North America Drones Market Outlook to 2028

North America Drones Market Overview 

The North America drone market was valued at USD 12.30 billion in 2023, driven by increasing demand for drones in various applications such as agriculture, surveillance, delivery, and aerial photography. The market growth is propelled by technological advancements, rising adoption of drone technology in commercial sectors, and favorable government regulations supporting drone usage.

Prominent players in the North America drones market include DJI, Parrot SA, Boeing, Northrop Grumman Corporation, and Lockheed Martin Corporation. These companies are leveraging advanced technologies such as artificial intelligence, machine learning, and autonomous flight capabilities to enhance drone performance and expand their market presence. 

The United States leads the market due to high technological adoption, substantial investments in drone technology, and a favorable regulatory environment. Canada is experiencing growth due to increasing applications in agriculture and infrastructure monitoring, while Mexico is expanding its use of drones for surveillance and security purposes. 

In October 2023, Northrop Grumman was awarded a USD 543 million contract modification to produce three MQ-4C Triton drones for the U.S. Navy and one for Australia, as well as establish a main operating base for the Navy. The contract also includes support services and technical data related to unmanned aircraft systems. 

North America Drones Market Segmentation  

The North America drone market is segmented based on product type, application, and region: 

By Product Type: The market is segmented into Fixed-Wing Drones, Rotary-Wing Drones, and Hybrid Drones. In 2023, Rotary-Wing Drones held a dominant market share due to their versatility and widespread application across various sectors such as surveillance, agriculture, and media. The ability of rotary-wing drones to hover in place makes them ideal for tasks that require stability and maneuverability. 

By Technology: The market is segmented into Remotely Piloted, Semi-Autonomous, and Fully Autonomous Drones. In 2023, Remotely Piloted Drones dominated the market, driven by their widespread use in both commercial and recreational applications. Their reliability and ease of control make them the preferred choice for industries like agriculture, surveillance, and media. 

By Region: The market is segmented into the United States, Canada, and Mexico. In 2023, the United States accounted for the largest market share, supported by strong technological infrastructure, extensive research and development activities, and a robust regulatory framework promoting drone usage. Additionally, the region's diverse landscape supports various applications, from agriculture to surveillance 

North America Drones Market Competitive Landscape 

Company
 

Establishment Year 

Headquarters 

DJI 

2006 

Shenzhen, China 

Parrot SA 

1994 

Paris, France 

Boeing 

1916 

Chicago, USA 

Northrop Grumman Corporation 

1994 

Falls Church, USA 

Lockheed Martin Corporation 

1995 

Bethesda, USA 

DJI: In October 2023, DJI announced plans for an advanced Li DAR solution tailored for professionals in surveying and geodesy. This partnership between DJI and service providers aims to improve operational efficiency and position DJI to capitalize on new global market opportunities. 

Parrot SA: In October 2023, Parrot and Tinamu, a Swiss drone automation specialist, partnered to integrate the Parrot ANAFI AI drone into Tinamu's indoor monitoring systems. This partnership is set to merge Parrot's advanced UAVs with Tinamu's innovative software to develop a cutting-edge, fully automated robotic solution tailored for industrial sectors.

North America Drones Market Analysis 

Growth Drivers:
 

Increasing Adoption in Agriculture and Commercial Sectors: The North America drone industry has experienced substantial growth due to the rising adoption of drone technology in commercial sectors such as logistics, agriculture, and media. Additionally, the agricultural sector in North America has increasingly embraced drone technology for precision farming. Drones are being used extensively for crop health assessment, soil analysis, and pesticide application, providing farmers with valuable data to optimize their practices. This technology has proven beneficial in enhancing crop productivity through more effective pest control and precise fertilization.  

Expansion of Drone Delivery Services: The logistics and e-commerce sectors are rapidly integrating drones for last-mile delivery services. Companies like Amazon, Zipline, and Wing are expanding their drone delivery operations, with Zipline having achieved over 1 million drone deliveries globally and Wing reporting 350,000 deliveries, with majority of them coming from North America. Major companies such as Amazon and UPS have expanded their drone delivery services to cover majority of cities across North America, reducing delivery times and cutting transportation costs. This expansion is supported by a growing demand for fast and efficient delivery solutions, particularly in urban and suburban areas. 

Surveillance and Security Enhancements: The use of drones for surveillance and security purposes has increased exceptionally, especially in border security and law enforcement. The CBP (Customs and Border Protection) has expanded its drone operations, now employing 330 unmanned systems and 2,000 drone operators to enhance surveillance and reconnaissance missions along the U.S. border. This increased usage is attributed to drones’ ability to cover large areas, capture high-resolution imagery, and operate in challenging environments, making them indispensable tools for modern security operations 

Challenges
: 

Regulatory and Airspace Management Issues: Despite advancements in drone technology, regulatory constraints continue to present challenges for the growth of the drone market in North America. Concerns over safety and privacy have arisen due to incidents involving unauthorized drone flights in restricted airspace. These concerns have led to the implementation of stricter regulations and limitations on drone operations, which impact commercial drone operators through increased compliance costs and operational restrictions. 

Technical Limitations and Infrastructure Deficiencies: The North America Drones Market faces challenges related to technical limitations, such as battery life, payload capacity, and limited flight range. Issues with battery technology and power management have highlighted the need for advancements in these areas. Additionally, the lack of adequate infrastructure, including charging stations and drone traffic management systems, restricts the scalability of drone operations. 

Government Initiatives: 

The FAA Reauthorization Act of 2024: The FAA Reauthorization Act of 2024 is a comprehensive piece of legislation that reauthorizes the Federal Aviation Administration (FAA) through fiscal year 2028, providing over $105 billion in funding for various aviation-related activities. This act encompasses a wide range of provisions aimed at modernizing the national airspace system, enhancing aviation safety, and supporting the integration of new technologies. 

Canada's Enhanced Drone Regulation Framework (2023): In 2023, Canada proposed a comprehensive regulatory framework for drone operations, particularly focusing on Beyond Visual Line-of-Sight (BVLOS) operations. Announced by the Minister of Transport, Omar Alghabra, these regulations aim to enhance safety while promoting innovation and economic growth in the drone industry.?Key features include rules for lower-risk BVLOS operations, which will allow drones to operate beyond the operator's direct line of sight.? 

North America Drones Market Future Outlook  

The North America drone market is projected to experience robust growth from 2023 to 2028, driven by technological advancements, increasing adoption in commercial sectors, and expanding applications in defense and surveillance. 

Future Market Trends: 

Expansion of Drone Delivery Networks: Over the next five years, drone delivery networks are expected to expand remarkably in North America, particularly in urban and suburban areas. With ongoing improvements in battery technology and payload capacity, drones will likely be capable of handling larger and more complex deliveries. 

Advancements in Autonomous Drone Operations: Future advancements in autonomous drone technology will enable fully autonomous operations without human intervention. This shift is expected to revolutionize sectors such as agriculture, logistics, and emergency response. By 2028, it is projected that autonomous drones will be capable of conducting complex tasks, such as precision spraying in agriculture or search and rescue missions.
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