Commercial drone market forecast to 2022 by scalar market research

Commercial Drone Market by Type (Hardware, Software, Services), Industry (Agriculture, Energy & Utility, Mining, Engineering & Construction, Research & Education, Others) and Geography – Global Opportunity Analysis and Industry Forecast, 2014 – 2022

December 2016

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About Scalar Market Research Scalar Market Research, Inc. is a Chicago, US-based market research and consulting firm that serves Fortune 1000 companies, leading businesses and upcoming organizations from around the world to help them achieve their business goal of sustainable revenue growth, utilizing Scalar's premium market research reports and consulting services to make critical strategic decisions.

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goals.

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Table of Contents 1

INTRODUCTION ............................................................................................................................. 12

2

MARKET OVERVIEW ...................................................................................................................... 13 2.1

Definitions ............................................................................................................................. 13

2.2

Research Methodology ......................................................................................................... 15 Primary Data ................................................................................................................. 15

2.2.2

Secondary Data ............................................................................................................. 16

2.2.3

Machine Learning.......................................................................................................... 17

2.2.4

Research Scope ............................................................................................................. 17

2.2.5

Years Considered .......................................................................................................... 18

2.2.6

Currency & Pricing......................................................................................................... 19

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2.2.1

Market Segmentation ........................................................................................................... 20

2.4

Key Objectives & Benefits of the Report............................................................................... 20

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2.3

2.4.1

Objectives of the Report ............................................................................................... 20

2.4.2

Key Benefits of the Report ............................................................................................ 21

EXECUTIVE SUMMARY .................................................................................................................. 22

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MARKET DYNAMICS ...................................................................................................................... 26

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Drivers ................................................................................................................................... 26

4.2

Challenges ............................................................................................................................. 28

4.3

Opportunities ........................................................................................................................ 29

4.4

Trends ................................................................................................................................... 30

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4.1

INDUSTRY ANALYSIS...................................................................................................................... 31 5.1

Value Chain Analysis ............................................................................................................. 31

5.2

Supply Chain Analysis............................................................................................................ 33

5.3

Regulatory Frame work......................................................................................................... 34

COMMERCIAL DRONE MARKET, BY TYPE ..................................................................................... 38 6.1

Overview ............................................................................................................................... 38

6.2

Hardware .............................................................................................................................. 40

6.2.1

Fixed Wing..................................................................................................................... 41

6.2.2

Rotary Wing .................................................................................................................. 41

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6.2.3

Hybrid ............................................................................................................................ 42

6.2.4

Nano .............................................................................................................................. 42

6.3

6.3.1

Data management & analytics ...................................................................................... 44

6.3.2

Imaging .......................................................................................................................... 44

6.3.3

Others............................................................................................................................ 44

6.4

COMMERCIAL DRONE MARKET, BY INDUSTRY ............................................................................. 46 Overview ............................................................................................................................... 46

7.2

Agriculture ............................................................................................................................ 48

7.3

Energy & Utility ..................................................................................................................... 49

7.4

Mining ................................................................................................................................... 50

7.5

Engineering & Construction .................................................................................................. 51

7.6

Research & Education ........................................................................................................... 52

7.7

Other Industries .................................................................................................................... 53

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7.1

COMMERCIAL DRONE MARKET, BY GEOGRAPHY ......................................................................... 55 8.1

Overview ............................................................................................................................... 55

8.2

North America ....................................................................................................................... 57

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Service ................................................................................................................................... 45

8.2.1

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Software ................................................................................................................................ 43

By Country ..................................................................................................................... 58

8.2.1.1

U.S. ........................................................................................................................... 58

8.2.1.2

Canada ...................................................................................................................... 59

8.2.2

By Type .......................................................................................................................... 59

8.2.3

By Industry .................................................................................................................... 59

8.3

Europe ................................................................................................................................... 61

8.3.1

By Country ..................................................................................................................... 62

8.3.1.1

France........................................................................................................................ 63

8.3.1.2

Germany.................................................................................................................... 63

8.3.1.3

U.K ............................................................................................................................ 63

8.3.1.4

Rest of Europe ........................................................................................................... 63

8.3.2

By Type .......................................................................................................................... 64

8.3.3

By Industry .................................................................................................................... 64

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8.4

Asia-Pacific ............................................................................................................................ 67

8.4.1 8.4.1.1

China ......................................................................................................................... 69

8.4.1.2

Japan ......................................................................................................................... 69

8.4.1.3

Australia .................................................................................................................... 69

8.4.1.4

Rest of Asia-Pacific .................................................................................................... 69

