Drone Market Report 2020-2025

Drone Market Size and Forecast 2020-2025 and Trends & Regulations

Drone Industry Insights | Report | June 2020

Authors:
Lukas Schroth ©2020 Drone Industry Insights,
Hendrik Bödecker Hamburg, Germany, all rights reserved
Millie Radovic
COPYRIGHT AND DISCLAIMER

Copyright © 2020 DRONEII.COM. All rights reserved. This report is the result of independent market research and/or
competitive analysis created by Drone Industry Insights and
The information contained in this presentation is proprietary to represents the current level of knowledge in the industry.
DRONEII.COM and is disclosed in confidence. The In the rapid developments in the drone space are outside of the
presentation and the information contained herein shall be kept influence of Drone Industry Insights which means we cannot be
strictly confidential and shall not be used, disclosed to others or held accountable for any opposite developments. The liability is
reproduced without the express written consent of excluded for slight negligence.
DRONEII.COM. Nothing contained in this publication shall
constitute any warranty, guarantee or liability for DRONEII.COM
and affiliates but is for information purposes only. Accordingly,
DRONEII.COM and affiliates neither expressly nor conclusively
accept responsibility or liability for the actuality, accuracy and
completeness of the statements and information contained in
this publication.

2
TABLE OF CONTENTS

GLOSSARY 11

EXECUTIVE SUMMARY 12

SCOPE AND METHODOLOGY 15

Research Methodology 17
Scope Definition & Research Design 18
Data Collection 19
Data Analysis 20
Market Model 21
Data Validation 22
Report Creation 23

1 INTRODUCTION 24

1.1 Drones: Where Did They Come Frome? 26

1.2 The Major Segments of the Drone Ecosystem 27
1.3 Drone Application Methods 29
1.4 Drone Market Industries and Use Cases 30
1.5 Market Dynamics 31

2 DRONE MARKET 2020-2025 33

2.1 Commercial & Private Drone Market 36

2.1.1 Market Size 2020-2025 37
2.1.2 Drone Market: Commercial vs. Private 2020-2025 38
2.2 Commercial Drone Market by Segment 39
2.2.1 Market Size by Segment 2020-2025 41
2.2.2 Market Size by Region 2020-2025 42
2.2.3 Market Size by Country 2020-2025 46
2.3 Commercial Drone Market by Industry 50
2.3.1 Market Size by Industry 2020-2025 52
2.3.2 Market Size by Region 2020-2025 53
2.3.3 Market Size by Country 2020-2025 69
2.4 Commercial Drone Market by Method 85
2.4.1 Market Size by Method 2020-2025 87
2.4.2 Market Size by Region 2020-2025 88
2.4.3 Market Size by Country 2020-2025 98
2.5 Commercial Drone Market by Unit Sales 108
2.5.1 Market Size by Unit Sales 2020-2025 110
2.5.2 Market Size by Region 2020-2025 111
2.5.3 Market Size by Country 2020-2025 112
2.6 Private Drone Market by Segment 113
2.6.1 Market Size by Segment 2020-2025 115
2.6.2 Market Size by Region 2020-2025 116
2.6.3 Market Size by Country 2020-2025 119
2.7 Private Drone Market by Unit Sales 122
2.7.1 Market Size by Unit Sales 2020-2025 124
2.7.2 Market Size by Region 2020-2025 125

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TABLE OF CONTENTS

2.7.3 Market Size by Country 2020-2025 126

2.8 Drone Market by Region & Country 127
2.8.1 Regional & National Drone Market 129
2.8.1.1 Market Size by Region 130
2.8.1.2 Market Size by Country 131
2.8.2 North American Drone Market 132
2.8.2.1 Market Size by Country 2020-2025 133
2.8.2.2 Drone Market USA 134
2.8.2.3 Drone Market Canada 140
2.8.3 South American Drone Market 146
2.8.4 European Drone Market 148
2.8.4.1 Market Size by Country 2020-2025 149
2.8.4.2 Drone Market Germany 150
2.8.4.3 Drone Market France 156
2.8.4.4 Drone Market United Kingdom 162
2.8.4.5 Drone Market Italy 168
2.8.5 Middle East & African Drone Market 174
2.8.6 Asian Drone Market 176
2.8.6.1 Market Size by Country 2020-2025 177
2.8.6.2 Drone Market China 178
2.8.6.3 Drone Market Japan 184
2.8.6.4 Drone Market India 190
2.8.7 Oceanian Drone Market 196
2.8.7.1 Market Size by Country 2020-2025 197
2.8.7.2 Drone Market Australia 198

3 COMMERCIAL DRONE REGUALTIONS 204

3.1 How are Drones Regulated? 206

3.2 General Drone Rulemaking – Stakeholders 207
3.3 General Drone Rulemaking – Workflow 208
3.4 Regulatory Deep Dive – European Regulations Overview 209
3.5 Regulatory Deep Dive – US Regulations Overview 210
3.6 Country Specific Developments 211
3.7 Key Drone Regulation Challenges 212

4 TRENDS AND PERSPECTIVES 213

4.1 Introduction to Trends 215

4.2 5G Technology 217
4.3 Automated Base Stations (Drone-In-A-Box Solutions) 218
4.4 Blockchain 219
4.5 Computer Vision 220
4.6 Fog Computing 221
4.7 IoT – The Internet of Things 222

