Drone Services Market by Type (Platform Service, MRO, and Training and Simulation), Application, Industry, Solution (End-To-End, Point), and Region( North America, Europe, Asia Pacific, Middle East and Row) - Global Forecast to 2028
[291 Pages Report] Projections indicate that the drone services market is poised for significant growth, with an estimated increase from USD 17.0 billion in 2023 to USD 57.8 billion by 2028, demonstrating a noteworthy compound annual growth rate (CAGR) of 27.7% during this period.
The drone services market represents an evolving industry offering a wide array of services for remotely controlled or autonomously flown drones. These services integrate software-controlled flight plans into the drones' embedded systems. Commercial drone services provide critical support to multiple sectors, including agriculture, insurance, construction, marine, aviation, oil & gas, mining, and infrastructure. They fulfill various tasks, such as search and rescue, package delivery, industrial inspections, image capture, fertilizer spraying, healthcare supply distribution to remote areas, and broadcast applications.
In terms of market segmentation, drone services are categorized by the type of service provided, including platform services (further divided into flight piloting and operation, data analysis, and data processing), maintenance, repair, and operations (MRO), and simulation and training. The application-based segmentation encompasses inspection and monitoring, mapping and surveying, spraying and seeding, filming and photography, transport and delivery, as well as security, search, and rescue.
The industry-based segmentation covers a wide spectrum of sectors, including construction and infrastructure, agriculture, utility, oil & gas, mining, defense and law enforcement, media and entertainment, scientific research, insurance, aviation, marine, healthcare and social assistance, and transportation, logistics, and warehousing. These industries make extensive use of drone services, particularly in functions such as inspection, monitoring, mapping, and photography.
Furthermore, the market is categorized by solution type into end-to-end solutions, which encompass all platform services like piloting and operations, data analytics, and data processing. Point solutions are specific to piloting or data processing for applications such as surveying, inspection, and monitoring.
The market report segments the drone services industry across five key regions: North America, Europe, Asia Pacific, the Middle East, and the Rest of the World (ROW), with a focus on their key countries.
In 2023, North America is expected to hold the largest share of the drone services market.
Drone services are progressively replacing legacy services in the commercial sector, such as aerial surveys, filmography, and search and rescue operations. They offer the advantages of prolonged operation, remote control by human operators, or autonomous functioning by onboard computers. The increasing adoption of drone services across various civil and commercial applications can be attributed to their extended endurance and cost-effectiveness. Furthermore, the integration of advanced technologies like artificial intelligence, IoT (Internet of Things), and cloud computing into drone services is expected to further boost their demand across various sectors.
Drone Services Market Forecast to 2028
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Drone Services Market Dynamics:
Drivers : Growing use of drones for crop health assessment and soil monitoring
Drones have a wide scope of applications in the agriculture industry. They are increasingly used to optimize crop yield and agricultural operations. The EU Commission has recognized several potential areas for drone usage, namely, aerial planting, soil and field analysis, crop monitoring, health assessment, irrigation, and spraying fertilizers. They are used as a substitute for manual tasks that involve the usage of potentially harmful backpack sprayers and equipment, as well as in scenarios where terrain or ground conditions rule out the usage of conventional and high-quality vehicles. In China, government-led subsidies are encouraging the deployment of agricultural drones. DJI Innovation Technology (China)has declared that more than 10,000 trained operators are currently utilizing the Agras MG-1 series 8-rotor spraying drones, which were introduced in 2015.
Large or highly subsidized farms are increasingly adopting drones. In US, although the number of farms is declining, the size of the average farmland is increasing, which is more than 440 acres. Asia Pacific is witnessing a shift from subsistence to commercial farming. The increase in large commercial farms is expected to fuel the demand for drones in spraying and seeding, inspection and monitoring, and surveying and mapping applications.
Restraints: Drone safety and security issues
The misuse of drones by malevolent entities to conduct physical and cyber-attacks is a major threat to public safety. In recent years, many technical and operational drone properties were misused for potential attacks, including performing critical operations based on violent reconnaissance and surveillance aimed at tracking specific people and certain properties, leading to safety and privacy issues. Hacking a drone is like hacking into a personal computer. Hackers need to connect to the drone by intercepting the signal, where the radio signal is unencrypted and decoded with a packet sniffer. After this, the hackers block the signal, connect the drone to their device, and manipulate the gadget to work as they want. Some existing threats and vulnerabilities associated with UAVs or drones are stated below.
