Drone services refer to various commercial applications of unmanned aerial vehicles (UAVs) such as aerial photography & remote sensing, agriculture, filmmaking, inspections and more. Drones equipped with high-resolution cameras are used for inspection of infrastructure such as roads, bridges, oil & gas pipelines etc. Drone services help in close monitoring of agricultural fields for precision agriculture.
Market key trends:
Growing commercial applications of drones is a key trend fueling the market growth. Companies are increasingly adopting drone services for various applications such as surveying & mapping, delivery services, inspection of infrastructure, monitoring of agricultural fields and more. Large retailers are exploring drones for delivery of lightweight packages to customers. Government organizations are also utilizing drones for surveillance, search & rescue operations, firefighting and more. Rising investments by companies in research & development of advanced drones with increased payload capacity and flight time will further support the increasing adoption of drones across various commercial sectors.
Threat of new entrants: The threat of new entrants in the drone service market is moderate. Significant investments are required for infrastructure development and operation of drones which poses challenges for new players. However, advanced technologies are lowering the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of a wide range of service providers in the market. Buyers can compare offerings and negotiate better prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components like cameras and chips have a limited pool of suppliers. However, opportunity for suppliers of new technologies.
Threat of new substitutes: Threat of substitutes is low as drone services have a distinct value proposition over traditional survey methods.
Competitive rivalry: High due to presence of global and regional players competing on pricing and service differentiation.
The global Drone Service Market Demand is estimated to be valued at US$ 12.57 Bn in 2023 and is expected to exhibit a CAGR of 39. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Strength: Advanced drone technologies enable inspection of hard-to-reach areas safely and efficiently. Drone services offer higher productivity and cost savings compared to traditional methods.
Weakness: Regulations around drone operations vary globally increasing compliance burden. Drone operations require skilled pilots and any technical glitches can impact service quality.
Opportunity: Expanding scope of applications in industries like construction, infrastructure, and utilities. Growing demand from emerging markets in APAC and MEA.
Threats: Data privacy and security concerns around drone operations. Dependence on good weather conditions impacting operations.
The global drone service market is expected to witness high growth, exhibiting CAGR of 39.% over the forecast period, due to increasing demand from industries for aerial data collection and analysis. The market size for drone services is estimated to reach US$ 12.57 Bn in 2023.
Regional analysis: North America dominates the global drone service market holding around 35% share in 2023 owing to supportive regulations and widespread adoption across industries like energy and utilities for inspection activities. Asia Pacific is expected to witness the fastest growth exhibiting a CAGR of over 45% during the forecast period led by countries like China and India.
Key players operating in the drone service market are Unmanned Experts Inc., Aerodyne Group, Terra Drone Corporation, Cyberhawk, Sharper Shape, Dronedeploy, Sensefly, Edall Systems, Precisionhawk, and Phoenix Drone Services LLC. The key players are focusing on expanding their service portfolio and global footprint through mergers and acquisitions to leverage growth opportunities.