Appendix: Industry Definitions 223

4
LIST OF FIGURES

Chart 1: Drone technology stack 26

Chart 2: Drone hardware 27

Chart 3: Drone software 27

Chart 4: Drone services 27

Chart 5: Commercial drone market segmentation 28

Chart 6: Drone application methods 29

Chart 7: Industries on the commercial drone market 51

Chart 8: Countries covered in drone market report 128

Chart 9: Drone regulation structure 206

Chart 10: Drone regulation stakeholder overview 207

Chart 11: Drone regulation rulemaking process 208

Chart 12: Example of drone regulation rulemaking of FAA Part107 in the US 208

Chart 13: EU organizational structure 209

Chart 14: FAA organizational structure 210

Chart 15. Examples of drone-in-a-box solutions 218

Chart 16: Blockchain elements and structure 219

Chart 17: Computer vision driven by advancements in multiple fields 220

Chart 18: Computer vision analyzing hot spots in photovoltaic plants 220

Chart 19: Computer vision helping to track vehicles and machinery 220

Chart 20: Fog computing architecture 221

Chart 21: IoT Architecture 222

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LIST OF FIGURES

Table 1: Commercial drone use cases across industries 30

Table 2: Commercial drone market size by industry 2020-2025 52

Table 3: US commercial drone market size by industry 2020-2025 137

Table 4: Canadian commercial drone market size by industry 2020-2025 143

Table 5: German commercial drone market size by industry 2020-2025 153

Table 6: French commercial drone market size by industry 2020-2025 159

Table 7: British commercial drone market size by industry 2020-2025 165

Table 8: Italian commercial drone market size by industry 2020-2025 171

Table 9: Chinese commercial drone market size by industry 2020-2025 181

Table 10: Japanese commercial drone market size by industry 2020-2025 187

Table 11: Indian commercial drone market size by industry 2020-2025 193

Table 12: Australian commercial drone market size by industry 2020-2025 201

Table 13: National drone regulations across the globe 211

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LIST OF FIGURES

Graph 1: Global drone market size 2020-2025 37

Graph 2: Commercial & private drone market size 2020-2025 38

Graph 3: Commercial drone market size by segment 2020-2025 41

Graph 4: Commercial drone hardware market size by region 2020-2025 43

Graph 5: Commercial drone software market size by region 2020-2025 44

Graph 6: Commercial drone service market size by region 2020-2025 45

Graph 7: Commercial drone hardware market size by country 2020-2025 47

Graph 8: Commercial drone software market size by country 2020-2025 48

Graph 9: Commercial drone services market size by country 2020-2025 49

Graph 10: Commercial drone market size in Agriculture by region 2020-2025 54

Graph 11: Commercial drone market size in Arts, Entertainment and Recreation by region 2020-2025 55

Graph 12: Commercial drone market size in Construction by region 2020-2025 56

Graph 13: Commercial drone market size in Educational Services by region 2020-2025 57

Graph 14: Commercial drone market size in Energy by region 2020-2025 58

Graph 15: Commercial drone market size in Health Care & Social Assistance by region 2020-2025 59

Graph 16: Commercial drone market size in Information by region 2020-2025 60

Graph 17: Commercial drone market size in Insurance by region 2020-2025 61

Graph 18: Commercial drone market size in Mining, Quarrying and Oil & Gas Extraction by region 2020-2025 62

Graph 19: Commercial drone market size in Professional, Scientific and Technical Services by region 2020-2025 63

Graph 20: Commercial drone market size in Public Administration by region 2020-2025 64

Graph 21: Commercial drone market size in Real Estate, Rental & Leasing and Industrial Plants by region 2020-2025 65

Graph 22: Commercial drone market size in Safety & Security by region 2020-2025 66

Graph 23: Commercial drone market size in Transportation and Warehousing by region 2020-2025 67

Graph 24: Commercial drone market size in Waste Management and Remediation Services by Region 2020-2025 68

Graph 25: Commercial drone market size in Agriculture by country 2020-2025 70

Graph 26: Commercial drone market size in Arts, Entertainment and Recreation by country 2020-2025 71

Graph 27: Commercial drone market size in Construction by country 2020-2025 72

Graph 28: Commercial drone market size in Educational Services by country 2020-2025 73

Graph 29: Commercial drone market size in Energy by country 2020-2025 74

Graph 30: Commercial drone market size in Health Care and Social Assistance by country 2020-2025 75

Graph 31: Commercial drone market size in Information by country 2020-2025 76

Graph 32: Commercial drone market size in Insurance by country 2020-2025 77

Graph 33: Commercial drone market size in Mining & Quarrying and Oil & Gas Extraction by country 2020-2025 78

Graph 34: Commercial drone market size in Professional, Scientific and Technical Services by country 2020-2025 79

Graph 35: Commercial drone market size in Public Administration by country 2020-2025 80

7
LIST OF FIGURES

Graph 36: Commercial drone market size in Real Estate, Rental & Leasing and Industrial Plants by country 2020-2025 81

Graph 37: Commercial drone market size in Safety & Security by country 2020-2025 82

Graph 38: Commercial drone market size in Transportation and Warehousing by country 2020-2025 83

Graph 39: Commercial drone market size in Waste Management and Remediation Services by country 2020-2025 84

Graph 40: Commercial drone market size by Method 2020-2025 87

Graph 41: Commercial drone market size in Inspection by region 2020-2025 89

Graph 42: Commercial drone market size in Mapping by region 2020-2025 90

Graph 43: Commercial drone market size in Surveying by region 2020-2025 91

Graph 44: Commercial drone market size in Photographing & Filming by region 2020-2025 92

Graph 45: Commercial drone market size in Monitoring by region 2020-2025 93

Graph 46: Commercial drone market size in Localization & Detection by region 2020-2025 94

Graph 47: Commercial drone market size in Delivery by region 2020-2025 95

Graph 48: Commercial drone market size in Dispensing & Spraying by region 2020-2025 96

Graph 49: Commercial drone market size in Other by region 2020-2025 97

Graph 50: Commercial drone market size in Inspection by country 2020-2025 99

Graph 51: Commercial drone market size in Mapping by country 2020-2025 100

Graph 52: Commercial drone market size in Surveying by country 2020-2025 101

Graph 53: Commercial drone market size in Photographing & Filming by country 2020-2025 102

Graph 54: Commercial drone market size in Monitoring by country 2020-2025 103

Graph 55: Commercial drone market size in Localization & Detection by country 2020-2025 104

Graph 56: Commercial drone market size in Delivery by country 2020-2025 105

Graph 57: Commercial drone market size in Dispensing & Spraying by country 2020-2025 106

