UAV (Drone) Market by Type (Fixed Wing, Rotary Wing, Hybrid), Platform (Civil & Commercial, and Defense & Government), Point of Sale, Systems, Function, End Use, Application, Mode of Operation, MTOW, Range, and Region - Global Forecast to 2027
Updated on : March 03, 2023
[394 Pages Report] The UAV (Drone) Market is projected to grow from USD 26.2 billion in 2022 to USD 38.3 Billion by 2027, at a CAGR of 7.9% from 2022 to 2027. Unmanned aerial vehicles (UAVs) are remotely piloted, optionally piloted, or fully autonomous aerial vehicles that play a significant role in the defense and commercial sectors. They are commonly termed drones and are mostly known for their wide usage in various military missions, such as border surveillance and combat operations. These vehicles are also used for mapping, surveying, and determining the weather conditions of a specific area.
The use of UAVs has been prevalent among defense forces worldwide for a long time. However, in recent times, several investments have been made by public and private sector organizations to develop new and sophisticated UAVs according to their requirements. The potential of UAVs to be used in several prospective applications in the civil and commercial sectors has led to advancements in them. The civil & commercial application segment of the UAV (Drone) industry is projected to grow significantly in the next 10 years
UAV (Drone) Market Forecast to 2027
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UAV (Drone) Market Dynamics:
Driver: Sensor and technology development
For sensor and technology development in UAV/drone-based remote sensing, the development and design of sensors and cameras are essential. The capability of sensors and cameras will extend the use of UAVs to handle various urban issues. As high-fidelity sensors continue to become smaller and more compact, drones are now capable of carrying more payload options than ever before. With all these various models, picking the right one for each unique industrial use can be overwhelming. Using UAVs as remote sensing platforms offers the unique ability for repeated deployment for the acquisition of high temporal resolution data at very high spatial resolution.
These sensor and technology development leads to the reduction in the price of drone components like ICs (controllers, GPS). The costs of drones are falling as the costs of various ICs (controllers, GPS), IoT sensors, MEMS sensors, and batteries are going down, whereas their performance is rising, like GPS accuracy. The drone's hardware is mostly made of fiber composites, whose cost is decreasing due to advancements in technology and investment in drone hardware worldwide. This leads to the wide-scale availability of drones not only for industry but also for hobbyists.
Restraint: Drone Safety & Security Issues
Drone use has been identified as a possible and vital risk to information security. Several drones have significant flaws in their designs and lack wireless security protection systems and footage encryption software. Some of the existing threats and vulnerabilities associated with drones are stated below:
- Susceptibility to technical issues: Technical malfunctions in drones include application errors such as connection failures between remote devices of users and drones, triggering them to either collapse or fly away. The battery life is another technical issue that results in a reduced flight time of drones. Especially in cold weather, the life span of batteries decreases, leading to a short flying time and the potential for malfunctioning.
- Prone to Wi-Fi jamming: Drones can also be stolen by sending de-authentication signals between access points and devices monitoring drones. This can be done by overcrowding the planned drone frequency with a single-board computer and jamming it using the Wi-Fi signals of hackers. Hackers install and organize a Raspberry Pi, a type of tiny single-board computer for this.
Opportunity: Simultaneous localization and mapping
Simultaneous Localization and Mapping (SLAM) algorithms are used to develop landmark-based, terrain-aided navigation systems with the capability for online map building. Such systems simultaneously use the generated map to bind errors in the inertial navigation system. SLAM techniques have been widely used for ground robot navigation, but only a few are based on vision sensors. Usually, these techniques are associated with GPS/INS sensors. Research by S. Lacroix et in 2002 presented a new concept of autonomous UAV navigation based on a SLAM algorithm and applied on a 6 DOF airborne platform that the group's work demonstrated the potential for applying SLAM-augmented, low-cost GPS/INS systems to UAVs in GPS-denied situations, such as urban canyons, indoors, or even underwater. Other Stanford researchers (K. Jonghyuk et al.) have developed passive GPS-free navigation for small UAVs operating in areas where GPS signals are jammed or obscured by natural or man-made features. The navigation method is based on only an IMU and a monocular camera, with SLAM providing the cornerstone of this work. SLAM algorithms will help drones become more robust and are a major opportunity for the Drone industry.
Challenge: Delivery authentication and cybersecurity concerns
A protocol for authentication of drone deliveries needs to be in place to ensure privacy and security. Proper guidelines have to be in place to ensure that the delivery reaches the correct recipient. Densely populated suburbs could require essential thumb/fingerprint authorization or digital signatures to receive packages.
