Small Drone Market

Small drones, also known as unmanned aerial vehicles (UAVs), have become increasingly popular in recent years. These devices are essentially flying robots that can be controlled remotely or programmed to fly autonomously. Small drones are used for a wide variety of purposes, ranging from hobbyist photography and videography to commercial surveying and mapping.

One of the primary advantages of small drones is their size. These devices are typically small enough to fit in a backpack or even a pocket, making them highly portable and easy to transport. This portability means that small drones can be used in a wide variety of environments, including indoors and in tight spaces where larger drones would not be able to fly.

Another advantage of small drones is their cost. Compared to larger, more complex drones, small drones are often much less expensive. This makes them a popular choice for hobbyists and enthusiasts who want to explore the world of drones without breaking the bank.

One of the most common uses for small drones is aerial photography and videography. With a small drone equipped with a high-quality camera, users can capture stunning aerial footage of landscapes, events, and other subjects. This type of aerial photography can be particularly useful for real estate agents and property developers who want to showcase their properties from unique angles.

Small drones can also be used for commercial purposes, such as surveying and mapping. With their ability to fly over terrain and capture high-resolution imagery, small drones can be used to create detailed maps and 3D models of terrain and structures. This can be particularly useful for construction companies and engineers who need to plan and design new projects.

However, the use of small drones is not without its controversies. Concerns have been raised about privacy and safety, particularly in relation to the use of drones for surveillance and aerial filming. As a result, many countries have introduced regulations to govern the use of small drones, particularly in public spaces.

Dynamics of Small Drone Market

Small drones can be classified into different categories based on their size and weight. Here are some commonly recognized categories of small drones:

Micro Drones: These drones are the smallest in size, usually weighing less than 250 grams (0.55 pounds) and measuring 10 centimeters (4 inches) or less.

Mini Drones: Slightly larger than micro drones, mini drones typically weigh between 250 grams and 2 kilograms (4.4 pounds) and have a size of up to 30 centimeters (12 inches).

Compact Drones: These small drones are a step up from mini drones in terms of size. They weigh up to 5 kilograms (11 pounds) and measure up to 50 centimeters (20 inches) in size.

Portable Drones: Portable drones are designed for easy transportation and can be folded or disassembled. They usually weigh between 500 grams and 2 kilograms (4.4 pounds) and have a wingspan of up to 50 centimeters (20 inches).

Standard Small Drones: Slightly larger and more powerful than portable drones, standard small drones weigh up to 7 kilograms (15.4 pounds) and have a wingspan of up to 2 meters (6.6 feet).

Drivers in Small Drone Market

The small drone market is influenced by various factors. One of the major drivers is the support provided by governments through regulations and initiatives. Recent advancements in drone technology, including improvements in materials, sensors, and batteries, have resulted in more powerful and efficient small drones that are easier to control. These advancements have also led to a decrease in the cost of small drones, making them more accessible to individuals and businesses.

The applications of small drones are diverse, ranging from aerial photography and videography to agriculture, inspection, surveying, and search and rescue operations. This wide range of applications has contributed to the growth of the small drone market. Governments worldwide have recognized the potential of small drones and have implemented regulations to ensure their safe use. For example, the Federal Aviation Administration (FAA) in the United States has established guidelines for the commercial use of drones, which have facilitated the expansion of the small drone market.

The demand for small drones has increased significantly as more individuals and businesses realize their potential benefits. During the pandemic, small drones were also utilized for various medical purposes due to their compact nature and high endurance. They were able to carry heavy loads, cover large areas, and facilitate the delivery of vaccines, blood, and PPE kits in low- and middle-income countries. Small drones also enabled contactless technical inspections, further contributing to the market's growth.

The FAA has provided valuable insights into the state of small drones in the United States. As of March 2021, there were over 1.9 million drones registered with the FAA, with the majority falling into the small drone category, weighing between 0.55 pounds and 55 pounds. The FAA projects that the number of drones in the United States will reach 2.4 million by 2023, with small drones constituting the majority.

In the past year, the FAA issued more than 473,000 remote pilot certificates, which are mandatory for operating a drone commercially. To ensure safety and accountability, the FAA has implemented regulations that require all drones weighing between 0.55 pounds and 55 pounds to be registered and marked with a unique identification number. Additionally, drone pilots are required to pass a knowledge test and obtain a remote pilot certificate for commercial drone operations.

