From $2,815.6 million in 2020, the drone analytics market is expected to reach a revenue of $45,575.9 million by 2030. According to the estimates of the market research company, PS Intelligence, the market will demonstrate a CAGR of 32.1% from 2020 to 2030 (forecast period). The burgeoning requirement for drones, soaring information technology (IT) expenditure, rising popularity of flight intelligence, rapid advancements for facilitating the development of better drones, and increasing requirement for collecting real-time information on a certain building or area are some of the major market growth drivers.
Additionally, the expansion of the defense security industry, owing to the soaring defense expenditure of several countries, such as the U.S., China, and India, is also positively impacting the worldwide demand for drone analytics. According to the World Bank, in 2020, the U.S. spent 3.7% of its gross domestic product (GDP) on the defense industry. Similarly, the organization reported that the defense expenditure of China and India were 1.7% and 2.9% of their GDP, respectively, in 2020.
Depending on component, the drone analytics market is divided into service, software, and hardware categories. Out of these, the hardware category dominated the market in 2020, owing to the large-scale use of drones in various industries, growing requirement for improved monitoring services, and burgeoning demand for real-time insights for data-driven decision making. When solution is taken into consideration, the market is classified into point and end-to-end. Of these, the end-to-end category contributed higher revenue to the market in the years gone by and it is predicted to demonstrate faster growth throughout the forecast period as well.
This is ascribed to the surging need for complete packaged solutions that cater to all business processes, starting from data gathering to data visualization. The market is also divided, on the basis of deployment, into on-premises and cloud. Between these, the cloud category held larger share in the market during the last few years and it is also expected to register faster growth in the forthcoming years. This is credited to the rising use of the cloud computing technology by businesses, on account of the fact that it provides data access flexibility, lower information technology (IT) costs, and high data storage capacity.
Geographically, North America contributed the highest revenue to the market during the last few years, due to the requirement for enhanced inspection and surveillance via drones in the region. During the forecast period, Asia-Pacific (APAC) is predicted to be the fastest-growing region in the drone analytics market. The surging number of drone start-up companies, increasing focus on the usage of drones in farming processes, enactment of favorable government policies to promote the use of drones in non-military applications, and immense growth opportunities in regional countries, such as India, China, Australia, Japan, Malaysia, and Singapore.
Thus, the demand for drone analytics will shoot up in the coming years, mainly because of the booming global defense industry, owing to the increasing defense expenditure of several countries, and the mushrooming use of drones in various military and non-military applications all over the world.