Graph 58: Commercial drone market size in Other by country 2020-2025 107

Graph 59: Global commercial drone sales 2020-2025 110

Graph 60: Commercial drone sales by region 2020-2025 111

Graph 61: Commercial drone sales by country 2020-2025 112

Graph 62: Private drone market by segment 2020-2025 115

Graph 63: Private drone hardware market by region 2020-2025 117

Graph 64: Private drone software market by region 2020-2025 118

Graph 65: Private drone hardware market by country 2020-2025 120

Graph 66: Private drone software market by country 2020-2025 121

Graph 67: Global private drone sales 2020-2025 124

Graph 68: Private drone sales by region 2020-2025 125

Graph 69: Private drone sales by country 2020-2025 126

Graph 70: Drone market size by region 2020-2025 130

8
LIST OF FIGURES

Graph 71: Drone market size by country 2020-2025 131

Graph 72: North American drone market size by country 2020-2025 133

Graph 73: US commercial & private drone market size 2020-2025 135

Graph 74: US drone market size by segment 2020-2025 136

Graph 75: US drone market size by method 2020-2025 138

Graph 76: US commercial & private drone sales 2020-2025 139

Graph 77: Canadian commercial & private drone market size 2020-2025 141

Graph 78: Canadian drone market size by segment 2020-2025 142

Graph 79: Canadian drone market size by method 2020-2025 144

Graph 80: Canadian commercial & private drone sales 2020-2025 145

Graph 81: South American drone market size by country 2020-2025 147

Graph 82: European drone market size by country 2020-2025 149

Graph 83: German commercial & private drone market size 2020-2025 151

Graph 84: German drone market size by segment 2020-2025 152

Graph 85: German drone market size by method 2020-2025 154

Graph 86: German commercial & private drone sales 2020-2025 155

Graph 87: French commercial & private drone market size 2020-2025 157

Graph 88: French drone market size by segment 2020-2025 158

Graph 89: French drone market size by method 2020-2025 160

Graph 90: French commercial & private drone sales 2020-2025 161

Graph 91: British commercial & private drone market size 2020-2025 163

Graph 92: British drone market size by segment 2020-2025 164

Graph 93: British drone market size by method 2020-2025 166

Graph 94: British commercial & private drone sales 2020-2025 167

Graph 95: Italian commercial & private drone market size 2020-2025 169

Graph 96: Italian drone market size by segment 2020-2025 170

Graph 97: Italian drone market size by method 2020-2025 172

Graph 98: Italian commercial & private drone sales 2020-2025 173

Graph 99: Middle Eastern & African drone market size by country 2020-2025 175

Graph 100: Asian drone market size by country 2020-2025 177

Graph 101: Chinese commercial & private drone market size 2020-2025 179

Graph 102: Chinese drone market size by segment 2020-2025 180

Graph 103: Chinese drone market size by method 2020-2025 182

Graph 104: Chinese commercial & private drone sales 2020-2025 182

Graph 105: Japanese commercial & private drone market size 2020-2025 185

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LIST OF FIGURES

Graph 106: Japanese drone market size by segment 2020-2025 186

Graph 107: Japanese drone market size by method 2020-2025 188

Graph 108: Japanese commercial & private drone sales 2020-2025 189

Graph 109: Indian commercial & private drone market size 2020-2025 191

Graph 110: Indian drone market size by segment 2020-2025 192

Graph 111: Indian drone market size by method 2020-2025 194

Graph 112: Indian commercial & private drone sales 2020-2025 195

Graph 113: Oceanian drone market size by country 2020-2025 197

Graph 114: Australian commercial & private drone market size 2020-2025 199

Graph 115: Australian drone market size by segment 2020-2025 200

Graph 116: Australian drone market size by method 2020-2025 202

Graph 117: Australian commercial & private drone sales 2020-2025 203

Graph 118: Maximum download speed per technology 217

10
Scope and Methodology

Executive Summary
Scope and Methodology
1. Introduction
2. Drone Market 2020-2025
3. Commercial Drone Regulations
4. Trends and Perspectives
Appendix: Industry Definitions

11
SCOPE & METHODOLOGY

CONTENTS SUMMARY

Research Methodology ▪ At Drone Industry Insights, we follow our proprietary

research approach when creating all industry reports. This
Scope Definition & Research Design
involves first defining the scope of the research, identifying
Data Collection the limitations, and creating the research design. Next, we
set out to collect all data that is necessary.
Data Analysis
▪ Once we have collected and consolidated all the necessary
Market Model
data for the report, we begin our analysis based on real
Data Validation data, which is why we always begin with a bottom-up
Report Creation approach. If necessary, we employ a top-down approach to
generate further insights.

▪ Following our analysis, we triangulate our data in order to

cross-check and validate our findings. To do that we rely on
all three types of data: primary, secondary and proprietary.

▪ Finally, after we’ve collected, analyzed and validated data

we begin to formulate it into findings and actionable trends.
During this time our analysts design, write and proof-read
our reports, before releasing them online.

12
RESEARCH METHODOLOGY

RESEARCH WORKFLOW before releasing them online. Report design and writing
involves the creation of dedicated graphs, charts and tables for
At Drone Industry Insights, we follow our proprietary research
the report in question, as well as the write up of trends, use
approach when creating all industry reports. This involves first
cases and research findings. Meanwhile, the proof-read phase
defining the scope of the research, identifying the limitations,
involves two analysts reading the entire report in order to
and creating the research design. Following that, we set out to
produce a final meticulous product for our customers.
collect all data that is necessary. We begin by consolidating our
own proprietary data as well as available secondary data. All Drone Industry Insights content brings added value. In our
Having looked it over, we identify gaps that must be filled using research we deliver the essence, not merely filling pages with
both primary and secondary sources. content but carefully construct every paragraph, chapter and
report to bring out the essence of the topics.
Once we have collected and consolidated all the necessary
data for the report, we begin our analysis. Our primary objective
is to produce reports based on real data, which is why we
always begin with a bottom-up approach. If necessary, we may
employ a top-down approach to generate further insights.

Following our analysis, we are careful to never be to brash in

coming to a conclusion. This is why we triangulate our data – in
order to cross-check and validate our findings. In order to do
that we rely on all three types of data: primary, secondary and
proprietary.

