GVR Report cover Drone Market Size, Share & Trends Report

Drone Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Product, By Technology, By Payload Capacity, By Power Source, By End-use, By Region, And Segment Forecasts, 2024 - 2030

  • Report ID: GVR-4-68040-263-2
  • Number of Report Pages: 120
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2022
  • Forecast Period: 2024 - 2030 
  • Industry: Technology

Drone Market Size & Trends

The global drone market size was estimated at USD 64.32 billion in 2023 and is projected to grow at a CAGR of 14.5% from 2024 to 2030, owing to various factors, such as advances in technology, broadening application portfolio across various industries, and plummeting costs of drone technology.Technological innovations have led to the development of drones with enhanced capabilities, longer flight times, better cameras, and improved obstacle avoidance systems, which have made drones more practical for various applications, from aerial photography and filmmaking to agricultural monitoring and infrastructure inspection.

U.S. Drone Market size and growth rate, 2024 - 2030

Drones equipped with high-resolution cameras, LiDAR sensors, and other specialized payloads are allowing to capture detailed aerial imagery and data for a wide range of applications, including mapping, surveying, and environmental monitoring. The ability of drones to rapidly collect data from remote or inaccessible areas with precision and efficiency is transforming agricultural, forestry, and urban planning applications. Demand for drone services and solutions shows no signs of abating as businesses are increasingly recognizing the value of aerial data and analytics in decision-making, driving market growth.

Advances in Artificial Intelligence (AI) and Machine Learning (ML) are playing an essential role in enhancing capabilities and autonomy of drones. AI-powered algorithms are allowing drones to perform complex tasks, such as object recognition, path planning, and decision-making. These algorithms are also allowing drones to operate more efficiently and safely in dynamic environments without constant human intervention. AI algorithms are equally enabling drones to analyze data in real time, providing valuable insights and actionable intelligence for various applications, including surveillance, security, and disaster response.

In September 2023, Proximus, Phoenix-Tech, ID2Move, Deltrian International, and Proximus Ada announced a new project to improve warehouse management in Wallonia, Belgium. The project envisaged using drones, 5G connectivity, and AI technology to fly autonomously through a storage warehouse, with drones utilizing AI technology to identify products and their location and transmitting inventory information to Deltrian International in real time over a 5G connection.

The outbreak of the COVID-19 pandemic had a negative impact on the global drone market, initially disrupting manufacturing operations, supply chains, and logistics and leading to drone production and deployment delays. Restrictions on the movement of people and gatherings limited the use of drones for specific applications, such as event coverage and crowd monitoring. On the contrary, the adoption of drone technology for tasks, such as contactless delivery, monitoring of public spaces for social distancing compliance, and disinfection operations, gained traction.

Market Concentration & Characteristics

The market growth stage is high, and the pace of market growth is accelerating. The industry is characterized by innovations in materials and rapid advances in AI and sensing technologies. The widening application portfolio across various industries, such as agriculture, defense, and surveillance, is driving the adoption of drones.

Drone Market Concentration & Characteristics

Key competitors in the global drone industry are increasingly pursuing Mergers & Acquisitions (M&As) to boost their industry positions. Major players are enriching their portfolios by integrating complementary technologies, catering to the rising demand across various industries, such as agriculture, defense, and surveillance. Additionally, the deployment of drones in diverse applications is highlighting the importance of capturing emerging opportunities and gaining competitive advantages in the industry.

Regulatory challenges and privacy concerns are restraining the growth of the global drone industry, calling for comprehensive frameworks to ensure safe and responsible drone usage. Issues such as airspace management, licensing requirements, and data protection are raising legal and logistical considerations. The growing adoption of drones across various industries is intensifying the urgency to draft robust guidelines for mitigating potential risks, including accidents, unauthorized surveillance, and data breaches. Hence, governments worldwide are drafting regulations that balance innovation with public safety and privacy rights.

Component Insights

Based on component, the market has been further segmented into hardware, software, and services. The hardware segment accounted for the largest revenue share of 59.1% in 2023. As hardware advances in terms of the resolution of imaging sensors and wireless connectivity capabilities, market players are aggressively introducing advanced drones with improved features, such as high-resolution cameras, long-range connectivity, and autonomous flight capabilities. Advances in technology and the plummeting prices of drones are driving the growth of the hardware segment.

