Search Market Research Report
Drone Services Market Size, Share Global Analysis Report, 2024 – 2032
Drone Services Market Size, Share, Growth Analysis Report By End-User (Oil & Gas, Infrastructure, Agriculture, Logistics, and Others), By Service (Drone MRO Service, Drone Platform Service, and Drone Training & Simulation Service), By Application (Data Acquisition & Analytics, Product Delivery, Aerial Photography, and Surveillance & Inspection), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2024 – 2032
Industry Insights
[220+ Pages Report] According to Facts & Factors, the global drone services market size was worth around USD 18.22 billion in 2023 and is predicted to grow to around USD 274.63 billion by 2032 with a compound annual growth rate (CAGR) of roughly 35.18% between 2024 and 2032.
Market Overview
Drone services are also known as unmanned vehicle (UAV) services. It deals with the use of software-embedded remotely controlled aerial vehicles used for services such as product delivery, inspection, surveillance, and others. It is an emerging market with an increasing rate of investment in drone technology and exploration of drone applications. Unmanned aerial vehicles do not require human pilots for operation. They are remotely controlled using advanced software and programs. Until a few years ago, drones were mainly used for military applications including surveillance.
However, with time, as the technology became more commercial and the cost of production fell, non-military applications emerged and at present times, the industry is witnessing extensive investments and uses. Some of the most commonly occurring applications of drone services range from agricultural uses to aerial photography.
UAVs used by military units are more advanced and showcase higher performance as compared to drones with non-military applications. Drones provide time-effective delivery solutions, especially in the modern world with a high number of long-lasting traffic jams.
However, the technology also has certain drawbacks including the future risk of replacing humans for service delivery. In the coming years, market players must invest in developing solutions that allow humans and machines to work in tandem.
Key Insights:
- As per the analysis shared by our research analyst, the global drone services market is estimated to grow annually at a CAGR of around 35.18% over the forecast period (2024-2032)
- In terms of revenue, the global drone services market size was valued at around USD 18.22 billion in 2023 and is projected to reach USD 274.63 billion, by 2032.
- The market is projected to grow at a significant rate due to the growing use of drones in the food delivery sector
- Based on the end-user, the logistics segment is growing at a high rate and will continue to dominate the global market as per industry projection
- Based on the application, the product delivery segment is anticipated to command the largest market share
- Based on region, North America is projected to dominate the global market during the forecast period
Growth Drivers
- Growing use of drones in the food delivery sector will fuel the market demand rate
The global drone services market is expected to witness a high growth rate due to the increasing use of unmanned aerial vehicles in the food delivery sector. During COVID-19, several food delivery partners explored the use of drones for delivering food products, especially to patients living in quarantine in remote areas.
At present times, food service providers are investing in novel solutions that help them stand out from the rest of the competitors. For instance, China’s leading food delivery firm Meituan has been working on developing drones since 2017 to deliver food products. The latest machines used by the company can effectively navigate through skyscrapers to reach the destination. In addition to this, urban areas are becoming heavily crowded.
The rate of traffic jams lasting long hours has increased rapidly. Food delivery companies are finding it difficult to deliver food on time which is one of the selling points for food delivery firms. This has resulted in companies seeking new ways to meet and enhance customer experience.
- Rising integration of modern technologies such as 5G and Internet of Things (IoT) in drone systems will help the market flourish
Modern drone makers are actively investing in new drones with improved features. Unmanned vehicles with higher performance and lower error margins are actively being researched for the industry to thrive in the modern world. In March 2024, q-trade platform Foodora and Tele2 announced the launch of food deliveries using highly intelligent drones equipped with 5G connectivity and Internet of Things (IoT) technologies.
The drones will deliver the product using cables. The companies also launched Foodora Air consisting of a large fleet of electric drones. The rising investments in 5G technology across the globe could work in the favor of the global drone services market.
Restraints
- High cost of development and lack of skilled experts will restrict the market expansion rate
The global industry for drone services is expected to be restricted due to the high cost of drone services. Unmanned aerial vehicles are expensive equipment. They are powered by sophisticated technology and advanced sensors. Undertaking the services of drones can be costly as compared to traditional methods.
While drone costs have significantly reduced, the production of advanced drones with multifunctional capabilities is still expensive. Such drones can cost as much as USD 1000. Additionally, skilled professionals are required to use and navigate the drones. In case of damage, there is a significant lack of parts availability along with the absence of sufficient force skilled in repairing the machines.
Opportunities
- Rising applications of drones in the healthcare sector will generate high-growth opportunities
The global drone services market is expected to generate high growth opportunities due to the increasing application of UAVs in the healthcare industry. The rising prevalence of remote medical care and the growing focus on delivering basic medical kits to patients in remote locations hold high growth potential. In December 2023, RattanIndia Enterprises Ltd. announced the launch of L07. It is a compact drone for delivery purposes that can be used by players in the healthcare sector.