Finally, after we’ve collected, analyzed and validated data we

begin to formulate it into findings and actionable trends. During
this time our analysts design, write and proof-read our reports,

Scope Definition and

Data Collection Data Analysis Data Validation Report Creation
Research Design

Secondary Primary Secondary Primary

Bottom Up Top Down
Sources Sources Sources Sources

EXCLUSIONS PROPRIETARY ANALYTICAL FRAMEWORKS:

Please note that Drone Industry Insights report do not:

Depending on the research scope and objectives, at Drone
▪ Consider underwater drones; Industry Insights we also create our own matrices, indexes and
analytical model including, but not limited to:
▪ Consider ground robots or unmanned ground vehicles;

▪ Employ total addressable market (TAM) models to arrive at ▪ The Drone Industry Insights Market Model
market figures;
▪ The Drone Industry Insights Drone Readiness Index (drone
▪ Include an analysis of the passenger drone market into total
regulation)
global commercial drone market figures because this
segment of the drone market does not yet yield revenue.
▪ The Drone Industry Insights Drone Company Ranking Model
They do, however, analyze and consider passenger drone
companies, investments, contracts and regulations; ▪ The Drone Industry Insights Global Activity Index ■

13
SCOPE DEFINITION & RESEARCH DESIGN

Our scope is defined, and each research study is designed ▪ To analyze the commercial drone regulatory landscape by
according to the research objectives set out at the very identifying and analyzing national drone regulations in
beginning. Depending on the nature of the report the objectives different countries, according to the Drone Industry Insights
can vary greatly: from creating a competitive ranking, to Drone Readiness Index.
producing a market landscape, to forecasting the size and
▪ To consider all stakeholders in the global commercial drone
growth of the market, comparing national drone regulations,
industry and take into account the bigger picture trends
analyzing key strengths, weaknesses, opportunities and trends,
while analyzing detailed and specific data.
and much more.
▪ To strategically profile the key players and comprehensively
These objectives could be, but are not limited to:
analyze their market shares along with detailing the
▪ To define, describe, and forecast the size of the commercial competitive landscape for market leaders.
drone market based on segment, region, country,
Having set out the research objectives and defined the scope of
application method, and industry.
the study, our team then goes on to design the research. This
▪ To forecast the size of different segments of the market with involves determining:
respect to various regions, including North America, Europe,
▪ Which data is necessary for the study?
Asia Pacific (APAC), the Middle East and Africa (MEA), and
Rest of the World (RoW), along with key countries in each of ▪ What data do we currently have on hand ?
these regions
▪ Which data can only be acquired through primary research?
▪ To identify and analyze key drivers, opportunities, and
▪ Which companies, customers, technologies and/or countries
restraints influencing the growth of the market
are being considered?
▪ To identify technology trends that are currently prevailing in
▪ What form of analysis, if not both, is more suitable –
the drone or counter-drone industry.
quantitative or qualitative?
▪ To profile leading players in the market based on their
product and service portfolios, financial positions, and key
growth strategies

Data Collection Data Analysis Validation and Aggregation

Primary Secondary Qualitative Quantitative Market Reports, Databases,
Research Research Analysis Analysis Network Access

Supply
Side Company news and
Industry Interviews Company Analysis Market Sizing
Financials

Technology & Market

Vendor Briefings Business Models
Product Specs Segmentation

Government & Competitive

Product Evaluations Market Sizes
Economic Data Landscape

Technology Market Share

End-User Surveys Case Studies
Assessment Analysis

End-User Focus Reference Applications & Use

Demand Scenario Analysis
Groups Customers Cases
Side

Our research studies involve secondary information, directories,
and databases such as Crunch Base, Hoovers, Bloomberg
BusinessWeek, Factiva, and many other confidential sources to
identify and collect information relevant to the market. The
primary sources considered include industry experts as well as
service providers, vendors, system integrators, solution
providers, developers, alliances, and organizations related to all
segments of the value chain of this industry.
In-depth interviews with various primary respondents, including
key industry participants, subject matter experts, industry
consultants, and C-level executives, are conducted to obtain
and verify critical qualitative and quantitative information
pertaining to the drone commercial drone market as well as to
assess its growth prospects. ■

