The global commercial drones’ market size is expected to decline from $4.14 billion in 2019 to $3.64 billion in 2020 at a compound annual growth rate (CAGR) of -12.0%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach $6.15 billion in 2023 at CAGR of 19.09%.
Increasing supply chain and manufacturing disruptions are limiting the sales of drones owing to the COVID19 outbreak. Drones manufacturers are struggling to meet production schedules across the world owing to the disruptions caused by coronavirus lockdowns in Chinese manufacturing systems. According to Drone Life’s article posted in March 2020, Skydio, a USA-based company engaged in assembling drones, is suffering from supply chain disruptions caused by the slowdown in the manufacturing of the parts. Moreover, in a snowball effect, many companies are experiencing shutdowns in manufacturing activities due to COVID-19 lockdowns, which is impacting the availability of subcomponents to assembling companies. Therefore, the disruptions in supply chain and manufacturing are expected to restrict the growth of the global commercial drones’ market during 2020.
Commercial drones are being considered by companies that have last-mile delivery as a main business process. The drones will help reduce cost per delivery and delivery time, thus increasing profits and increasing the growth of the commercial drones’ market. According to a McKinsey report, if companies save 40% of their delivery costs using drones, then they will enjoy a 15-20% increase in their profit margin and a 15-20% decrease in their product or service prices. For example, in March 2019, Zomato, an Indian food delivery company, conducted experiments to enable drone delivery in their value chain.
The commercial drones market consists of sales of commercial drones. These multi-functional flying devices are used by entities to collect and consolidate data, conduct safety and security checks and inspection. This market mainly comprises of fixed wing drones, rotary blade drones and hybrid wing drones supported by a variety of services and used for a variety of applications.
The commercial drones’ market segmentation by type includes fixed wing drones, rotary blade drones, and hybrid drones. By application, it is segmented into agriculture and environment, media and entertainment, energy, government, construction & archaeology, and others. By technology, it is segmented into remotely operated, semi-autonomous, and autonomous.
Major players in the commercial drones’ market include DJI, Parrot SA, Aerovironment, PrecisionHawk, and Draganfly. Companies have been investing in mergers and acquisitions to strengthen their businesses. In January 2019, FLIR systems, Inc., a US-based company which designs, manufactures, and markets thermal imaging and infrared camera systems, acquired Aeryon Labs for $200 million. With this acquisition, FLIR Systems will integrate their current offerings with drone technology to provide multiple solutions to many different issues. Aeryon Labs is a leading developer of high-performance unmanned aerial systems (UAS) for the global military, public safety and critical infrastructure markets.
Here Is A List Of Similar Reports By The Business Research Company:
Interested to know more about The Business Research Company?
The Business Research Company is a market intelligence firm that excels in company, market, and consumer research. Located globally it has specialist consultants in a wide range of industries including manufacturing, healthcare, financial services, chemicals, and technology.
The World’s Most Comprehensive Database
The Business Research Company’s flagship product, Global Market Model, is a market intelligence platform covering various macroeconomic indicators and metrics across 60 geographies and 27 industries. The Global Market Model covers multi-layered datasets which help its users assess supply-demand gaps.
Company Name: The Business Research Company
Contact Person: Oliver Guirdham
Email: Send Email
Phone: +44 20 7193 0708
Address:1st Floor, Anshu Colors Building, Road Number 1
State: Greater London
Country: United Kingdom