DRONE SERVICE MARKET ANALYSIS

The global drone service market size was valued at US$ 8.43 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 39.3% from 2023 to 2030. Drone Service Market is growing at a fast pace due to various factors such as technological advancements, increasing demand from end-use industries, and favorable regulatory environment. Increasing demand for efficient and accurate data in the oil and gas industry is driving the drone services market growth. Moreover, the growing need for safer and faster inspection of oil rigs and power plants is further fueling the market growth.

Global Drone Service Market: Regional Insights

North America is anticipated to show significant growth in the global drone service market over the forecast period. Increasing adoption of advanced autonomous technology across various applications such as photography, mapping, inspection, and others in the region are driving the demand for drone services. Moreover, the region is witnessing increasing growth in real estate and construction industries. Along with this, the implementation of advanced unmanned autonomous systems technologies is growing in the region. These factors are expected to aid in growth of the global drone service market in the coming future.

Europe is also projected to account for major share in the global drone service market during the forecast period, owing to rise in adoption of drone inspection, survey, and photography services in marine, commercial, construction, and event industries. Along with this, increasing implementation of time and cost-efficient drone services in logistics industry in the region is also driving the demand for drone services. Thus, the region is anticipated to show significant growth in the coming future.

Global Drone Service Market - Regional Analysis

Figure 1. Global Drone Service Market Share (%), By Region, 2022

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Global Drone Service Market Drivers:

Increasing demand for time-efficient delivery service to boost the market growth

In recent years, the e-commerce and logistics industries have witnessed substantial growth. Due to the growth of these industries, the demand for time-efficient delivery solutions to transport critical goods all over the world is has increased rapidly. For instance, in April 2021, ANA Holdings Inc. partnered with Wingcopter to accelerate the development of various consumer products along with vital pharmaceuticals drone delivery systems. Thus, the rising demand for time-efficient delivery service is expected to augment growth of the global drone service market over the forecast period.

Need for industry-specific solutions to fuel the market growth

The demand for cost-cutting and high-efficiency solutions is increasing across various industries due to economic intensification all over the world. As a result, the demand for easy-to-implement, affordable, and high-value customized systems is increasing for the varying needs of different industries. Thus, development of customized drones by drone manufacturers has increased for warehouse management, viewing, capturing, and analyzing aerial imagery for various industries such as utility, mining, agriculture, power, telecommunication, media, construction, oil and gas, and logistics among others. Thus, the demand for drone services is likely to increase across these industries in the near future, which in turn is expected to drive growth of the global drone service market over the forecast period.

Global Drone Service Market Opportunities:

Refurbished government regulatory frameworks are expected to offer multiple growth opportunities in the global drone service market over the forecast period. Drone operators are required to pass specific regulatory frameworks around aviation of the country they are operating in. The use of drones has increased internationally leading to incorporation of drones by regulatory bodies in their framework to support development of drone services, as they offer several benefits. Thus, this factor is likely to create lucrative opportunities in the market in the coming future.

Growing technological developments in drone technology to create business opportunities in the global drone service market over the forecast period. With significant evolution of drones in past few years, consumers and businesses all over the world are offered with smart mobility alternative. The adoption of these advanced drones is increasing to accomplish time-sensitive missions due to evolution of technologies such as 3D imaging, AI, and big data analytics among others. Due to such technological advancements the use of drones has increased across various industries. This in turn is creating growth opportunities in the market.

Global Drone Service Market Trends:

Adoption of autonomous drones and artificial intelligence is a major trend

Autonomous drones come under Unmanned Aerial Vehicles (UAVs) that do not require any human intervention to operate, as they operate with the use of advanced sensors, cameras, and software. These drones have been used across various industries including mining, logistics, construction, and agriculture. Autonomous drones can be used for several purposes in agriculture such as analyzing soil, checking crops, and spraying pesticides. Moreover, they can be used also for delivering packages and managing inventory in logistics. Thus, adoption of autonomous drones is increasing, which in turn is driving growth of the global drone service market.

Drone platform service gaining traction in the market

Drones can be used for various applications in residential and commercial sectors such as construction site supervision, photography, orthomosaic and aerial survey, drone modeling, data capture and analysis services, and others. The adoption of drone services is widespread in industries such as energy and power, defense, homeland security, and other crucial sectors. Thus, drone platform services are gaining traction, and this trend is likely to continue in the global drone service market.

Global Drone Service Market Restraints:

Cybersecurity issues related to drones to hamper growth of the market

Due to the high efficiency, cost-effectiveness, and flexibility, drone deployment is proliferating in private and commercial applications. With increasing use of drones, the threats of cybersecurity are also growing. Modern drones are equipped with USB ports, GPS, and other technologies that can be critical cybersecurity target for hackers. This can further cause exploitation of drones. As a result, this factor is anticipated to limit growth of the global drone service market over the forecast period.

