To mark the release of the new dronelife.com flagship report, here are the most important drone market trends for 2020-2025.
- The Drone Market will Grow to USD42.8 billion by 2025
The most important figure to take away, is the USD42.8 billion. That, we predict, will be the drone market size by 2025. From generating USD22.5 billion in 2020, this will grow at a CAGR (Compound Annual Growth Rate) of 13.8% to almost double that in 2025. This stable year on year growth – seen in our graphic – is also a reflection of the ongoing high investment and the consolidation of the commercial drone market. It is a less optimistic picture than what we foresaw in 2019, but nevertheless shows that the commercial drone industry remains resilient in spite of emerging challenges. The drone industry has matured from explosive and exponential growth to steady returns and increased adoption.
- Energy is Still the Largest Industry, but Transport is Growing Rapidly
The Energy sector is the largest industry within the commercial drone market during 2020 and will continue to be so by 2025. However, the Transportation & Warehousing industry will become the fastest growing. This is partly because, as defined by the North American Industry Classification System (NAICS), this rise includes industries providing transportation of passengers (although air taxis will not sell for some time) and cargo, warehousing and storage for goods, as well as support activities related to modes of transportation like inspection and maintenance of infrastructure. While Agriculture and Construction currently follow energy as the top industries in the drone market, the growth of the Transport sector will mean that by 2025 this will be the 2nd largest industry within the market.
- Asia is Now the Biggest Regional Drone Market in the World
Currently, the drone markets in USA and China currently dominate the commercial drone sector. Together their revenue makes up over two thirds of the global drone market size and this is not likely to change in the foreseeable future.
However, regional shifts in drone market dominance have been more common. In 2018, North America was generating more revenue than Asia, but by the end of 2019 Asia had pulled ahead. The region will continue to build on this growth and be the leading regional market by some distance in 2025.
- The Effects of the COVID-19 Pandemic will be Felt by the Drone Industry
Few industries will emerge from the COVID-19 pandemic unscathed. The global health crisis has resulted in a worldwide contraction of several markets as almost three months of quarantine in major economies has seen major rises in unemployment, slowdowns of supply chains, and a reduction in demand for goods.
However, it is important to note that the commercial drone sector has made gains during the pandemic, thanks to medical deliveries amongst many other automated solutions (mapping, surveying, broadcasting etc..) Leading companies like Zipline and Wing have been able to deliver and scale their solutions quicker than previously expected. Due to this fast-tracking of the sector…
- Drone Sales will Double from 2020 to 2025
By 2021, the commercial drone industry will be selling 1,000,000 drone units per year. Looking at the growth between 2020 and 2025, unit sales will have more than doubled. This growth will be down to commercial drone unit sales rather than private or hobbyist purchases which will decrease.