8.4.2

By Type .......................................................................................................................... 70

8.4.3

By Industry .................................................................................................................... 70

Middle East & Africa ............................................................................................................. 72

8.5.1

By Region....................................................................................................................... 72

8.5.1.1

GCC ............................................................................................................................ 73

8.5.1.2

South Africa ............................................................................................................... 73

8.5.1.3

Rest of MEA ............................................................................................................... 74

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8.5

By Type .......................................................................................................................... 74

8.5.3

By Industry .................................................................................................................... 74

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8.5.2

Latin America ........................................................................................................................ 76

By Country ..................................................................................................................... 76

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8.6.1 8.6.1.1

Brazil.......................................................................................................................... 78

8.6.1.2

Rest of Latin America ................................................................................................ 78

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By Country ..................................................................................................................... 68

8.6.2

By Type .......................................................................................................................... 78

8.6.3

By Industry .................................................................................................................... 79

COMPETITIVE LANDSCAPE ............................................................................................................ 81 9.1

Market Positioning ................................................................................................................ 81

9.2

Key Vendors' Offerings.......................................................................................................... 82

10 KEY MARKET PLAYERS ................................................................................................................... 83 10.1

Parrot S.A. ............................................................................................................................. 83

10.1.1

Overview ....................................................................................................................... 83

10.1.2

Key Strategies................................................................................................................ 83

10.1.3

Recent Developments ................................................................................................... 83

10.2

3D Robotics, Inc. ................................................................................................................... 85

10.2.1

Overview ....................................................................................................................... 85

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10.2.2

Key Strategies................................................................................................................ 85

10.2.3

Recent Developments ................................................................................................... 85

10.3

DJI .......................................................................................................................................... 86

10.3.1

Overview ....................................................................................................................... 86

10.3.2

Key Strategies................................................................................................................ 86

10.3.3

Recent Developments ................................................................................................... 86

10.4

PrecisionHawk Inc. ................................................................................................................ 88

10.4.1

Overview ....................................................................................................................... 88

10.4.2

Key Strategies................................................................................................................ 88

10.4.3

Recent Developments ................................................................................................... 88

10.5

AeroVironment, Inc............................................................................................................... 89 Overview ....................................................................................................................... 89

10.5.2

Key Strategies................................................................................................................ 89

10.5.3

Recent Developments ................................................................................................... 89

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10.5.1

DroneDeploy ......................................................................................................................... 90 Overview ....................................................................................................................... 90

10.6.2

Key Strategies................................................................................................................ 90

10.6.3

Recent Developments ................................................................................................... 90

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10.6.1

Airware , Inc. ......................................................................................................................... 91

10.7.1

Overview ....................................................................................................................... 91

10.7.2

Key Strategies................................................................................................................ 91

10.7.3

Recent Developments ................................................................................................... 91

10.8

Trimble Navigation Ltd. ......................................................................................................... 92

10.8.1

Overview ....................................................................................................................... 92

10.8.2

Key Strategies................................................................................................................ 92

10.8.3

Recent Developments ................................................................................................... 92

10.9

Delair-Tech SAS ..................................................................................................................... 93

10.9.1

Overview ....................................................................................................................... 93

10.9.2

Key Strategies................................................................................................................ 93

10.9.3

Recent Developments ................................................................................................... 93

10.10 Insitu, Inc. .............................................................................................................................. 95

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10.10.1

Overview ................................................................................................................... 95

10.10.2

Key Strategies............................................................................................................ 95

10.10.3

Recent Developments ............................................................................................... 95

11 SCALAR 360 DEGREE MARKET PERSPECTIVE ................................................................................ 96 12 APPENDIX ...................................................................................................................................... 97 Acronyms .............................................................................................................................. 97

12.1

Related Reports..................................................................................................................... 98

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List of Tables Global Commercial Drone Market – Executive Summary................................................. 24

Table 2.

Global Commercial Drone Market Drivers ........................................................................ 26

Table 3.

Global Commercial Drone Market Size (US$ million), By Type (2014 – 2022) ................. 39

Table 4.

Hardware Market Size (US$ million), By Type (2014 – 2022) ........................................... 40

Table 5.

Software Market Size (US$ million), By Type (2014 – 2022) ............................................ 43

Table 6.

Global Commercial Drone Market Share (%), By Industry, 2016 & 2022 ......................... 46

Table 7.

Global Commercial Drone Market Size (US$ million), By Industry (2014 – 2022) ............ 47

Table 8.

