Global Utility Drone Market Research Report: Forecast (2024-2029)

Market Definition

A utility drone is an aerial vehicle with an in-built camera used predominantly in the utility sector, such as power, water, sewage services, hydro-electricity power generation dams, oil & natural gas, and renewable energy. A utility drone provides better surveillance, inspection, and improved maintenance services to power generation & distribution facilities.

Market Insights & Analysis: Global Utility Drone Market (2024-29):

The Global Utility Drone Market is valued at around USD 318 million in 2023 and is estimated to grow at a CAGR of around 29.12% during the forecast period, i.e., 2024-29. The market growth is likely to be driven primarily by the mounting need to reduce outages associated with power infrastructures, coupled with enhancing the cost & time efficiency in asset management & reachability at hazardous locations. The commercial use of drones is anticipated to display an exponential rise in the coming years as numerous start-ups are emerging across developing economies.

Drones, an asset management tool, help eliminate problems like power outages that impact the reliability of transmission systems, especially in countries where energy prices are high. The burgeoning adoption of drones worldwide has enabled utility companies to reach difficult locations, gather detailed insights, and solve issues by improved monitoring & minimized downtime. Moreover, the constant digital transformation in the utility sector shall further enhance the adoption rate of drones in the coming years since they minimize the need for human presence on-site and are highly useful for monitoring & maintenance operations.

However, stringent regulations set by the Federal Aviation Administration (FAA) that limit the usage of drones might act as a prominent growth restraint for the Global Utility Drone Market during 2024-29. These norms restrict long-distance drone operations & in situations like Beyond Visual Line-Of-Sight (BVLOS). Nevertheless, utility companies have not utilized drone services to the fullest for enhancing the efficiency of infrastructural inspection & disaster recovery. As a result, these aspects are expected to hinder the demand for utility drones & negatively impact the global market in the coming years.

Global Utility Drone Market Driver:

Rising Infrastructure Inspection Driving the Demand for Utility Drone in the Market – The market for drone-based infrastructure inspection has experienced substantial growth during the historical years. This is primarily due to safety concerns, which prompted utility companies to increasingly rely on drones for inspecting critical infrastructure like power lines, pipelines, and bridges, as they eliminate the need for human workers to access hazardous or hard-to-reach areas.

This prioritization of safety, along with the ability of drones to capture high-quality data for thorough inspections has significantly improved maintenance efficiency & reduced downtime. Furthermore, the cost-effectiveness of drone-based inspections compared to traditional methods, such as helicopter flyovers, has driven adoption among various government authorities.

Global Utility Drone Market Opportunity:

Rising Opportunities for Utility Drones in the Future of Food Delivery –  Food delivery services represent a promising frontier within the Global Utility Drone Market. With the increasing adoption of smartphones & expanding internet access, the utility drone sector has witnessed a surge in applications. Various food delivery and e-commerce companies on a global scale have embarked on initiatives involving the testing & development of drones for delivery purposes.

This strategic move positions them to meet the rising demand for drone-based delivery services in the future. These advancements signify a forthcoming surge in demand for drones across various delivery applications, creating lucrative growth prospects for the Global Utility Drone Market.

Global Utility Drone Market Challenge:

Government Regulations to Create Challenge in the Adoption of Utility Drone Worldwide – Drones are widely used worldwide for commercial, military & defense, and civil applications. The drone industry and end-users have witnessed severe limitations by the government on drone flying in numerous countries like Egypt, India, Bhutan, etc., during the historical years.

Some countries allow commercial flights for small drones BVLOS and some mandatory flight licenses. These stringent laws & mandatory laws by the governments of various parts of the world are hampering the adoption rate of utility drones & impacting the overall market growth.

Global Utility Drone Market Trend:

Technological Advancements & AI Integration to Upscale the Drone Market – Technological advancements in drones, including processors, microcontrollers, cameras, and more, are gaining significant traction within the Utility Drone Market. These advancements empower businesses to develop in-house tools & solutions for precise measurements of distance, area, and speed.

Enterprises worldwide are increasingly integrating this technology into their operational processes. As a result, numerous utility drone manufacturers are pioneering innovative products equipped with machine learning & artificial intelligence solutions.

These solutions are designed to extract precise and actionable insights from extensive datasets & real-time information gathered from millions of data points, ultimately benefiting end-users. These technological developments in drones would supplement the demand for monitoring & evaluating data in various industries, thus impacting the market growth in the forecast years.

Global Utility Drone Market (2024-29): Segmentation Analysis

The Global Utility Drone Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2029 at the global levels. In accordance to the analysis, the market has been further classified as:

Based on Type:

• Multi-rotor
• Fixed Wings

Multi-rotor drones are projected to continue their dominance in the Global Utility Drone Market during 2024-29. These drones have multiple blades or rotors and possess extensive applications, particularly for airborne photography, inspection, and equipment monitoring. They are easy to control, can work in compact areas, and are readily available at reasonable prices. Their high efficiency & reduced costs have attracted massive investments from the leading market players.  

Based on End User:

• Power Vertical
  • Power Generation
  • Power Transmission
• Renewable Vertical
  • Wind
  • Solar

The Power Vertical is the leading end-user of the Global Utility Drone Market, primarily due to various advantages of using utility drones for the power sector, including detailed & accurate insights owing to better images, quick response, reduced operational & maintenance costs, negligible environmental impact, and enhanced worker safety. Drones have numerous applications in the power & utility sector to better or substitute ineffective processes & call forth a complete business makeover.

Global Utility Drone Market (2024-29): Regional Projection

Geographically, the Global Utility Drone Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific is expecting a rapid expansion in the Utility Drones Market during 2024-29. The rapidly increasing adoption of utility drones to inspect critical infrastructure for renewable energy installations is the prime aspect driving the regional market. For instance, the adoption of wind energy has established several wind farms in countries like China & India. Here, windmills are prone to natural phenomena like hailstorms, rainfall, lightning, salt & dust accumulation, etc. Besides, wind turbines are subjected to the risk of injury and can cause a problem in any aspect.

Hence, with the application of drones, the potential threats & issues are quickly detected without the need for direct contact. Across the region, China & India are expected to be the fastest-growing markets over the forecast years. Here, the employment of drones is extensive for inspection & monitoring across the agriculture & utility sectors.

Global Utility Drone Industry Recent Development:

• 2023: Teera Drone raised USD 14 million in Series C funding from Wa’ed Ventures, the venture capital arm of Saudi Aramco.
• 2022: Sharper Shape raised USD 18 million in series B funding from the Michael Harvey Trust as lead investor.

Gain a Competitive Edge with Our Global Utility Drone Market Report

• Global Utility Drone Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Utility Drone Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.