Drone Market Tops $629M

Image Credit: Alex Yuzhakov / Shutterstock.com

Image Credit: Alex Yuzhakov / Shutterstock.com

4/12/2019 - Thomasnet.com

According to research from ReportLinker, the global drone service market accounted for $629.2 million last year and is forecast to grow at a compounded annual growth rate of 51.1% through 2027. This will allow it to reach a value of over $24 billion by 2027.

The growing demand stems from applications including surveying, agriculture, infrastructure inspection, entertainment, and law enforcement. Supportive government regulations related to drone use have played a role in developed economies such as the U.S., Canada, the UK, and Germany.

Drone service providers are also gaining prominence in the commercial sector as businesses look to reduce overhead costs. So, instead of owning a drone, paying for its maintenance, and training an operator, some companies are opting for third-party drone service providers. This dynamic is positively impacting the growth of the drone market.

Looking at specific types of drones, the rotary wing segment leads the way and is anticipated to continue its market dominance over the next decade. The primary advantage of these drones is the vertical takeoff and landing (VTOL) capability, which allows the drones to be used in smaller takeoff and landing areas. The ability to hover and execute agile maneuvers also makes this model appealing to a wide range of industries.