Drone Industry Growth Outlook

Blog
Date:
06 Sep '24
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Drones have long evolved beyond just being flying objects that provide occasional assistance. They now play a crucial role in the economy, with the drone industry expected to create over 100,000 new jobs in the United States by 2025.

Besides, according to the latest report, the Global Drone Market is valued at $34.5 billion. Projections indicate a significant surge in value over the next decade, with expectations soaring to around $101.1 billion by 2033. This growth trajectory reflects a robust compound annual growth rate (CAGR) of 12.7% throughout the forecast period from 2024 to 2033.

So, what are the top industries that benefit from using drones? Which type of drone is the market leader, and what does it take to develop software for drones? We will also cover some emerging trends. Ready to dive in?

Which type of drone is the market leader?

The drone market is categorized into:

  • Consumer
  • Commercial
    • Construction
    • Agriculture
    • Oil & Gas
    • Mining
    • Public Safety & Law Enforcement
    • Others
  • Military

Military drones lead the segment, capturing a significant revenue share of 48.6%. Global investments in defense and security fuel this dominance. Despite the wide applications of consumer and commercial drones, the pivotal role of military drones in safeguarding national security positions them as the primary segment.

Top 3 industries using drones the most

Drones help streamline processes, increase efficiency, gather real-time data, reduce costs, improve safety, and create new business opportunities. Here’s a closer look at some of the key sectors where drones are making a significant impact:

Agriculture

This sector is the largest user of drones, accounting for up to 80% of commercial drone use, with the global agriculture drone market projected to grow significantly, from $1.7 billion in 2023 to around $11.1 billion by 2032.

Drones are employed for tasks such as crop monitoring, precision agriculture, and spraying pesticides, which help increase farming efficiency and yields​. They provide farmers with detailed aerial imagery, helping them assess plant health, identify areas needing attention, and optimize crop yields.

According to market research, in North America, the market share is expected to be the largest one, mainly driven by the demand for automation in agricultural activities. The United States will spearhead this growth within North America owing to increasing demand for precision farming technology and supportive government initiatives promoting efficient farming practices. Meanwhile, the Asia-Pacific agriculture drone market growth is projected to be the fastest globally. Europe is expected to secure the third position in the global market during the forecast period.

Logistics and delivery

Drones are currently transforming how businesses manage inventory, monitor supply chains, and goods delivery. The drone delivery market is projected to reach $27.4 billion by 2030, with major companies like Amazon and UPS leading the integration of drones into their logistics systems for faster, more efficient deliveries. Globally, the market for delivery drones is expected to be worth a staggering $91.5 billion by the same year, highlighting the rapid growth and demand for this technology.

For example, companies like IKEA recently have embraced drone technology to automate inventory management. The Swedish retailer now uses a fleet of 100 drones across Europe to provide continuous, real-time updates on stock levels in its large warehouses. 

Amazon’s Prime Air, also known as Prime Air, is an autonomous drone delivery service that Amazon provides. Launched in 2022, the service uses delivery drones to transport individual packages directly to customers. Currently, Prime Air is operational in 2 cities within the United States, with intentions to broaden its reach to the United Kingdom and Italy by 2024.

A few years ago, Walmart also began its drone delivery journey, expanding the service to 7 states and 36 stores and completing over 10,000 deliveries. Now, Walmart is partnering with Wing, a drone delivery company under Alphabet (Google’s parent company), to extend this service in the Dallas metro area. This collaboration will allow Walmart to reach 60,000 additional homes within a 6-mile radius of select stores. Customers can use the Wing app to order items like frozen treats, household essentials, and even fragile items like eggs. Not only can they deliver fragile items like eggs, but they can also play a crucial role in disaster response by delivering essential supplies such as blood, medications, and small medical equipment, saving lives. In fact, according to recent statistics, drones have been used in over 400 medical supply delivery missions during emergencies.

At its core, drones enhance logistics by accessing hard-to-reach areas for inventory management, speeding up last-mile deliveries, and monitoring supply chains to ensure smooth operations.

Energy and utilities

The energy and utilities sector is one of the largest users of drones, leveraging their capabilities to improve efficiency, reduce costs, and enhance safety. Drones have revolutionized infrastructure inspections in this industry, with reports showing that using drones can cut inspection costs for solar farms by 30-40% while reducing inspection times from weeks to just a few days​. For instance, drones can inspect large areas, such as solar farms or wind turbines, in a fraction of the time that manual methods require​.