Based on an FAA report, the number of drones used for commercial purposes is expected to grow at an annual rate of 24.1%, reaching 835,000 by 2024. This indicates a promising future for the small drone market, driven by technological advancements, supportive regulations

Restraints in Small Drone Market

Restrictions on the use of small drones are imposed in many countries, with regulations requiring registration and pilot certification. The Federal Aviation Administration (FAA) in the United States has implemented regulations that restrict the altitude and distance at which small drones can be flown, as well as requiring drone pilots to pass a knowledge test and obtain a remote pilot certificate. Safety is a major concern in the use of small drones, as they can pose a risk to people, property, and other aircraft if not operated safely. Regulations typically include restrictions on where and how drones can be flown, and some countries have limited the use of drones equipped with cameras or other sensors for surveillance purposes. Battery life is also a limitation, restricting flight time and range, and small drones are often sensitive to weather conditions, which can restrict their use in certain environments and applications.

Opportunities in Small Drone Market

On the other hand, small drones offer several opportunities for various industries. Aerial photography and videography, particularly in the film and television industry, are increasingly using small drones, and the global aerial imaging market is expected to reach $6.6 billion during forecast period. Small drones can be utilized for precision agriculture, allowing farmers to gather crop data and make informed decisions about irrigation, fertilization, and pest control. Small drones can also be used for infrastructure inspection and maintenance, reducing the risk of accidents and improving maintenance operations' efficiency. Search and rescue operations in areas that are difficult or dangerous to access by ground or air can be conducted using small drones. Delivery of small packages, particularly in areas that are difficult to access by traditional delivery methods, is also a growing application for small drones. Furthermore, small drones are used for surveillance and security of key institutions, such as major events or gatherings in large cities. With several government agencies imposing strict policies and guidelines for the installation of small drones at high-risk locations, the growth of the small drones market is expected to continue during the forecast period.

Challenges in Small Drone Market

Small drones are faced with several challenges that limit their use in commercial applications. One of the main issues is their limited battery life, which typically lasts between 20 to 30 minutes. This makes it difficult for small drones to fly for longer periods and cover greater distances. The drone industry is aware of this limitation, and it is considered one of the primary factors hindering their widespread commercial use.

Small drones are also subject to regulations in many countries that restrict their use in certain industries and applications. For example, some countries impose altitude and distance restrictions on drone flights or prohibit their use in specific areas or activities. These regulations are in place to ensure the safety of people, property, and other aircraft. Drones that are not operated safely can pose significant risks and can result in accidents.

The use of small drones equipped with cameras or other sensors raises privacy concerns, leading some countries to limit their use for surveillance purposes. Moreover, small drones can be sensitive to weather conditions such as wind, rain, and temperature, making them unsuitable for some environments and applications.

Electromagnetic interference can disrupt the control systems of small drones and cause them to malfunction or crash. This can be a significant challenge in areas with high levels of electromagnetic interference, such as near power lines or industrial equipment.

As small drones become more widely used for civilian applications, governments in developed economies are drafting laws and regulations to protect areas of national, historical, or natural importance. However, the rapid evolution of drone technology has made it challenging for policymakers to keep pace with the changes.

Ecosystem of Small Drone Market

The small drone market can be categorized based on their power source, specifically fuel-powered and battery-operated/electric drones. Each type of power source serves a distinct purpose and ensures the efficient operation of small drones across different applications.

In 2022, the battery-operated segment is projected to hold the largest market share. Battery-powered or electric small drones utilize batteries to store energy and power their electric motors. These drones are user-friendly and produce less noise compared to turbo engine drones.

However, small drones powered by lithium-ion batteries require recharging once the battery charge is depleted. The recharging process can be time-consuming. On the other hand, fuel-powered drones can be quickly refueled. Military drones powered by hydrogen offer the advantage of electric propulsion, enabling them to fly for extended durations.

Over the forecast period, the military sector is expected to dominate the market due to increasing global tensions between countries and rising investments in research and development to strengthen military capabilities. The high payload capacity of small drones has fueled the demand for battlefield resupply. Additionally, there is a significant demand for AI-equipped drones that provide navigation, guidance, and target identification from higher altitudes, further driving market growth.