- Susceptible to Spoofing: The study of the design and flight controllers of UAV models with many rotors revealed several flaws. These are correlated with both the telemetry links streaming data to/from a drone through serial port connections, especially due to their feeble communication nature, which is, in nearly all cases, not encrypted. It was found that through GPS spoofing, the information can be captured, modified, or inserted effortlessly. This disadvantage of the data link allows interception and deceiving, granting hackers complete control of the drone.
Opportunity: Development of alternative modes of transport
In 2020, the global population comprised 56.2% of the urban population. With the growing urban population, transportation systems are required to be proficiently managed to enable mass mobility. Cities worldwide are, hence, looking for alternative modes of transportation to solve issues linked with traffic congestion. It is expected that urban air mobility with autonomous drones can decrease pollution levels, reduce transport time, and lower the strain on existing transport systems. Dubai, Singapore, Los Angeles, and Dallas are testing with Urban Air Mobility projects. Air taxis are expected to be a promising market in the upcoming era since they make traveling safe and comfortable. The chief objective of urban air mobility is to enable intracity transportation to reduce the strain on currently existing urban mobility solutions.
Challenges: High investment costs to develop urban air mobility infrastructure network
With more than 250 businesses planning to build or operate UAM vehicles, a large number of industry players are working across the value chain to make this idea a real-life experience. The resultant flying vehicles would be energy-efficient, environmentally friendly, and autonomous. However, one of the associated challenges is the projected costs of building UAM infrastructure for take-off, landing, maintenance, charging of batteries, and/or refueling of tanks. Key among these infrastructures are Vetihubs, Vetibases and Vertipads.
Vertihubs: They are stand-alone buildings erected in central, high-traffic areas. Vertihubs have around ten active take-off and landing areas and 20 additional spaces for parking or maintenance. They can also comprise some level of retail and related services for passengers. They cost USD 6–7 million to build and USD 15 million to USD 17 million per year for management.
Based on type, The platform services segment is expected to witness the highest growth during the forecast period owing to the high efficiency and affordability of drone services.
Based on type, The drone services market has been categorized into three key segments: platform, which is further divided into flights piloting and operation, data analysis, and data processing; MRO (Maintenance, Repair, and Operations); and simulation and training. Notably, the platform segment is anticipated to experience the most significant Compound Annual Growth Rate (CAGR) in the forecast period. This growth can be attributed to the platform's superior efficiency in gathering data, its cost-effectiveness, and the widespread availability of drone services on a global scale.
Based on industry,healthcare & social assistance segment is projected to record the highest growth
Based on industry, the market for drone services has been segmented into construction and infrastructure, agriculture, utility, oil & gas, mining, defense and law enforcement, media and entertainment, scientific research, insurance, aviation, marine, healthcare and social assistance, and transportation, logistics, and warehousing.Out of these , the healthcare and social assistance segment is expected to see the highest growth during the forecast period.This is primarily due to the surge of drone based assistance during the pandemic that has established a significant market and is set to grow steadily in the future. The healthcare industry opts for drone-based services to deliver medicines and first aid to remote locations or in emergencies. The use of drones in healthcare provides faster delivery of medical supplies in remote areas with poor road networks
Based on solution, end-to-end solution segment would have the highest growth during the forecast period
The drone services market, based on solution, has been segmented into end-to-end and point solutions. The scope of the end-to-end solution segment includes all platform services, such as piloting and operations, data analytics, and data processing. Point solutions are specific only to piloting or data processing for applications such as surveying, inspection, and monitoring.The end-to-end solutions is expected to see the highest growth during the forecast period due ti the demand for integrated solutions by industries that involve major activities such as piloting and operations, data analysis and data processing. End-to-end solutions offer scalability, customization, and robust safety features, making them a valuable choice for businesses
Based on application,transport & delivery segment is expected to dominate the market with the highest CAGR during the forecast period
Based on application the drone services market, there are distinct segments that include inspection and monitoring, mapping and surveying, spraying and seeding, filming and photography, as well as transport and delivery, along with security, search, and rescue. Notably, the transport and delivery segment is poised to take the lead in the market, exhibiting the most significant Compound Annual Growth Rate (CAGR) during the forecast period. This prominence is attributed to the surging need for swift package delivery services, particularly in the healthcare sector, due to the impact of the pandemic.
North America is expected to hold the highest market share in 2023.
