Global Commercial Drones Market - Forecasts from 2022 to 2027

The global commercial drone market was valued at US$9.325 billion in 2020. It is anticipated to grow at a CAGR of 30.78% to reach a final value of US$61.018 billion by 2027.

Implementation of strict yet simple regulations regarding the use of commercial drones is the major driver of the global commercial drone market. All these favourable regulations across different countries or regions are paving the way for a wider application of drone technology worldwide. Businesses across various end-user industries are using drones for multiple commercial applications apart from basic surveillance and photography. For instance, farmers are using drones to monitor crops and soil while insurance companies are using the same data to inspect damaged assets in the agricultural sector. In the retail sector, drones are being increasingly used for delivery services by retail stores.

Growing investments to propel market expansion

Rising R&D investments in developing new drone applications, as well as the use of drones for testing applications, are also fueling global commercial drone market growth. In August 2018, Shanghai's Jinshan Industrial Zone officially opened a UAV base, allowing China to carry out multi-scenario testing and applications using drones. Increasing applications of commercial drones in industries such as oil and gas, nuclear power, and renewables will further continue to propel the market growth of commercial drones during the next five years. ExxonMobil, BP, and Royal Dutch shell are some of the major oil and gas companies that are deploying drones to obtain real-time insights while enhancing their productivity.

The recent novel COVID-19 global pandemic outbreak has significantly boosted the demand for commercial drones for various applications.

Countries are using drones in order to prevent further transmission of this deadly disease. For example, Terra Drone's business partner Antwork used drones RA3 and tr7s to transport medical samples and quarantine materials between Xinchang County disease control center, Xnchang County People's Hospital, and Dashiju branch of Xinchang County People's Hospital. Tamil Nadu (India) used a drone to spray disinfectant over Rajiv Gandhi Government General Hospital in Chennai.

Retail sector poised to grow at a significant rate during the forecast period

The retail industry will experience a significant CAGR during the forecast period. Drones are capturing the interest of global retailers as competition in this industry is pushing them to develop new ways to make their supply chains more efficient while reducing delivery costs. As such, commercial drone manufacturers are expanding their market base across the global retail industry, thereby driving the market growth. In 2019, Alphabet's Wing launched a full-fledged drone delivery service in Canberra, Australia. The company also announced a similar service trial for a suburb in Helsinki, Finland, including its first such effort in Europe. The agriculture sector is also increasingly adopting the use of drones for various applications, including soil monitoring and spraying fertilizers and pesticides. Growing demand for drones for disaster management services will also fuel the overall market growth of commercial drones during the next five years. In September 2019, DJI launched two that can be used during natural disasters and recovery missions.

By geography, APAC and North America are projected to witness a significant CAGR

By geography, the global commercial drone market is classified into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America accounted for a significant share of the global Commercial Drones market in 2019. Implementation of simple and relaxed regulations in the U.S. and Canada regarding the use of commercial drones has boosted the demand for commercial drones across this region. In 2018, the FAA (Federal Aviation Administration) launched the UAS Integration Pilot Program (UAS IPP) to allow states to test drone flights in various ways otherwise prohibited by the FAA's rules governing the operation of drones weighing less than 55 pounds. In June 2019, Canada also implemented simplified drone regulations for commercial, recreational, and research purposes. APAC will witness a substantial CAGR during the forecast period on account of the rising use of drones across various industries in countries like China and India. In July 2017, the State Council of China released the 'New Generation Artificial Intelligence (AI) Development Plan' with UAV as one of the focus sectors. On August 27, 2018, the Indian Ministry of Civil Aviation released the National Drone Policy 1.0, making flying drones in India legal.

Market Developments

• In January 2021, Sompo International Holdings Ltd., a Bermuda-based specialist provider of property and casualty insurance and reinsurance, collaborated with Flock, a UK insurtech that provides commercial drone operators with data-driven insurance solutions. This collaboration advances the future of unmanned aircraft by boosting the availability of crucial insurance for growing use cases like drone freight deliveries and drone swarm exhibitions, among others.
• In February 2021, AgEagle Aerial Systems, an industry-leading provider of drone systems and solutions, announced the acquisition of MicaSense from Parrot, Europe's largest drone firm, for $23 million in cash and shares.

Segmentation

• By Type

Fixed Wing

Single Rotor

Multi-Rotor

• By End-Use Industry

Agriculture

Energy

Retail

Government

Media and Entertainment

Others

• By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• Germany
• United Kingdom
• Italy
• France
• Others

Middle East and Africa

• Saudi Arabia
• UAE
• Others

Asia Pacific

• China
• Japan
• South Korea
• Australia
• India
• Others