June 23, 2024

The growing demand for commercial applications to drive the growth of Drone Service Market

The global Drone Service Market is estimated to be valued at US$ 12.57 Bn in 2023 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 Overview:
Drone services include aerial photography, data acquisition & analytics, mapping & surveying, spraying, and inspection. With the advancements in sensor technology and data analytics, drones are increasingly being utilized for precision agriculture, infrastructure inspection, mining, delivery services, and other commercial applications. They enable capturing data in hard to reach areas time and cost efficiently without endangering human lives. The data captured through drones helps enhance efficiency across various industries.

Market key trends:
One of the key trends in the drone service market is the increasing demand for drone-based delivery services. Various companies such as Amazon, Uber, UPS, and FedEx are exploring drone delivery models to provide faster delivery of goods. This would enable these companies to expand their service reach and reduce delivery time and costs. Drones have the capability to reach remote and difficult to access locations in a short span offering on-demand doorstep deliveries. This is expected to drive the adoption of drones across delivery applications over the coming years.
Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate due to the requirement of high capital investments and technical know-how. However, technological advancements have reduced the entry barriers to some extent.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of service providers in the market. Buyers can negotiate on the basis of price and quality of services.

Bargaining power of suppliers: The bargaining power of suppliers is low as there are numerous component manufacturers and service providers in the market.

Threat of new substitutes: The threat of substitutes is moderate as traditional methods can be replaced by drones to some extent based on the application.

Competitive rivalry: High due to the presence of numerous global and regional players competing on multiple factors.

Key Takeaways

The global Drone Service Market is expected to witness high growth, exhibiting a CAGR of 39% over the forecast period, due to increasing adoption of commercial drones for various applications across industries.

Regional analysis: North America dominates the drone services market currently. However, the Asia Pacific region is expected to exhibit the fastest growth over the forecast period owing to the massive development of infrastructure and increasing adoption of commercial drones across industries in emerging economies such as China and India.

Key players: Key players operating in the drone services market are Unmanned Experts Inc., Aerodyne Group, Terra Drone Corporation, Cyberhawk, Sharper Shape, Dronedeploy, SenseFly, Edall Systems, PrecisionHawk, and Phoenix Drone Services LLC. These players are focusing on offering advanced drones and services to various industries globally.