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Drone services include aerial photography, crop dusting, mapping and data collection. Drones are being widely used for various applications such as media/entertainment, inspection, surveying, product delivery and aerial filming for Hollywood movies. Drone photography is getting popular for wedding shoots and real estate projects owing to its abilities to capture aerial views. Crop dusting drones are used to spray pesticides and monitor crop growth. Drones equipped with advanced sensors are utilized for inspecting infrastructure such as bridges, powerlines and industrial plants.
The global Drone Service Market is estimated to be valued at US$ 12.57 Bn in 2024 and is expected to exhibit a CAGR of 39% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for drone-based delivery services is witnessing strong growth driven by increasing investments from logistic companies. For instance, Amazon has started drone delivery trial and acquired outdoor drone startup Canvas Technology to strengthen its delivery drone program. FedEx and UPS are also developing drone delivery fleets to reduce delivery time and costs. Rising need for contactless deliveries amid COVID-19 pandemic has further accelerated adoption of delivery drones. Sensors and camera technologies are advancing rapidly to enhance the capabilities of commercial drones. Newer drones are equipped with 4K/360-degree cameras, infrared cameras, thermal cameras and Light Detection and Ranging (LiDAR) systems. This allows users to capture high quality aerial images and conduct analytics for various applications. Governments worldwide are coming up with regulations to unlock commercial opportunities for drone services. For example, the U.S. Department of Transportation has introduced remote ID to address safety and security challenges of drones. This will help expand drone delivery and inspection services.
Porter’s Analysis
Threat of new entrants: Low startup costs for drones and services may attract new entrants however established players have scale advantages and control majority market share.
Bargaining power of buyers: Buyers have moderate power as they can negotiate on pricing and demand customized solutions. Variety of services provided by multiple players gives buyers choice.
Bargaining power of suppliers: Suppliers of drones, batteries and other components have low bargaining power as there are many suppliers in the market and supply can meet demand.
Threat of new substitutes: Potential threat from other aerial inspection methods however drones offer cost and time savings with easy deployment making substitution difficult in short term.
Competitive rivalry: Intense competition among companies providing variety of drone services. Companies differentiate based on technology, specialized applications, geographic presence and customer service.
Key Takeaways
The global Drone Service Market is expected to witness high growth. The market size for 2024 is estimated to be US$ 12.57 Bn, indicating a CAGR of 39% during the forecast period 2023 to 2030. North America currently dominates the market due to rapid technology adoption and presence of major players.
Regional analysis: Europe and Asia Pacific are fastest growing markets for drone services driven by infrastructure projects and adoption in industries like construction, utilities and agriculture. China, India and other Asian countries are emerging as hubs for drone manufacturing and services.
Key players: Key players operating in the drone service market are Unmanned Experts Inc., Aerodyne Group, Terra Drone Corporation, Cyberhawk, Sharper Shape, Dronedeploy, Sensefly, Edall Systems, Precisionhawk, and Phoenix Drone Services LLC. Companies are focusing on expanding service offerings and global presence. Strategic partnerships are helping players enter new application areas.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