The fully autonomous segment is anticipated to experience the fastest growth during the forecast period. These drones have higher power capacity and flexibility. They can operate at higher altitudes with minimal human intervention and offer improved propulsion, extended endurance, and larger cargo capacity. These factors contribute significantly to market growth. Moreover, the cost-effectiveness of fully autonomous drones makes them suitable for various applications, including medical delivery and defense operations, thereby positively impacting market growth over the forecast period.

During the forecast period, the fully autonomous segment of small drones is expected to experience significant growth due to the cost-effective usage of autonomous small drones in various applications, including defense operations and surveys. Optionally piloted small drones are highly maneuverable, equipped with advanced technologies, and have comparatively low maintenance costs. However, fully autonomous small drones with high payload capacity, enhanced propulsion power, and long endurance, and the ability to operate without human involvement, are anticipated to replace them in the coming years.

The civil and commercial segment is expected to grow at a higher compound annual growth rate (CAGR) during the forecast period, primarily due to its low maintenance cost, high mobility, and easy deployment. Additionally, the adoption of small drones in various commercial projects, such as in agriculture, medical, law enforcement, wildlife monitoring, aerial photography, construction, and transportation, is expected to drive market growth. The growing demand for water and power utility infrastructure is also expected to create a lucrative opportunity that will boost market growth.

Moreover, the demand for the fixed-wing segment of small drones is increasing due to its high endurance, mobility, and efficiency. Fixed-wing drones mostly operate on vertical take-off and landing (VTOL), which makes them energy-efficient, flexible, and highly maneuverable. Furthermore, fixed-wing drones can cover large distances, operate for longer periods, and hover for extended periods, all of which contribute to their high demand and are expected to drive market growth.

During the forecast period, the battery-powered segment is anticipated to have the most significant market share. This is due to its ease of operation and lower noise level when compared to turbo engine drones. The popularity of lithium-ion batteries is also on the rise because of their adaptable design, high energy, and high power density. These factors are expected to drive the growth of the market, especially in small drones.

Furthermore, the usage of battery-powered sources is increasing due to their extended lifespan and capacity to function in extreme conditions with a single power source. These advantages are expected to have a positive impact on revenue growth throughout the forecast period.

Regional Insights

The Asia Pacific small drone market is projected to experience significant growth and achieve the highest compound annual growth rate (CAGR) during the forecast period. The driving force behind this market growth in the region is the increase in defense spending.

The Asia Pacific region is home to rapidly developing economies like China, India, and Japan, which possess growing purchasing power parity. Many countries in the region are expected to surpass several leading economies worldwide by 2030, fueled by the rapid expansion of the nominal GDP in Asia Pacific. Governments in the region are actively focused on enhancing economic development and creating favorable environments to attract investments in emerging technologies.

While military budgets in Asia Pacific may not be as substantial as those in Europe and the United States, there is a growing trend to modernize infrastructure and transportation, among other platforms. Moreover, China, in particular, plays a significant role in the global drone market as both a manufacturer and buyer of drones for commercial, consumer, and military applications. The country has developed drones with the capability to operate in various temperature conditions while maintaining high-performance efficiency.

China's demand for small drones is increasing, particularly in the military and commercial sectors. Manufacturers in the country have prioritized the development of high-performance drones that can function effectively in diverse temperature environments. Additionally, China ranks second in the list of the top 10 countries with the highest defense budgets. In 2021, China allocated USD 293 billion to the defense sector, further illustrating its significant investment and commitment in this area.

Here are some statistics about the small drone market in different regions:

Europe: European small drone market was valued at $900 Million last year, and is expected to grow at a compound annual growth rate of 11.7% during forecast period. The report notes that the growth in the European market is being driven by increasing adoption of small drones in industries such as construction, agriculture, and public safety.

North America: The North American small drone market was valued at $2.63 billion last year, and is expected to grow at a compound annual growth rate of 14.1% during forecast period. The report notes that the growth in the North American market is being driven by increasing adoption of small drones in industries such as construction, agriculture, and inspection.

South America: There is limited data available about the small drone market in South America. However, The Latin America drone market (which includes both small and large drones) was valued at $466 million last year, and is expected to grow at a compound annual growth rate of 12.1% during forecast period.

Africa: There is limited data available about the small drone market in Africa. However, the African drone market was valued at $465 million last year, and is expected to grow at a compound annual growth rate of 18.6% during forecast period. The report notes that the growth in the African market is being driven by increasing adoption of small drones in industries such as agriculture, public safety, and mining.