The services segment is anticipated to witness the fastest growth over the forecast period in line with the increasing demand for aerial photography and videography services. Drones equipped with high-resolution cameras and stabilized gimbals offer unparalleled flexibility and maneuverability for capturing aerial images and videos. These capabilities are in high demand across various industries, including real estate, construction, tourism, and entertainment, where aerial footage provides insights, enhances marketing materials, and facilitates project planning and monitoring.

Product Insights

Based on product, the market has been further segmented into fixed-wing, multi-rotor, single-rotor, and hybrid. The multi-rotor segment accounted for the largest revenue share in 2023. Multi-rotor drones, such as quadcopters and hexacopters, offer stability and portability, making them suitable for tasks requiring precise navigation and close-quarters operations. The incumbents of the construction, energy, telecommunications, and utilities, among other industries and industry verticals, are increasingly adopting multi-rotor drones for routine inspections, preventive maintenance, and asset monitoring.

The hybrid segment is anticipated to witness the fastest growth over the forecast period. Hybrid drones combine fixed-wing and multi-rotor designs, providing Vertical Take-Off and Landing (VTOL) flexibility and fixed-wing strength. The growth of the segment can be attributed to the adaptability of hybrid drones in multiple working environments and advances in hybrid propulsion technologies and energy management systems. Manufacturers are continuously innovating to improve hybrid propulsion systems' efficiency, reliability, and performance, optimizing the balance between electric and combustion power sources.

Technology Insights

Based on technology, the market has been further segmented into remotely operated, semi-autonomous, and fully autonomous. The remotely operated segment accounted for the largest revenue share in 2023 owing to the increasing adoption of drones for surveillance and security applications. As security concerns grow globally, governments, law enforcement agencies, and private entities are deploying drones equipped with high-resolution cameras, thermal imaging sensors, and real-time video streaming capabilities for monitoring and safeguarding critical infrastructure, public events, and borders.

For instance, in September 2023, Teal Drones, a hardware and software drone platform based in the U.S., announced an agreement worth USD 1.8 million with U.S. Customs and Border Protection (CBP) for providing Teal 2 systems to the U.S. Border Patrol. The agreement envisaged Teal Drones delivering 106 Teal 2 drones, spare parts, and training. The U.S. Border Patrol was looking forward to using these drones to enhance its airborne reconnaissance, surveillance, and tracking capabilities, improving situational awareness for field commanders and agents.

The fully autonomous segment is expected to witness the fastest growth over the forecast period, driven by advances in Artificial Intelligence (AI) and Machine Learning (ML) technologies, which enable drones to operate autonomously by analyzing data from onboard sensors, navigating complex environments, and making real-time decisions. For instance, in April 2023, MIT researchers in the U.S. developed a brain-inspired system to help drones navigate complex terrains by mimicking the human brain's neural networks. The system was designed to process raw data, identify essential elements, and discard irrelevant details.

Payload Capacity Insights

Based on payload capacity, the market has been further segmented into up to 2KG, 2KG to 19KG, 20KG to 200KG, and over 200KG. The up to 2KG segment accounted for the largest revenue share in 2023. Drones with up to 2KG payload capacity are well-suited for last-mile deliveries in urban areas. For instance, in February 2024, Aviant announced the launch of the first long-distance home delivery service operated by autonomous drones with a payload capacity of up to 2KG in Lillehammer, Norway. Plans envisaged residents in town receiving deliveries of food, medicines, and groceries directly to the doorstep with the help of the Kyte drone service.

The 2KG to 19KG segment is expected to witness the fastest growth over the forecast period. The growth of the segment can be attributed to the aggressive deployment of drones with a 2KG to 19KG payload capacity for public safety and emergency response applications, thereby driving the growth of the 2KG to 19KG segment. Fire departments, search and rescue teams, and law enforcement agencies deploy drones equipped with specialized payloads, such as thermal imaging cameras, gas detectors, and loudspeakers, to aid in disaster management, surveillance, and reconnaissance missions.