14
DATA COLLECTION
PROPRIETARY DATA
Given that commercial drone market data is our key focus at
Drone Industry Insights we already have a whole array of
collected information, reports, whitepapers and databases at
our fingertips. We always begin our data collection phase by
first consolidating all our existing data and identifying gaps
within it. Each year this existing data grows in quality and
quantity and our reports get better and better.
Existing data includes:
• Company information
• Company rankings (produced by Drone Industry Insights)
• Collected use cases
• Previous interviews with stakeholders
• Previously collected information about software downloads
• Investment data, and more.
SECONDARY DATA
Secondary sources used for this research study included those
used to help determine the market size and those used to
define and analyze the regulatory landscape of the commercial
drone market. Financial statements, press releases, company
websites, and annual reports of companies offering hardware,
software or services within the commercial drone market were
collected. Meanwhile, specialist magazines, journals as well as
paid and public databases were also considered in order to
determine the commercial drone market size. As for defining the
regulatory landscape of the market, government and
international organizations' websites were used to collect
original sources on laws passed about drones. Repositories like
LexisNexis were used to find further legal publications on
commercial drones. Press releases as well as news articles
were used in order to identify any updates or government
announcements about commercial drone legislation.
MARKET SIZE REGULATORY
LANDSCAPE
▪ Company Financials
▪ Magazines ▪ Government Websites
▪ Journals ▪ Public Repositories
▪ Press Releases (e.g. LexisNexis)
▪ Paid Databases ▪ Press Releases
▪ Annual Reports ▪ News Articles
▪ Public Databases ▪ International
▪ Company Websites Organizations Websites
15
PRIMARY DATA
After obtaining information about the current scenario of the
commercial drone market through proprietary data and
secondary research, extensive primary research was
conducted. Several primary interviews were held with drone
market stakeholders from both the demand and supply sides
across 5 regions, namely, North America, Europe, Asia Pacific,
the Middle East and Africa, and the Rest of the World (RoW).
This primary data was collected through questionnaires, emails,
and telephonic interviews.
In-depth interviews with various primary respondents, including
key industry participants, Subject Matter Experts (SMEs),
industry consultants, and C-level executives, were conducted to
obtain and verify critical qualitative and quantitative information
pertaining to the commercial drone market as well as to assess
its growth prospects. This qualitative and quantitative
information included estimations of hardware/software costs,
geographic distribution of operations, employee numbers, sales
figures and software licensing.
DATA LIMITATIONS
It is important to note that there are certain limitations to the
data that could be collected for the purpose of our studies.
These can include:
▪ Parameter Limitation: Some companies in the drone
commercial drone market are privately-owned and their
revenues were not made available in the public domain.
Hence, market revenues of such companies have not been
included in the report.
▪ Revenue Of Market Players: Limited responses are
received from primaries in some parts of the world where
drones are not as widely adopted. Some of the primaries are
reluctant to share quantitative information and their sales
volume data.
▪ Bias & Interviews: While the stakeholders interviewed for
the purpose of our report provide valuable insights, it is
important to note that their views and perspectives could be
influenced by their own position within the commercial drone
market. ■
DATA ANALYSIS
PROPRIETARY DATA
Our proprietary databases and banks of information are
scanned for relevant data which is then analyzed within the
parameters of the report. This may involve but is not limited to:
▪ Analyzing existing company information to produce a
ranking based on research parameters;
▪ Analyzing investment data to cross reference with market
size and growth figures;
▪ Revisiting previous analyses of market trends or the
regulatory market landscape in order to identify changes for
the purpose of the new report;
SECONDARY DATA
Company financials, press releases, databases, journals and
magazines are used to extract relevant information and then
analyze it in order to come to our own conclusions; The
secondary data was in this instance partially used to arrive at
the overall size of the commercial drone market, which was
then validated by primary respondents.
PRIMARY DATA
Having conducted interviews and surveys, as well as collected
other primary data like software downloads, our team analyses
these new findings in order to compare them to findings that
emerged out of proprietary and secondary data, Throughout this
process we conduct both qualitative and quantitative analysis –
evaluating the data we’ve assembled and analyzing the
arguments and points made by stakeholders.
INFLUENCING FACTORS
In addition to analyzing the collected data, we also take into
account prevailing factors which have an influence on the
development of the commercial drone industry. For the
purposes of effective analysis, we split these into:
▪ Drivers
▪ Restraints
▪ Opportunities
▪ Challenges ■
16
DRIVERS
▪ Increased automation of drones means that they
provide even more added value to existing workflows,
triggering more widespread adoption.
▪ A global shift towards more environmentally friendly
solutions has increased the demand for drones as a
more sustainable alternative to fuel-consuming
machines.
RESTRAINTS
▪ Lack of required infrastructure to support drone
operations in emerging economies.
▪ National regulations and international standards are
still lagging compared to the technological
advancements being made in the drone industry.
▪ Safety concerns over the responsible use of drones,
especially in urban areas.
OPPORTUNITIES
▪ Incorporation of drones into the Internet of Things
(IoT) ecosystem and large-scale government funding
for drones for the purpose of establishing Urban Air
Mobility (UAM) through Smart City initiatives.
▪ The increasing sophistication of artificial intelligence
(AI) will enable more complex and efficient drone
operations and eventually fully autonomous drones.
CHALLENGES
▪ Expanding the limited bandwidth and battery life of
drones to improve endurance.
▪ Acquiring social acceptance amid limited public
awareness of commercial drone technology.
▪ Discerning between key use cases in the drone
industry, and those that have been subject to a high
degree of hype, but are unlikely to yield high returns.
MARKET MODEL

BOTTOM UP COMMERCIAL DRONE MARKET

For the purposes of this Drone Market Report, the drone market
has been analysed using a unique bottom-up market model. We
relied on proprietary, primary and secondary data to attain the
overall market size figures (see page 13 for more details).
TOP DOWN
Following that, we employed a top down approach to break
down our figures by drone application methods and industries,
thus producing a comprehensive and detailed market data for
the drone industry. With the help of software license distribution
data and registration databases, we were able to also pinpoint
unit sales numbers.
MODELLING
Our analysts quantified the total drone market for last year
(2019) first by sources such as sales, selling prices, UAV
databases, registrations databases, market shares and
approvals. Out of these calculations and in combination with
workforce, enterprise sizes as well as approvals, the
commercial and private drone market could be quantified for 62
countries
Our analysts quantified the commercial drone market through
secondary sources such as sales, registrations and approvals,
as well as enterprise sizes (number of employees) of users and
suppliers. In addition, the results were tested and verified by
expert interviews and cross-referenced with fiscal data and
export quota.
PRIVATE DRONE MARKET
The private drone market includes the demand for hardware
and software for private use and was determined by sales,
selling prices and market share. Market growth has been
calculated using current (2019) growth rates. Qualitative factors
such as increasing awareness, technological innovations, better
production possibilities and legal changes were taken into
account, too.
COVID-19
As this report was being created, the coronavirus pandemic has
already had a lasting impact on the global economy, global
supply chains and the drone industry. As a result of this, we
were able to take the crisis into account when calculating our
drone market numbers and forecasts. ■

The DRONEII Drone Market Model

top down top down

bottom-up

Market
Size [$]

Surveys Databases
Hardware Software Services
(private/commerci (private/commerci
(commercial)
al) al)

Software
Registration
licences
Databases
distribution
Verificati Methods Industries
Business Trends and
on of
Models Perspectives
data

Unit Sales
Expert
Fiscal Export Product-
interview
data quota life-cycle
s

Hardware/ Employees Company

Software Relative Geographic
Software per sales
Licences data1 distribution
costs segement numbers

secondary sources (e.g., government agencies, databases, representative surveys, etc.)

17
DATA VALIDATION

ANALYSIS COMPLETION

After arriving at the overall size of the commercial drone market
from the market size estimation process, the data is split into
several segments and subsegments. To complete the overall
process and arrive at the most accurate statistics for various
segments and subsegments, data triangulation and market
breakdown procedures were implemented, wherever applicable.
The data was triangulated by studying various factors and
trends. Along with this, the findings are validated using both top-
down and bottom-up approaches and by cross-referencing data
and findings.

