Market Overview:
Drones offer a variety of services such as aerial photography, livestock monitoring, agricultural applications, inspection services etc. Drones are used for commercial applications such as deliveries, monitoring crop growth, safety inspection of infrastructure and others. They provide accurate data collection and analysis at a relatively lower cost as compared to conventional methods. Drone services are adopted across various industries like construction, agriculture, oil & gas, entertainment and others due to their benefits.
Market key trends:
One of the key trends in the drone service market is rising adoption in inspection services. Drones are increasingly used for safety inspection of critical infrastructure like power plants, dams, bridges and buildings. They enable a detailed inspection in hard to reach areas at a fraction of time and cost of traditional methods. Drone imaging provides pinpoint accuracy in inspection and detection of defects. This has resulted in growing demand for drone services from infrastructure, mining and construction industries for regular inspection purposes.
The global Drone Service Market Demand 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.
Porter’s Analysis
Threat of new entrants: Low capital requirements and popularity of recreational drones poses a threat of new entrants. However, specialized commercial drone services require heavy investments and certifications restricting new competition.
Bargaining power of buyers: Customers have bargaining power due to availability of many service providers in the market providing similar services. Switching costs are relatively low incentivizing service providers to offer competitive prices.
Bargaining power of suppliers: A few major component manufacturers for commercial drones exist with differentiation in technologies related to navigation, batteries and payloads. This gives them control over prices of these critical inputs.
Threat of new substitutes: Traditional methods of collecting data using manned aircraft, satellites and terrestrial vehicles are being substituted by drones. Advanced technologies in robotics and artificial intelligence may lead to new platforms competing with drones.
Competitive rivalry: Presence of numerous global and regional players operating in inspection, delivery and many other commercial services intensify competition. Players differentiate through innovations, certifications and depth of service portfolio.
Key Takeaways
The global Drone Service Market is expected to witness high growth, exhibiting CAGR of 39.% over the forecast period, due to increasing infrastructural projects and industrialization. Rapid urbanization and development of smart cities across major countries is driving demand for aerial data collection, 3D mapping and inspection services using drones.
Regional analysis: North America dominated the drone service market in 2023, accounting for around 35% of global revenues. Strong government support for commercial drone applications in U.S. and Canada through FAA authorizations is a key factor. However, Asia Pacific region is expected to witness fastest growth till 2030 with China, India and Japan emerging as high potential markets on back of rapid industrial and infrastructure expansion plans.
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. Large players are focusing on certifications to diversify into industrial inspection, precision agriculture, and public safety operations. Newer entrants focus on niche segments and regional markets to gain foothold.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
