Utility Drones Market Size, Share, Forecast, & Trends Analysis by Type (Rotor, Fixed-wing, Fixed-wing Hybrid VTOL), Application (Tower Inspection, Transmission Line Inspection, Power Plant Inspection), End User (Power Generation, Transmission, & Distribution, Telecom) - Global Forecast to 2031

Utility Drones Market Size & Forecast

The Utility Drones Market is expected to reach $645.8 billion by 2031, at a CAGR of 27.3% from 2024 to 2031. The growth of the utility drones market is driven by their low operating cost, technological advancements, and ability to collect authentic data. Furthermore, increasingly favorable regulations, increasing demand for BVLOS drones, and the evolution of drone-as-a-service are expected to offer significant growth opportunities for players operating in the utility drones market.

Utility Drones Market Growth Drivers

Low Operation Cost of Drones

The economical operating cost of drones drives up demand for utility drones. Drones eliminate the need for manual inspections by human personnel, which can be time-consuming and expensive. Drones can quickly cover broad areas, saving time on inspections and maintenance duties. Rapid deployment and data collection improve operating efficiency and quality.

Lower operational costs make drones an accessible choice for enterprises in a variety of industries, including agriculture, construction, and logistics, which are increasingly utilizing drone technology to improve efficiency and cut operational costs. Furthermore, the low cost of drone operations has resulted in the rise of new business models, including drone-based delivery services, aerial photography, and data collection services. This variety of drone uses boosts market growth. Cost-effective drones also result in increased government backing and incentives for drone use, especially in agricultural and public safety. As utility drone use grows and their cost benefits become clear, public acceptance of such drones rises, lowering regulatory barriers and promoting market growth.

Moreover, electric utility drones have lower operating costs compared to fuel-powered utility drones. This is particularly beneficial for applications involving frequent short flights. Such factors help to drive the growth of the market during the forecast period.

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Technological Advancements in Utility Drones

Technological advances in utility drones have significantly driven the market's growth. Modern utility drones are equipped with high-resolution cameras, LiDAR (light detection and ranging), thermal imaging, and multispectral sensors, allowing for more detailed and accurate inspections. Additionally, improvements in GPS, obstacle detection, and avoidance systems have enabled drones to navigate complex environments autonomously, lowering the need for human intervention.

Drones with advanced technology conduct inspections much faster than traditional methods, covering vast areas and accessing hard-to-reach locations without the use of scaffolding or cranes. Drones also play an important part in smart grid maintenance by delivering real-time data, assisting with better energy distribution management, and reducing the need for human personnel in dangerous places. Drones lower labor expenses and increase safety. These factors contribute to the market's growth during the forecast period.

Utility Drones Market Opportunities

Evolution of Drone-as-a-service

The evolution of Drone-as-a-Service (DaaS) is creating significant opportunities in the utility drones market. DaaS models enable utilities to outsource drone operations, lowering the need for in-house expertise and equipment. This allows utility companies to access advanced drone technology and data analytics services on demand, improving inspection efficiency, reducing operational costs, and enhancing safety.

DaaS eliminates the need for companies to invest in expensive drone equipment, pilot training, and maintenance. It makes drone technology accessible to a wider range of businesses, regardless of size or budget. In addition, DaaS offers flexibility in terms of service models, from on-demand services to long-term contracts. DaaS providers often include data analytics services, transforming raw data into actionable insights through advanced processing techniques, such as AI and machine learning. Such beneficial factors help to provide lucrative growth opportunities in the market during the forecast period.

Increasing Demand for BVLOS Drones

In recent years, BVLOS (Beyond Visual Line of Sight) technology has emerged as a key driver for the adoption of utility drones as it offers extended operational capabilities to enterprises. BVLOS allows utility drones to fly farther and inspect wider areas of infrastructure, including remote power lines, substations, and renewable energy installations. This eliminates the need for multiple flights or ground crews traversing difficult terrain. BVLOS Drones also improved efficiency and cost savings by covering larger areas in a single flight. BVLOS operations can significantly improve inspection efficiency. This translates to cost savings for utility companies, making drone adoption even more attractive.

Furthermore, regulatory bodies are recognizing the potential benefits of BVLOS drones and are working to establish clear guidelines for their safe integration. With regulatory frameworks becoming more supportive, enterprises are gaining confidence in deploying BVLOS drones for various applications. For instance, the European Union Aviation Safety Agency (EASA) has formulated regulations for supporting BVLOS drone operations. The EASA requires operators to fly drones within a defined geographic zone to ensure that the drones remain within a well-defined and controlled operating area to reduce the risk of collision with other aircraft, people, or hazards.

Utility Drones Market Challenges

Privacy Issues Related to Drone Usage

The use of drones in the utility sector offers significant benefits like improved inspection efficiency and safety for workers. However, privacy concerns associated with drone data collection pose a major challenge to wider adoption. Utility drones equipped with cameras and sensors can capture immense data, including images and videos of private property. Concerns about privacy can lead to public distrust of utility companies and resistance to drone use. This data could be used for unauthorized surveillance, profiling, or even identity theft. In the construction industry, drones can be used for aerial photography and property inspections. However, concerns about capturing images of neighboring properties and individuals can lead to strict operational guidelines and reduced adoption. These factors hamper the growth of the utility drones market.

