Global Commercial Drone Market was valued at $1.6 Billion in 2015 and is estimated to grow at a CAGR of over 19% from 2016 to 2024.
Escalating use of UAVs in accomplishing high-risk tasks paired with the growing eminence of drones-as-a-service is expected to drive the global commercial drones market growth over the coming years. The market is highly influenced by technological developments resulting in improved maneuverability and reduced costs. These permit the use of commercial drones as ideal alternatives to conventional manned aircrafts and humans.
Drones are extensively used in applications including surveillance, environmental monitoring, film making, and mapping owing to their low operational cost. In addition, mounting demand across agriculture and law enforcement sectors in another factor favorably impacting the commercial drone market growth over the next few years.
Global Commercial Drone Market, By Region, 2014 – 2024 (USD Billion)
The industry is also witnessing snowballing attempts from manufacturers to develop advanced sensors and faster computing capabilities. Integration of these components in UAVs is driving increasing use of these devices in the commercial sector, thereby adding to market growth.
Technology crunch coupled with reducing product prices may also result in favorably impacting market growth. Further, technological advancements facilitating improvements in accessibility and ease of use associated with drones may also propel product demand significantly over the coming years. Manufacturers observe elevating demand for drones in high-value markets including inspection, surveillance, and agriculture offering ample growth opportunities for market growth.
Presence of a large unorganized market paired with deregulatory landscape may hinder market growth considerably over the forecast period. Additionally, safety concerns pertaining to aviation sector on use of these drones flying at an altitude of less than 500 ft. is another factor inhibiting growth over the next few years. However, relaxation in regulatory scenario along with expanding applications is anticipated to drive market growth.
“Optimal Price Point (OPP) for Commercial Drone”
Estimated Average solution cost – $ xx globally. However, expanding application areas, reducing product price, growing solution implementation and increasing SMEs, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
“Increasing demand for improved aerial imagery and remote sensing”
Drones are ideal for use for inspection, surveillance and sensing activities which results in escalating demand for these devices for enhanced imagery and remote sensing. Growing use of drones in emerging applications such as the transport industry for providing last mile service replacing postal carriers in hard to reach mountain region is strongly expected to increase the commercial drone adoption over the forecast period.
“DJI, Intel Corporation and Parrot SA to lead market growth”
Manufacturers are increasingly seen acquiring software and technology firms in an attempt to offer highly advanced end-to-end solutions. The industry is witnessing increasing number of prominent players replacing technology suppliers as they see immense growth opportunities in the emerging drone industry.
Notable industry participants include BAE Systems PLC, AeroVironment Inc., DJI, Draganfly, General Atomics, Elbit Systems Ltd., Israel Aerospace Industries, Northrop Grumman, Lockheed Martin Corporation, Parrot SA, and Textron Inc.
The new generation of drones is equipped with better navigational capabilities in order to carry increased and varied payloads. Elevating demand for longer duration flights paired with ensuring softer landing is another major factor instigating manufacturers to develop innovative techniques to overcome the aforementioned factors.
Technological advancements resulting in design improvements and superior data processing capabilities are anticipated to stimulate market growth considerably over the coming years.