APAC (Asia-Pacific): According to a report by Drone Industry Insights, the Asia-Pacific small drone market was valued at $1.95 billion last year, and is expected to grow at a compound annual growth rate of 16.3% during forecast period. The report notes that the growth in the Asia-Pacific market is being driven by increasing adoption of small drones in industries such as agriculture, construction, and inspection.

Dominating Companies in Small Drone Market

• DJI
• PARROT DRONE SAS
• NORTHROP GRUMMAN CORPORATION
• RAYTHEON TECHNOLOGIES CORPORATION
• ISRAEL AEROSPACE INDUSTRIES LTD.
• TELEDYNE FLIR LLC
• AEROVIRONMENT, INC.
• THE BOEING COMPANY
• TEXTRON INC.
• LOCKHEED MARTIN CORPORATION
• BAE SYSTEMS PLC
• THALES GROUP
• ELBIT SYSTEMS LTD.
• SAAB AB
• AERONAUTICS LTD
• DELAIR
• MICRODRONES
• TURKISH AEROSPACE INDUSTRIES
• SHIELD AI
• INSTANTEYE ROBOTICS
• FLYABILITY
• AUTEL ROBOTICS
• SKYDIO, INC.
• VOLANSI, INC.
• DYNETICS, INC
• 3DR
• Husban
• Holy Stone
• Precisionhawk Inc.
• Shenzhen Hubsan Technology Co.Ltd.
• Turkish Aerospace Industries Inc.

Recent Developments in Small Drone Market

• In 2021, AeroVironment, a leading manufacturer of small drones for military and commercial use, acquired Arcturus UAV, a company that specializes in unmanned aircraft systems for the defense industry. This acquisition was aimed at expanding AeroVironment's product offerings and strengthening its position in the military drone market.
• In 2020, drone manufacturer Parrot announced a partnership with Dronisos, a company that specializes in drone light shows. The partnership was aimed at creating new entertainment experiences using drones and developing a platform for aerial entertainment.
• In the same year, Chinese drone manufacturer DJI acquired Hasselblad, a Swedish camera company, in a move aimed at improving DJI's drone camera technology. The acquisition allowed DJI to integrate Hasselblad's imaging technology into its drone cameras, improving the quality of aerial photography and videography.
• In 2019, FLIR Systems, a company that specializes in thermal imaging cameras, acquired Aeryon Labs, a manufacturer of small drones for military and commercial use. The acquisition was aimed at expanding FLIR's product offerings and strengthening its position in the drone market.
• Also in 2019, drone manufacturer Autel Robotics announced a partnership with FoxFury Lighting Solutions, a company that specializes in lighting for drones. The partnership aimed to create new solutions for nighttime drone operations and improve safety in low-light environments.
• In 2021, French drone manufacturer Parrot announced the acquisition of MicaSense, a leading provider of multispectral imaging solutions for agriculture. The acquisition is expected to enhance Parrot's offerings in the precision agriculture market.
• In 2020, drone manufacturer DJI announced a partnership with Rosenbauer International AG, a leading manufacturer of firefighting equipment. The partnership aims to develop a drone-based firefighting system that can be used for search and rescue, hazardous material incidents, and other emergency situations.
• In 2019, AeroVironment, a California-based drone manufacturer, acquired Pulse Aerospace, a developer of small VTOL drones for military and commercial applications. The acquisition is expected to strengthen AeroVironment's product offerings in the small drone market.
• In 2019, FLIR Systems, a leading provider of thermal imaging solutions, acquired Aeryon Labs, a Canadian manufacturer of small drones for military and commercial applications. The acquisition is expected to enhance FLIR's offerings in the drone market, particularly in the area of public safety and law enforcement.
• In 2019, Skydio, a California-based drone manufacturer, raised $100 million in a funding round led by Next47, the venture capital arm of Siemens. The funding is expected to support the development of Skydio's autonomous drone technology for commercial and industrial applications.

In conclusion, small drones have become an increasingly popular tool for hobbyists, enthusiasts, and professionals alike. With their portability, affordability, and versatility, small drones offer a wide range of benefits and applications. However, it is important to use these devices responsibly and in accordance with applicable regulations and laws.