Drone Analytics Software Market Size, Share & COVID-19 Impact Analysis, By Type (On-Premises and On-Demand), By Solution (End-to-End Solution and Point Solution), By Application (Thermal Detection, Geolocation Tagging, Aerial Monitoring, Ground Exploration, Volumetric Calculations, 3D Modelling, and Others), and Regional Forecast, 2023-2030

The global drone analytics software market size was valued at USD 1.99 billion in 2022 and is projected to grow from USD 2.15 billion in 2023 to USD 4.45 billion by 2030, exhibiting a CAGR of 10.95% during the forecast period. North America dominated the drone analytics software market with a market share of 27.63% in 2022.

Drone analytics software integrates with machine learning and other technologies to fill a gap in image processing due to the many complexities. UAVs are used commercially to capture superior photos and videos in media, entertainment, infrastructure, security, and military industries. Extensive development of technology provides well-equipped sensors on board in addition to data analysis systems. There are many opportunities for energy, agriculture, logistics, and transportation industries.

In recent years, Unmanned Aerial Vehicles (UAVs) have evolved into a technology of excellence through numerous applications in the commercial and consumer sectors. Demand for UAVs is expected to increase during the forecast period due to a growing preference for commercial purposes. Drones are widely recognized as sophisticated devices capable of capturing aerial photographs and high-definition videos for various uses. This development has led to a surge in demand for drone-related products, including drone analytics software commonly used for analysis, image processing, and surveying purposes.

COVID-19 IMPACT

Global Drone Analytics Software Industry was Impacted by the COVID-19 Pandemic

The impact of COVID-19 on the drone analytics software market is unpredictable and is expected to continue for the next few years. The sales crisis and rising maintenance costs were the two biggest challenges that negatively impacted drone manufacturers. Furthermore, investment in the aerospace and defense industry declined in 2020 as GDPs of major countries such as the U.S., the U.K., India, China, France, and Germany declined. Cuts in aerospace and defense spending negatively impacted the development and deployment for autonomous aircraft, especially UAVs, thereby reducing the product demand. However, during the COVID-19 pandemic, numerous use cases for drones have been established and employed by drone service providers. This includes collection and delivery of laboratory samples to reduce transit time and minimize exposure to infection, transportation of medical supplies, and public spraying. Further, there are areas in the air to decontaminate potentially contaminated areas and to monitor and secure public spaces. In addition, vaccination campaigns have made it possible to reduce barriers to economic activity and international and domestic travel.

LATEST TRENDS

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Increasing Demand in Construction Segment to Drive Market Growth 

Drones have rapidly replaced traditional methods of land surveillance as they greatly reduce the effort and time required to collect the required data and eliminate human error. They are increasingly being used to visually inspect high-risk areas on construction sites. Efficient field communication and management is facilitated by the collection of real-time data from drones. Drones are also used by engineers and surveyors to complete the construction of skyscrapers, visualize project progress through aerial photography, provide an outline of possible problems, and help streamline work on construction sites. It also helps to make important decisions. Companies in the construction industry are enhancing their infrastructure and optimizing their daily operations with the help of advanced data analytics and imagery captured by drones. Drone-generated data helps site managers create accurate 3D BIM models and high-resolution orthomosaic maps to measure heights and actual distances.

Companies are developing new software techniques to improve field operations and reduce human error. HCSS, a software provider for the construction industry, has released a new version of its drone-based data analytics platform, HCSS Aerial, in May 2021. The new version of HCSS Aerial includes improvements to design visualization and digital inspection. To make the software even more efficient, the company also plans to introduce new features to aid digital inspection and automated quality checks. It transforms 2D designs into digital data model objects, computes quality check reports, and automates progress monitoring. Such developments will drive the growth of the segment over the forecast period.

DRIVING FACTORS

Increased Capital Expenditures for Advanced Drone Analytics Software Development is Driving the Market Growth    

The use of drones in various applications is growing exponentially. As a result, major players are investing heavily in developing cutting-edge software. For example, in December 2019, Precision Hawk announced USD 32 million investment in drone software and services. The company planned to use the funding to develop the next generation of Precision Analytics, an Artificial Intelligence (AI)-powered aviation data analytics platform. To secure a share in the burgeoning drone software market, large investment firms are interested in acquiring stakes in major companies.