Agriculture Market, By Geography ................................................................................... 48

Table 9.

Energy & Utility Market, By Geography ............................................................................ 49

Table 10.

Mining Market, By Geography .......................................................................................... 50

Table 11.

Engineering & Construction Market, By Geography ......................................................... 51

Table 12.

Research & Education Market, By Geography .................................................................. 52

Table 13.

Other Industries Market, By Geography ........................................................................... 53

Table 14.

Global Commercial Drone Market Size (US$ million), By Geography (2014 – 2022) ....... 56

Table 15.

North America Commercial Drone Market Size (US$ million), By Country (2014 – 2022) 58

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Table 1.

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Table 16. Commercial Drone Market in U.S., Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 58 Table 17. Commercial Drone Market in Canada, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 59 Table 18.

North America Commercial Drone Market Size (US$ million), By Type (2014 – 2022) .... 59

Table 19.

North America Commercial Drone Market Size (US$ million), By Industry (2014 – 2022) 60

Table 20.

Europe Commercial Drone Market Size (US$ million), By Country (2014 – 2022) ........... 62

Table 21. Commercial Drone Market in France, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 63 Table 22. Commercial Drone Market in Germany, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 63 Table 23. Commercial Drone Market in U.K, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 63 Table 24. Commercial Drone Market in Rest of Europe, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%)................................................................................................................................... 63

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Table 25.

Europe Commercial Drone Market Size (US$ million), By Type (2014 – 2022) ................ 64

Table 26.

Europe Commercial Drone Market Size (US$ million), By Industry (2014 – 2022)........... 65

Table 27.

Asia-Pacific Commercial Drone Market Size (US$ million), By Country (2014 – 2022) .... 68

Table 28. Commercial Drone Market in China, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 69 Table 29. Commercial Drone Market in Japan, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 69 Table 30. Commercial Drone Market in Australia, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 69 Table 31. Commercial Drone Market in Rest of Asia-Pacific, Market Size (US$ million), 2014 – 2022and Y-o-Y Growth (%).................................................................................................................... 69 Asia-Pacific Commercial Drone Market Size (US$ million), By Type (2014 – 2022).......... 70

Table 33.

Asia-Pacific Commercial Drone Market Size (US$ million), By Industry (2014 – 2022) .... 71

Table 34.

MEA Commercial Drone Market Size (US$ million), By Region (2014 – 2022) ................. 72

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Table 35. Commercial Drone Market in Middle East & Africa, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) ................................................................................................................... 73 Table 36. Commercial Drone Market in Latin America, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%)................................................................................................................................... 73

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Table 37. Commercial Drone Market in Latin America, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%)................................................................................................................................... 74 MEA Commercial Drone Market Size (US$ million), By Type (2014 – 2022) .................... 74

Table 39.

MEA Commercial Drone Market Size (US$ million), By Industry (2014 – 2022)............... 75

Table 40.

Latin America Commercial Drone Market Size (US$ million), By Country (2014 – 2022). 76

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Table 38.

Table 41. Commercial Drone Market in Brazil, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) 78 Table 42. Commercial Drone Market in Rest of Latin America, Market Size (US$ million), 2014 – 2022 and Y-o-Y Growth (%) ................................................................................................................... 78 Table 43.

Latin America Commercial Drone Market Size (US$ million), By Type (2014 – 2022) ...... 78

Table 44.

Latin America Commercial Drone Market Size (US$ million), By Industry (2014 – 2022) 79

Table 45.

Key Vendors' Offerings...................................................................................................... 82

Table 46.

List of Acronyms ................................................................................................................ 97

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List of Figures Figure 1.

Research Methodology ..................................................................................................... 18

Figure 2.

Commercial Drone Market, By Industry, Type and Geography ........................................ 20

Figure 3.

Global Commercial Drone Market Revenue and Y-o-Y Trend ......................................... 23

Figure 4.

Global Commercial Drone Market Share (%), By Type, 2016 & 2022 ............................... 25

Figure 5.

Global Commercial Drone Market Share (%), By Industry, 2016 & 2022 ......................... 25

Figure 6.

Global Commercial Drone Market Share (%), By Geography, 2016 & 2022 ..................... 25

Figure 7.

Commercial Drone Value Chain Analysis .......................................................................... 31

Figure 8.

Supply Chain in Commercial Drone Market ...................................................................... 33

Figure 9.

Global Commercial Drone Market Share (%), By Type, 2016 & 2022 ............................... 38 Global Commercial Drone Market Size (US$ million), By Type 2016 & 2022 ............... 39

Figure 11.