Power Source Insights

The battery-powered segment accounted for the largest revenue share in 2023 due to advancements in battery technology. Improvements in energy density, charge/discharge rates, and overall battery performance are extending flight times and enhancing the operational capabilities of battery-powered drones. As drones become increasingly integral to various industries, such as agriculture, logistics, and infrastructure inspection, the demand for longer flight durations and improved battery efficiency is driving innovation in battery technology.

The hydrogen fuel cell segment is expected to witness the fastest growth, driven by advancements in fuel cell technology. Hydrogen fuel cells offer several advantages over conventional lithium-ion batteries, such as higher energy density, longer flight times, and faster refueling capabilities. As fuel cell technology advances, drone manufacturers are increasingly incorporating it into their products. For instance, in September 2023, the National Renewable Energy Laboratory (NREL) and Honeywell Aerospace collaborated to produce a cartridge-based hydrogen fuel storage solution for Unmanned Aerial Vehicles (UAVs).

End-use Insights

The military segment accounted for the largest revenue share in 2023. Military drones are widely used by defense forces worldwide for investigation, intelligence gathering, surveillance, target acquisition, and combat operations. The increasing focus on enhancing military capabilities and strengthening border security and counter-terrorism efforts is encouraging countries to invest in developing and acquiring refined drone technologies. For instance, in June 2023, the U.S. approved the sale of 31 MQ-9B armed drones to India for around USD 4 billion.

Global Drone Market share and size, 2023

The consumer segment is expected to witness the fastest growth over the forecast period owing to the increasing affordability and accessibility of recreational drones. Technological advancements have enabled the development of compact and user-friendly drones equipped with high-definition cameras, intuitive controls, and automated flight features, making them appealing to hobbyists, enthusiasts, and amateur photographers. As the capabilities of consumer drones improve and they become more affordable, consumers are expected to procure recreational drones for aerial photography, videography, and recreational flying.

Regional Insights

North America dominated the market with a market share of 40.1% in 2023, owing to the aggressive adoption of drones for various commercial applications across the region, particularly in industries, such as agriculture, construction, and oil & gas. Businesses in the region are using drones for crop monitoring, land surveying, infrastructure inspection, and pipeline monitoring. The advancing capabilities of drones and adequate regulatory support for commercial drone operations in North American countries, such as the U.S. and Canada, are driving the rapid adoption of drones across various industries across the region.

U.S. Drone Market Trends

The U.S. dominated the North America regional market in 2023 with a market share of 86.3% owing to favorable government initiatives and supportive regulatory frameworks. Authorities in the U.S. have drafted suitable policies to promote safe and responsible drone operations while encouraging innovation. The U.S. Federal Aviation Administration (FAA)'s Part 107 regulations and Canada's Transport Canada regulations provide guidelines for commercial drone operations, ensuring safety and compliance while enabling businesses to utilize drone technology for a wide range of applications.

Europe Drone Market Trends

The Europe regional market is expected to grow as European countries continue to implement drone technology to optimize agricultural practices, improve crop yields, and reduce environmental impact. Drones equipped with advanced sensors and imaging technologies enable farmers to accurately monitor crop health, assess soil conditions, and identify areas requiring irrigation or fertilization. For instance, in July 2023, ABZ Innovation of Hungary introduced agriculture drones in the UK, offering farmers a cost-effective, efficient method of spraying fields and orchards by allowing them to access hard-to-reach areas.

The UK drone market is expected to grow over the forecast period as e-commerce & logistics companies continue to explore drone delivery as a last-mile delivery option to reduce transportation costs. With advancements in drone technology and evolving regulatory frameworks, drone delivery is becoming more feasible and scalable. For instance, in October 2023, Amazon announced plans to deliver packages using drones in the UK and Italy. The company unveiled its new generation of drones at its headquarters in Seattle, U.S., and announced the introduction of autonomous aircraft delivery in the UK and Italy in late 2024.

The drone market in Germany is expected to witness growth over the forecast period on account of the strong emphasis on innovation and advances in sensing technology, propulsion systems, and autonomous navigation. The country's commitment to promoting innovation through partnerships between industry incumbents, academia, and government institutions is propelling the growth of the drone industry, attracting both investment and talent to further advance the development of new, innovative drones.