PROPRIETARY INFORMATION

▪ Key Players
▪ Influencing Factors
▪ Competitive Landscape
▪ Regional Trends
▪ Press Releases
▪ Government Authorities
▪ Opportunities/Challenges
▪ Market size, shares and
growth.
Proprietary
Information
SECONDARY SOURCES

▪ Annual Reports
▪ Presentations
Secondary ▪ Company Websites
Sources ▪ News Articles and Journals
▪ Press Releases
▪ Government Authorities

Primary
Sources
PRIMARY SOURCES

▪ Interviews with CEOs

▪ Interviews with Key
Executives
▪ Interviews with Package
Delivery Service Providers

DATA TRIANGULATION

Critical observation of the data available through desk research
is helpful in devising data triangulation methodology that is
appropriate, relevant actionable and feasible for each report.
Throughout the triangulation process challenging areas of the
study are identified where secondary data exhibits dissimilarity,
poor quality, insufficiency, complexity, trend and estimates and
these are then cross-referenced with primary findings.
Research findings are either corroborated or challenging areas
in the data are compensated by the strengths of other data,
thereby increasing the validity and reliability of the results. ■

18
REPORT CREATION
REPORT DESIGN
Once we’ve collected, analysed and validated data we begin to
formulate it into findings and actionable trends. The first step in
doing this involves designing our table of contents as well as
the format of the report in order to create a document to suit our
readers as well as our corporate identity. This involves
determining the:
▪ Length of the report in pages,
▪ Breakdown of the report in chapters,
▪ Format of the report,
▪ Positioning of graphs, charts and tables within the report,
and more.
Report design is a crucial aspect of our workflow as during this
time our analysts work hard to take very technical and specific
findings and present them clearly to our readers.
19
REPORT WRITING
Following the design, we undertake the task of writing up the
reports. This requires description and analysis of our charts,
graphs, tables and any databases accompanying the final .pdf
product. During this time we turn figures into trends and
numbers into actionable insights. Further, we create the
necessary figures that we designed in the previous phase.
PROOF-READING
At Drone Industry Insights, we take quality assurance very
seriously. For this reason, all of our reports are proof read by at
least two analysts in addition to the ones tasked with writing the
initial draft. Our proof-reading process entails feedback
sessions and editing rounds in order to create a polished
product at the very end. ■
1 | Introduction

Executive Summary
Scope and Methodology
1. Introduction
2. Drone Market 2020-2025
3. Commercial Drone Regulations
4. Trends and Perspectives
Appendix: Industry Definitions

20
1 INTRODUCTION

CONTENTS SUMMARY

1.1 Drones: Where Did They Come From? • xxx

1.2 Drones: What Do They Look Like? • xxx

1.3 Drone Market Segmentation • xxx

1.4 Drone Application Methods

1.5 Drone Market Industries and Use Cases

21
1.3 DRONE MARKET SEGMENTATION

The drone industry is divided into hardware, software, and SERVICES

service segments. Each of these is broken down into several
The service market essentially comprises all the actors
sub-segments which have their own categories.
surrounding the drone hardware and software manufacturers,
HARDWARE servicing them or their consumers in some way. Services thus
include drone service providers (DSPs), systems integrators;
The hardware market essentially comprises all actors which
pilot training providers; retailers & marketplaces; coalition and
manufacture physical goods used in the drone market. This
organizations; drone shows; drone news sources; drone
includes: drone platforms (i.e. everything required to perform a
insurance providers; drone test sites; universities & educational
flight); components and systems (i.e. everything required to
facilities; and, drone business accelerators. The service
build or modify a drone); counter drone technologies (i.e.
segment is extremely diverse, however, business-internal
sensors to detect, localize, track & identify rogue drones and
services account for the biggest share of revenue by far. For
physical or non-physical counter measures); and aerial mobility
more information about drone service companies consult our
platforms (i.e. platforms big enough to transport goods and/or
Drone Service Providers list.
persons like aerial taxis). For further details about companies in
the hardware segment, please see our Platform Manufacturers
THE DRONE MARKET ENVIRONMENT MAP
list.

SOFTWARE The yearly DRONEII Drone Market Environment Map is the

most thorough publicly available outline and segmentation of
The software segment essentially comprises all companies
the drone market described here. It is a logo map of c. 1000
which create software for the drone market including Flight
drone industry stakeholders and its yearly iterations provide a
Planning Software; Navigation & Computer Vision software;
record of the dynamic changes occurring in the industry (as
Workflow & Data Analytics software; Unmanned Traffic
many players leave and enter the market each year). ■
Management (UTM) software; Fleet & Operation Management
support tools; Software Development Kits (SDKs); Ecosystem
and Networks.

Hardware Software Services

System
Navigation Fleet & Education,
Components & Workflow & Drone Integration,
Platforms Others Flight Planning & Computer UTM Operation Others Simulation & Others
Systems Data Analytics Operation Engineering
Vision Management Training
and Advisory

Drone as a
Propulsion &
Multi-Rotor Service
Power
Providers

Business-
Launch &
Single-Rotor internal
Recovery
Services

Camera &
Fixed-Wing Vision
Systems

Navigation &
Hybrid Guidance
Systems

Ground
Lighter-than-
Stations &
Air
Recharging

Ground
HAPS1 Control
Systems

Communi-
cation
Systems

Chart 5: Commercial drone market segmentation

22
1.4 DRONE APPLICATION METHODS
APPLIED METHODS
Mapping
Process of creating a
diagrammatic
representation (incl. 3D
modelling) of a given
area.
Inspection
Examination of a given
object with the intent to
find faults, errors,
malfunctions or other
specific phenomena that
might affect the
functioning of it
Dispensing & Spraying
Aerial distribution of
solids (e.g. fertiliser or
seeds), or the process
of spreading liquid
substances (e.g. water,
insecticide or fertiliser)
Monitoring
Closely observing a
given object to check its
progress or quality over
a given period of time.
Delivery
Transportation of
packages, food,
pharmacies, or other
goods either on demand
or according to a given
schedule.
Chart 6: Drone application methods
23
Surveying
Accurate measurement
of a section of the
earth’s surface with the
purpose to study or
measure altitudes,
angles, distances
Photography &
Filming
Aerial use of cameras to
capture images and the
production of aerial
videos for all
entertainment or
advertising purposes.
Warehousing
The use of drones to
assist the process of
storing large quantities
of goods so that they
can be sold or used at a
later date by managing
the inventory.
Localization &
Detection
Seeking and supplying
the geographical
coordinates of activities,
persons or life-stock, or
detecting certain
activities.
Other
Advertising,
Broadcasting,
Entertainment,
Measuring & Sampling,
Navigating, Tracking &
Passenger Transport.
 1.5 DRONE MARKET INDUSTRIES AND USE CASES