Hardware Market Share (%), By Type, 2016 & 2022 .................................................... 40

Figure 12.

Hardware Market Size (US$ million), By Type 2016 & 2022 ......................................... 41

Figure 13.

Software Market Share (%), By Type, 2016 & 2022 ...................................................... 43

Figure 14.

Software Market Size (US$ million), By Type 2016 & 2022 .......................................... 44

Figure 15.

Global Commercial Drone Market Size (US$ million), By Industry, 2016 & 2022......... 47

Figure 16.

Agriculture Market Share (%), By Geography ............................................................... 48

Figure 17.

Energy & Utility Market Share (%), By Geography........................................................ 49

Figure 18.

Mining Market Share (%), By Geography ...................................................................... 50

Figure 19.

Engineering & Construction Market Share (%), By Geography .................................... 51

Figure 20.

Research & Education Market Share (%), By Geography.............................................. 52

Figure 21.

Other Industries Market Share (%), By Geography....................................................... 54

Figure 22.

Global Commercial Drone Market Share (%), By Geography, 2016 & 2022 ................. 55

Figure 23.

Global Commercial Drone Market Size (US$ million), By Geography, 2016 & 2022 .... 56

Figure 24.

North America commercial drone Market Share (%), By Country, 2016 & 2022 ......... 57

Figure 25.

North America Commercial Drone Market Size (US$ million), By Country, 2016 & 2022 58

Figure 26.

North America Commercial Drone Market Share (%), By Industry, 2016 & 2022 ........ 59

Figure 27.

2022)

North America Commercial Drone Market Size (US$ million), By Industry (2014 – 60

Figure 28.

Europe Commercial Drone Market Share (%), By Country, 2016 & 2022 .................... 61

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Europe Commercial Drone Market Size (US$ million), By Country, 2016 & 2022 ........ 62

Figure 30.

Europe Commercial Drone Market Share (%), By Industry, 2016 & 2022 .................... 64

Figure 31.

Europe Commercial Drone Market Size (US$ million), By Industry (2014 – 2022)....... 66

Figure 32.

Asia-Pacific Commercial Drone Market Share (%), By Country, 2016 & 2022 .............. 67

Figure 33.

Asia-Pacific Commercial Drone Market Size (US$ million), By Country, 2016 & 2022 . 68

Figure 34.

Asia-Pacific Commercial Drone Market Share (%), By Industry, 2016 & 2022 ............. 70

Figure 35.

Asia-Pacific Commercial Drone Market Size (US$ million), By Industry (2014 – 2022) 71

Figure 36.

MEA Commercial Drone Market Share (%), By Region, 2016 & 2022 .......................... 72

Figure 37.

MEA Commercial Drone Market Size (US$ million), By Region, 2016 & 2022.............. 73

Figure 38.

MEA Commercial Drone Market Share (%), By Industry, 2016 & 2022 ........................ 74

Figure 39.

MEA Commercial Drone Market Size (US$ million), By Industry (2014 – 2022)........... 75

Figure 40.

Latin America Commercial Drone Market Share (%), By Country, 2016 & 2022 .......... 76

Figure 41.

Latin America Commercial Drone Market Size (US$ million), By Country, 2016 & 2022 77

Figure 42.

Latin America Commercial Drone Market Share (%), By Industry, 2016 & 2022 ......... 79

Figure 43.

Latin America Commercial Drone Market Size (US$ million), By Industry (2014 – 2022) 80

Figure 44.

Market Positioning of Key players ................................................................................ 81

Figure 45.

Commercial Drone Market Snapshot............................................................................ 97

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2 MARKET OVERVIEW 2.1 Definitions Commercial drones are the unmanned air vehicles also called as flying robots that are operated with the help of remote controls.

Initially, drones were used for defense and military purposes only. Currently, drones are being used across various commercial applications such as mining, agriculture and infrastructure. Growing demand for drones by commercial applications and advancement in drone technology is anticipated to propel the market in coming years. However, the commercial drone industry is still facing issues such as security and safety concerns, scarcity of trained pilots and air traffic management which are

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expected to be solved over the time.

Apart from experimental and recreational applications, drones have entered into

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several applications owing to the formulation of user-friendly regulatory framework across national and international regulatory bodies and adoption of drone-powered solutions by various industries. Furthermore, technological development is

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anticipated to be the most prominent driving factor for commercial drone market.

Some of the advanced technologies used in commercial drones are cyber-security

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and jamming, energy and propulsion systems, collision avoidance, safety, radio frequency spectrum capacity, and many other.