Utility Drones Market Analysis: Key Findings

By Type: The Rotor Segment to Dominate the Utility Drones Market in 2024

Based on type, the utility drones market is broadly segmented into rotor, fixed-wing, and fixed-wing hybrid VTOL. The rotor segment is sub-segmented into multi-rotor and single-rotor. In 2024, the rotor segment is expected to account for the largest share of over 57.0% of the utility drones market. This segment’s large market share is attributed to driven by various factors, such as multi-rotor drones’ higher maneuverability, affordability, better control during flight, ability to fly extremely close to structures & buildings, and increased operational efficiency due to the ability to carry multiple payloads per flight.

Moreover, the rotor segment is estimated to register the highest CAGR during the forecast period.

By Application: The Transmission Line Inspection Segment to Dominate the Utility Drones Market in 2024

Based on application, the utility drones market is broadly segmented into tower inspection, transmission line inspection, substation monitoring, pipeline inspection, and power plant inspection. The power plant inspection segment is sub-segmented into wind power plants, nuclear power plants, solar power plants, hydropower plants, and fossil fuel power plants. In 2024, the transmission line inspection segment is expected to account for the largest share of over 28.0% of the utility drones market. This segment’s large market share is attributed to various factors as it provides benefits such as improved safety for workers, increased efficiency of inspections, reduced costs, more comprehensive data collection, and improved ability to detect & address potential problems. Additionally, they can capture detailed images and videos of transmission lines, towers, and surrounding vegetation.

However, the power plant inspection segment is poised to register the highest CAGR during the forecast period. This segment's growth is attributed to various factors as equipped with high-resolution cameras and even thermal imaging sensors; drones can provide inspectors with a comprehensive view of the plant's condition. These detailed images and videos allow for better detection of issues like cracks or damage in boilers and smokestacks, deterioration of insulation on electrical components, and leakage from pipes and tanks.

By End User: The Power Generation, Transmission, & Distribution Segment to Dominate the Utility Drones Market in 2024

Based on end user, the utility drones market is segmented into power generation, transmission, & distribution, telecom, and water distribution. In 2024, the power generation, transmission, & distribution segment is expected to account for the largest share of over 54.0% of the utility drones market. This segment’s large market share is attributed to its various advantages, including cutting down on operation and maintenance costs, boosting worker safety considering their ability to fly in potentially dangerous areas, use of little or no fuel, and having negligible environmental impact.

Moreover, the power generation, transmission, & distribution segment is expected to register the highest CAGR during the forecast period.

Geographic Analysis

North America to Dominate the Utility Drones Market in 2024

In 2024, North America is expected to account for the largest share, over 42.0%, of the global utility drones market. North America's large market share is attributed to the high adoption of drones for utility applications, policy support for the adoption of utility drones, and the increasing adoption of drones among businesses in the U.S. to bolster their competitive positions in the global market, lower operational costs and increase safety.

However, Asia-Pacific is expected to register the highest CAGR of 29.0% during the forecast period. This region’s large market share is attributed to the various potential factors to reduce the environmental impact of certain activities, such as monitoring wildlife, assessing environmental damage, and conducting surveys without the need for ground-based vehicles or aircraft. Furthermore, advancements in drone technology, including improvements in battery life, payload capacity, autonomous navigation, and sensor capabilities, have made utility drones more practical and cost-effective for various applications in the Asia-Pacific region. Additionally, several state and regional governments in the region are actively promoting the use of utility drones in various industrial applications. This includes funding for R&D and creating regulations that facilitate utility drones operation.

Utility Drones Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the product portfolios and geographic presence of leading market players and the key growth strategies adopted by them over the past three to four years. The key players operating in the utility drones market include SZ DJI Technology Co Ltd (China), Terra Drone Corp. (Japan), PrecisionHawk Inc (U.S.), Delair SAS (U.S.), AeroVironment Inc. (U.S.), Australian UAV Pty Ltd (Australia), Sharper Shape Ltd. (U.S.), Aerodyne Group (Malaysia), SkyScape Industries (U.S.), Cyberhawk Innovations Limited (U.K.), Skydio, Inc. (U.S.), Sky-Futures (U.K.), ABJ Drones (U.S.), ULC Robotics (U.S.), and Asset Drone (Switzerland).

Utility Drones Industry Overview: Latest Developments from Key Industry Players

• In April 2024, Aloft Technologies, Inc. (U.S.), a leader in innovative drone technology solutions, partnered with Anzu Robotics (U.S.) to launch the Raptor drone series. This collaboration underscores both companies’ commitment to pioneering secure, compliant drone operations that meet a wide array of flight needs across diverse industries, from inspection to public safety.
• In February 2024, Vodafone GmbH (Germany) partnered with FlyNex GmbH (Germany) to launch a DroNet Hub, an innovative online platform designed to streamline the planning and management of commercial drone flights for businesses.
• In April 2023, BonV Aero, an Odisha, India-based start-up company, launched the state’s first heavy-lift logistics drone, which can carry 50 kg across distances of up to 10 kilometers, on the occasion of the first day of the “Odisha Skill Conclave 2023.”
• In May 2023, Capgemini’s Energy and Utilities Industry Platform (France) collaborated with IBM Ecosystem Engineering GSI Lab (U.S.) to develop Drone-as-a-Service (DaaS). The DaaS offering uses IBM’s Maximo Application Suite (MAS) and Cloud Pak for Data (CP4D) using Industry 4.0 standards.

Utility Drones Market Research Summary

Key questions answered in the utility drones market report: