AI in Drone Market - Forecasts from 2025 to 2030

The AI in drone market is projected to grow at a CAGR of 30.49% over the forecast period of 2022-2030, increasing from US$31.92 billion in 2025 to US$120.41 billion by 2030.In the drone market, artificial intelligence offers key applications. Artificial intelligence helps to offer autonomy to unmanned aerial vehicles and also enhances the capabilities of the drones. The AI in drones offers its application across multiple industries, like defense, agriculture, surveillance, surveys, and logistics, among others. In the agriculture sector, AI-based drones can map and monitor livestock and crop production.

AI in Drone Market Trends:
A major factor propelling the growth of AI in the drone market is the increasing utilization of drones in the global logistics and e-commerce sector.In the logistics and e-commerce sector, AI-based drones can offer the capability to enhance the efficiency of the delivery processes. Various global companies have introduced drone-based delivery solutions across multiple nations. For instance, in October 2023, Amazon, a global leader in the e-commerce sector, introduced drone delivery solutions in multiple countries, like the UK and Italy.The growth in the global e-commerce retail sector is expected to propel the demand for AI drones in the logistics and e-commerce sectors. The Census Bureau of the USA stated that e-commerce retail sales in the nation witnessed significant growth in the past few years. The agency stated that during the first quarter of 2024, the total retail sales of the e-commerce sector were recorded at US$287,855 million, which was about 15.8% of the total retail sales. The e-commerce retail sales increased to US$292,567 million during the second quarter of 2024 and finally reached US$300,053 million during the third quarter of 2024.

AI in Drone Market Growth Drivers:

Growing global defense expenditure

AI drones offer a key application in the global market. In the defense sector, drones help enhance the efficiency of surveillance systems and improve military capabilities. With the rising global military and defense expenditure in the global market, the demand for AI in the drone market is expected to significantly increase.The Stockholm International Peace Research Institute, in its global report, stated that in 2023, the global military expenditure witnessed a growth of about 6.8% compared to 2022. The agency stated that in 2023, the total military expenditure of the USA and China was recorded at US$916 and US$296 billion, respectively. Similarly, the military expenditure of Russia and India was recorded at US$109 and US$83.6 billion, respectively.

Increasing demand for the AI-powered software in dronesThe growth of AI in the drone software segment is primarily driven by better data analysis and interpretation, automated processing of data, accuracy, productivity, and advanced analytics functionalities. Such software connected to AI is expected to be more significant due to efficiency in the processing of the enormous amounts of data collected by drones in the form of pictures, videos, and sensor readings, to reduce the consumption of time and effort to do this processing. It can also define possible patterns, unusual behaviors, and trends in drone data for improved and more informed decisions. The enhancement in this segment is mainly attributable to the high adoption of AI in the drone industry.

AI in Drone Market Geographical Outlook:

By geography, the AI in the drone market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.
North America is expected to have a significant market share for AI in the drone market. USA AI in the drone market is witnessing growth due to emerging technology advances in machine learning, computer vision, and natural language processing, which are opening up an avenue for future-proofing solutions. Such advanced AI technologies allow drones to perform more sophisticated functions while managing tasks within autonomy. Increased demand for industrial automation in the region is improving efficiency in task performance and reducing costs and safety incidents, which supports the case for using AI-powered drones for outsourcing tasks like data collection, inspections, and deliveries.

AI in Drone Market Segment Analysis:
The AI in the drone market, by technology type, is divided into software, AI pilot, and others. The software category is forecasted to attain a greater market share.

By offerings, the AI in the drone market is divided into hardware and software. The hardware category is forecasted to attain a greater market share.
The AI in the drone market, by end-user, is divided into defense, logistics & delivery, agriculture & precision farming, disaster management and search & rescue, environmental monitoring, and others. The defense category is forecasted to attain a greater market share.

AI in Drone Market is analyzed into the following segments:

By Technology Type

Machine Learning
Computr Vision
Autonomous Navigation System
Integrated Sensing

By Offerings

Hardware
Software

By End-User

Defence
Logistics and Delivery
Agriculture and Precision Farming
Disaster Management and Search & Rescue
Environmental Monitoring
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Europe
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Middle East and Africa
Saudi Arabia
UAE
Rest of the Middle East and Africa
Asia Pacific
China
Japan
South Korea
India
Indonesia
Thailand
Taiwan
Rest of Asia-Pacific