The Unmanned Aerial Vehicles (UAVs) are finding increasing application across the entertainment, logistics, defense, agriculture, and energy sectors, which are affecting the market growth positively. Earlier only used for a military surveillance device, UAVs had set up a notable presence in the commercial world over the past years.
One of the key reasons rising their demand in the commercial industry is the fact that UAVs possess the ability to perform risky tasks, such as examining the utility pipelines, with higher accuracy and money-saving as a comparison to the traditional methods. Newer drone-supportive regulations by the government worldwide are expected to reduce entry barriers for coming startups and developers facilitating commercial operations of UAVs. Leading technology MNCs like Amazon have demonstrated the utilization of UAVs in delivering goods from the warehouse to the end-users. The inception of commercial drone delivery services is expected to develop various innovative types of cargo transportation capacity such as transport of temperature-sensitive commodities and necessary medicines.
The global commercial drone market was valued at USD 2,145 million in 2015 and is forecasted to reach USD 10,738 million by 2022, growing at a CAGR of 26.2% from 2016 to 2022.
DJI is the renowned company in the drone market today, they developed one of the most iconic designs Phantom drone series which is eminent for its wireless technology and services such as GPS first-person viewing, DJI is currently leading with the 70% global market share with its headquarters in Shenzhen, China, Japan, Netherlands, South Korea, Beijing, Shanghai, and the US. Some technologies which make DJI different from others are intelligent flight control options, a mechanical gimbal, video stabilization, and a camera with superior image quality.
- Increased use of drones in the defense sector
- The FAA has accelerated market demand by formulating a regulatory framework
- Drones are used for logistics service which tackles the traffic jam
Drones are used by the military for surveillance and strikes, for instance, the US was keeping an eye on terrorist activities in Pakistan and conducted regular drones strikes. Drones are changing the business world for example Amazon prime air is a drone delivery system that delivers the package in less than 30 minutes. Another significant reason for the growth in demand for drones is that drones are environmentally friendly, faster, and economical in comparison to vehicles.
- The worldwide use of drones is predicted to increase invasion of privacy concerns among citizens
- E-commerce companies are likely to adopt the use of UAVs for its logistics activities in near future like Amazon
- Still in the infancy stage of the product lifecycle in terms of mass adoption
North America holds the largest market capitalization in terms of revenue in 2018 and is speculated to carry on with leading over the next six years with the assistance of favorable government initiatives regarding the advancement in drone technology combined with the escalating demand from companies for drone-acquired data. Furthermore, the Federal Aviation Administration (FAA) in the U.S. has announced new regulations to provide more logical and agreeing guidelines concerning the lawful and secure functioning of UAVs in commercial spaces. Such an amendment in legal policies will reduce entry barriers and increase regional product adoption.
UAVs will play a paramount role in future warfare and will become a billion-dollar industry but its adoption is a challenging task as some countries’ rules and regulations are rigid regarding its usage for example India. It has its limitations like in drone strikes many innocents are killed and As it has sophisticated functionality that makes it hard for the government to know where to restrict its usage but drones can be used in businesses such as event management, agriculture, logistics, engineering, architect and construction.
Non-profit companies are operating drones to deliver medical supplies to unfortunate communities in remote areas. The conservationists are already using drones to check on animals in the forest so that their natural habitat does not get interrupted. Private firms are making drones to assist with natural calamity relief and search-and-rescue operations. While still an expanding industry, global spending on drones is estimated to more than double over the next decade.