Commercial Drone Market is projected to grasp USD 17.0 billion by 2024. The increasing application of the drones for the commercial purposes is anticipated to be one of the major factor driving the market growth. Since the advent of commercial UAVs, they have been utilized for video and photography. However, due to the relaxation by regulatory bodies such as U.S. Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) on the use of drones for commercial drones, their adoption among the different industry sectors, such as agriculture, real estate, architecture & construction, delivery and media has increased rapidly.
The increasing venture capital investment in drone technology, affordability and accessibility of the drones, along with the advancement in the design and integrated data intelligence are also contributing towards the growth of the market. In addition, strong Chinese market and growing demand for the drones in the commercial applications from the developing countries is fostering the market growth. However, security and privacy issues associated with the use of drone and stringent government regulations on the use of commercial use of drones are hindering the growth of the market.
Agriculture sector is the most lucrative market for commercial UAVs market space. As the benefits of drones are becoming more apparent to farmers, their adoption is increasing for different agricultural applications to facilitate higher precision and consistency. The relatively low price of the UAVs with advanced imaging capabilities and sensors are enabling farmers to increase their yields and reduce cost of production. Players operating in the agriculture and digital farming market are developing modern agriculture focused drones with sophisticated precision and accuracy. For instance, in February 2017, Drone AG, a drone-assisted precision farming firm, entered into a partnership with Aerobotics, a South African data analytics firm, to provide weather-proof agricultural drones along with a cloud-based farm management software. These drones use high-end DJI components and can quickly cover large areas even in adverse weather situations.
North America is the dominating region in the market owing to the relaxation on the use of UAVs for commercial applications by the FAA. The rising adoption of drones for covering events through aerial photography, filming, and video is also driving the market growth. The existence of large number of players such as 3D Robotics, PrecisionHawk, Aeryon Labs, with the support of government initiatives and policies also support the growth of the market. For instance, the U.S. government in 2017 introduced a program to drive the testing of commercial UAVs to include night time operations, flights flown over people and flights beyond VLOS. The program will accelerate the adoption of UAVs into the NAS and test UAVs detection and tracking, with reducing few limits on their use.
The Asia Pacific region is anticipated to grow with the highest rate during the forecast timespan due to the supportive government policies and initiatives for the driving the adoption of UAVs for commercial purposes and rising awareness for drone applications. The market is also aided by the rising adoption of drones by the enterprises and customers in fields such as retail, agriculture, and construction. Furthermore, the existence of considerable number of UAV manufacturers in the Asia, particularly in China, such as Xiaomi and DJI, is aiding to the market.
Some of the prominent vendors of the commercial drone market are Parrot, DJI, 3D Robotics, Yuneec International, AeroVironment, PrecisionHawk, Bae Systems, Airobotics, Airware, DroneDeploy, senseFly, Cyberhawk, Hoverfly Technologies, Ehang Inc, and Intel Corporation. Market players are adopting several strategies such as merger and acquisition, partnership & collaboration, customization, and geographical expansion to increase their market share. For instance, DJI completed the acquisition of the Hasselblad, a Sweden based camera company, with the sole purpose to strengthen its position in the commercial drone market space.