Industry Vertical1 Current Use Cases

• Arts, Entertainment, and Recreation xxx

• Agriculture xxx

• Construction xxx

• Educational Services xxx

• Energy (Utilities) xxx

• Health Care and Social Assistance xxx

• Information xxx

• Insurance xxx

• Mining, Quarrying, and Oil and Gas Extraction xxx

• Professional, Scientific, and Technical Services xxx

• Public Administration xxx

• Real Estate, Rental & Leasing, and Industrial Plants xxx

• Safety & Security xxx

• Transportation and Warehousing xxx

Source: Drone Industry Insights

Table 1: Commercial Drone Use Cases Across Industries

DRONE MARKET INDUSTRIES DRONE MARKET USE CASES

In addition to application methods (i.e. ways of applying drones)
listed on page 23, the drone market can also be split according
to industries in which drones are used. Within this market report
we split the drone market into 16 industries listed above. Each
brings its own set of use cases, market opportunities and
industry hurdles. Thus the size, share and growth of each is
examined individually as well as in comparison to one another.
The right column in Table 1 gives a thorough outline of current
use cases in the commercial drone market. These use cases
vary greatly in how common they are – and indeed this
alongside many other factors will affect the return on
investment (ROI) of each use case. We further explore drone
market use cases in our Drone Applications Report. ■

1) According to NAICS (North American Industry Classification System). See Appendix for more details.

24
2 | Drone Market 2020-2025

Executive Summary
Scope and Methodology
1. Introduction
2. Drone Market 2020-2025
3. Commercial Drone Regulations
4. Trends and Perspectives
Appendix: Industry Definitions

25
2 DRONE MARKET 2020-2025

CONTENTS SUMMARY

2.1 Commercial & Private Drone Market ▪ xxx

2.2 Commercial Drone Market by Segment ▪ xxx

2.3 Commercial Drone Market by Industry

2.4 Commercial Drone Market by Method

2.5 Commercial Drone Market by Unit Sales

2.6 Private Drone Market by Segment

2.7 Private Drone Market by Unit Sales

2.8 Drone Market by Region and Country

26
2.1.1 MARKET SIZE 2020-2025

Global Drone Market Size 2020–2025

45
Revenue in bn. US dollars

CAGR (2020-2025)
Total Market 13.8%

40

35

30

25

42.8
20 40.1
36.9
33.0
15
28.4

22.5
10
17.6

0
2019 2020 2021 2022 2023 2024 2025

Source: Drone Industry Insights

Graph 1: Global drone market size 2020-2025

▪ This graph illustrates global commercial and private drone

market size by demand from 2020 to 20251.

▪ The global drone market will generate almost 22.5 billion

USD in global revenue in 2020.
The global drone
▪ By 2025, the global drone market is expected to generate
over 42.8 billion USD, with growth projected to be at 13.8% market will grow to
CAGR.
42.8 billion USD in
2025.

1 With 2019 as the base year.

27
2.1.2 DRONE MARKET: COMMERCIAL VS. PRIVATE 2020-2025

Global Commercial & Privat Drone Market Size 2020-2025

45
Revenue in bn. US dollars

CAGR (2020-2025)
Private x.x%

40 Commercial x.x%

35

30

25

20

15

10

0
2019 2020 2021 2022 2023 2024 2025

Source: Drone Industry Insights

Graph 2: Commercial & Private Drone Market Size 2020-2025

▪ This graph illustrates global commercial and private drone

market size by demand from 2020 to 20251.

▪ xxx

▪ xxx

xxx

1 With 2019 as the base year.

28
 2.2 COMMERCIAL DRONE MARKET BY SEGMENT

The commercial drone market can be divided into the following

three segments: hardware, software, and service. The
commercial drone market excludes semi professional video
filming and photography like occasional filming for weddings or
other occasional (commercial) applications. The three
segments are defined as follows:

Hardware

The hardware market essentially comprises all actors which

manufacture physical goods used in the drone market. The
ones included in this report are: drone platform manufacturers,
components and systems manufacturers, and companies
building aerial mobility platforms (e.g. flying cars). Not included
are counter drone manufacturers.

Software

The software market essentially comprises of all companies

which create software for the drone market and thus in one way
or another enable, enhance and support the physical platforms
manufactured by the hardware segment. The following
companies are included in this report: flight planning software
developers, navigation & computer vision engineers, data
analytics software developers, UTM companies, fleet &
operation management support, SDKs, and ecosystems &
networks.

Services

The service market essentially comprises all the actors

surrounding the drone hardware and software manufacturers,
servicing them or their consumers in some way. The companies
included in this report are: Drone-as-a-Service (DaaS)
providers, systems integrators, pilot training providers, retailers
& market places, coalitions and organizations, drone shows,
drone news sources, drone insurance providers, drone test
sites, universities and educational facilities and drone business
accelerators. The service segment also incudes all non-drone
companies which are using drones and its technology i.e.
business internal services which account for the greatest
proportion of revenue in this segment.

29
2.2.1 DRONE MARKET SIZE BY SEGMENT 2020-2025

Commercial Drone Market Size 2020-2025 by Segment

45
Revenue in bn. US dollars

CAGR (2020-2025)
Services x.x%

40 Software x.x%

Hardware x.x%

35

30

25

20

15

10

0
2019 2020 2021 2022 2023 2024 2025
Source: Drone Industry Insights

Graph 3: Commercial drone market size by segment 2020-2025

▪ This graph illustrates the global commercial drone revenue in

2020-20251 broken down by segment.

▪ In 2020, the commercial service market will generate x.x

billion USD in global revenue. By 2025, the service segment
is expected to generate just over x.x billion USD. The majority
The largest drone
of the commercial service market revenue comes from
business internal services.
market segment in
▪ The second biggest segment is xxx with x.x billion USD as of 2020 is xxx – $x.x
2020, projected to reach x.x billion USD by 2025.

▪ The smallest, but fastest growing, segment is the xxx market

dollars.
will be x.x billion USD in size in 2020 and will grow to roughly
x.x billion USD in 2025 (at x.x% CAGR).

