Analysis by Drone Type {Medium Altitude Long Endurance (MALE), High Altitude Long Endurance (HALE), Small, and Tactical}; by Technology (Fuel Cell, Lithium-Based, and Nickel-Based); by Type (Fixed-Wing, Rotary-Wing, and Fixed-Wing VTOL); and by Component (BMS, Cell, Connector, and Enclosure) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global drone battery market is estimated to garner a revenue of USD 17 Billion by the end of 2033 by growing at a CAGR of ~20% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 8 Billion in the year 2022. The primary growth factor of the drone battery market is increasing demand from commercial consumers and increased application in security, filmmaking, and agricultural mapping, among others. Additionally, a growing number of startups are specializing in supplying drones with batteries for improved flight time and greater aerial accuracy. For instance, in 2022, the drone segment was projected to drop to approximately USD 3.5 billion.
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Global drone battery market trends such as the rising utilization of drones for traffic monitoring, search and rescue, videography, and surveillance are projected to influence the growth of the market positively over the forecast period. It is observed that about 1.5 million people lose their lives on account of road traffic crash every year. Moreover, the higher utilization of lithium-based batteries is further expected to hike the growth of the market over the forecast period. For instance, in 2018, the total production of lithium-ion batteries reached around 300 gigawatt-hours. Lithium-based batteries are the most common type of batteries to be installed in drones since they provide high energy density compared to their size. Hence, such factors are estimated to propel the growth of the market during the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~20% |
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Base Year Market Size (2022) |
~ USD 8 Billion |
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Forecast Year Market Size (2033) |
~ USD 17 Billion |
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Regional Scope |
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Growth Drivers
Growing Demand for Drones in Defense Sector - For instance, as of august 2020, 5 drones were approved by the unit of the U.S. Department of Defense Organization, Defense Innovation Unit for military and federal application. Defensive forces manage the defense system by continuously assessing and tracking the enemy's activity, which potentially results in military fatalities. To study enemy movement, drones (UAVs) are utilized as a key alternative. Drones are made so that they often quickly recognize regions that are vulnerable to terrorism-related problems. Therefore, such a higher requirement is anticipated to hike the growth of the market over the forecast period.
Rising Prevalence of UAVs across the Globe - In 2020, the project commercial drone sector was anticipated to generate a revenue of around USD 2.5 billion while the total spending on commercial UAVs is estimated to reach around USD 3 billion.
Ongoing Advancement in Smart Battery Technology - For instance, the total cost of the battery pack is projected to reach approximately 55 USD/kWh by the year 2030.
Increasing Requirements for Surveillance - As of 2020, approximately 31,000 drones were projected to be flying solely in the United States skies.
Challenges
Requirement for Higher Initial Investment - The requirement for higher initial investment is estimated to challenge the market growth. As per recent data, 1.1 billion dollars being invested in drone businesses in 2020. The market for commercial drones is anticipated to reach a value of $43.1 billion by 2024.
Lack of Awareness of the Drones
Constant Need for Expensive Maintenance
The global drone battery market is segmented and analyzed for demand and supply by type into fixed-wing, rotary-wing, and fixed-wing VTOL. Out of these, the fixed-wing VTOL segment is projected to witness noteworthy growth over the forecast period owing to their increased use in aerospace and civil aviation applications such as aerial photography and mapping, crop monitoring, Wildlife Surveillance & Control (WSC), and firefighting. As of 2022, about 0.08 million drones were registered solely in the USA.
The North America drone battery market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market is primarily attributed to the rising awareness of drones and the significant development of defense technologies in the region. As of 2022, the drone segment in the USA was projected to generate revenue of approximately USD 1 billion. Moreover, the higher utilization of drones in the agricultural sector of the region is further anticipated to hike the growth of the market during the forecast period.
Our in-depth analysis of the global drone battery market includes the following segments:
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By Drone Type |
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By Technology |
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By Type |
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By Component |
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Oxis Energy Ltd
H3 Dynamics LLC to get certified in Japan for its dynamics-powered hydrogen drone. This hydrogen drone is installed with H3 Dynamics’ AEROSTAK hydrogen fuel cell and has been officially been approved by the Japanese Minister of Economy, Trade and Industry (MITI).
Yuneec Holding Ltd. to announce its collaboration with ATL Americas and FoxFury Lighting Solutions. With this collaboration, Yuneec becomes able to take benefit of the powerful light systems of Foxfury to install in its flagship H520, H520E, and H520E-RTK for night missions.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Growing demand for drones in the defense sector and the rising prevalence of UAVs across the globe are estimated to majorly boost the market growth.
Ans: The market is anticipated to attain a CAGR of ~20% over the forecast period, i.e., 2023 – 2033.
Ans: The requirement for higher initial investment and constant need for expensive maintenance is estimated to challenge the market growth.
Ans: The market in North America region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Amperex Technology Limited, Ballard Power Systems Inc., Yuneec Holding Ltd., Parrot Drone SAS., H3 Dynamics LLC, Skydio. Inc., Genspow GmbH, Autel Robotics Co., Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by drone type, technology, type, component, and by region.
Ans: The fixed-wing segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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