The commercial drones are gaining huge popularity across the globe. For instance, in Americas, drones are widely used for rescue operations during crises, disaster response and reconstruction. Though there are stringent rules and regulation regarding the usage of commercial drones, the progressing regulation for drones by FAA would further help to expand the commercial drone market in Americas.

Hardware, Software and Service By type, the global market is divided into three types of markets as hardware, software and services. The hardware market is further categorized on the basis of drone types. Types of drones taken in hardware market are fixed wing, rotary wing, hybrid, and nano drone. Additionally, software segment is traced from various solutions such as data management, analytics, imaging, and some others. Services

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market is derived with various commercial drone maintenance services such as repairing, replacement and upgradation of hardware and software.

Industry and Geography The primary users taken into account for the commercial drone market are various industry verticals such as agriculture, energy & utility, mining, engineering & construction, research & education, and others. These industries include various drone applications such as field mapping, crop spraying, inspection, and many others. Furthermore, geographically the market is derived from five regions, such as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. North America market includes U.S., and Canada. European region contains both western

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and eastern Europe. Asia-Pacific region includes all Asian countries along with Australia, Japan and New Zealand. Finally, Middle East & Africa and Latin America

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region include countries such as South Africa, Brazil and Others.

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2.2 Research Methodology We utilize a mix of primary research, secondary research and machine learning algorithms to generate comprehensive data about market sizes and revenue forecasts. Our primary focus on continuous market tracking, rigorous fact-checking, data-triangulation, and multiple layers of quality control ensures high-quality data that can be leveraged for actionable research insights.

2.2.1 Primary Data Structured interviews with industry specialists, VPs, CEOs, directors, technology consultants were taken in order to collect the key primary data. The primary data is

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focused on both the demand and supply sides of the market. Market Engineering

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has been carried out from the data and excessive analysis has been done on it.

Perspective

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Supply Side

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Primary data is also extensively considered while validating the secondary data.

Demand Side

    

Report Parameters

Key Industry Participants (KPIs)

Primary Research

Manufacturers Wholesalers Distributors End-users Consumers

Primary Sources        

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Suppliers Government Agencies Regulatory Bodies Research & Development Companies Investment Research Companies Business Consulting Service Providers Academic Institutions/Universities Venture Capitalists

2.2.2 Secondary Data The data from important secondary sources is utilized to obtain industry supply chains, company profiles and other key areas such as market drivers, opportunities trends from the market perspective. In addition, secondary data is gathered using paid databases such as Bloomberg, Hoovers, Factiva, and government publishing sources.

Secondary Research Company Annual Reports SEC Filings Financial Journals Trade Journals Market Journals Press Releases Directories White Papers Company Websites Magazines

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         

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Supply Side

Demand Side

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Market Size, Revenue, Industry Analysis, Value Chain Analysis, Technology Roadmap, Premium Industry Trends, End-users Analysis, Market Segmentation, Geographic Analysis, Key Market Players, Competitive Landscape

Perspective

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Report Parameters

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 Case Studies  Customer References

2.2.3 Machine Learning In addition to assigning weights to all the relevant market parameters, to quantify their market impact for generating projected market growth rate, we use advanced machine learning algorithms to collate essential market data. The machine learning method utilizes algorithms such as regression, correlation and decision tree, among others, to derive the desired output.

Advantages of Machine Learning-based Forecasts Unlimited Data Highly Detailed Forecasts Profound Knowledge of Demand Broad Applicability Customizable Model Identifies Drivers Analysis - Product, Value Chain, Supply Chain, Competitor

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2.2.4 Research Scope

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Using Machine Learning for Data Forecast

     

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Perspective

We have utilized the top-down, bottom-up approach to study the market size, industry dynamics, key regional markets, and major market trends. The global market has been estimated by integrating the regional markets, estimating the market data for the base year 2015, and annual share and revenue forecasts to 2022 in US$.

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Figure 1. Research Methodology

Top-down Global Market Size

Global Market Size

Market-specific Revenues of Key Players

Segment-specific Market Size

Regional Total Revenues of Key Players

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Market

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2.2.5 Years Considered

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Bottom-up

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Size

Market Specifics

Report Scope

Historical Year

2014

Base Year

2015

Estimated Year

2016

Forecast Period

2016 – 2022

Revenue Currency

US$

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2.2.6 Currency & Pricing The currency used in the report is the U.S. dollar, with market size indicated in US$ million and US$ billion. 

