Drone market analysis
The 21st century is a time of enormous challenges. We need to create clean, safe and… flying ways of transporting people and goods. In this drone market brief, we discuss the challenges facing the unmanned aircraft industry.
What are drones used for?
Drones are used in entertainment, the military, emergency and security services, rescue operations, transporting small loads, retail, the medical sector, marketing and research.
The vision of a company focused on drone deliveries, described in the novel "The Warehouse", may come true. In fact, it is already becoming reality! Until now, urban planning has used only two dimensions: length and width. The problem is that existing infrastructure wears out very quickly and lacks sufficient capacity. These problems can be eased by investing in public transport or building ring roads. We can also use the third dimension, height. This is a revolution in urban planning and an opportunity for the drone market. Unmanned aircraft respond to our desire for instant gratification. After all, we want the products, documents or takeaway food we order right here, right now! Companies, in turn, can reduce costs. In summary, drones can be used:
As you can see, unmanned aircraft have a wide range of applications. The list of their advantages is long too.
What are the advantages of drones?
The advantages of drones are low weight, small size, the ability to carry loads and mount cameras or weapons, and lower risk thanks to remote control.
Drones make remote observation possible (the police and the military are very keen users). They can carry small loads without putting human life or health at risk. They also pose a challenge: air traffic rules and regulations need to be updated, and airspace has to be shared with manned aircraft. Another interesting point is the use of drone shows in the entertainment industry and for marketing. They are an alternative to fireworks (considered harmful to the environment and dangerous) and lasers (seen as less interesting and spectacular). Interestingly, drones also work… under water. Leaving aside certain restrictions (for example, the ban on using them near airports or military sites), unmanned aircraft have a promising future ahead of them, especially as they can run on renewable energy and use artificial intelligence. That is a very promising combination. In summary, the advantages of drones are:
But how do you choose the best device? It all depends on its intended use. Drones are used by both businesses and private individuals. Commercial use of drones is growing, and Poland is at the forefront in this respect.
How big is the global drone market?
According to MarketsandMarkets, the global drone market is expected to be worth approx. USD 58.4 bn in 2026, compared with an estimated USD 27.4 bn in 2021, a CAGR of 16.4%.
According to the BURZA report by the Łukasiewicz Research Network, the drone market is emerging from the start-up "death zone". This is helped by the fact that more and more companies use drone data and even use unmanned aircraft in their marketing. Medical companies are pioneers in drone transport. As a result, urgent, light consignments such as organs for transplant or blood can reach those in need even faster. Unmanned aircraft are also used to monitor and manage infrastructure. In 2019, total investment in drone-related sectors exceeded USD 1 bn for the first time, almost doubling the value of previous years. In 2020, this investment reached USD 1.15 bn, according to a Drone Industry Insights report. According to a Bloomberg Businessweek report, spending on drones rose by 35% in 2019 and is estimated to reach USD 13 bn in 2021. MarketsandMarkets reports that the global drone market is expected to be worth approx. USD 58.4 bn in 2026, compared with an estimated USD 27.4 bn in 2021. This means a compound annual growth rate (CAGR) of 16.4% from 2021 to 2026. Growth is being seen not only in Europe. It is supported by the standardisation of regulations: unmanned air traffic was already regulated in 2015. Consequently, demand is also growing for suitable software and other components, as well as for services delivered by drones. In Poland, Dronehub operates in the hardware+software segment. Parrot has also started work on "drone-in-a-box" solutions.
| Indicator | Value | Data source |
|---|---|---|
| investment in drone-related sectors, 2019 | over USD 1 bn | Drone Industry Insights |
| investment in drone-related sectors, 2020 | USD 1.15 bn | Drone Industry Insights |
| growth in spending on drones, 2019 | 35% | Bloomberg Businessweek |
| spending on drones, 2021 (estimate) | USD 13 bn | Bloomberg Businessweek |
| global drone market value, 2021 (estimate) | USD 27.4 bn | MarketsandMarkets |
| global drone market value, 2026 (forecast) | approx. USD 58.4 bn | MarketsandMarkets |
| CAGR 2021–2026 | 16.4% | MarketsandMarkets |
Which drone should you buy?
The right drone depends on your preferences and intended use; for example, the DJI Mavic 3 has a flight time of 40 minutes, while the mini version weighs less than 250 g.
So which device should you buy? Which is the best investment? The answer, of course, depends on your preferences. Are you a private individual or a company? Do you care about speed, a good camera or perhaps payload capacity? For example, the DJI Mavic 3 has a long flight time of 40 minutes. The mini version weighs less than 250 g. According to the Kowal Index 2023 (Indeks Kowala), the market-leading companies are:
Show chart data as a table
| Company | Score (pts / 1000) |
|---|---|
| Farada Group sp. z o.o. | 875 |
| SoftBlue S.A. | 750 |
| uAvionics Technologies sp. z o.o. | 740 |
| Flytronic S.A. | 700 |
| Creotech Instruments S.A | 640 |
| Advanced Protection Systems S.A. | 615 |
| EUROTECH sp. z o.o | 570 |
| BZB UAS sp. z o.o. | 540 |
Points were awarded for technological sophistication, commercial use and autonomy. These companies could completely change the way we carry small consignments, create marketing material and look after security.
What is the outlook for the drone market?
The drone industry is set to grow, including outside the military, as drones will be needed for observation and transporting small loads, and Poland, as a promising and fast-growing market, can benefit.
Because infrastructure is running out of capacity, unmanned aircraft will have to be used for observation and for transporting small loads. The drone industry is therefore set to grow, including outside the military. Because of the ongoing war, Ukraine is, of course, a very keen buyer. Poland, as a promising and fast-growing market, can only benefit from this.
Author: Katarzyna Pokrywczyńska
Sources:
This text is not a full market analysis of the kind we carry out for our clients. It contains only selected information about the market, which we can expand on request.
Drone market in Europe
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