Drone Service Market Size, Demand and Analysis by 2028

The drone service market size is expected to grow from US$ 10.32 billion in 2022 to US$ 41.35 billion by 2028; it is estimated to register a CAGR of 25.6% from 2022 to 2028.

The growth of the drone service market is also attributed to the rising number of drone service providers across the world. In recent years, the commercial sector has observed growth in the number of drone service providers, which has increased the interest among them to opt for various services. On a global scenario, there are more than 200 drone service providers across the world catering to different commercial industries and is continuously increasing with the rising demand. Some of the recent developments in the drone service market are:

• In July 2022, Zipline declared about the expansion of their commercial drone delivery services in the US by 2024. In a partnership with healthcare organizations, MultiCare Health System, the company projects to commence with commercial drone deliveries within Washington. Through the company’s electric aircraft, autonomously delivery of different medical products such as medications, lab samples, and test kits across the MultiCare’s network will be provided. 
• In December 2022, the Indian government inked a partnership agreement with TechEagle and has rolled out first drone delivery hub and network in Asia. The partnership aims to provide universal access to healthcare for individuals of Meghalaya. The objective of the project is to deliver vital supplies such as diagnostic samples, drugs, blood and blood components, and vaccines quickly to different sections of state.

• Airbus, a leading aerospace & defense contractor, launched “Airbus Aerial” commercial drone service initiative in Singapore in February 2018. The company aims to offer technologically enhanced drone services to different commercial industries in Asia Pacific.
• In 2018, Aerodyne Group announced its business expansion to South America to cater drone service needs of South American masses.

The drones are becoming popular within various industries including food, agriculture, real estate, law enforcement, construction, security, and shipping and logistics. Food industry is amongst the prominent industry using drones. Adoption of drones in the supply chain food industry is receiving high acceptance. From production to delivery, drones persist with a power to optimize and revolutionize complete food industry. In production line, number of moving parts are involved. Silos, heating and cooling systems, piping and machinery are some of the critical components used in drone service. Monitoring of such systems is mandatory since leakage issues might arrive from these systems. Therefore, drones are used, as they keep the process optimize while ensuring employees safety. Their high-resolution cameras are capable of spotting breaks and leaks, which will further assist the food industry to respond accordingly. Similarly, for delivery process, drones are used. Businesses in emerging economies are taking full leverage of drone delivery for providing food items at final destination.

Strategic Insights

Regional Analysis of Drone Service Market

From the regional perspective, North America accounted for largest drone service market share holder in 2022, while APAC is projected to grow at a fastest CAGR during the forecast period. The region has a growing economy leading to the growth in a wide variety of sectors, such as agricultural, industrial, and construction. The region consists of many developing countries witnessing a high growth in their agriculture and construction sectors. Owing to the increasing urbanization and rising income level in APAC region, people’s awareness regarding healthy lifestyle and extreme food consumption is one of the major factors influencing an individual’s need of food for survival. Therefore, proper surveying, mapping, and inspection services are required to meet the increasing demand for food and construction. Several business strategies and innovations are adopted by the market players to further enhance the country’s adoption of drone services. Thus, the government support for infrastructural and agricultural development fuels the demand in the drone service market. Also, China and Japan are the key Asian countries adopting drone deliveries for parcels and shipment purposes. The mentioned factors will help in promoting drone service market in APAC.

Lucrative Regions – Drone Service Market Share

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Application-Based Insights

Based on drone type, the drone service market size is segmented into fixed wing, rotary wing, and hybrid. In 2022, rotary wing drones were the most prominent drone type in the global drone service market. The easy availability of single rotor and multi-rotor drones is driving the market for rotary wing drones in the recent times. In addition, the continuous research and developments in the enhancement of endurance and stability is boosting the demand for rotary wing drones among the third-party service providers.

The second drone type commonly used for drone delivery is fixed wing. Prototype developments are taking place in the drone service market. For instance, a fixed wing UAV is developed and tested for carrying a payload of 700 kg. This prototype will be used for the delivery of medical supplies such as blood packets antidotes, blood, vaccines, and organs, which is challenging during road transportation.

The drone service market players are mainly focusing on developing advanced and efficient products.

• In June 2021, Walmart declared about an investment in a Virginia-based DroneUp, as the company was looking to augment their last-mile delivery services. The Walmart drone delivery via their DroneUp network is available in different parts of the Dallas, Phoenix, Tampa, and Orlando.
• In November 2021, Zipline and Walmart introduced delivery service in Arkansas. Through this drone delivery, customers can select from “thousands of products,” which are restricted to health and wellness items such as “over the counter allergy medicine, ibuprofen, and bandages”.

The drone service market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South America. In 2021, North America led the drone service market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the drone service market from 2022 to 2028.

Terra Drone Corporation, CyberHawk Innovations Limited, Drone Volt, Zipline, Aerodyne Group, Airinov, Sky-Futures, SkySpecs, Measure, and Flirtey are among the key drone service market players.