Drone Market Trends, by Region, 2024 - 2030

Asia Pacific Drone Market Trends

The Asia Pacific regional market is expected to grow over the forecast period as the region continues to emerge as a hub for drone manufacturing and innovation, driven by government initiatives and investments in drone technology development. Favorable government policies, research grants, and incentives have allowed the manufacturers of drones in countries, such as China, South Korea, and Japan to make significant advances in drone research, development, and production.

The drone market in China is emerging as a mature market for drones as China is home to a prospering ecosystem of drone manufacturers driven by extensive investments in research and development and government support in the form of favorable regulatory policies. The efforts being pursued by Chinese companies to innovate and produce high-quality drones at competitive prices are allowing China to capture a substantial share in both domestic and global market for drones.

The India drone market is expected to witness growth as the government is promoting indigenous manufacturing and Research and Development (R&D) in drone technology through schemes such as the Production Linked Incentive (PLI) scheme and the Make in India campaign. For instance, in April 2023, India’s Ministry of Civil Aviation announced that over INR 300 million (USD 3.65 million) were released to shortlisted drone and drone component manufacturers under the PLI scheme for FY 2023. Plans envisaged releasing total PLI incentives of over USD 14.60 million (INR 1,200 million), spread over three fiscals.

Middle East & Africa Drone Market Trends

Increasing demand for drones in defense and security applications is driving the growth of the MEA market. With growing concerns over security and the subsequent need for advanced surveillance and reconnaissance capabilities, military and law enforcement agencies in the region are utilizing drones for border patrol and counter-terrorism operations. Drones equipped with advanced sensors, cameras, and communication systems can help enhance situational awareness and operational efficiency in challenging situations by gathering intelligence and monitoring activities in real time, and responding rapidly to threats.

The drone market in Saudi Arabia is expected to witness growth as the incumbents of the oil & gas industry are emerging as the major end users of drones in the country. Saudi Arabia is one of the major players in the global oil & gas market and drones are increasingly being deployed for pipeline monitoring, infrastructure inspection, and surveillance in the oil & gas industry. Drones with advanced sensors and imaging technologies can provide real-time data on infrastructure integrity, safety compliance, and environmental monitoring, helping operators identify potential risks and optimize operations.

The South Africa drone market is expected to grow, due to the evolving regulatory landscape. The South African Civil Aviation Authority (SACAA) has drafted regulations governing the use of drones in the country to ensure adequate safety, security, and compliance with airspace regulations. SACAA’s regulations provide a framework for drone manufacturers and operators to ensure the safe and responsible use of drones while encouraging innovation. On the other hand, advances in sensing technology, improved battery life, and increased payload capacity are expanding the capabilities of drones, driving the adoption of drones in South Africa.

Key Drone Company Insights

Some of the key players operating in the market includeDJI, 3D Robotics, Mapbox, AgEagle Aerial Systems Inc, and Skydio.

  • DJI of China specializes in manufacturing and developing Unmanned Aerial Vehicles (UAVs), commonly known as drones. The company offers a range of drones catering to various needs and preferences. The company’s product lineup includes entry-level drones, such as the DJI Mini series, which is popular among beginners, hobbyists, and advanced professional drones, and the DJI Inspire series, which is designed for filmmakers, photographers, and end users pursuing industrial applications.

  • 3D Robotics (3DR) offers advanced unmanned aerial vehicle (UAV) technology and innovative solutions based on it. The company provides a comprehensive portfolio of high-performance drones, including the Solo, which is known for its user-friendly design and advanced features. Along with the relevant hardware, the company also provides powerful software solutions for aerial data collection, processing, and analysis.

  • Mapbox provides developers with tools to integrate mapping capabilities into drone applications, enabling precise navigation, real-time mapping, and geospatial analysis. Mapbox’s technology allows drones to collect and process data more efficiently, making it a valuable asset for agriculture, construction, surveying, and emergency response industries.

Key Drone Companies:

The following are the leading companies in the drone market. These companies collectively hold the largest market share and dictate industry trends.