The rising number of hacking incidents is also a matter of concern since they have limited security mechanisms. Companies in the drone industry provide analytics software-as-a-service to their clients, which requires cloud-based servers to process data. Since the data is transmitted and stored in an external cloud network, it is prone to hacking. Industries also need highly secured cloud servers for data security. Therefore, data security and data encryption concerns act as a challenge for the UAV (Drone) Market.
Based on Platform, the defense & government segment registered the largest share in 2022
Based on platform, the Drone market has been classified into civil & commercial and defense & government. Defense & Government held the largest share of market in 2022 owing to high price of military drones. Defense & Government segment is further classified into small , tactical and strategic. High-altitude long-endurance (HALE) and medium-altitude long-endurance (MALE) UAVs fall under the category of strategic drones. At high altitudes, these UAVs tend to be heavy and hence, require long endurance and increased range. The two famous versions of the HALE UAV are the Global Hawk offered by Northrop Grumman (US) and Sentinel manufactured by Lockheed Martin (US).
Based on application, the military segment held the leading share of market in 2022.
Based on application, the Drone market is segmented into military, commercial, government & law enforcement, and consumer. The military segment held the leading share of the UAV (Drone) market in 2022 owing to high price of the military UAVs. The military UAVs are further segmented into ISR, combat operations, and delivery. The delivery sub-segment of the military UAVs is anticipated to record the highest growth during the forecast period as drones are being utilized for delivery of medical aids, food supplies, and ammunition on battlefields. Military drones are being sought across the globe for the direct delivery of emergency supplies to battlefields. Delivery drones are used by military forces to supply ammunition and food. For instance, through its website, the Program Executive Office for Unmanned Aviation and Strike Weapons of the US Marine Corps has requested information from UAV manufacturers regarding unmanned vehicles with a weight of not more than 1.320 pounds that can operate in harsh environmental conditions for delivering emergency supplies in battlefields.
By Type, fixed-wing segment witness strong growth in market during the forecast period
By Type, the Drone market has been classified into fixed-wing and rotary-wing. The fixed-wing segment is further divided into CTOL and VTOL. Vertical take-off and landing (VTOL) fixed-wing UAVs are used in a broad range of commercial and military aerial applications. The capability of these UAVs to vertically take off and land, devoid of the requirement of launchers or runways, permits them to be operated in any location or surroundings. The fixed-wing design of these UAVs offers improved endurance. VTOL fixed-wing UAVs can travel long distances at high speed, thereby offering more extensive coverage than multirotor UAVs. These UAVs are used in various applications such as farming, surveying, and mapping, along with infrastructure inspections, surveillance activities, etc. In January 2022, German drone delivery pioneer Wingcopter and Spright, a subsidiary of leading American air medical service provider Air Methods, announced an agreement worth more than USD 16 million.
The North America region held the major share of the UAV (Drone) Market in 2022
The growth of the UAV (Drone) market in North America can be attributed to the increasing adoption of drones for commercial and defense applications. In recent years, drone manufacturers have been focusing on the development of UAVs that are cost-effective, efficient, lightweight, and capable of carrying large payloads over long distances. Such drones are ideal for commercial applications such as last-mile delivery of products, medicines, and postal packages.
Canada is focused on developing its armed forces and, specifically, its air force by increasing its fleet of combat aircraft and tankers. The existing defense policy of the country is strong, with a long-term (20 years) funding commitment that will allow the Canadian Armed Force to enhance its capabilities. This will further increase the demand for UAVs in the country. In May 2021, the Canadian military confirmed that it was issuing formal bids for the purchase of armed drones worth USD 5 billion. For this, the force had already established a central hub in Ottawa, and the procured drones were expected to be operated from this hub. This central hub is expected to have 300 members, including pilots and technicians.