North America is projected to secure the foremost market share in 2023. This regional market's expansion can be attributed to the growing prevalence of online shopping through e-commerce platforms and favorable regulations by the Federal Aviation Administration (FAA) in the United States. Furthermore, the infusion of investments by major industry players to bolster startups in creating parcel service platforms is anticipated to bolster the regional market's growth throughout the forecast period.
Drone Services Market by Region
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Key Market Players
The Drone Services companies is dominated by a few globally established players such as Cyberhawk (UK), Sky-Futures Ltd. (UK), DroneDeploy Inc. (US), Terra Drone Corporation (Japan), PrecisionHawk (US), and Aerodyne Group (Malaysia) among others, are the key manufacturers that secured drone services.
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Report Metric |
Details |
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Market size available for years |
2020-2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD) |
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Segments covered |
By type, application, industry, and solution. |
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Geographies covered |
North America, Asia Pacific, Europe, Middle East and RoW (Rest of the World) |
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Companies covered |
Cyberhawk (UK), Sky-Futures Ltd. (UK), Sharper Shape Inc. (US), DroneDeploy Inc. (US), Terra Drone Corporation (Japan), PrecisionHawk (US), and Aerodyne Group (Malaysia), and few others. |
Drone Services Market Highlights
This research report categorizes the drone services market based on applications, industry, type, and solution
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Segment |
Subsegment |
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By Type |
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By Application |
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By Industry |
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By Solution |
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By Region |
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Recent Developments
- In August 2023, Kelluu Ltd. selected RedEdge-P multispectral cameras by AgEagle Aerial Systems for equipping its unmanned airships. These hydrogen-powered airships can fly for over 12 hours per mission and provide data-as-a-service for monitoring power lines, roads, railways, and environmental issues in Finland and Central Europe.
- In May 2023, Matternet, Inc. announced a significant development in its drone delivery operations through a partnership with Ameriflight, the largest Part 135 Cargo airline in US. Ameriflight has received approval from the Federal Aviation Administration (FAA) to operate Matternet's M2 drone for commercial delivery, becoming the second operator in US with this approval.
- In December 2022, Zipline, a logistics and drone delivery startup, has expanded its partnership with the Rwandan government to provide a national drone service. The partnership aims to complete nearly 2 million instant deliveries and fly over 200 million autonomous kilometers in Rwanda by 2029.
Frequently Asked Questions (FAQ’s):
What is the current size of the drone services market?
The drone services market is estimated to grow from USD 17.0 billion in 2023 to USD 57.8 billion by 2028, at a CAGR of 27.7% from 2023 to 2028. North America is estimated to record the largest share of the drone services market in 2023.
Who are the winners in the drone services market?
Sky-Futures Ltd. (UK), DroneDeploy Inc. (US), Terra Drone Corporation (Japan), Sharper Shape Inc. (US), Cyberhawk (UK), PrecisionHawk (US), and Aerodyne Group (Malaysia).
What are some of the technological advancements in the market?
The essential need for charging stations for battery replenishment is evident. These charging solutions often take the form of wireless charging pads incorporated into the landing or docking stations of delivery drones. Wireless charging technology is poised to play a pivotal role in the drone package delivery industry for several reasons. Firstly, it significantly extends the flight range of aerial delivery drones, allowing them to cover longer distances. Additionally, it reduces the downtime related to charging, thereby enhancing the cost-effectiveness of package transportation and delivery by drones. The efficiency gains from wireless charging also result in quicker package deliveries within urban areas.
What are the factors driving the growth of the market?
- Drones have emerged as a highly reliable tool for data acquisition, offering cost-effectiveness, precision, and remarkable time efficiency. They provide essential data and real-time monitoring capabilities across various applications. Drones are effective in monitoring areas ranging from 100 to 10,000 square meters, with an associated margin of error of approximately 2 to 20 centimeters. Their use contributes to improved workforce safety and access to crucial asset-related information in industries such as construction, utilities, aviation, mining, and oil and gas. Moreover, they play a pivotal role in minimizing downtime.
- Wind Farms: Drone services have proven highly advantageous for wind farm operators. Given the substantial size of industrial wind turbine blades, reaching 115 feet (35 meters) in length, and tower heights exceeding 250 feet (76 meters), manual inspections become challenging. Drones efficiently address this issue by rapidly capturing images of turbine blades and transmitting them for analysis. This approach significantly reduces inspection time, often by as much as 70%.