Revenue is obtained from the annual company reports (For all the companies reporting their revenue in US$) Revenue is converted as per the annual currency exchange rate for that particular year (For the companies reporting their revenue in currencies other

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than US$)

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

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2.3 Market Segmentation Figure 2. Commercial Drone Market, By Industry, Type and Geography

COMMERCIAL DRONE MARKET INDUSTRY

TYPE Hardware

Energy & Utility

Fixed Wing

Mining

Rotary Wing

Engineering & Construction

Hybrid

Research & Education

Nano

Software

North America

Data Management & Analytics

Europe

Imaging

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Others

Asia-Pacific Middle East & Africa Latin America

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Others Source: Scalar Market Research Analysis

Services

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Agriculture

GEOGRAPHY

2.4 Key Objectives & Benefits of the Report

2.4.1 Objectives of the Report 

To offer in-depth information about the key market drivers and restraints influencing the growth of this market during the forecast period



To analyze the major challenges and opportunities expected to play crucial role in the revenue and market size growth of the key players in this market



To forecast the market size, in terms of the market size and revenue for all its segments with respect to the major geographic regions including North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America



To comprehensively analyze the strategic developments such as mergers & acquisitions, new product launches, business expansions, and the new business agreements in the commercial drone market

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

To define the high-growth segments of the market and offer in-depth analysis of the competitive landscape in the market for various key players

2.4.2 Key Benefits of the Report 

In-depth analysis of the market segments that will showcase the greatest growth potential



Deeper understanding of the behavior of the key players and innovators influencing this market

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Granular understanding of the historical market trend and the resultant market forecast Information about the technological advancements influencing the growth of

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the global market

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during the forecast period

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Extensive evaluation of all the market dynamics that will impact this market

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

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3 EXECUTIVE SUMMARY The objective of this report is to describe the market trends and revenue forecasts for the commercial drone market for the next six years. The report focuses on defining and describing the key influencing factors for the growth of the market. It also offers an in-depth analysis of the market size (revenue), market share, major market segments, different geographic regions, key market players, and premium industry trends.

The report tracks the major market events including product launches, technological developments, mergers & acquisitions, and the innovative business strategies opted by key market players. Along with strategically analyzing the key micro-markets, the report also focuses on industry-specific drivers, restraints and opportunities in the

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physical security market. The scope of this report covers the commercial drone

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market by its major segments, which include the type, technology, industry, and the major geographic regions.

The commercial drones are gaining huge popularity across the globe. For instance,

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countries such as the China, Japan, Australia, and New Zealand, in Asia-Pacific region hold high potential and lucrative growth opportunities for commercial drone

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market. Japan uses the commercial drones mainly for agricultural applications.

Framers there have been using drones for decades to inspect crops.

Commercial drone is a growing technology since then and its expand its presence to many industries such as, agriculture, engineering & construction, energy & utility, mining, research & education, and many others. The advantages offered by commercial drone are enormous, despite the challenges like lack of expertise and interruption of privacy. Therefore, supplier of these drones are gaining momentum on this and successfully increasing their footprint into other industries as well. Moreover, industry also demand solutions which can offer a complete life-cycle of product services and regular upgradation of technologies.

The multi-dimensional applications are the major trend seen in the global commercial drone market. Emphasis on real-time mapping, geological surveys, crisis management, live stock monitoring, aerial photography are the key factors enhancing demand of commercial drones in the market.

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Market at a Glance

 Global commercial drone market to reach US$ XX million by 2022  The dominance of hardware market in type segment is anticipated to seen in upcoming years

 Agriculture in industry segment with a market share of around XX%  Energy & Utility in the same industry segment to be the fastest growing with a CAGR of XX% in the forecast period

 U.S. dominates the market among the geography, as a result North America is anticipated to continue the dominance over the market till - 2022

 Europe is expected to see significant growth and reach US$ XX million by 2022

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Table 1. Global Commercial Drone Market – Executive Summary Market Size (US$ Millions)

Total

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Largest Segment, by Revenue - Hardware

Type

2016

2022

CAGR% (2016 – 2022)

1067.2

2751.4

17.1%

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Global Commercial Drone Market

Industry

Largest Segment, by Revenue - Agriculture

Geography

SA

Fastest Growing Segment - Services

Largest Segment, by Revenue North America

Fastest Growing Segment - Energy & Utility

Fastest Growing Segment - Europe

Source: Scalar Market Research Analysis

24

4 MARKET DYNAMICS 4.1 Drivers Table 2.

Global Commercial Drone Market Drivers Drivers

2014 – 16

2017 – 19

2020 – 22

E

Increase in demand from several applications

Increase in demand from several applications

M



● Very High Impact, ◕High Impact, ◑Medium Impact

o Drones have been proved to be an effective solution for various nonmilitary applications such as media and entertainment, energy and

SA

Note:

PL

Source: Scalar Market Research Analysis

power,

agriculture,

mining,

infrastructure,

and

environmental

monitoring. With the approval from regulatory bodies such as FAA the commercial drones are anticipated to gain huge demand from various major companies in coming years. o For instance, many companies such as Amazon.com Inc. are planning to utilize the drones to deliver packages directly to the customers.

