Small Drone Market size was estimated at USD 14.6 billion in 2024 and is projected to attain USD 88.7 billion in 2037 surging at a CAGR of 16.2% during the forecast period i.e. 2025 to 2037. In 2025, the industry size of small drone is assessed at USD 17 billion. The market's revenue is highly sourced from the defense sector as governments are increasingly using small drone in surveillance and tactical operations. Moreover, innovations in sensors, communication systems, and AI-powered autonomous features rank among the most critical contributors to this surge in small drone market growth.
Investments are an imperative strategy to increase the tactical autonomous fleets of the drone services. For example, in July 2024, Canberra signed contracts equivalent to USD 67.6 million to provide the army and air force with small unmanned aerial systems (sUAS). This resulted in protecting the safety of warfighters and improving their capacity for multiple-payload logistics, surveillance, and reconnaissance in land, littoral, small marine craft, and urban operations. Thus, leveraging heavy investments to widen the small drone market size and increase operational compatibilities stimulates growth in the market.
The regulatory evolution by several unions across different regions acts as a catalyst for stimulation of the market expansion. Furthermore, when integrating drones into their airspace, safety and privacy remain the primary concern. For instance, in June 2024, the Defense Minister of France signed a UAV pact. It was aimed at developing a strategic unmanned capacity under 150 kg while also fostering innovation between the military and the country's drone industry. Such factors are also projected to boost the small drone market growth in the upcoming years.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
16.2% |
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Base Year Market Size (2024) |
USD 14.6 billion |
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Forecast Year Market Size (2037) |
USD 88.7 billion |
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Regional Scope |
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Type (Micro, Mini)
Micro segment is projected to capture small drone market share of around 68.3% by the end of 2037, owing to its versatility, cost-effectiveness, and wide applications. It is highly preferred due to its small size. Its defense application includes close-range ISR missions where the data would be available in real-time tactical operations. For instance, in August 2021, Aeronautics created the small unmanned aerial vehicle (UAV), Orbiter for use in homeland security and military applications. The Orbiter UAV is capable of close-quarters intelligence, surveillance, and reconnaissance (ISR) missions, low-intensity engagements, urban warfare, and over-the-hill reconnaissance missions.
Application (Civil Commercial, Military Defense, Others)
The civil commercial segment is projected to account for a significant share of the small drone market. The potential sectors for utilization of UAV applications are surveying mapping and inspection to save considerable time and expense over traditional methods. For example, in September 2023, Teledyne Flir unveiled a technology that allowed multiple drones to be launched and recovered autonomously from military vehicles. Its 'Black Recon' system includes a small, agile micro-drone that can fly for up to 45 minutes and weighs only 350 grams. Additionally, with increased demand from the media and entertainment industries for aerial photography and videography, the scope of segment expansion is marked by an increase in the use of such capabilities.
Our in-depth analysis of the global small drone market includes the following segments:
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Type |
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Application |
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Platform |
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North America Market Statistics
North America in small drone market is likely to hold more than 46.1% revenue share by 2037, due to high technology infrastructure, advanced defense sectors, and industrialization of various industries. Furthermore, the strong presence of aerospace giants such as Textron and Northrop Grumman, drone manufacturers such as FLIR Systems and DJI, and startups such as Skydio and Airmap are shaping the future of the region. Thus, altogether boosting innovation and continuous growth in the small drone market.
The U.S. has long been one of the world’s leading innovators, allowing it to rapidly adopt emerging technology to strengthen U.S. national defense. It has made the maintenance of air superiority a major priority and thus favors strategic investments to expand the growth. For instance, in May 2024, Boeing Co. committed USD 240 million toward an aerospace cluster located in the Montreal area. As the cornerstone of a provincial plan to establish Quebec as a global hub for the development of drones and environmentally friendly aircraft.
Canada strives to ensure the safety and security of its citizens as well as its international allies and partners. It involves purchasing cutting-edge military equipment to create a strong base. The government of Canada, in December 2023, committed USD 2.49 billion towards acquiring the capability of a remotely piloted aircraft system (RPAS). With certain components obtained through a Foreign Military Sale with the US government, the acquisition was accomplished through a direct commercial sale contract with General Atomics Aeronautical Systems, Inc.
Asia Pacific Market Analysis
The pro-UAV integration initiatives from the government side and favorable regulations complement each other. The region's rapidly growing tech ecosystem, along with rising demand for aerial surveillance is also one of the significant reasons for positioning it as an emerging region in the market. Overall, the small drone market will continue to grow steadily forward in a tremendous way, owing to technology being adapted. Furthermore, emerging trends clubbed with the realization of its increased functionalities will inculcate pioneering spirit amongst the market players.
The developing economy clubbed with government initiatives supports the expansion of the small drone market in India. For instance, in August 2024, it was announced that National Aerospace Laboratories (NAL) had undergone revolutionary development and transformed the defense arsenal. It introduced a fully indigenous kamikaze drone each approximately 2.8 meters in length with a wingspan of 3.5 meters and weight around 120 kilograms. Furthermore, it is equipped with exceptional capabilities to strike enemy targets with precision.
China has a strong research and development base within the country that relentlessly strives towards groundbreaking innovations and advancements. For instance, in July 2024, a revolutionary drone technology breakthrough was revealed. At Beihang University, the CoulombFly drone was created by a team of eminent researchers, having a wingspan of only 20 centimeters, and weight only 4.21 grams. They have created the tiniest and lightest solar-powered drone in the world, which is an engineering marvel that has the potential to completely change the industry.
The companies heavily invest in developing their UAV capabilities. In addition, emerging startups also play a vital role by driving innovation in niche markets. Overall, strategic partnerships and collaborations in the industry further boost the growth of the overall ecosystem of small drone technologies. For instance, in May 2024, Airbus purchased the Aerovel, a UAS based in the U.S., along with its Flexrotor module. It is a small tactical unmanned aerial system used in maritime and terrestrial intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) operations.
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Author Credits: Abhishek Verma
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