Drones are used to inspect power lines, pipelines, and wind turbines, providing real-time data through high-resolution cameras and thermal imaging sensors. This helps detect issues like overheating panels, rust, or leaks, which could be easily missed by traditional ground-based methods. Additionally, drones improve worker safety by reducing the need for technicians to climb dangerous structures or work in hazardous areas​. As drones evolve, their role in energy and utilities will expand, offering even more precise data and predictive maintenance solutions.

Here are some of the emerging trends in drones that are shaping the future of industries and driving innovation across various sectors:

Drones in high-risk areas

In the construction segment, drones replace traditional land surveillance methods because they capture data more efficiently, reducing labor and time while minimizing human error. Drones are used for visual inspections of high-risk areas, improving on-site communication and management by providing real-time data.

They help engineers and surveyors inspect high-rise structures, monitor project progress through aerial shots, and identify potential issues for streamlined operations. This growing demand has prompted drone manufacturers to develop specialized solutions for the construction industry, such as Percepto’s Air Mobile drone, designed for linear inspections and monitoring short-term projects across multiple sites. These drones can be stored on-site within protective encasements, ensuring durability and reliability in challenging environments.

AI & ML

AI-powered drones can learn from their surroundings, adapt to changes, and autonomously make decisions, proving invaluable in surveying where they can detect patterns and anomalies faster and more accurately than humans. The burgeoning market for AI in drones is poised for substantial growth, with forecasts indicating a rise from $2.1 billion in 2022 to $6.5 billion by 2027, impacting sectors ranging from agriculture to construction and security.

Eco-friendly drones

The green transition is a major trend today, with businesses of all sizes supporting green transitioning and sustainable practices. Eco-friendly drones use solar power, biofuels, and biodegradable materials. Some leading companies like Dendra Systems use green drones for reforestation efforts, contributing to environmental restoration. Considering that industries prioritize sustainability, the market for green drones is expected to expand rapidly.

Besides, a comparative study shows drones emit 84% fewer greenhouse gases and use up to 94% less energy per parcel than diesel trucks. This fact one more time confirms green drones’ potential to significantly reduce emissions, with autonomous drones projected to cut global greenhouse gases by up to 2.4 gigatons of CO2 by 2030, supporting the shift to a low-carbon society.

Drone swarming

Drone swarming involves multiple drones operating together under a central control system, executing tasks efficiently through coordinated communication and synchronized actions. In agriculture, drone swarms have the potential to sow seeds, detect disease outbreaks across expansive regions, and administer treatments like fertilizers to crops. In entertainment, event planners can use drone swarms as a substitute for fireworks, offering a spectacle that minimizes pollution and fire hazards and is silent.

In recent years, significant progress has been made in drone swarm technologies, supported by advancements in AI, ML, and high-speed communication technologies like 5G and 6G networks. These developments have improved decision-making, obstacle avoidance, and real-time drone data sharing. Further, improvements in energy efficiency, sensing technologies, and high-resolution cameras have expanded capabilities for surveillance, reconnaissance, and search and rescue missions.

How much does it cost to create a drone software in 2024?

Developing software for drones is essential. Without software, drones cannot function, as they control every aspect of their operation, from precise flight control to data analysis and integration with various industry applications.

The cost of developing UAV software can vary widely depending on multiple factors, including

  • the complexity of the UAV;
  • hardware integration;
  • regulatory compliance; 
  • and team size.

UAV software ranges from basic flight control systems to more complex functionalities like autonomous navigation, mission planning, and payload management. Development expenses increase with customization needs, regulatory compliance, and advanced features such as AI-driven decision-making and real-time data processing. Additionally, choosing between open-source solutions and proprietary development can influence costs, with the latter offering more tailored, secure solutions but requiring more resources.

Team size and expertise also play a crucial role, as UAV development typically involves a variety of specialists, such as hardware engineers, backend developers, and quality assurance professionals. A basic UAV software project can take several months to complete, while more complex systems may require over a year. You can learn more about the cost of creating drone software in our detailed article on this topic.

Yet, developing drone software comes with challenges like ensuring safety and following complex regulations. Using advanced AI, machine learning, and strong cybersecurity is key to making drones work on their own and stay protected. At Kitrum, we create advanced software to make sure your drones are efficient, secure, and give you an edge in your industry.

Kseniia Vyshyvaniuk
By Kseniia Vyshyvaniuk