What’s Driving the 24.2% CAGR in the Small Drone Market?

According to Fortune Business Insights, the global small drone market size was valued at USD 14.04 billion in 2022 and is projected to grow from USD 16.90 billion in 2023 to USD 77.00 billion by 2030, exhibiting a robust CAGR of 24.2% during the forecast period. This remarkable growth is driven by the expanding use of small drones across defense, consumer, commercial, and civil sectors for applications such as surveillance, aerial mapping, delivery, and reconnaissance.

The report, titled “Small Drone Market Size, Share, Russia-Ukraine War Impact & COVID-19 Impact Analysis, By Type (Fixed Wing, Rotary Wing, and Hybrid Wing), By Maximum Take-off Weight (Less than 5 Kg, 5–25 Kg, and Above 25–150 Kg), By Power Source (Fuel Powered and Battery Powered), By End-use (Defense, Consumer, Commercial, and Civil), and Regional Forecast, 2023–2030,” provides a comprehensive overview of the industry’s evolving dynamics.

In 2022, North America held the largest share of the global small drone market, accounting for 32.91%, driven by strong defense spending, widespread adoption of unmanned aerial systems (UAS), and the presence of key drone technology providers in the region.

Small drones are used in applications across diverse industry verticals. The ability of a small drone to examine and monitor activities in a short span of time will fuel the demand for the product across the world. Accounting to the widespread applications of the product, several companies are looking to invest more in the research and development of newer and advanced products. Increasing investments in product R&D will create several opportunities for market growth. The growing number of start-ups will bode well for the growth of the market in the coming years.

The report provides an in-depth analysis of the global small drones market. Forecast values have been provided for the market for the period of 2025-2030. The factual figures have been obtained through trusted sources. Moreover, these predictions are made on the basis of extensive research analysis methods, coupled with the opinions of experienced market research professionals. It highlights the latest product launches and recent innovations in the market and states their impact on the growth of the market. The competitive landscape has been discussed in detail and predictions are made with respect to leading companies and products in the coming years.

Key Market Players:

Some of the leading companies that are operating in the global small drones market are:

• 3D Robotics

• DJI

• Parrot Drones SAS

• AeroVironment, Inc.

• 3DR

• YUNEEC

• EHANG

• Kespry

• INSITU

• Delair

• AguaDrone.com

• Textron

• Autel Robotics USA

Source:

https://www.fortunebusinessinsights.com/small-drones-market-102227

Segmentation:

By Type: The market is segmented into fixed wing, rotary wing, and hybrid wing. The rotary wing segment dominated in 2022 due to its lightweight design and flight stability, making it suitable for surveillance and inspection. Fixed wing drones are expected to grow due to their ability to cover long distances, ideal for delivery and transportation.

By Maximum Take-off Weight: The 5–25 kg segment leads the market and is projected to grow rapidly due to rising demand in defense, rescue, and industrial inspections. The less than 5 kg segment, including nano and mini drones, also holds a substantial share, driven by commercial applications like aerial photography and monitoring.

By Power Source: The market is divided into fuel powered and battery powered drones. Fuel powered drones dominated in 2022 due to higher payload capacity needs. However, battery powered drones are gaining traction for being eco-friendly, efficient, and quieter, making them suitable for commercial and civil use.

By End-use: The defense segment held the largest market share in the base year due to increasing military surveillance needs. The commercial segment is also growing steadily, driven by applications in photography, renewable energy, and oil & gas sectors.

Increasing Number of Military Defence Contract to Aid Growth:

The report encompasses several factors that have contributed to the growth of the market in recent years. Among all factors, the increasing number of military contracts for small drones will have a positive impact on the growth of the market. The increasing investment in R&D of the product will yield better products. In a bid to establishing a stronghold in the market, several companies are looking to acquire long term military contracts to enhance their market share in the small drone market. In August 2019, Aerovironment signed a contract with the United States Army for the supply of new drones. The contract is said to be worth USD 45 million, wherein Aerovironment will supply RQ-11B Raven drones to the US Army. US Army’s collaboration with Aerovironment will not only help the company grow but will have a direct impact on the growth of the global market in the coming years.

North America Leads the Global Market; Increasing Investments in Product R&D to Aid Growth:

The market is segmented on the basis of regional demographics into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among these regions, the market in North America is projected to witness considerable growth in the coming years, driven by the high investments in the R&D of newer products. As of 2018, the market in North America was worth USD 3.16 billion and this value is projected to increase further in the coming years. Besides North America, Asia Pacific is projected to witness considerable growth, accounting to the high demand for small drones in emerging countries such as India and China.

Industry Developments:

March 2023 – The Federal Aviation Administration (FAA) authorized the Pearland Police Department in Texas to operate drones Beyond Visual Line of Sight (BVLOS) without requiring visual observers. This approval supports the department’s Drone as First Responder (DFR) program, aimed at improving emergency response efficiency and situational awareness during critical incidents.

February 2023 – A scientific team successfully deployed the Autel EVO Lite+ drone into the active main crater of Costa Rica’s Irazú volcano. Equipped with a 6K camera, the drone captured high-resolution imagery to monitor lake water levels, mineral formations, and volcanic gas vents, contributing valuable data for geological research and hazard assessment.