The Global Agriculture Drones Market Anticipated to Generate a Revenue of $6,244.5 Million, Growing at a CAGR of 19.2% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global agriculture drones market is estimated to be valued at $6,244.5 million by 2028, surging from $1,480.5 million in 2020, at a noteworthy CAGR of 19.2%.
Covid-19 Impact on Agriculture Drones Market
COVID-19 pandemic had adverse effects and repercussions globally that brought the world economy to halt and changed the way how several enterprises and companies operate. Moreover, the agriculture drone business was slightly affected owing to the negative impact on the agriculture industry that has experienced supply chain, workforce, and financial disruptions. However recently, the drone business is gaining attraction as economies have recovered following the COVID-19 pandemic.
In order to improve agriculture productivity, several agritech companies are introducing innovative farming technology by emphasizing more on wireless platforms such as drone technology. It aids farmers in real-time decision making in areas such as yield monitoring, field mapping, crop health monitoring, harvesting management, and irrigation scheduling, among other things. Furthermore, as authorities witness automation emerging as a tool for them to combat 21st-century concerns like the COVID-19 epidemic, governmental funding in unmanned research projects and initiatives are expanding.
Global Agriculture Drones Market Insights
Agriculture drones fill the gap left by human error and inefficiency in traditional farming practices, with the market for agricultural drones propel rapidly in the coming years. Drones in agriculture help farmers adapt to their environment and make thoughtful decisions as a result. Crop health, crop scouting, crop treatment, irrigation, field soil analysis, and crop damage assessments are all aided by the information gathered by the drones. Agriculture experts predict that by 2050, the world's population will reach 9 billion. Agricultural consumption is also expected to rise by about 70% at the same time. Drone technology with artificial intelligence (AI), machine learning (ML), and remote sensing capabilities is becoming increasingly popular which will foster the growth of the market in the coming years.
However, rules and regulations regarding flying commercial drones are stringent in several countries, which might impede the growth of the market. Moreover, due to different data protection laws across different countries, privacy laws are a main barrier to drone operations. Although consumer drones have been on the market since at least 2013, commercial drone use in the United States was severely restricted, if not outright prohibited, until 2016. The Federal Aviation Administration (FAA) issued legislation 14-CFR Part-107 in 2016 to explicitly expand the use of drones for commercial purposes.
The developments in sustainable agriculture practices to address climate change issues across the world will present tremendous opportunities for agriculture drones. In addition to increasing crop yields and revenue, agriculture drones can reduce water waste and improve labor productivity. Furthermore, since drones require less fuel than bulkier, motorized farm equipment, their use in agriculture can even help reduce greenhouse gas emissions.
Global Agriculture Drones Market, Segmentation
The global agriculture drones market is segmented based on type, application, technology, and region.
The type segment is further divided into fixed wing, rotary wing, and others. The rotary wing sub-segment of the global agriculture drones market value is projected to surpass $3,448.6 million by 2028. Rotary wing drones are known for specific features such as maneuverability, compact design, ease of use, higher payload capacity, and lower price when compared to other types of drones. Moreover, these drones require little space to take off; can hover mid-air; and can be maneuvered above, around, and beneath farms for easy mapping, inspection, and monitoring.
Based on application, the agriculture drones market has been sub-segmented into crop monitoring, soil & field analysis, planting & seeding, crop spray, and others of which the crop spraying sub-segment is projected to generate the revenue of $748.1 million by 2028, with the fastest compound annual growth rate of 20.4% during the forecast period. In areas with a steep slope or hard-to-access areas, crop spray drones provide an efficient method to spray pesticides and fertilizers on fields, rice paddies, and other waterlogged areas. In November 2020, DJI, manufacturer of drone and camera technology, introduced its new agriculture drone, the DJI AGRAS T20. This rugged, high-performance, and intelligent precision agricultural spraying drone has a modular and portable design that makes it accessible and scalable for farmers who are ready to implement digital insights and automated spray technology into their operations.
Based on technology, the agriculture drones market has been bifurcated into manual and autonomous drones of which the autonomous sub-segment is projected to generate the revenue of $2,244.0 million by 2028, with the fastest compound annual growth rate of 19.7% during the forecast period. An autonomous agriculture drone is one that is controlled from a ground station with the aid of automatic control processes, so there is a decrease in the number of operators needed to manage the drones. As part of drone farming, numerous agricultural applications, such as data-collection missions and drone mapping are now conducted autonomously.
The agriculture drones market growth for the North America region is projected to be substantial over the forecast period. This market generated a revenue of $545.6 million in 2020 and is further projected to reach up to $2,112.3 million by 2028. North America market’s share in the agriculture drones market is gradually growing mainly because of its rapid adoption of latest technologies in the region, along with heavy investments by government and industry for research and innovation purposes. Moreover, growth is also driven by a growing demand for high quality crops, a growing cost of labor, more automation in agricultural practices, and favorable regulations regarding the use of small drones in agriculture.
Top 10 Major Key Players in the Global Agriculture Drones Market are -
- AgEagle Aerial Systems Inc.
- AeroVironment, Inc.
- Parrot SA
- Sentera LLC
- Yamaha Motor Corporation
The agriculture drones market is currently extremely fragmented, with only a few large companies. The major strategies of these companies include product innovation, collaborative partnerships, and acquisitions of smaller entities. Despite negative Covid-19 impact on agriculture drone market, several companies are undertaking a variety of growth strategies to capitalize on future agriculture drone prospects.
On March 20, 2020, Atmos UAV, Netherlands based drone company, announced it had partnered up with Timco, mapping and surveying equipment provider, to supply VTOL fixed-wing aircraft winged drones to Serbian professionals. The collaboration will help Timoc in being appointed as the official distributor for ATMOS unmanned aerial vehicle (UAV).
Along with company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Agriculture Drones Market:
- Bargaining Power of Suppliers: When it comes to manufacturing components for drones, there is a limited amount of localization across countries. Several countries are instrumental in importing drone components including sensors and power electronics. As domestic supply of several high-value components is low, international suppliers currently have more bargaining strength.
Thus, the bargaining power of the suppliers is high.
- Bargaining Power of Buyers: There are a few worldwide manufacturers and a rising number of domestic participants in the industry. Customers in agriculture will have moderate bargaining power as long as there are barriers to drones adoption, such as standard protocols and government rules and restrictions regarding flying drones.
Thus, the bargaining power of the buyers is moderate.
- Threat of New Entrants: Government rules prohibiting the use of drones, as well as a lack of international standards, are preventing new entrants from entering the market. Low capital investment and demand for associated drone services like as surveys, inspections, and security are, on the other hand, are promoting the growth of startups.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: In comparison to alternatives such as satellite data or helicopter use, agriculture drones offer tremendous capabilities and value. Agriculture drones can reduce overhead and operational costs tremendously. Moreover, agriculture drones have a distinct advantage over their competitors owing to economic value it provides.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The agriculture drones market is fragmented market with a few prominent players. Few big firms are investing heavily in drone technology, exploiting their financial strength and global market reach to gain a competitive advantage over other competitors or new entrants to the market.
Therefore, competitive rivalry in the market is moderate.