Based on Industry, Logistics & Transportation segment accounted for highest CAGR
By industry, the UAV (Drone) market has been segmented into defense & security, logistics & transportation, agriculture, energy & power, construction & mining, media & entertainment, insurance, wildlife & forestry, academics & research. Logistics & Transportation segment is estimated to record the highest CAGR during the forecast period with the significant growth of the global e-commerce sector, postal companies are opting for new methods to modify their traditional delivery business models. With several countries focusing on the use of UAVs for postal deliveries, the Drone market will witness growth. The US Postal Service is exploring the possibility of introducing UAVs into its vehicle fleets to advance mail delivery operations and support its collection of geospatial, sensor, image, and other data. Companies such as DJI (China) are actively developing solutions for UAV-based package delivery. Amazon (US) has already developed these services. Lower cost, density of urban environments, and the rising demand for reduced delivery times are contributing to the growth of this segment
Based on Point of Sale, the OEM segment accounted for highest CAGR
By Point of Sale, the UAV (Drone) market has been segmented into Original Equipment Mnaufacturers(OEMs) and After market. The OEM segment is expected to record the highest CAGR during the forecast period. The increased demand for next - generation unmanned aircraft is one of the significant factors driving the growth of this segment globally. In addition, increased automation of drones, continuous technological advancements in UAV technologies, and rapid expansion of the aerospace & defense industry are also expected to influence the growth of the Drone market during the forecast period.
Based on System,the Platform segment accounted for highest CAGR during the forecast period
Based on System, the UAV (Drone) market has been segmented into platforms, payloads, data links, ground control stations, and launch & recovery systems. The Platform segment accounted for the largest market share during the forecast period growing from USD 12.07 Billion in 2022 to USD 17.89 Billion in 2027. The platform segment was further segmented in to into airframes, avionics, propulsion systems, and software. An airframe is the outer body of a UAV, and the type of material used to prepare it determines the weight of the overall UAV. Avionics are the electronic systems installed in UAVs to regulate their operations and safety. Propulsion systems determine the type of engine and fuel the UAV uses. For small drones, batteries are preferred as they reduce the overall weight, whereas, for military UAVs, where high endurance and flight time are the priority, internal combustion engines are preferred. Software is an integral part of UAVs as it helps the user to understand the functionalities of UAVs and makes them easy to operate.
The Asia Pacific region is projected to Grow at highest CAGR during the forecast period
The growth of the UAV (Drone) market in Asia Pacific can be attributed to the rise in military spending (defense and homeland security) of the countries in the region to enhance their defense capabilities. Moreover, political tensions in countries of Asia Pacific have led to the deployment of drones to ensure the security of their borders. This serves to be one of the most significant factors driving the growth of the Drone market in the region.
The prevailing trends of automation in India, Australia, and China and the ongoing globalization are also fueling the growth of the Drone market in Asia Pacific. UAVs are being increasingly used in the real estate, pollution monitoring, and agriculture sectors to carry out inspections in China and Japan. The demand for UAVs in China is increasing for military and commercial applications. Manufacturers in the country have been focusing on the development of high-performance drones that can work in different temperatures. In addition, China has secured the second position in the list of top 10 countries with the highest defense budgets. In 2021, China invested USD 293.0 billion in the defense sector.
UAV (Drone) Market by Region
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The break-up of the profiles of primary participants in the small drone market is as follows:
- By Company Type: Tier 1–32%; Tier 2–40%; and Tier 3–28%
- By Designation: CLevel Executives–35%; Directors–25%;and Others–40%
- By Region: North America–39.19%; Europe–21.06%; AsiaPacific–28.25%;Middle East–10%; Latin America–6.0%; and Africa–6.9%
Top UAV Companies - Key Market Players
The UAV Companies are dominated by a few globally established players such as DJI (China), Northrop Grumman Corporation (US) Raytheon Technologies Corporation (US), Israel Aerospace Industry Ltd. (Israel), General Atomics Aeronautical Systems (GA-ASI). These players have adopted various growth strategies such as contracts, joint ventures, partnerships & agreements, acquisitions, and new product launches to further expand their presence in the Drone market.
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Report Metric |
Details |
Estimated Market Size |
USD 26.2 Billion in 2022 |
Projected Market Size |
USD 38.3 Billion in 2027 |
Growth Rate |
7.9% |
Market size available for years |
2019-2027 |
Base year considered |
2021 |
Forecast period |
2022-2027 |
Forecast units |
Value (USD) |
Segments covered |
By Point of Sale, By Systems, By Platform, By Function, By End Use, By Application, By Type, By Mode of Operation, MTOW, Range and By Region |
Geographies covered |
North America, Asia Pacific, Europe, the Middle East, Latin America, and Africa |
Companies covered |
DJI (China), Parrot Drone SAS (France), Israel Aerospace Industry Ltd. (Israel), AeroVironment, Inc. (US), and Lockheed Martin Corporation (US) |
Companies covered (Drone start-ups and UAV ecosystem) |
Delair (France), Microdrones GmbH (Germany), Turkish Aerospace Industries (Turkey), Shield AI (US) |
UAV (Drone) Market Highlights
This research report categorizes the UAV (Drone) market based on platform, type, application, mode of operation, power source, and region
Aspects |
Details |
By Point of Sale |
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By Systems |
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By Platform |
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By Type |
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By Application |
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By Mode of Operation |
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By End-Use |
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UAV (Drone) Market, By MTOW |
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UAV (Drone) Market, By Range |
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By Region |
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Recent Developments
- In June 2022, DJI launched DJI RS 3 and DJI RS 3 Pro, which incorporate a range of new features. A redesigned axes-locking system means that the process is now automated. By turning on the gimbal, the automated axis locks release and unfold the gimbal, allowing the operator to get started in seconds.
