May 26, 2024
Unmanned Aerial Vehicle Market
Ict

Unmanned Aerial Vehicle Market is Estimated to Witness High Growth Owing to Increasing Commercial Applications

Unmanned aerial vehicles (UAVs), commonly known as drones, are aircraft without a human pilot onboard. They come in a variety of shapes and sizes and can be remotely controlled or fly autonomously through software-controlled flight plans in their embedded systems, working in conjunction with onboard sensors and GPS. Drones are now commonly utilized for commercial applications such as photography and videography, product deliveries, agriculture, mining, and wildlife monitoring. Advances in battery, sensor, and computing technologies have significantly improved the functionality and flight time of drones. The global unmanned aerial vehicle market is estimated to be valued at US$ 35428.63 Mn or Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Increasing commercial applications: Commercial applications of drones such as deliveries, agriculture, and filmmaking have increased significantly in recent years. Companies such as Amazon, FedEx, and UPS are actively testing drone delivery programs to transport packages over short distances more efficiently. Drones equipped with cameras, sensors, and thermal cameras are increasingly utilized for commercial agriculture activities like crop monitoring, soil analysis, and fertilizer/pesticide spraying. Rising demand for aerial photography and filmmaking from various industries has also propelled the commercial adoption of drones.
Increasing commercial applications is estimated to be the major driver fueling the growth of the unmanned aerial vehicle market over the forecast period. The proliferation of drone delivery programs, their utilization in precision agriculture, and demand for aerial imaging are expected to boost the adoption of commercial drones worldwide.

SWOT Analysis
Strength: Unmanned aerial vehicles have numerous advantages over manned aerial vehicles such as lower operational costs, lower risk to human life, and ability to perform tasks that would be difficult or dangerous for humans. UAVs also provide aerial intelligence, surveillance and reconnaissance capabilities at affordable costs. Miniaturization of technologies used in UAVs has made them more compact with payload capabilities.
Weakness: Regulations on commercial use of drones vary across countries which limits their operations. UAVs also have limitations related to flight durations due to battery life and payload restrictions. Adverse weather conditions and connectivity issues can also affect drone operations and payload delivery.
Opportunity: Increased adoption of UAVs for various commercial applications such as agricultural monitoring, inspection of critical infrastructure, product deliveries would drive the market growth. Emergence of new technologies such as artificial intelligence, 5G communication are expanding the capabilities of UAVs.
Threats: Security and privacy concerns related to misuse of drones could lead to more stringent regulations. Alternative technologies such as manned aircraft and satellites pose a threat for certain applications. Cyber threats to UAV networks can also compromise operations and payload security.

Key Takeaways
The Global Unmanned Aerial Vehicle Market Share is expected to witness high growth. North America currently dominates the market due to rapid adoption of UAVs for various applications across industries such as agriculture, infrastructure inspection, law enforcement etc. The region is an early adopter of emerging technologies which is driving increased investments in UAV research. The US and Canada are also hubs for major UAV manufacturers and system integrators including DJI, Parrot, 3D Robotics etc.

Key players operating in the Unmanned Aerial Vehicle Market are DJI, Parrot SA, 3D Robotics, Skydio, Yuneec, Autel Robotics, Insitu, AeroVironment, PrecisionHawk, and Elbit Systems. DJI is currently the global market leader known for high quality, feature-rich drones for civil applications. Parrot SA offers advanced commercial drones as well as drones for personal use. 3D Robotics was one of the major players in the early commercial drone market before being acquired by DJ.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it