For example, in August 2021, India-based company Trentar entered the drone-based services and software market. The company acquired a 75% stake in Garuda UAV, a leading provider of drone services in India, In July 2021, expanding its new-age business based on drone services and software. Therefore, increasing investment in developing new and advanced drone software is expected to boost the drone analytics software market growth during the forecast period.

Increased Adoption of Drones for Commercial Purposes to Propel the Demand for Analytics Software

The increasing adoption of drones in various industries has increased the demand for the latest technology in aviation around the world. Drones can fly over different geographic locations regardless of range or altitude. These advantages have increased the demand for unmanned aerial vehicles in several countries. Commercial applications, such as precision agriculture, construction and industrial. Infrastructure, security, energy, insurance, transportation, and logistics, are driving the growth of the drone analytics software industry.

There are three main types of drones, fixed-wing, rotary wing, and hybrid. The most common drone configurations are the 4-propeller, 6-propeller, and 8-propeller multirotor configurations. Such types of aircraft as fixed-wing rotors are configured to be significantly more efficient and durable at high altitudes. Military drones are mostly configured for high-altitude, long-range operations. The increasing adoption of unmanned aerial vehicles worldwide is expected to drive the drone software market growth over the forecast period. 

RESTRAINING FACTORS

Cybersecurity Concerns Related to Drones to Hinder the Market Growth

The flexibility, economics, and high efficiency of drones have spread their use in private and commercial applications. The increasing use of drones in diverse applications has also increased cybersecurity threats to users. Modern drones are equipped with USB ports, GPS, and other technologies that act as important cybersecurity targets for hijackers to easily take over the drone. Hackers can also exploit drones by gaining access to the unencrypted Wi-Fi and GPS technology that drones use to communicate. Government authorities have banned or restricted drone ownership due to cybersecurity threats associated with drones.

For example, in April 2021, Taiwan's Democratic Progressive Party (DPP) lawmaker Huang Guoshu issued a directive warning against the procurement of "Made in China" aerial photography drones, coding platforms, robots, and the subsequent phase-out of existing ones. The announcement was made due to a cybersecurity vulnerability in home appliances made in China. An increase in cybersecurity attacks is hindering the adoption of drones by governments and private organizations. Cybersecurity issues related to drones will hinder the global market growth over the forecast period.

SEGMENTATION

By Type Analysis

Increasing Demand for On-demand Services will Drive the Market Growth

Based on type, the market is bifurcated into on-premises and on-demand. On-demand segment is expected to grow the fastest during the forecast period. This is driven by a growing focus on drone-based mapping and inspection services, an emphasis on leveraging advanced software tools and platform technology, and growing demand for on-site data collection.

By Solution Analysis

End-to-End Solution Segment to Grow at an Impressive CAGR over the Forecast Period

Based on solution, the market is classified into end-to-end solution and point solution. End-to-end solution segment is expected to grow significantly during the forecast as these comprehensive packaged solutions meet all the operational needs, from data collection to visualization and analysis. Due to increasing demand, market players are offering processing, analysis, and management capabilities in a single solution.

By Application Analysis

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Aerial Monitoring Segment to Have the Largest Market Share due to Use of Drone Analytics

Aerial monitoring segment accounted for the largest market share in 2022. It is also estimated to be the fastest growing segment during the forecast period.

The increasing use of drone analytics software for real-time aerial surveillance will enable construction sites to be quickly surveyed and errors corrected. By using drone construction sites, it is possible to significantly reduce dangerous accidents. In addition, 3D Robotics (3DR) leverages Autodesk's Forge platform to provide a UAV-to-cloud solution. Such developments are expected to have a positive impact on the growth of this segment. These factors are expected to support the growth of this market.

Thermal detection segment is expected to have second largest market share due to the growing need for high-resolution photography and the prevalence of thermal imaging cameras for body temperature detection and emergency supplies delivery integrated into drones.

REGIONAL INSIGHTS

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In terms of geography, the market is studied across North America, Europe, Asia Pacific, and the Rest of the World.

