The drone industry, also known as the Unmanned Aerial Vehicle (UAV) market, has witnessed a remarkable climb in recent years. From humble beginnings in military applications, drones have evolved into versatile tools with applications across diverse sectors.  

Global Market Landscape 

The global drone market is experiencing exponential growth. The drone industry is projected to be valued at around USD 35.28 billion in 2024, with anticipated growth to approximately USD 67.64 billion by 2029. This growth signifies a CAGR of about 13.90% between 2024 and 2029. Industry experts predict this upward trend to continue, with the market projected to reach a staggering USD 54 billion by 2025. This growth is fueled by several factors:

Source: Mordor Intelligence 

Expanding Applications: Drones are finding applications in a vast array of industries beyond traditional military use. Sectors like agriculture, construction, logistics, delivery, media & entertainment, and disaster management are increasingly adopting drones for tasks like aerial mapping, precision spraying, infrastructure inspection, and search & rescue operations.
 

Technological Advancements: Continuous advancements in battery technology, miniaturisation of components, and automation capabilities are enhancing drone performance and range. Additionally, the integration of Artificial Intelligence (AI) and machine learning is paving the way for autonomous drone operations, further expanding their utility.
 

Regulatory Relaxation: Many governments are actively revising drone regulations to create a more conducive environment for commercial drone operations. This is attracting significant investments in drone development and manufacturing.

A Glimpse into Recent News 

Airbus’ Volocopter Secures $1.4 Billion for Urban Air Taxis 

Highlighting the growing interest in urban air mobility (UAM), Airbus Volocopter division recently secured a USD 1.4 billion investment for the development and commercialization of its electric vertical take-off and landing (eVTOL) vehicles as per press release by Deloitte.
 

India: A Promising Drone Hub 

India presents a particularly exciting case study within the global drone market. The Indian drone industry is widely recognized as the fastest-growing globally. With a supportive government and upcoming demand for drone technology, India has the potential to become a major drone manufacturing and services hub. Here’s a breakdown of the Indian drone industry: 

Market Growth 

The Indian drone market is estimated to be valued at around USD 1.21 billion in 2023 and is projected to reach a staggering USD 4.87 billion by 2030, translating to a CAGR of approximately 22.15%, according to the report from BlueWeave Consulting. This exponential growth signifies the immense potential of the Indian market. 

The drone market in India is predicted to make revenue of around USD 27 million in 2024. It’s growing at a rate of about 6% yearly till 2028. Compared to China, India’s revenue is much smaller, only USD 0.02 per person. By 2028, India is expected to have around 75,800 drones. In 2025, there’s an expected growth of 6.6%. Each person in India is estimated to have none in 2024. Drones are becoming popular in India, especially in agriculture, changing how farming is done.
 

Government Initiatives 

The Indian government has taken proactive measures to promote drone adoption. Initiatives like the liberalised Drone Rules, 2021, have simplified regulations, streamlined airspace access procedures, and encouraged the development of a robust drone manufacturing ecosystem.

PLI Scheme 

Under the Atmanirbhar Bharat policy, the government approved a Production-Linked Incentive (PLI) scheme of Rs 120 crore for drones and components. The scheme offers a fixed 20% PLI rate for three years, exclusively for the drone industry. 

The government identified 23 PLI beneficiaries, fostering drone manufacturing and components. Additionally, the Drone Shakti scheme aims to boost Drone-As-A-Service (DrAAS) startups, with skilling courses announced in select ITIs across the states. Anticipating a surge in UAVs, the Ministry of Civil Aviation introduced the National 

Unmanned Aircraft System Traffic Management (UTM) Policy Framework. As per IBEF, Over the next three years, the drone industry is projected to attract investments exceeding Rs 5,000 crore, with annual sales forecasted to surpass Rs 900 crore, generating over 10,000 direct jobs. The drone services industry is expected to reach over Rs 30,000 crore, employing over five lakh people. 

Listed Companies in Drone Space
 

Company Name Area of Operation Market Cap (Cr) as on 08/05/2024 Revenue  Profit  1 Yr Return CAGR 
Zen Technologies Ltd Defense training systems, drones 7,907 219 130 217% 
Paras Defence and Space Technologies Ltd Defense & aerospace equipment, drones (through subsidiary Paras Aerospace) 2,752 214 36 31% 
RattanIndia Enterprises Ltd Mobility services, drones (through subsidiary NeoSky) 9,959 4,124 -286 81% 
Droneacharya Aerial Innovations Ltd Pure-play drone manufacturing 360 18 3.4 0% 

Key Applications Driving Growth in India

The applications of drones are driving the growth of different sectors:

Agriculture 

Precision agriculture is a major driver for the Indian drone market. Drones are used for tasks like crop health monitoring, land surveying, and targeted pesticide and fertilizer application, leading to increased efficiency and yield.
 

Infrastructure Inspection 

Drones are proving to be invaluable tools for inspecting critical infrastructure like power lines, pipelines, and bridges. Their ability to access remote and hazardous areas makes them a safer and more efficient alternative to traditional inspection methods.
 

Disaster Management 

Drones play a crucial role in disaster management efforts. They are used for damage assessment, search and rescue operations, and delivering essential supplies to affected areas, particularly in hard-to-reach locations. 

Challenges and Considerations for the Indian Drone Market 

Drones offer exciting advantages in various fields, but like any growing sector, they also face challenges.

Skilled Workforce Shortage 

The industry requires a skilled workforce for drone operation, maintenance, and data analysis. Bridging this skill gap is crucial for sustainable growth.
 

Airspace Management 

Integrating drones into the existing airspace poses challenges. Robust air traffic management systems are needed to ensure safe and efficient drone operations alongside manned aviation.
 

Data Security and Privacy 

Concerns regarding data security and privacy during drone operations need to be addressed through robust regulations and data security protocols. 

The Road Ahead 

The future of the global and Indian drone industry appears bright. Technological advancements, regulatory reforms, and increasing commercial adoption will continue to propel the market forward. Here are some key trends to watch: 

Focus on Autonomy 

The integration of AI and machine learning will lead to the development of fully autonomous drones capable of performing complex tasks without human intervention.

Urban Air Mobility (UAM) 

The concept of flying taxis and delivery drones is gaining traction. Advancements in eVTOL technology will pave the way.

Conclusion 

The drone industry is soaring globally and in India. With technological advancements, supportive government initiatives, and increasing market demand, the future looks promising. Keep an eye on autonomous drones and urban air mobility for exciting developments ahead.