Considering the demand of drones from such major companies the drone manufacturers are now focusing on producing advanced drone with various effective features. Many of them have already introduced advanced commercial drones

26

5 INDUSTRY ANALYSIS 5.1 Value Chain Analysis Figure 7. Commercial Drone Value Chain Analysis

•Precisionhawk •DJI •Parrot S.A. •3D Robotics, Inc. •Delair -Tech SAS •Drone Deploy •Trimble UAS

Component Manufacturers

Source: Scalar Market Research Analysis

Industries

•Federal Aviation Administration (FAA) •Civil Aviation Authority (U.K.) •Federal Aviation Office (Germany) •Ministry of Ecology (France) • Transport Canada

•Agriculture •Energy & Utility •Mining •Engineering & Construction •Research & Education

Regulatory Bodies

End Users

M

Drone Manufacturers

Regulatory Bodies

E

•FLIR Systems, Inc. •Fluke Corporation •NAC Image Technology, Inc. •Mikrotron GmbH •Avidyne Corporation •FEI-ZYFER Inc

Commercial Drone Manufacturers

PL

Drone Component Manufacturer

such as:

SA

Value chain of the global commercial drone market involves several key processes,



Component Manufacturers



Drone Manufacturers



Regulatory Bodies



Industries

Commercial drone market has seen substantial values integration from multiple areas of technology, government and regulatory bodies, prerequisite components, and large scale applications like in agriculture, mining, engineering & construction, energy & utility, research & education, and many others. Sophisticated components such as control systems, image sensors, propulsion systems, long-life batteries have influenced the drone market and drawn interest in commercial uses.

31

6 COMMERCIAL DRONE MARKET, BY TYPE 6.1 Overview The commercial drone market is primarily segmented into three types of offerings such as, hardware, software and services. According to the analysis, it is expected that the hardware holds the majority of the market share and will remain the same over the forecast period. The software market was valued US$ XX million in 2015, and is expected to reach US$ XX million by 2022. However, services segment is expected to grow at a fastest CAGR of XX%, as industry users are looking for holistic commercial drone services.

Hardware market has gained traction with its wide-range of drone categories, such as fixed wing drone, rotary wing drone, hybrid drone, and nano drone. Additionally,

E

software market is categorized into data management & analytics, imaging and other

PL

segments.

M

Figure 9. Global Commercial Drone Market Share (%), By Type, 2016 & 2022

9.8%

SA

13.8%

Hardware

11.6%

14.1%

2016

Software

2022

74.3%

76.4%

Services

Source: Scalar Market Research Analysis

38

Table 3.

Type

Global Commercial Drone Market Size (US$ million), By Type (2014 – 2022) 2014

2015

2016

2017

2018

2019

2020

2021

2022

CAGR% (20162022)

Hardware Software Services Total

17.1%

Source: Scalar Market Research Analysis

E

Figure 10. Global Commercial Drone Market Size (US$ million), By Type 2016 & 2022

PL

2016

2022

M

815.0

SA

US$ Million

2,043.9

Hardware

388.5 147.3

Software

Source: Scalar Market Research Analysis

39

319.0 104.9

Services

7 COMMERCIAL DRONE MARKET, BY INDUSTRY 7.1 Overview The commercial drone market in energy & utility and mining is expected to register the highest growth rate as this investment garner high return on investment (ROI) in quick payback time. The deployment of drone helps by observing excavation, measuring collective volumes, pipeline monitoring, infrastructure inspection, and many others.

Among all the industry verticals, agriculture is expected to hold major chunk of the market share with a CAGR of XX%. However, mining and energy & utility industries are anticipated to grow at a higher CAGR of XX% and is believed to reach US$ XX

E

million and US$ XX million respectively by 2022.

PL

Global Commercial Drone Market Share (%), By Industry, 2016 & 2022

17.2%

38.1%

6.9%

SA

2016

15.1%

M

Table 6.