- In March 2022, DJI launched DJI RS 3 and DJI RS 3 Pro, which incorporate a range of new features to get filmmakers up and running as quickly as possible. A redesigned axes-locking system means that the process is now automated. By simply turning on the gimbal, the automated axis locks release and unfold the gimbal, allowing the operator to get started in seconds.
- In May 2022, General Atomics Aeronautical Systems launched Gambit a Autonomous Collaborative Platform (ACP) designed through digital engineering to speed its time to market and lower acquisition costs. Gambit is part of a broader Family of Systems strategy that began with Predator and Reaper and continues in support of USAF's future force design concepts.
- In December 2021, General Atomics Aeronautical Systems announced launch of Mojave a unmanned aerial vehicle (UAV) capable of short takeoff and landing (STOL). The Mojave completed its first test flight in the summer of 2021 and was formally unveiled by GA on 9 December 2021. It is being developed to fulfill the role of an unmanned combat aerial vehicle that can operate from more rugged terrain with a combat loadout while also offering the option to be outfitted with various electronic systems to assist ground troops.
- In June 2021, EHang Holdings Limited conducted a test flight of its first passenger-grade autonomous aircraft for permission to fly in open airspace in Japan. It acquired a preliminary flight grant from the Ministry of Land, Infrastructure, Transport, and Tourism of Japan (MLIT) with a local partner.
Frequently Asked Questions (FAQ’s)
What is the current size of the UAV (Drone) market?
The UAV (Drone) market is projected to grow from USD 26.2 billion in 2022 to USD 38.3 Billion by 2027, at a CAGR of 7.9% from 2022 to 2027.
Who are the winners in the UAV (Drone) market?
DJI (China), Northrop Grumman Corporation (US), Raytheon Technologies Corporation (US), Israel Aerospace Industry Ltd. (Israel), and General Atomics Aeronautical Systems (GA-ASI) (US).
What are some of the technological advancements in the market?
Network functions virtualization (NFV) is a network architecture concept that leverages IT virtualization technologies to virtualize entire classes of network node functions into building blocks that may connect or chain together to create and deliver communication services. NFV reduces the need for deploying specific network devices for the integration of UAVs.
Manned-Unmanned Teaming (MUM-T) is revolutionizing mission autonomy. Combining manned and unmanned autonomous vehicles enhances mission effectiveness through greater situational awareness and decision-making capabilities
What are the factors driving the growth of the market?
The use of UAVs is growing rapidly across many civil application domains, including real-time monitoring, providing wireless coverage, remote sensing, search & rescue, delivery of goods, security & surveillance, precision agriculture, and civil infrastructure inspection
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This research study on the UAV (Drone) market involved extensive use of secondary sources, directories, and databases such as Hoovers, Bloomberg BusinessWeek, and Factiva to identify and collect information relevant to the market. The primary sources considered included industry experts as well as service providers, manufacturers, solution providers, technology developers, alliances, and organizations related to all segments of the value chain of this market. In-depth interviews with various primary respondents, including key industry participants, subject matter experts (SMEs), industry consultants, and C-level executives, were conducted to obtain and verify critical qualitative and quantitative information pertaining to the UAV (Drone) market as well as assess its growth prospects.
Secondary Research
The secondary sources referred for this research study on the UAV (Drone) market included financial statements of companies offering delivery drones software, drone transportation and logistics services, and transportation and logistics solution providers, along with various trade, business, and professional associations, among others. The secondary data was collected and analyzed to arrive at the overall size of the UAV market, which was validated by primary respondents.
Primary Research
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included industry experts such as chief X officers (CXOs), vice presidents (VPs), directors, regional managers, and business development and product development teams, distributors, and vendors.
