PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803186
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803186
AI in Drone Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)
The AI in drone market is poised for remarkable expansion, projected to grow from USD 12.5 billion in 2024 to USD 38.4 billion by 2032, at a robust CAGR of 15.2%. This surge is driven by rapid technological advancements enhancing drone efficiency and affordability. Supportive government policies, such as India's Drone Shakti and the PLI scheme, are also playing a pivotal role by promoting local manufacturing and simplifying drone operations.
Rising security concerns surrounding the misuse of UAVs for illegal surveillance and targeted attacks have significantly heightened global investments in AI-enabled counter-drone systems. Notably, defense departments are ramping up their drone programs in response to the Russia-Ukraine war and regional tensions like those between India and Pakistan. Reflecting this trend, global military drone spending is forecasted to rise from USD 16.5 billion in 2024 to USD 43.7 billion by 2032.
Key Insights
Station-based drones accounted for 80% of the market in 2024, driven by their widespread adoption in defense and their ability to perform fully autonomous flight cycles.
Cloud-based drones are anticipated to grow the fastest, powered by advancements in 5G, edge computing, and AI-optimized platforms. Ukraine's military uses them extensively for combat surveillance.
Hardware was the dominant component in 2024 with a 75% share, due to high demand for onboard processors, sensors, and navigation systems that enhance drone performance and data capture.
Software is projected to record the fastest growth, owing to continuous innovation in AI algorithms for self-navigation, predictive maintenance, and image analysis.
AI-based imaging led the market with a 70% share, leveraging technologies such as LiDAR and thermal imaging for infrastructure inspections and environmental surveillance.
AI-based data analysis is expected to be the fastest-growing technology, supporting real-time decision-making in urban planning and disaster management.
Security and surveillance remained the largest application area, with a 60% share in 2024, as drones with facial recognition and night vision are increasingly used for national and civil security.
Logistics is the fastest-growing application, driven by demand for autonomous, contactless delivery solutions across healthcare, retail, and defense sectors.
The military sector accounted for 65% of the market in 2024, utilizing AI drones for reconnaissance, strategic missions, and battlefield intelligence.
The commercial sector will grow the fastest, fueled by AI drone use in urban planning, infrastructure monitoring, law enforcement, and social media content creation.
North America led the market with a 40% share in 2024, supported by strong FAA regulations and the adoption of drones in sectors ranging from agriculture to defense.
Asia-Pacific will see the highest CAGR, with countries like China, India, Japan, and South Korea investing heavily in AI drone technologies for military, disaster response, and smart infrastructure.
Military drone sales in India were valued at USD 1,550.2 million in 2024 and are expected to reach USD 5,574.6 million by 2032, aided by subsidies for AI drones in agriculture.
Key players shaping the market include NVIDIA Corporation, Intel Corporation, Qualcomm Incorporated, DJI, Skydio, Ambarella, IBM, Teledyne FLIR, and Parrot.
Recent developments include the June 2025 launch of Skydio X10 with smart navigation and FLIR thermal imaging, and NVIDIA's partnerships aimed at enhancing drone capabilities through advanced AI modules.
Table of Contents
Chapter 1. Research Scope
- 1.1. Research Objectives
- 1.2. Market Definition
- 1.3. Analysis Period
- 1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Type
- 1.4.2. Market Size Breakdown, by Component
- 1.4.3. Market Size Breakdown, by Technology
- 1.4.4. Market Size Breakdown, by Application
- 1.4.5. Market Size Breakdown, by End Use
- 1.4.6. Market Size Breakdown, by Region
- 1.4.7. Market Size Breakdown, by Country
- 1.5. Market Data Reporting Unit
- 1.5.1. Revenue
- 1.6. Key Stakeholders
Chapter 2. Research Methodology
- 2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
- 2.2. Primary Research
- 2.3. Market Size Estimation
- 2.4. Data Triangulation
- 2.5. Currency Conversion Rates
- 2.6. Assumptions for the Study
- 2.7. Notes and Caveats
Chapter 3. Executive Summary
Chapter 4. Market Indicators
Chapter 5. Industry Outlook
- 5.1. Industry Background
- 5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
- 5.3. Impact of COVID-19
- 5.4. Sociopolitical Impact
- 5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
- 5.6. Innovation and Technology Trends
- 5.7. Economic and Regulatory Impact
- 5.8. Market Entry Strategies
Chapter 6. Competitive Landscape
- 6.1. List of Market Players and their Offerings
- 6.2. Market Share of Key Players (2024)
- 6.2.1. Global
- 6.2.2. North America
- 6.2.3. Europe
- 6.2.4. Asia-Pacific
- 6.2.5. Latin America
- 6.2.6. Middle East & Africa
- 6.3. Competitive Benchmarking of Key Players
- 6.4. Recent Strategic Developments by Key Players
- 6.5. Company Leadership Matrix
Chapter 7. Global Market
- 7.1. Overview
- 7.2. Market Revenue, by Type (2019-2032)
- 7.3. Market Revenue, by Component (2019-2032)
- 7.4. Market Revenue, by Technology (2019-2032)
- 7.5. Market Revenue, by Application (2019-2032)
- 7.6. Market Revenue, by End Use (2019-2032)
- 7.7. Market Revenue, by Region (2019-2032)
Chapter 8. North America Market
- 8.1. Overview
- 8.2. Market Revenue, by Type (2019-2032)
- 8.3. Market Revenue, by Component (2019-2032)
- 8.4. Market Revenue, by Technology (2019-2032)
- 8.5. Market Revenue, by Application (2019-2032)
- 8.6. Market Revenue, by End Use (2019-2032)
- 8.7. Market Revenue, by Country (2019-2032)
Chapter 9. Europe Market
- 9.1. Overview
- 9.2. Market Revenue, by Type (2019-2032)
- 9.3. Market Revenue, by Component (2019-2032)
- 9.4. Market Revenue, by Technology (2019-2032)
- 9.5. Market Revenue, by Application (2019-2032)
- 9.6. Market Revenue, by End Use (2019-2032)
- 9.7. Market Revenue, by Country (2019-2032)
Chapter 10. Asia-Pacific Market
- 10.1. Overview
- 10.2. Market Revenue, by Type (2019-2032)
- 10.3. Market Revenue, by Component (2019-2032)
- 10.4. Market Revenue, by Technology (2019-2032)
- 10.5. Market Revenue, by Application (2019-2032)
- 10.6. Market Revenue, by End Use (2019-2032)
- 10.7. Market Revenue, by Country (2019-2032)
Chapter 11. Latin America Market
- 11.1. Overview
- 11.2. Market Revenue, by Type (2019-2032)
- 11.3. Market Revenue, by Component (2019-2032)
- 11.4. Market Revenue, by Technology (2019-2032)
- 11.5. Market Revenue, by Application (2019-2032)
- 11.6. Market Revenue, by End Use (2019-2032)
- 11.7. Market Revenue, by Country (2019-2032)
Chapter 12. Middle East & Africa Market
- 12.1. Overview
- 12.2. Market Revenue, by Type (2019-2032)
- 12.3. Market Revenue, by Component (2019-2032)
- 12.4. Market Revenue, by Technology (2019-2032)
- 12.5. Market Revenue, by Application (2019-2032)
- 12.6. Market Revenue, by End Use (2019-2032)
- 12.7. Market Revenue, by Country (2019-2032)
Chapter 13. Company Profiles
Chapter 14. Appendix
- 14.1. Sources and References
- 14.2. Related Reports