- Power Lines: Continuous inspection and maintenance of power lines and pylons are critical for infrastructure integrity. Often located in remote or challenging terrain, such as mountain ranges or dense forests, drones have become the preferred method for their inspection and upkeep. Major utility companies, including General Electric and Duke Energy, have embraced drone technology for power line inspections. In China's Yunnan province, for instance, the use of drones has increased the inspection rate from two pylons per day to an impressive ten pylons per day.
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The research study conducted on the drone services market involved extensive use of secondary sources, directories, and databases such as Hoovers, Bloomberg Businessweek, ITC Trade data and Factiva to identify and collect information relevant to the drone services market. The primary sources considered included industry experts from the drone services market as well as sub-component manufacturers, drone services raw material suppliers, government agencies, technology vendors, system integrators, research organizations, and original equipment manufacturers related to all segments of the value chain of this industry. In-depth interviews with various primary respondents, including key industry participants, Subject Matter Experts (SMEs), industry consultants, and C-level executives, have been conducted to obtain and verify critical qualitative and quantitative information pertaining to the drone services market as well as to assess the growth prospects of the market. Sources from the supply side included various industry experts, such as chief X officers (CXOs), vice presidents (VPs), and directors from business development, marketing, and product development/innovation teams; related key executives from Edall Systems, PrecisionHawk, senseFly Ltd., and DroneDeploy Inc.; independent consultants; importers; distributors of drones; and key opinion leaders.
Secondary Research
Secondary sources referred for this research study included the Single European Sky ATM Research (SESAR), Association for Unmanned Vehicle Systems International (AUVSI), World Drone Organization, and corporate filings such as annual reports, investor presentations, and financial statements of trade, business, and professional associations. The secondary data was collected and analyzed to arrive at the overall size of the market, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the human augmentation market through secondary research. Several primary interviews were conducted with experts from both demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
- The top-down and bottom-up approaches were used to estimate and validate the size of the drone services market. The research methodology used to estimate the market size also included the following details.
- The key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of the annual and financial reports of the top market players and extensive interviews of leaders, including chief executive officers (CEO), directors, and marketing executives.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by representatives in MarketsandMarkets, and presented in this report.
Market size estimation methodology: Bottom-Up Approach
Market size estimation methodology: Top-Down Approach
Data triangulation
After arriving at the overall size of the drone services market from the market size estimation process explained above, the total market was split into several segments and subsegments.
Market Definition
The drone services market is an on-demand service market. It includes drones that are remotely piloted, optionally piloted, or fully autonomous used in inspection and monitoring, surveying and mapping, and various other use cases. They find applications in the construction & infrastructure, agriculture, utility, oil & gas, mining, defense & law enforcement, media & entertainment, scientific research, insurance, aviation, marine, healthcare, and transportation, logistics, and warehousing industries.
Drone services is expected to be an emerging market with high growth potential due to their surging demand attributed to their capability of accurate data monitoring and affordability.
Stakeholders
- Drone Service Providers
- Drone Subcomponent Manufacturers
- Technology Support Providers
- Drone Pilot Training Bodies
- Software/Hardware/Service and Solution Providers
- Regulatory Bodies
- Drone Service Consultants
- Drone Research Centers
Report Objectives
- To define, describe, segment, and forecast the size of the drone services market based on service, application, industry, solution, and region
- To forecast the size of different segments of the market with respect to five key regions, namely, North America, Europe, Asia Pacific, the Middle East, and the Rest of the World (RoW), along with their key country-level markets
- To identify and analyze the key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To identify technology trends currently prevailing in the market
- To provide an overview of the tariff and regulatory landscape with respect to drone services across different regions
- To analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for the stakeholders by identifying key market trends
- To profile the leading market players and comprehensively analyze their market share and core competencies
- To analyze the degree of competition in the market by identifying key growth strategies, such as product launches, collaborations & expansions, contracts, partnerships, and agreements, adopted by the leading market players
- To identify detailed financial positions, key products, and unique selling points of leading companies in the market
- To provide a detailed competitive landscape of the drone services market, along with the ranking analysis, market share analysis, and revenue analysis of the key players
1 Micromarkets are referred to as the segments and subsegments of the drone services market considered in the scope of the report.
2 Core competencies of companies were captured in terms of their key developments and key strategies adopted to sustain their positions in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Drone Services Market
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