Commercial drone market to hit 2.9 million units by 2023
April 14, 2020 By Wings Staff
Research group Frost & Sullivan released a drone market analysis, called Global Commercial UAS Market Outlook 2020, and found that the sector is transitioning from what it describes as a nascent stage to a growth stage.
With the surge in demand for commercial drones by the professional segment, Frost & Sullivan says unit shipment is estimated to rise at a compound annual growth rate (CAGR) of 4.5 per cent, reaching 2.91 million units by 2023 from 2.44 million units in 2019.
By 2023, North America will remain the largest market for commercial UAS, according to the report, with a total of 32.3 per cent unit demand, followed by APAC and Europe at 29.1 per cent and 23.3 per cent, respectively.
“Unit growth is driven by increasing regulatory support for commercial drone use in the APAC region, especially India,” said Michael Blades, vice president of Aerospace, Defense, and Security at Frost & Sullivan. “There is also a significant increase in demand for professional segment drones to conduct crop spraying in China and other countries in APAC.”
Blades continues to explain drone services companies tend to focus on specific verticals because a one-size-fits-all business model does not work. “Further, as companies gain experience through operations, those that can best innovate to meet specific end-user needs will prosper,” he says.
Frost & Sullivan also notes key trends inflating market growth include the arrival of advanced technologies such as artificial intelligence (AI) for both autonomous flight and data processing, as well as platforms that have unique capabilities such as long endurance flights and conducting indoor/confined spaces inspections.
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