Connected Commercial Drones 1st Edition

Drones, also known as unmanned aerial vehicles (UAVs), are aircraft that operate without ahuman pilot, crew or passenger onboard. Drones were first created for the military market before entering the consumer and commercial markets. This development can be attributed to a rangeof technological advancements over the last 20 years. Commercial drones have high payloadcapacities, long flight times and robust navigation systems. These also incorporate advancedground control stations and communication systems to support their operation, enabling themto be used in several industries. All drones feature RF communications in the 2.4 GHz or 5.8 GHzbands as default for both flight control and data transmission. It is however common thatcommercial drones also include cellular or satellite connectivity when long-distance missions areto be conducted. Berg Insight’s definition of a commercial drone is an unmanned aircraft thatfeatures some level of autonomy. Included are drones used for industrial and governmentalpurposes while excluding drones used for recreational purposes, drones offered or rented asservices as well as weaponised military-grade drones.

Berg Insight estimates that the installed base of commercial drones reached 2.8 million unitsworldwide in 2024. The installed base includes connected drones in the agriculture, military anddefence, public safety and first response, and surveying and inspection application areas. In theagricultural sector, drones used for both aerial imagery and crop spraying operations, while themilitary and defence area includes tactical drones used for intelligence, surveillance, targetacquisition and reconnissance (ISTAR) missions. Drones for public safety and first response alsocomprise drone-in-a-box solutions. The surveying and inspection application area considersdrones used within the construction, aggregates, mining, energy, oil and gas, utilities andrenewables industries. Lastly, other application areas include drones for delivery and logistics aswell as environmental monitoring and media and entertainment. Growing at a compound annualgrowth rate (CAGR) of 9.9 percent, the installed base of commercial drones is forecasted toreach roughly 4.5 million units by 2029. Asia-Pacific is estimated to account for the largest shareof the installed base, followed by North America, Europe, the Middle East & Africa and LatinAmerica.

The top players active in the commercial drone space range from specialised technologysuppliers of varying sizes to leading drone manufacturers. Many of the key players today serveseveral application areas, while other solution providers may focus on one single use case. The market is led by China-based DJI, which holds an estimated 70 percent market share of theglobal drone market as of 2024. Other leading drone manufacturers include Autel Robotics andJOUAV based in China, France-based Delair and Parrot, as well as Skydio, AeroVironment andAgEagle from the US. The commercial drone market is set for a consolidation journey in theupcoming years as many application areas are fragmented. The solution providers are alsolargely impacted by the developing drone related regulations, which can affect the adoption ofcommercial drones worldwide. Regulations are in a sense steering the market in order toimplement safe and efficient usage of drones across several industries.