Extensive primary research was conducted to obtain qualitative and quantitative information such as market statistics, average selling price, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to platform, solution, technologies, and regions. Stakeholders from the demand side include logistics companies, end consumers, healthcare industry, and quick-service restaurants who are willing to adopt drone delivery by participating in various trials. These interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market size forecasting, and data triangulation. These interviews also helped analyze the point of sale, systems, platform, function, end use, application, type, mode of operation, MTOW, range segment of the market for six key regions.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both, top-down and bottom-up approaches were used to estimate and validate the total size of UAV (Drone) market. These methods were also used extensively to estimate the size of various segments and subsegments of the market. The research methodology used to estimate the market size includes 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 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 UAV (Drone) market from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using the top-down and bottom-up approaches.
Report Objectives
- To define, describe, segment, and forecast the size of the UAV (Drone) market based on point of sale, systems, platform, function, end use, application, type, mode of operation, MTOW, range and region
- To forecast sizes of various segments of the UAV (Drone) market with respect to 6 major regions, namely, North America, Europe, Asia Pacific, the Middle East, Latin America, and Africa, along with major countries in each of these regions
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the UAV (Drone) market across the globe
- To identify industry trends, market trends, and technology trends that are currently prevailing in the UAV (Drone) market
- To provide an overview of the tariff and regulatory landscape with respect to the drone regulations across 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 stakeholders by identifying key market trends
- To profile key market players and comprehensively analyze their market share and core competencies2
- To analyze the degree of competition in the market by identifying key growth strategies, such as acquisitions, new product launches, new service launches, contracts, and partnerships, adopted by 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 UAV (Drone) market, along with a ranking analysis, market share analysis, and revenue analysis of key players
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)
Growth opportunities and latent adjacency in UAV (Drone) Market
We are a big agricultural business in Russia with over 100,000 hectares of irrigated land. We are interested in modern, sophisticated methods of control & security, such as the use of drones—not only quadcopters but also heavier fixed wing types—in monitoring. We are developing a business strategy to study the use of all classes of UAVs in Russian agriculture. Your report would be greatly appreciated after we have a look at the sample. Best wishes. Kirill Shilin. Marketing Manager.
I am interested in the UAV market and segmentation for all sizes, including growth opportunities and recent trends in UAVs.
SIR, HOW DO YOU FORESEE THE GROWTH OF HEAVY CARGO/PASSENGER UAVs IN INDIA AND NEIGHBOURING COUNTRIES.
We are interested in the market value of Automated Aerial Monitoring data (UAVs) in water enviromental monitoring for sea water Pollution Monitoring.
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I research on the technological aspects of UAV development as a graduate researcher. I am preparing for a business start-up competition and am looking for some detailed insights into UAV market and growth.
Assess overall Class II and II+ UAV market to determine economics of component manufacturers and technological innovation investment.
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I'm researching the market for UAV avionics to evaluate the business case for investment in next-generation avionics computing and fault tolerant systems.
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We want to read your analysis to look at the possibility for the success of wireless charging for smart commercial drones.
With upcoming India UTM regulations in place for BVLOS UAVs, the expected market potential in short term would be for Light Cargo Delivery Drone especially e-commerce, retail, food delivery etc. The market growth for heavy lift drones will depend on the successful implementation of Light Cargo Delivery Drone as drone operations with heavy payloads are restricted by aviation authorities. In India, commercial drones operations are restricted and need special approvals from DGCA prior the flight. However, Indian UAV manufacturers are developing UAV prototypes, capable of lifting heavy payloads. For instance, In February 2019, Poeir Jets launches Heavy-lift Hybrid Drone with MTOW of 200 Kgs to be used for Cargo, Civil, Agriculture, Forestry, Defence and other strategic applications. Neighboring countries such as China and Malaysia are developing UAVs with MTOW capacity ranging from 800 Kgs to 5000 Kgs to be used for various commercial & military applications. Irrespective of the development in UAV industry, the growth of heavy lift drones market is subject to the regulatory approvals by the concerned aviation authorities.
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We are a battery manufacturer, and the UAV drone battery is also one of our projects. In recent years, the development of UAV is very rapid, and the demand for customized drone battery is also in short supply.
We are planning to start a consultancy in the UAV Industry, and would like to analyse the market for the same. Thank you.
Good evening. I am researching on the use of UAVs as a possible component in a communications solution for PPDR (Public Protection and Disaster Preparedness) scenarios.
What is the best cost for the report ?
Understanding broad market segmentation and growth to help in evaluating commercial potential of disclosed technologies.