Additionally, the drone has also found applications in the ecommerce industry. The rapid expansion of online shopping trends and the growing revenue in the e-commerce sector could also provide benefits for the drone services industry. E-commerce companies currently use large-fleet of land-based vehicles for delivering products to customers.
Drones can act as substitutes for product delivery. The rising fuel prices and the difficulty in reaching customers during extreme conditions will encourage the adoption of drone services in such areas. In 2024, e-commerce giant Amazon is expected to launch the MK30, a new delivery drone. Amazon has invested in designing customized propellers capable of reducing perceived noise by 50%.
- Growing mining applications of drone services have high growth potential
Drone services are actively being used in the mining sector. They are especially being used for the inspection of underground sites that are difficult for humans to reach. They are further being used for collecting information using aerial photography thus ensuring that the mining companies have accurate data before going ahead with the processes. As per official reports, India’s mining sector witnessed an increase of over 14% in 2023 thus allowing the global drone services market to grow.
Challenges
- Risk of replacing human resources and limited use in well-planned areas will challenge the market expansion rate
The global industry for drone services is expected to be challenged due to the risk that drones pose in terms of replacing human resources. Unskilled resources may not be able to operate drones and thus become exposed to the risk of losing job opportunities. Additionally, drone services may not be helpful in unplanned cities with organized construction making it difficult for drones to operate.
Segmentation Analysis
The global drone services market is segmented based on end-user, service, application, and region.
Based on end-users, the global market segments are oil & gas, infrastructure, agriculture, logistics, and others. In 2023, the highest demand was observed in the logistics segment. The growing use of drone services for delivering products is helping the segment grow at a steady rate. Agriculture is expected to witness a high growth rate during the projection period as the use of drones for spraying fertilizers and pesticides or crop spraying is rapidly expanding. In 2023, the global agricultural drone market was valued at over USD 8 billion.
Based on service, the global drone services industry is divided into drone MRO service, drone platform service, and drone training & simulation service.
Based on application, the global market segments are data acquisition & analytics, product delivery, aerial photography, and surveillance & inspection. In 2023, the highest demand was registered in the product delivery segment. The surging use of drones in the food service and e-commerce segments is the crucial reason for higher segmental demand. The surveillance & inspection segment is mainly due to military applications. The global military drone market was valued at over USD 13.3 billion.
Report Scope
Report Attribute |
Details |
Market Size in 2023 |
USD 18.22 Billion |
Projected Market Size in 2032 |
USD 274.63 Billion |
CAGR Growth Rate |
35.18% CAGR |
Base Year |
2023 |
Forecast Years |
2024-2032 |
Key Market Players |
DJI, Cyberhawk, Airware, Aerodyne Group, Measure, DroneDeploy, DroneBase, Kespry, Terra Drone Corporation, Uplift Data Partners, SkySpecs, Flyability, Delair, senseFly, PrecisionHawk., and Others. |
Key Segment |
By End-User, By Service, By Application, and By Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
Request customized purchase options to meet your research needs. Explore purchase options |
Regional Analysis
- North America to register the highest growth during the projection period
The global drone services market is expected to witness the highest growth in North America. The US is leading with the highest regional market growth rate due to the presence of a mature drone market. The US has been a pioneer in terms of drone technology with the US military developing drones with defense applications.
In March 2024, the US Pentagon announced that it will spend USD 500 million every year for the deployment of the ‘Replicator’ drone program through which the agency plans to launch cheap military-grade drones in case of conflict.
Additionally, the lowering cost of drone technology has allowed for the mass use of drone services in commercial applications. In 2023, US-based Amazon announced the launch of the Prime Air drone. The tool can deliver packages in light rain and can carry up to 5 pounds of weight.
In January 2024, Walmart announced the launch of the largest-ever drone delivery expansion. The drone delivery services will be used for providing services to over 1.8 million households across the Dallas Fort Worth metroplex. Asia-Pacific will grow at a rapid rate. Countries such as China, Japan, South Korea, and India will lead the regional market revenue driven by constant research & development (R&D).
Competitive Analysis
The global drone services market is led by players like:
- DJI
- Cyberhawk
- Airware
- Aerodyne Group
- Measure
- DroneDeploy
- DroneBase
- Kespry
- Terra Drone Corporation
- Uplift Data Partners
- SkySpecs
- Flyability
- Delair
- senseFly
- PrecisionHawk.
The global drone services market is segmented as follows:
By End-User Segment Analysis
- Oil & Gas
- Infrastructure
- Agriculture
- Logistics
By Service Segment Analysis
- Drone MRO Service
- Drone Platform Service
- Drone Training & Simulation Service
By Application Segment Analysis
- Data Acquisition & Analytics
- Product Delivery
- Aerial Photography
- Surveillance & Inspection
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- DJI
- Cyberhawk
- Airware
- Aerodyne Group
- Measure
- DroneDeploy
- DroneBase
- Kespry
- Terra Drone Corporation
- Uplift Data Partners
- SkySpecs
- Flyability
- Delair
- senseFly
- PrecisionHawk.
Copyright © 2023 - 2024, All Rights Reserved, Facts and Factors