Drone Software Market Expected to Reach $21.93 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Drone Software Market," The drone software market was valued at $5.96 billion in 2021, and is estimated to reach $21.93 billion by 2031, growing at a CAGR of 14.5% from 2022 to 2031.

Asia-Pacific is dominating the market in terms of revenue, followed by North America, Europe, and LAMEA. China dominated the drone software market in 2021, whereas India is expected to grow at a significant rate during the forecast period. The rise in construction activities and increase in the establishment of infrastructure across the developing Asia-Pacific nations, further fuel the demand for drone services in the region, thus driving the drone software market.

Drones are utilized in the transportation of goods and passengers globally depending on the requirement of various industries, such as tourism, logistics, and defense industries. They form a part of the investment of an organization owing to huge maintenance costs and operating costs apart from the immense procurement costs associated with an unmanned aerial vehicle (UAV). In addition, rise in the defense budget has enabled governments of various countries to enter into agreements with drone & component manufacturers such as DJI and Precision Technologies Ltd. to offer better and advanced products, which supplements the growth of the drone software market across the globe. In recent years, the demand for entire drone packages has risen steeply. The amount of data collected by drones has expanded dramatically in recent years, owing to high-resolution cameras being used for image mapping, video capture, and equipment tracking. Drone data, on the other hand, is frequently unstructured. As a result, drone analytics is crucial in converting unstructured data to structured data for better analysis.

The drone software market is segmented basis of solution, application, architecture, deployment, and region. By solution, it is divided into system and application. By end use, it is divided into defense & government, agriculture, energy & power, construction & mining, media & entertainment, Logistics & Transportation, others. By architecture, it is segmented into open source and closed source. By deployment, it is divided into onboard drones, and ground-based. By region, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

COVID-19 Impact Analysis

• The COVID-19 impact on the drone software market is unpredictable, and is expected to remain in force for a few years.
• Due to the revenue crunch and rise in maintenance costs were two of the major challenges adversely affecting the drone manufacturers. Furthermore, the reduced GDP of major economies such as the U.S., UK, China, France, India, Germany, and others in 2020 was anticipated a drop in investment in the aerospace and defense industry.
• The reduction in aerospace and defense spending has had a negative impact on autonomous aircraft development and deployment plans, particularly unmanned aerial vehicles (UAVs), reducing demand for drones.
• However, various use cases of drone have been developed and utilized by drone service providers during the COVID-19 pandemic, including lab sample pick-up and delivery and transportation of medical supplies to reduce transportation times and minimize infection exposure, aerial spraying of public areas to disinfect potentially contaminated areas, and public space monitoring and guaranty.
• Moreover, vaccination drive enabled lowering of barriers to economic activity, as well as domestic and international travel. As the restrictions lifted, travel recovered quickly, leading to increase in UAV related applications, which expected to boost the drone software market.

KEY FINDINGS OF THE STUDY

• By solution, the system segment is expected to register a significant growth during the forecast period.
• By end use, the defense and government segment is projected to lead the global drone software market during the forecast period.
• By architecture, the closed source segment is projected to lead the global drone software market during the forecast period.
• By deployment, the ground based segment is projected to lead the global drone software market during the forecast period.
• Region-wise, Europe is anticipated to register the highest CAGR during the forecast period.

The key players that operate in this drone software market are AirMap Inc., Delair, DJI Technology, DroneBase, DroneDeploy, ESRI, Kespry Inc., MEASURE, Pix4D SA, PrecisionHawk, Inc., SENSEFLY, SHARPER SHAPE, SKYCATCH INC, Skydio, Sky-Future, Skyward IO (Verizon Company), and Yuneec and others.