Global Earth Observation Drones Market Grows Steadily at a CAGR of 6.7%

Introduction

Drone technology has grown substantially over the past few years due to its increased use in complex and demanding industries such as oil and gas, mining, search and rescue, disaster management, environmental monitoring, and agriculture. In addition to military, commercial, and civilian government end-users, the demand for drones has expanded to include law enforcement, emergency response, and critical infrastructure monitoring. This has resulted in the continued development of compact payload and sensor variants in sensor-agnostic drones. Moreover, drone deployment for cinematography and aerial photography has played a big part in the overall drone industry, assisting organizations such as DJI, Parrot Drone SAS, Insitu Inc., and AeroVironment, Inc. to produce reasonably large sales throughout the years.

Market Dynamics

Increase in Demand for Drones Post COVID-19 Drives the Global Market

During the COVID-19 pandemic, the benefits of deploying drones for numerous commercial, industrial, and civil government purposes were fully appreciated, and it is anticipated that drones will continue to see increased expansion after the epidemic. The crucial criterion for growing demand was the requirement of robust autonomous systems to monitor civilian social distancing and provide medicines, vaccines, and other essential commodities. The United Nations International Children's Emergency Fund (UNICEF) highlighted three main applications for drones: the conveyance of medical supplies, aerial spraying of public places, and monitoring public spaces for lockdown and quarantine.

The COVID-19 period's dynamic use of drones has set the way for the expanding usage of drones in many civil-government and industrial applications. They include using drones to inspect infrastructure, such as oil and gas fields, railroads, and bridges. There is a growing demand for drones and unmanned aerial systems to undertake solar panel inspections, construction monitoring, etc. Countries worldwide have loosened drone operation rules to meet this demand to assist the Earth observation drone sector.

Integration of Artificial Intelligence in Drones and Imagery Analytics Creates Tremendous Opportunities

Information processing has become massively automated and scalable because of computers. The advent of artificial intelligence (AI) has enabled the extensive automation of reasoning, or more specifically, solution discovery and parameter optimization. The two activities, solution discovery and parameter optimization, promote autonomous machine learning. Drones employ AI in several ways, including picture identification and stitching. While these applications fall short of the full promise of AI, they enable the automation and scalability of a vast array of applications cost-effectively.

In addition, incorporating AI into drone technology has increased the automation of drones and their applications. Initially, drones were flown manually and remotely, but modern models commonly use artificial intelligence to automate part or all operations. Suppliers of drones can collect and utilize visual and environmental data by combining data from sensors mounted to the drone with artificial intelligence. Drone systems have demonstrated tremendous potential benefits from AI technology. AI has utilized these systems' vast volumes of data to create more efficient, robust, and accurate drones.

Regional Insights

North America dominated the global market and is anticipated to exhibit a CAGR of 6.4% during the forecast period. The United States is a worldwide leader in the industry of Earth observation drones. Airobotics Ltd., Skydio, Inc., Wing Aviation LLC, L3Harris Technologies, Inc., and Lockheed Martin are among the most technologically advanced firms and leading makers of Earth observation drones. These businesses offer drones for various uses, including Earth observation, mapping, rescue operations, and inspections. These drone manufacturers are highly active in the market for Earth observation, having signed several government contracts and agreements and partnered with several national and private organizations. Such initiatives are likely to benefit new companies and burgeoning drone makers.

Europe is estimated to exhibit a CAGR of 7% during the forecast period. Europe includes Germany, Russia, the United Kingdom, and the rest of Europe. Many industrial and research and development hubs exist in the United Kingdom, Russia, Germany, and France to produce creative solutions for market needs. Europe is the second-largest region for expanding the Earth observation drone manufacturing market. Some significant European companies, such as Parrot Drones, SenseFly, and Wingcopter, supply drones to businesses worldwide. Automation, artificial intelligence, cheaper hardware, and rising research and development expenditures propel the region's drone industry. The regional governments maintain a balance between civil and commercial drone initiatives to promote the expansion of Earth observation drones in the area.

Key Highlights

• The global earth observation drones market was worth USD 9,620 million in 2022. It is anticipated to reach an expected value of USD 17,244 million by 2031 at a CAGR of 6.7% during the forecast period (2023-2031).
• By applications, the global earth observation drone market is segmented into environmental monitoring, disaster management, surveying and mapping, search and rescue, surveillance and reconnaissance, industrial inspection and monitoring, agriculture and forestry, and cinematography. Surveillance and reconnaissance accounted for the largest market share and is estimated to exhibit a CAGR of 6.6% during the forecast period. 
• By end-users, the global earth observation drone market is segmented into military, civil government, and commercial. The commercial segment accounted for the largest market share during the forecast period. 
• Based on drone type, the global earth observation drone market is segmented into fixed-wing and rotor-wing drones. The fixed-wing drones accounted for the largest market share and is estimated to exhibit a CAGR of 7% during the forecast period. 
• Based on sensor type, the global earth observation drone market is segmented into LiDAR, hyperspectral sensor, infrared sensor, electro-optical sensor, Red Green Blue (RGB) sensor, and ground penetrating radar. The LiDAR accounted for the largest market share and is estimated to exhibit a CAGR of 7% during the forecast period. 

• North America dominates the global market and is anticipated to register a CAGR of 6.4% during the forecast period. 

Competitive Players

Competitive Players

The global earth observation drones market’s key players are DJI, Parrot Drone SAS, Lockheed Martin Corporation, Northrop Grumman Corporation, Hubsan, Evolve Dynamics, AgrowSoft LLC, Gryphone Dynamics, Asteria Aerospace Limited, Atmos UAV, Drone Volt, Novadem, Teledyne FLIR LLC, Wingtra AG, Yuneec International, Ehang, and Insitu Inc.

Recent Developments

Market News

• In January 2023, the DJI RS 3 Mini, a portable handheld stabilizer, was created especially to work with today's popular brands of mirrorless cameras and lenses by DJI, the world's leading manufacturer of consumer drones and creative camera technology. The DJI RS 3 Mini continues the RS 3 series' strong stabilization performance with a more compact and lightweight design, enabling users to produce high-quality imagery while exploring urban or rural areas.
• In December 2022, DJI, the global leader in civilian drones and creative camera technology, launched the application process for customers who wish to obtain the new C1 class identification label for the Mavic 3 and Mavic 3 Cine drones.

Segmentation

Global Earth Observation Drones Market: Segmentation

By Applications

• Cinematography
• Agriculture and Forestry
• Industrial Inspection and Monitoring
• Surveillance and Reconnaissance
• Search and Rescue
• Surveying and Mapping
• Disaster Management
• Environmental Monitoring
• Earth Observation Drones

By Sensor Type

• LiDAR
• Hyperspectral Sensor
• Infrared Sensor
• Electro-Optical Sensor
• Red Green Blue (RGB) Sensor
• Ground Penetrating Radar

By Drone Type

• Fixed-Wing Drones 
• Rotor-Wing Drones

By Region

• North America
• Europe
• Asia-Pacific 
• Rest-of-the-World