Inc

• Pix4D SA

• Sky-Drones Technologies Ltd

• Sentera

Agriculture Drones Market Report Scope

Global Agriculture Drones Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global agriculture drones market report based on type, component, farming environment, application, and region:

• Type Outlook (Revenue, USD Million; 2017 - 2030)

  • Fixed Wing

  • Rotary Wing

• Component Outlook (Revenue, USD Million; 2017 - 2030)

  • Hardware

    • Frames

    • Flight Control Systems

    • Navigation Systems

    • Propulsion Systems

    • Cameras

    • Sensors

    • Others

  • Software

  • Services

    • Professional Services

    • Managed Services

• Farming Environment Outlook (Revenue, USD Million; 2017 - 2030)

  • Indoor Farming

  • Outdoor Farming

• Application Outlook (Revenue, USD Million; 2017 - 2030)

  • Crop Management

  • Field Management

  • Crop Spraying

  • Livestock Monitoring

  • Variable Rate Application (VRA)

  • Others

• Regional Outlook (Revenue, USD Million; 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • South America

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa