Drone Communication Market Expected to Reach $15.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Drone Communication Market by Method and Application: Global Opportunity Analysis and Industry Forecast, 2023-2032”. The market size of drone communication industry was valued at $2.3 billion in 2022, and is estimated to garner $15.8 billion by 2032, growing at a CAGR of 21.4% from 2023 to 2032. 

Drone communication refers to the exchange of data among drones in a network, focusing on their cooperative movement, collision avoidance, and secure communication. The integration of software-defined networking (SDN) brings a centralized and programmable control plane, enabling efficient management, security, and interoperability within the drone network for traffic monitoring and control. Drones have become integral in various applications such as product delivery, surveillance, search and rescue, and traffic monitoring.

Drone communication industry enables real-time data collection, facilitating efficient monitoring of traffic conditions over wide areas. Multi-drone cooperation ensures comprehensive coverage and timely information dissemination. Also, the use of drones with pre-planned movement strategies allows for agile responses to dynamic traffic scenarios that make them adaptable to changing conditions and emergencies. In addition, lightweight cryptographic protocols ensure secure communication among drones, reducing vulnerabilities and potential threats.

SDN integration enhances security management and consistency across the drone network. Furthermore, integration with SDN brings benefits such as centralized control, experimentation with network configurations without service interruptions, consistent security configurations, cost savings, and improved Quality of Service (QoS). These factors are anticipated to boost the drone communication market size during the forecast period.

Limited range, security concerns, and high initial cost are some of the factors anticipated to restrain the drone communication market share during the forecast timeframe. The primary constraint for drone communication is its restricted operating range. Most drone systems can only transmit data over short distances, limiting applications like long-range surveillance and disaster relief. In addition, drone communication systems are susceptible to interference from various sources, including other wireless devices like cell phones and fellow drones. Such interference can result in communication errors and data loss, impacting the overall performance and reliability of drones.

Also, acquiring and maintaining drone communication systems can be financially burdensome. High initial costs, including drone purchase, accessories, training, repairs, upgrades, and insurance, present a restraint for businesses looking to implement drone technologies.

Interoperability and collaboration facilitated by satellite communication is anticipated to have a positive impact on the drone communication market. This is because the satellite communication facilitates interoperability between different types of drones and other platforms. This opens up opportunities for collaborative exploration and experimentation in research projects. Standardized communication protocols enable smart drones to coordinate efficiently thereby enhancing their effectiveness in complex missions. Satellite communication contributes to advanced and adaptive decision-making for smart drones. In scenarios where drones operate independently or in groups, especially in complex or dynamic environments, effective communication is crucial. Satellite links provide the necessary connectivity for enhanced coordination, improving overall mission efficiency.

Furthermore, satellite communication industry provides an opportunity for smart drone applications to operate globally, even in remote or inaccessible areas where traditional communication infrastructure is lacking. This is particularly beneficial for missions such as environmental monitoring, exploration, and disaster response in regions without reliable terrestrial communication. Also, satellite communication offers resilience to harsh environments and security attacks. This is facilitated by the use of smart drones that leverages secure, encrypted, and jam-resistant links, ensuring robust command and control capabilities. This resilience is crucial for military operations, border patrol, and search and rescue missions where secure communication is imperative.

Thus, satellite communication is expected to support emerging applications for smart drones, such as efficient delivery, inspection, and monitoring services across various sectors like e-commerce, logistics, energy, infrastructure, agriculture, and environmental monitoring. Thus, the global coverage and secure communication offered by satellites is anticipated to boost the drone communication market expansion during the forecast timeframe.

The drone communication market share is segmented on the basis of method, application, and region. By method, it is classified into radio frequency, single or multi Sim, LTE/4G, satellite, and 5G. By application, it is divided into agriculture, construction & mining, inspection, oil & gas, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The report offers a comprehensive analysis of the global drone communication market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Key Findings of the Study

• Based on method, the satellite sub-segment accounted for the highest market share in 2022 and the 5G sub-segment is projected to garner fastest growth rate during the analysis timeframe. 
• On the basis of application, the construction & mining sector registered the highest revenue share in 2022 and the inspection sub-segment is anticipated to grow at the highest CAGR during the forecast period.
• Based on region, North America accounted for the highest market size in 2022 and Asia-Pacific is anticipated to show the fastest growth during the forecast period.

The key players profiled in the drone communication market report include DJI, Parrot Drone SAS, AeroVironment, Inc., Yuneec, Skydio, Inc., AgEagle Aerial Systems Inc, Draganfly Innovations Inc., Teal Drones, Microdrones, and Freefly Systems.