North America has been identified as the region with the largest market share in terms of sales, owing to the presence of numerous companies and the growing demand for drones in the region, and this trend is expected to continue. The rapidly growing demand for improved drone-based surveillance and inspection, the incorporation of advanced technologies, such as the Internet of Things (IoT), Machine Learning (ML), and computer vision into drone software, and their growing demand for solutions such as agriculture, oil and gas, energy and utilities, and other industries are expected to drive the market in this region.

The Europe market is expected to grow during the forecast period owing to increased military and defense spending on drone software and upgrades in the region. Rising political tensions between several countries, such as Russia and Ukraine, in the region are driving the Europe market.  

Recent changes in drone regulations in several countries in the region are expected to boost the market growth. China has become a global hub for drone manufacturing over the past six years. More than 70% of the global civilian drone market is backed by China. The Chinese government offers various subsidy programs and other favorable domestic policies for drone purchases to promote drone adoption in various industrial sectors. At the same time, the expanding application fields of drones have increased the demand for these UAVs in China. Increasing demand for drones for surveillance, inspection, surveying, and surveillance applications in construction, agriculture, infrastructure, energy, telecommunications, mining, and insurance industries is driving the market growth of drone analytics software in China. Additionally, Australia has become a major industrial hub in the Asia Pacific region, increasing the importance of BVLOS testing. In December 2021, the Australian Civil Aviation Authority (CASA) granted drone-in-a-box solutions provider Percepto an operational license to fly Beyond Line of Sight (BVLOS) domestically. Domestic operators are rapidly developing technologies and services to support the vast drone ecosystem. 

The South America and the Middle East and Africa drone analytics software market share will witness moderate growth during the forecast period as technological innovation and growing interest in manufacturing low-cost commercial drones remain key factors driving the market in the region.

KEY INDUSTRY PLAYERS

Major Companies Concentrate on Leveraging their Product Portfolio to Strengthen Presence

The drone analytics market is highly fragmented. Therefore, even new entrants operating at the regional and local level can increase their market share by leveraging products based on cost differentiation and superior technical strength. To maintain their market dominance, prominent players, such as DroneDeploy Inc., i3D Robotics, Dreamhammer Inc., Pix4D, and PrecisionHawk Inc., are developing new technologies to enhance their existing service portfolios. Increased competition is expected to drive innovation, thereby helping the drone analytics software industry address user compliance issues, remove service restrictions, and overcome existing challenges in emerging sectors such as healthcare mobility.

LIST OF KEY COMPANIES PROFILED:

• i3D Robotics (U.S.)


• Dreamhammer Inc. (U.S.)


• DroneDeploy Inc. (U.S.)


• ESRI (U.S.)


• Pix4D (Switzerland)


• Precisionhawk Inc. (U.S.)


• Sensefly Ltd. (Switzerland)


• DJI (China)


• Drone Volt (France)


• Airware, Inc (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2022 - .T.I.T. giant Cognizant has signed a MoU with Chennai-based drone startup Garuda Aerospace to equip its drones with cutting-edge digital capabilities. The partnership aims to provide innovative solutions at scale for businesses seeking to increase their productivity, agility, and return on investment.


• September 2022 – AeroVironment announced that it has been awarded two USD 20.8 million firm-fixed-price. The U.S. DoD FMS contracts to supply two unnamed allies with Puma 3 All Environment (A.E.) small Unmanned Aircraft Systems (sUAS). As part of the agreement, training sessions and logistical support for contractors are also included.


• May 2022 – AgEagle recently unveiled new and enhanced technological advancements, features, and capabilities for Measure Ground Control, which will help business clients and expert drone service providers across various industries get more use out of autonomous drone operations.


• November 2021 - Tata Steel's various business verticals have awarded Aarav Unmanned Systems (AUS), a startup offering end-to-end drone solutions, and numerous long-term contracts for providing cutting-edge drone-based enterprise solutions. In addition to ensuring higher regulatory compliance and safety, the startup's drones are anticipated to assist Tata Steel in operating its mines more productively and efficiently.

REPORT COVERAGE

An Infographic Representation of Drone Analytics Software Market

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The research report offers a thorough analysis of the global market. It focuses on important factors such as top manufacturers, competition landscape, company profiling, product categories, and popular uses for the service. The report also identifies significant developments in the drone analytics open-source software market and provides insights into market trends. The report includes a number of additional factors in addition to those mentioned above that have influenced the market's growth prospects in recent years.

Report Scope & Segmentation