1 With 2019 as the base year.

30
2.3.2.3 MARKET SIZE BY REGION 2020-2025 | CONSTRUCTION

Commercial Drone Market Size in Construction by Region 2020-2025

6,000
Revenue in m. US dollars

CAGR (2020-2025)
South America x.x%

MEA x.x%
Oceania x.x%
5,000
Europe x.x%
North America x.x%
Asia x.x%

4,000

3,000

2,000

1,000

0
2019 2020 2021 2022 2023 2024 2025

Source: Drone Industry Insights

Graph 12: Commercial drone market size in Construction by region 2020-2025

▪ This graph illustrates the global commercial drone revenue of

the Construction industry in 2020-20251 broken down by
region. In 2020, the industry will generate x.x billion USD in
the drone market. This is expected to grow to x.x billion USD
in 2025. The fastest growing
▪ Asia will remain the biggest Construction market in the drone
industry, growing from x.x billion USD in 2020 to x.x billion
Construction market
USD in 2025. North America will follow, growing from x.x
million USD in 2020 to x.x billion USD in 2025. Meanwhile,
will be xxx at x.x%
Europe will grow from x.x million USD in 2020 to almost x.x CAGR.
billion USD in 2025.

▪ Asia will be the fastest growing Construction market in the

drone industry, growing at x.x% CAGR as opposed to the
global x.x% average.
1 With 2019 as the base year.

31
2.4.3.6 MARKET SIZE BY COUNTRY 2020-2025 | LOCALIZATION & DETECTION

Commercial Drone Market Size in Localization & Detection by Country 2020-2025

10
Revenue in bn. US dollars

CAGR (2020-2025)
RoW x.x%
9 India x.x%
Italy x.x%
Canada x.x%
8
Australia x.x%
France x.x%
7
United Kingdom x.x%
Germany x.x%
6 Japan x.x%
China x.x%
USA x.x%
5

0
2019 2020 2021 2022 2023 2024 2025

Source: Drone Industry Insights

Graph 55: Commercial drone market size in Localization & Detection by country 2020-2025

▪ This graph illustrates the commercial drone revenue in 2020-

20251 within Localization & Detection broken down by
country. In 2020 Localization will yield x.x billion USD,
increasing to just under x.x billion USD in 2025.

▪ The xxx market will remain in the lead within Localization

The xxx Localization
growing from x.x billion USD in 2020 to x.x billion USD in
2025. It is followed by China which will grow from x.x million
& Detection market
USD in 2020 to x.x million USD in 2025. Third is xxx set to
grow from x.x million USD in 2020 to x.x million USD in 2025.
will xxx to $xxx by
▪ The fastest growing Localization market will be xxx at a x.x% 2025.
CAGR compared to the global growth at x.x% CAGR.

1 With 2019 as the base year.

32
2.5 COMMERCIAL DRONE MARKET BY UNIT SALES

The number of commercial drones sold consists of prosumer

drones and professional drones.

Drones used for commercial purposes belong to this group as

well as such which are used for the main income (e.g. a drone
pilot who sells aerial photography as a full time job).
Commercial Prosumer drones cost less than $10,000 USD
while professional drones cost over $10,000 USD.

All commercial drones are usually controlled either via a Wi-Fi-

link, internet or in rare cases satellites. The platform
configuration is usually a multirotor- or fixed-wing drone, but
can also be a single rotor, hybrid (VTOL) or lighter-than-air
drone. Both prosumer and professional drones are usually
equipped with sensors (e.g. optical sensor, infrared sensor or
LiDAR), actors (e.g. dispensing device, spraying device or
robotic arm) or cargo goods (e.g. medical aids, food or
consumer goods).

Prosumer Drones Professional Drones

Commercial prosumer drones are drones
which cost less than $10,000 USD. The
units sold include single- and multirotor
platforms, fixed-wing drones, hybrid drones
and lighter-than-air drones.
Commercial professional drones are drones
which cost more than $10,000 USD. The
units sold include single- and multirotor
platforms, fixed-wing drones, hybrid drones
and lighter-than-air drones.

33
2.5.1 MARKET SIZE BY UNIT SALES 2020-2025

Global Commercial Drone Sales 2020-2025

1,600
Sales in thousands

CAGR (2020-2025)
Commercial Unit Sales x.x%

1,400

1,200

1,000

800

600

400

200

0
2019 2020 2021 2022 2023 2024 2025

Source: Drone Industry Insights

Graph 59: Global commercial drone sales 2020-2025

▪ This graph illustrates the unit sales on the global commercial

drone market revenue in 2020-20251.

▪ These sales will more than double in this period, growing

from x.x thousand in 2020 to almost x.x thousands in 2025 at
x.x% CAGR.
By 2025 x.x drone
units will be sold
globally.

1 With 2019 as the base year.

34
 3.1 HOW ARE DRONES REGULATED?

Technical and Binding Non-Binding Aviation

Operational Standards Aviation Law Regulation

GLOBAL
BODIES xxx
xxx xxx

REGIONAL
BODIES xxx
xxx xxx xxx xxx

NATIONAL
BODIES xxx xxx
xxx

Chart 1: Drone Regulations Structure

▪ Drone regulations and standards are essential to the For more in-depth research on drone
industry’s current and further operations, visibly important at regulations, get our Drone Regulation Report
each step in the workflow of a drone operator. While there
are some countries whose regulations date back to the early
2000s, most specific and applicable drone laws have been
made since 2012.

▪ xxx

▪ xxx

Includes in-depth details on 30 national regulations,

regional regulation overview, standards and our
Drone Readiness Index.

35
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DRONEII.com quoted in:

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The information contained in this presentation is proprietary to DRONEII.COM and is disclosed in

confidence. The presentation and the information contained herein shall be kept strictly confidential
and shall not be used, disclosed to others or reproduced without the express written consent of
DRONEII.COM. Nothing contained in this publication shall constitute any warranty, guarantee or
liability for DRONEII.COM and affiliates but is for information purposes only. Accordingly,
DRONEII.COM and affiliates neither expressly nor conclusively accept responsibility or liability for the
actuality, accuracy and completeness of the statements and information contained in this publication.

36