Emerging Trends in Drone Sector
The Indian startup ecosystem is witnessing a remarkable transformation with the advent of drone technology. Drones, also known as unmanned aerial vehicles (UAVs), have been around for two decades, but their recent evolution has been significant. From military applications to commercial and personal uses, drones are revolutionizing various industries, and India has emerged as the fastest-growing drone market in the world since the legalization of drones in 2018.
The report suggests the global drone market has been experiencing substantial growth, with projections indicating that it will reach over US$ 51 billion by 2027.
According to Tracxn Technologies, the drone startup sector in India has been attracting increasing investments, reaching US$ 49.7 million in FY22-23 across 20 rounds, compared to US$ 25 million in FY21-22 across 23 rounds. Currently, the drone sector has 336 registered companies, with a remarkable 85 of them receiving funding. This burgeoning industry has garnered a substantial US$ 171 million in investments to date, and it has witnessed three successful IPO listings.
Recognizing the immense potential of drones, the Indian government has taken significant steps to support and promote the industry. The liberalization of drone and geospatial laws in 2021 has reduced compliance barriers for startups. The government's focus on Atmanirbhar Bharat (self-reliant India) and Make In India initiatives opens up possibilities for India to become a drone export hub. The government has also extended financial incentives, such as the PLI (Production-Linked Incentive) scheme, providing a boost to the drone manufacturing sector. The emphasis on indigenization and the defense sector's focus on drones presents significant market opportunities for startups. The shift towards software solutions in the drone sector opens up new avenues for innovation.
Moreover, aviation authorities are also currently relaxing drone regulations, permitting commercial and recreational use. Drone usage is increasing for business purposes, leading to widespread adoption. Enterprise usage is growing, driven by technological advances and various applications. Drones-as-a-service models have gained traction, benefiting various industries.
Multiple drone models are proving to be versatile tools with applications in various sectors as shown above. Key applications includes:
Geographic mapping
Building safety inspections
Agriculture Application
Express shipping and delivery
Unmanned cargo transport
Border control surveillance
Law enforcement, etc.
The drone industry is rapidly expanding across sectors and broadening their capabilities. The global agriculture drone market is set to grow from USD 4.98 billion in 2023 to US$ 18.22 billion by 2030 (CAGR: 20.3%). The Drone Inspection and Monitoring Market has already reached US$ 10.2 billion, projected to reach US$ 39.8 billion by 2032, according to reports. Moreover, the drone mapping market is valued at US$ 1.1 billion in 2023, with an expected 17.1% CAGR. The ability of drones to reach remote areas with minimal human interference and effort makes them invaluable tools for numerous industries. Thanks to several notable technological advancements, drone solutions are gaining popularity in both manufacturing and application end.
In conclusion, the Indian startup ecosystem is witnessing a drone revolution, with a thriving and rapidly evolving industry. The government's support and policy changes, along with a surge in investments and diverse applications, have created a conducive environment for drone startups to flourish. The future holds immense potential for the Indian drone ecosystem, with opportunities in defense, software, agriculture, healthcare, and more. As startups continue to innovate and address challenges, India's drone industry is set to soar to greater heights.