Limited bandwidth of operations to hamper the market growth

The use of drones has spread across several data-intrinsic applications such as data analytics, mapping, and surveying operations. For this drones need a high bandwidth connection to transmit or communicate the high-definition image or video in real-time. When drones operate on ground they have enough bandwidth available, however, as they move away from the ground, the bandwidth availability starts reducing. This further limit the drone operations. Thus, this factor is further anticipated to hamper growth of the global drone service market over the forecast period. However, the advancements in drone technology will offer advanced solutions addressing this issues, which is likely to aid in growth of the market.

Figure 2. Global Drone Service Market Share (%), By Type, 2022

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Global Drone Service Market - Segmentation

The global drone service market report is segmented into Type, Duration of Service, Application, and Solution.

Based on Type, the market is segmented into Drone platform services, Drone maintenance, repair, and overhaul (MRO) services; and Drone training & education services. Out of which, Drone platform services is expected to dominate the global market over the forecast period and this is attributed to the increasing technological advancements in drone technologies. Manufacturers are increasingly focusing on development of advanced technology in drones such as self-monitoring capabilities, accurate sensors, advanced navigation systems, compliance tech for military, transport, commercial customers, and logistics. Moreover, drone service providers are adopting strategic alliances to create drone platform services. As a result, the segment is anticipated to gain substantial growth in the coming future.

Drone Maintenance, Repair, and Overhaul (MRO) Service segment is also expected to witness significant growth in the near future and this is owing to the reducing cost and service delivery timeline driving the adoption of MRO services. Rise in efforts from private as well as government organizations toward testing of a viable drone-based MRO alternative for reducing the chances of trouble in normal business operations and increasing the performance of the organization. For instance, in October 2020, Ukraine International Airlines (UIA) in partnership with MAUtechnic announced the testing of aircraft inspection services.

Based on Duration of Service, the market is segmented into Short-duration services, and Long-duration services. Out of which, Short-duration services is expected to dominate the global market over the forecast period and this is attributed to the increasing technological developments such as high-resolution camera with small size, 5G network, artificial intelligence, and mobile edge computing among others. With increasing technological advancements, the short-duration drone services are likely to benefit, with customized drone service for different industries. Thus, the segment is likely to gain traction in the market over the forecast future.

Long-duration services segment is also expected to witness significant growth in the near future and this is owing to the growing evolution of large endurance drones with the ability of performing long distances leading to increased adoption of long-duration services. Several drone manufacturers are focusing on development of drones with higher range in order for them to function over extended periods. Thus, this is further likely to boost growth of this segment.

Based on Application, the market is segmented into Aerial photography & remote sensing, Data acquisition & analytics, Mapping & surveying, Modelling, Disaster risk management & mitigation, Inspection & environmental monitoring, and Others. Out of which, Aerial Photography & Remote Sensing is expected to dominate the global market over the forecast period and this is attributed to the growing applicability of drones in remote sensing applications. Several research institutes around the world are increasingly adopting drone technologies for remote sensing and aerial photography applications. This in turn is driving demand for this segment. For instance, in June 2021, Michigan State University dispatched drones with remote sensing technology to spot tar spot disease. Thus, this in turn is expected to drive growth of the segment in the coming future.

Data Acquisition & Analytics segment is also expected to witness significant growth in the near future and this is owing to the increasing launch of pre-processed and ready-for-analysis data delivery services to augment the performance of analysis of client’s data. For instance, in May 2021, Skycatch introduced an end-to-end RTK enabled drone-based site survey system. The segment is likely to show substantial growth in the coming future.

Based on Solution, the market is segmented into Enterprise, and Point. Out of which, Enterprise is expected to dominate the global market over the forecast period and this is attributed to the increasing integration of technologically advanced airborne platforms such as unmanned aerial vehicles across several industrial applications. The adoption of drones has increased among enterprise solution providers. For instance, in June 2021, Auterion partnered with Maxon to develop an open ecosystem of motor and avionics integration for enterprise customers.

Point segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for highly efficient inspection, mapping, and modelling tools leading to growing development of advanced technologies in drones. With increasing focus on development of efficiency of these tools, the segment is likely to gain substantial growth in the coming future.

Global Drone Service Market: Key Developments

In May 2021, Aerodyne Group and Real Tech Fund, Kobashi Holdings and ACSL announced partnership to drive agricultural growth in the ASEAN countries and grow core business of Aerodyne in Japan.

In February 2021, DroneDeploy collaborated with Corteva Agriscience for the development of cutting-edge drone monitoring tools for the agricultural industry.

In October 2020, Cyberhawk received a multiyear contract from a Middle East LNG producer. With this contract, the company will deliver drone inspection, survey and data visualization services to the LNG producer.

In June 2020, Cyberhawk received a five-year software contract from Royal Dutch Shell PLC, for delivering iHawk visualization software platform to all offshore, onshore, and subsea assets to Royal Dutch Shell PLC.

Global Drone Service Market: Key Companies Insights

The global drone service market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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.

*Definition: Drone Service is the process of providing drones to individuals or companies for aerial photography and video recording. These services can be used in a variety of industries, including construction, engineering, real estate, filming, and marketing. Drones are able to capture higher quality images and video than traditional methods, such as satellites or airplanes, at a much lower cost

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