The drones market is anticipated to register a CAGR of over 15% during the forecast period.
- The market is majorly affected by the changing drone regulations. Currently, regulators from various countries in Europe and drone manufacturers are working together to make the rules and regulations. Such positive environments are supporting the growth of the market in commercial aerospace.
- The growing applications of drones in the commercial sectors, like in oil and gas, construction, energy, entertainment, medical, and parcel delivery industries, among others, are propelling the growth of the drones market during the forecast period.
- Companies, like Amazon, Google, and Intel among others, also invested in the drones market for deliveries of cargo, parcels, and medical kits. Such investments are also boosting the technological developments in drones.
- In spite of the positive factors, some of the countries in the Asia-Pacific and Middle East & Africa regions have not widely adopted the use of drones in their environment. This is acting as a major barrier for the market.
Key Market Trends
Other Applications Segment to Experience the Highest Growth During the Forecast Period
The other applications segment of the market is expected to register the highest CAGR during the forecast period. The growth in e-commerce has led to the product delivery and courier service giants, like Amazon and DHL, to introduce the idea of delivery by drones into practice. These companies have significantly invested and made collaborations with smaller firms for implementing drones in the delivery of goods and services. Additionally, JD.com, a Chinese e-commerce company headquartered in Beijing, has been offering deliveries through drones in four selected regions scattered across China, since June 2016. The company announced its plans to build 150 drone launch facilities in the south-western Sichuan province for UAV parcel delivery, by the end of 2020. Additionally, the companies are also investing in the development of drone for deliveries of vaccines, medications, and supplies to rural areas and hospitals. Such investments may generate demand for this segment of the market during the forecast.
Asia-Pacific Region to Experience the Highest Growth between 2019-2024
The Asia-Pacific region is anticipated to have the highest growth during the forecast period. The recent changes in drone regulations in several countries across the region are expected to support the growth of the market. In the Asia-Pacific region, Indonesia and Australia are two countries that are expected to witness exponential growth in the use of drones, after China, India, and Japan. Recently, JD.com announced the completion of its first Indonesian government-approved drone flight that marked the beginning of commercial drone use in Indonesia and the Southeast Asian region. In addition, the investments by major companies in this region are further expected to propel the growth of the market. For instance, Airbus launched the Airbus Aerial commercial drone services in the Asia-Pacific region, with Singapore as the headquarters. The increasing commercial applications, along with changing drone laws in the region, are expected to act as major driving factors for the market in this region over the coming years.
The drones market is highly consolidated, with the majority of the share taken by DJI. Some of the other prominent players in the market are Terra Drone Corporation, Parrot SA, Yuneec International, and DELAIR. DJI holds a major share globally, due to its sales of UAVs for aerial photography and videography, like Phantom 4 Pro, Mavic Series, and Spark. The company is also developing new technologies and UAVs for new applications, like agriculture. However, there are many small companies and startups that have entered the market in the past few years, due to the high profitability. The companies are competing with each other and are developing advanced technology-integrated UAVs and drones that decrease the human effort in applications, like mining, construction, and aerial mapping, among others. Additionally, the entry of companies, like Boeing, Alphabet, and Intel, into the commercial sector of UAVs is expected to help the fragmentation of the market over the coming years.
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