To mark the release of our inaugural Drone Market Report and our new one of a kind bottom-up market model, here are the most important market trends you need to know about the drone industry.
1. THE DRONE MARKET WILL GROW TO $43 BILLION USD BY 2024
The big picture, the most important figure to take away, is certainly 43 billion USD. That’s how big the drone market will grow to be in 2024. Having generated 14.1 billion USD in 2018 it will grow at a CAGR (Compound Annual Growth Rate) of 20.5% to almost triple that in 2024. As seen in our graphic, this strong growth is also a reflection of the ongoing high investments and the consolidation of the commercial drone market.
2. ENERGY IS THE LARGEST INDUSTRY, BUT TRANSPORT THE FASTEST GROWING
The energy sector was the largest industry in 2018 and will continue to be so in 2024. However, the Transportation & Warehousing industry will continue to be the fastest growing. This is partly because, as defined by the North American Industry Classification System (NAICS), this vertical includes industries providing transportation of passengers (although air taxis won’t sell for some time still) and cargo, warehousing and storage for goods, and support activities related to modes of transportation like inspection and maintenance of infrastructure. While agriculture and construction currently follow energy as the top industries in the drone market, the growth of the transport sector will mean that in 2024 transport will be the 2nd largest industry on the market.
3. US & CHINA DOMINATE THE DRONE MARKET, BUT ASIA WILL PULL AHEAD
The US and China currently dominate the commercial drone market – together their revenue makes up over 2/3 of the global drone market. While North America in 2018 generated slightly more revenue than Asia, thanks to the growth of not only China, but also Japan and especially India, Asia will majorly pull ahead already by the end of 2019.
4. INDIA WILL BE THE FASTEST GROWING DRONE MARKET
Having legalized drones at the end of 2018, India has already been a rapidly evolving market. This growth pattern will continue, and India as the fastest growing market will develop into the 3rd largest commercial drone market in the world in 2024 (smaller than only USA and China).
5. DRONE SALES WILL TRIPLE FROM 2018 TO 2024
By 2021, the commercial drone industry will have sold 1,000,000 units. Looking at the growth between 2018 and 2024, unit sales will have tripled in this time period.
- The global drone market will grow from $14 billion in 2018 to over $43 billion in 2024 at a CAGR of 20,5%.
- Service is and will continue to be the largest segment of the drone industry, but software is the fastest growing.
- Having legalized drones in December 2018, India will be by far the fastest growing commercial drone market in the world, by 2024 becoming the 3rd largest commercial drone market.