The just-released Global State of Drones 2024 report from Drone Industry Insights provides a comprehensive look at the evolving commercial drone industry, based on the insights gathered from 964 respondents across 94 countries. It highlights key trends, challenges, and future outlooks for the drone market. 

Here’s our recap after devouring the report, which we were happy to be a partner on.

Download the full report from Drone Industry Insights.

Global Representation

This year’s survey reflects a broadening of global participation in the drone industry. The top 10 countries accounted for only 56% of the respondents, compared to higher concentrations in previous years, indicating that more countries from outside the established markets are engaging with drone technology. This diverse engagement suggests that drones are increasingly being adopted across more regions, signaling greater global interest. The United States, India, and Spain emerged as the top three represented countries, each from a different continent, showcasing the expansive reach of drone technology across various parts of the world.

Industry Demographics

The service sector continues to dominate the drone industry, with most respondents operating in this space. However, there has been notable growth in the hardware manufacturing segment, which can be attributed to rising participation from countries like India that are building their own domestic drone manufacturing economies. The survey also found that small companies remain the backbone of the industry, with 55% of respondents representing firms with fewer than 10 employees. This dominance of small businesses is characteristic of the drone industry, though some larger companies, including those with over 5,000 employees, also participated, reflecting the diverse range of company sizes involved in the market.

Drone Applications

The most common application of drones continues to be mapping and surveying, which remains the dominant use case across the industry. However, inspection has seen significant growth this year, moving up to second place, while photography and filming, once a primary use, has dropped to third. Additionally, drones are being used increasingly for spraying and dispensing tasks, particularly in industries like agriculture. 

Motivation for Drone Adoption

When it comes to the reasons for adopting drone technology, improving work safety emerged as the top motivator in 2024. Companies recognize the value drones offer in reducing safety risks, particularly in industries where hazardous work environments are common. Other key reasons for adopting drones include improving the quality of work and saving time, as drones allow for faster and more precise operations. Cost savings, while important, ranked lower than other factors, which may be due to the relatively high initial investment required for purchasing drones and training personnel. This suggests that companies are more focused on the operational benefits drones provide rather than immediate financial gains.

Market Expectations vs. Reality

The report highlights a more cautious outlook for the drone industry post-pandemic. Prior to 2020, the gap between expectations and market reality was narrow, but during the pandemic, the industry saw a surge in optimism, particularly around drone delivery and advanced air mobility (AAM). However, reality fell short of these inflated expectations, especially in 2021. By 2024, the market has stabilized, and expectations have become more grounded, with companies projecting steady growth. While optimism remains for the next 12 months, participants now have a more realistic view of the market’s potential, predicting gradual and sustainable expansion across various segments.

Challenges

Despite the overall positive outlook, the industry continues to face significant challenges. Regulatory obstacles remain the most pressing issue, as they have been since the survey began. Navigating complex and evolving regulations is still a barrier to growth for many companies. In addition to regulatory challenges, client acquisition has emerged as a growing concern, jumping to the second-biggest challenge for companies. While issues like public acceptance and inflation have decreased in importance compared to previous years, acquiring new clients and expanding market reach are becoming more critical. Another rising challenge is securing funding, particularly for companies looking to scale up. Late-stage investments are harder to obtain, making it difficult for some businesses to grow.

Resource Allocation Priorities

When asked about resource allocation, most drone companies indicated that marketing and sales are their top priorities. This focus on driving market awareness and expanding customer bases has been consistent over the years. Product development, especially for hardware and software, follows closely behind, reflecting the industry’s ongoing need to innovate and improve drone technology. Finances and funding also remain important, as companies look to secure the resources necessary for growth. Software development, while receiving a more modest share of resources, continues to be an essential part of the industry’s strategy, as advancements in software are key to unlocking new capabilities and applications for drones.

Driving Factors in the Drone Market

The report also examines the key market drivers in the drone industry. Regulatory bodies were identified as both the biggest challenge and the most important factor driving the market. As more regulations are implemented globally, they are shaping the development of the drone industry by setting the standards for safety and operations. Interestingly, while regulation is often viewed as an obstacle, it is also seen as a positive force, providing the framework necessary for market growth. The influence of hardware manufacturers has also grown, particularly due to the increased participation from emerging markets like India. These manufacturers are playing a critical role in advancing drone technology and driving the global market forward.

Conclusion and Further Reading

The Global State of Drones 2024 report reveals a maturing market with more realistic expectations, continued growth in drone services, and increasing global participation. However, challenges like regulatory hurdles and client acquisition remain prominent, indicating areas where the industry will need to focus moving forward.

The report's insights into market trends, motivations for drone adoption, and challenges offer valuable guidance for companies looking to navigate the drone industry in the coming year.

* Energy Drone & Robotics Coalition is a proud supporter of this annual report.