10.8%

Agriculture

16.2%

Energy & Utility

34.2%

7.7%

Mining

2022 Engineering & Construction

15.9%

11.9%

12.3%

13.7%

Research & Education Others

Source: Scalar Market Research Analysis

46

Table 7.

Global Commercial Drone Market Size (US$ million), By Industry (2014 – 2022)

Industry

2014

2015

2016

2017

2018

2019

2020

2021

2022

CAGR % (20162022)

Agriculture Energy & Utility Mining Engineering & Construction Research & Education

E

Others Total

PL

Source: Scalar Market Research Analysis

17.1%

M

Figure 15. Global Commercial Drone Market Size (US$ million), By Industry, 2016 & 2022

2016

SA

US$ Million

816.7

406.2

385.4

370.4 314.4

127.5

2021

283.2 176.7

160.9

183.9

114.9 73.8

Agriculture

Energy & Utility

Mining

Engineering & Construction

Source: Scalar Market Research Analysis

47

Research & Education

Others

8 COMMERCIAL DRONE MARKET, BY GEOGRAPHY 8.1 Overview The commercial drone is attaining high growth in both developed and developing countries. The global commercial drone market is segmented into several geographical regions such as North America, Europe, Asia-Pacific, and Rest of World. Among these North America, is the biggest market holding approximately 40% of the total commercial drone market and anticipated to maintain the same position over the forecast period.

However, industrial manufacturing, transportation, retail & ecommerce industries are expected to drive the growth for real-time location system market in Asia-Pacific. The said market is expected to grow at the highest CAGR of XX% among other region

PL

E

between 2016 and 2022.

8.9% 6.6%

M

Figure 22. Global Commercial Drone Market Share (%), By Geography, 2016 & 2022 North America

9.0%

6.8% 32.5%

Europe

19.7%

SA

39.0%

2016

20.9%

2022

Asia-Pacific

MEA

25.8%

30.9%

Latin America

Source: Scalar Market Research Analysis

55

Table 14. Global Commercial Drone Market Size (US$ million), By Geography (2014 – 2022) Geography

2014

2015

2016

2017

2018

2019

2020

2021

CAGR% (2016 – 2022)

2022

North America Europe Asia-Pacific MEA Latin America Total

17.1%

Source: Scalar Market Research Analysis

M

416.0

849.6

SA

US$ Million

892.8

PL

E

Figure 23. Global Commercial Drone Market Size (US$ million), By Geography, 2016 & 2022

2016

2022

575.0

275.8

248.2

210.1

185.7

70.8

North America

Europe

Asia-Pacific

Source: Scalar Market Research Analysis

56

MEA

94.5

Latin America

9 COMPETITIVE LANDSCAPE 9.1 Market Positioning

PL

E

Low

Industry Penetration

High

Figure 44. Market Positioning of Key Players

Low

High

Product Diversification

Parrot S.A.

3D Robotics, Inc.

DJI

AeroVironment, Inc.

DroneDeploy

SA

PrecisionHawk Inc.

M

(The size of the bubble represents Strategic Development)

Airware , Inc.

Trimble Navigation Ltd.

Delair-Tech SAS

Source: Scalar Market Research Analysis

The above figure represents market positioning of key players in the commercial drone market. The positioning is derived through adequate study based upon product diversification, industry penetration and recent strategic developments.

Product diversification range is analyzed with study of various product categories and type of services offered by the respective vendors. Additionally, applications serving multiple industry verticals are accounted for the scale of industry penetration.

However, business development strategies including cross border partnerships, new product launch and acquisitions are the key factors involved in the decision making of strategic development.

81

9.2 Key Vendors Offerings Table 45. Key Vendors Offerings

HARDWARE

SOFTWARE

SA

M

PL

E

COMPANY

Source: Scalar Market Research Analysis

82

SERVICES

Figure 45. Commercial Drone Market Snapshot Criteria

Commercial Drone Market

Market Growth Rate Market Size Type of Market Players Market Perimeter Key Industries Growth Strategies Source: Scalar Market Research Analysis

12 APPENDIX

E

12.1 Acronyms

PL

Table 46. List of Acronyms Acronym

Expansion

Asia-Pacific

M

APAC

Corp.

GCC Inc.

Compound Annual Growth Rate

SA

CAGR

Corporation Gulf Cooperation Council Incorporated

IoT

Internet of Things

MEA

Middle East & Africa

NA

Not Available

U.K

United Kingdom

U.S. / USA

United States of America

Y-o-Y

Year on year

Source: Scalar Market Research Analysis

97