  • DJI
  • 3DR, Inc.
  • AgEagle Aerial Systems Inc
  • Airware Limited
  • Autel Robotics
  • Mapbox
  • Parrot Drone SAS
  • Pix4D
  • RedBird
  • Skydio
  • Teledyne FLIR LLC
  • Yuneec International

Recent Developments

  • In October 2023, Skydio announced Skydio X10, which introduced Skydio NightSense to enable 24/7, fully autonomous flights, including obstacle avoidance, in zero-light environments. The X10 marked the only drone available on the market capable of operating fully autonomously day or night. The NightSense attachment improves the navigation cameras with a 360° view, making it ideal for critical operations in high Electromagnetic Interference (EMI) or GPS-denied environments.

  • In October 2023, Teledyne FLIR Defense revealed its fourth-generation palm-size Black Hornet drone. The drone offers improved sensor and battery performance, wind tolerance, and obstacle avoidance features. It comes with five ultrasound sensors that detect mirrors and glass, and three navigation sensors for a 270-degree field of view. The drone also has a backtrack capability of up to 60 feet for indoor operations.

  • In September 2023, AgEagle Aerial Systems Inc. announced DeltaQuad, a company engaged in developing, designing, and manufacturing electrical, long-range Vertical Take-Off and Landing (VTOL) drones, to be the first company to fully integrate the company’s latest sensor innovation, namely RedEdge-P dual, into the new DeltaQuad EVO, a next-generation UAV technology offering exceptional performance powered by advanced features, up to 270 km range, over four hours of flight time, dual payload bays, and advanced composites, providing optimal versatility and functionality for government and commercial customers.

Drone Market Report Scope

Report Attribute

Details

Market size value in 2024

USD 72.56 billion

Revenue forecast in 2030

USD 163.45 billion

Growth rate

CAGR of 14.5% from 2024 to 2030

Base year for estimation

2023

Historical data

2018 - 2022

Forecast period

2024 - 2030

Quantitative units

Revenue in USD million/billion, and CAGR from 2024 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, product, technology, payload capacity, power source, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; UK; Germany; France; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Mexico; Saudi Arabia; South Africa

Key companies profiled

DJI; 3DR, Inc.; AgEagle Aerial Systems Inc; Airware Limited; Autel Robotics; Mapbox; Parrot Drone SAS; Pix4D; RedBird; Skydio; Teledyne FLIR LLC; Yuneec International

Customization scope

Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Global Drone Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global drone market report based on component, product, technology, payload capacity, power source, end-use, and region:

  • Component Outlook (Revenue, USD Million, 2018 - 2030)

    • Hardware

      • Frames

      • Control System

      • Power & Propulsion System

      • Camera System

      • Navigation System

      • Transmitter

      • Wings

      • Others

    • Software

    • Services

      • Integration & Engineering

      • Maintenance & Support

      • Training & Education

      • Others

  • Product Outlook (Revenue, USD Million, 2018 - 2030)

    • Fixed-wing

    • Multi-rotor

    • Single-rotor

    • Hybrid

  • Technology Outlook (Revenue, USD Million, 2018 - 2030)

    • Remotely Operated

    • Semi-autonomous

    • Fully Autonomous

  • Payload Capacity Outlook (Revenue, USD Million, 2018 - 2030)

    • Up to 2KG

    • 2KG to 19KG

    • 20KG to 200KG

    • Over 200KG

  • Power Source Outlook (Revenue, USD Million, 2018 - 2030)

    • Battery-powered

    • Gasoline-powered

    • Hydrogen Fuel Cell

    • Solar

  • End-use Outlook (Revenue, USD Million, 2018 - 2030)

    • Consumer

      • Prosumer

      • Toy/Hobbyist

      • Photogrammetry

    • Commercial

      • Inspection/Maintenance

      • Mapping & Surveying

      • Photography/Filming

      • Surveillance & Monitoring

      • Localization/Detection

      • Spraying/Seeding

      • Others

    • Military

      • Intelligence, Surveillance, Target Acquisition, and Reconnaissance (ISTAR)

      • Communication

      • Combat Operations

      • Military Cargo Transport

      • Precision Strikes

      • Others

    • Government & Law Enforcement

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

      • France

      • Italy

      • Spain

      • Rest of Europe

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Latin America

      • Brazil

      • Mexico

    • MEA

      • Saudi Arabia

      • South Africa

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