Drone Market of India: Growth Drivers, Policy Push and Potential of Daas

Drones are unmanned aerial vehicles that are either operated remotely by an individual or fly autonomously using on-board computers. While still in their infancy, drones are widely used in military and commercial sectors, such as surveillance, crop spraying, surveying building projects, cinematography, etc. Their applications are anticipated to grow in other areas as well, stemmed by technology improvisation and ease of regulation.

On the backdrop of a burgeoning technology ecosystem coupled with the ambitious ‘Make in India’ initiative, India is set to become a powerhouse in Global Drone Manufacturing. The current market for Drone in India is growing at a CAGR of around 8-10%, as per the Market Research Services For Drone Business In India by The India Watch. The country’s expansive geography and spurred need for efficient logistics & surveillance solutions is fuelling local drone production. 

Many established business houses as well as start-ups are venturing into the segment, making it a fertile business ground. 

Drone-as-a-Service (DaaS):

Drones can be very expensive for most companies hence they prefer drones as a service, which led to evolution of a concept called Drones-as-a-service (DaaS). The DaaS market is driven by several factors which include:

•  Increasing need for aerial images and data collection across various sectors such as agriculture, construction, media & entertainment that raises the need for Feasibility Study To Launch A Drone Start-Up.

• The rise of e-commerce and the requirement for effective last-mile delivery solutions in remote areas mostly.

•  Encouraging government policies like the Production Linked Incentive (PLI) plans aimed at attracting investments and boosting local drone manufacturing.

The drone service market in India was valued at USD130.4 million in 2020 and is expected to reach USD 4.5 billion by 2030, at a CAGR of 44.4%. Indian market is witnessing a lot of entries and start-ups competing against established players in DaaS. So, there is a need for Feasibility Plan To Launch A Drone Business In India. Some of the leading providers of DaaS include, Aarav Unmanned Systems, Garuda Aerospace, Throttle Aerospace Systems, etc.. Aarav is well-known for its expertise in defence and homeland security applications. Therefore, it has a wide range of surveillance, reconnaissance and intelligence gathering drones. 

Tasks that require precise movements with high reliability often use unmanned aerial vehicles (UAVs) which can be found under this company’s services. As per the market research, Garuda Aerospace claims to be a leader within agricultural drone segment focusing on cost-effective drone solutions for farmers. Throttle Aerospace Systems was among pioneers when it comes to drone technology in India. They provide different kinds of drones for various uses.

Government initiatives to develop Drone Industry in India:

•  The vast potential of the drone industry has been recognized by the Indian government and hence they have come up with the specific PLI scheme for drone and its component manufacturers. This is aimed at boosting growth, job creation and lowering India’s dependence on importation of drones. As per the Market Feasibility Study To Build A Drone Business In India, for a period spanning 3 financial years, the government has set aside USD 14.2 million as incentives for drone and drone component makers. Under this programme, USD 3.5 million have already been released till date. It involves 23 companies in total which were chosen to benefit from it comprising 12 that produce drones while another 11 firms producing their components.

•  Namo Drone Didi is an initiative under Sashakt Nari-Viksit Bharat to empower women through training as agricultural pilots using unmanned aerial vehicles (UAVs). The main aim is to make use of drones for different purposes such as crop monitoring, spraying fertilizers, sowing seeds etc. This can massively improve farming productivity & efficiency besides creating increased employment opportunities.

•   In the year 2022, Indian government took a major step towards abolishing requirement of drone pilot license. The purpose behind this decision was to simplify process of operating drones thereby aiding development of the country’s drone industry.

•  In February 2022, the Indian Government banned imports of commercial drones. The main objective was to lower reliance on foreign players, boost indigenous manufacturing and create a vibrant drone ecosystem.  Hence, that brings the need for Feasibility Plan To Launch A Drone Business In India. 

•  DigitalSky is an important part of the Indian drone regulatory environment. It has been designed to streamline the industry and ensure safe and responsible operations for drones. The platform classifies airspace into three types: Green Zone (where drones can fly freely); Yellow Zone (that necessitate prior permission for drone flight); Red Zone (that are no-fly areas since all aircrafts are banned).

•    NITI Aayog’s estimation of USD 50 billion drone market over 15 years in India is a bold statement about massive potential in this industry. The notion that up to 80% of processes currently conducted by manned aircraft could be replaced by unmanned ones in future is seemingly very ambitious but not impossible to realize one day.

Key growth drivers of Drone Adoption in India

•    Drone technology is currently being used to keep track of crops, spray pesticides and deliver seeds. A report by FICCI said that use of drone could help farmers increase their incomes by between 15 and 20%. It is important to know about the Techno Economic Feasibility To Start A Drone Business.

•    The rise in e-commerce and the need for better delivery in the last mile is feeding into the demand for drones. Businesses are looking at drone-based solutions for delivering goods in remote locations. Zipline, a major player in this field, has implemented a drone-based system delivery of medicals in Telangana.

•    Drones are aggressively being used to inspect power lines, bridges and pipelines which leads to improved efficiency as well as safety. There is an increased requirement for drones in surveillance and security applications such as border control and crow management. They are also becoming crucial tools during disasters helping with search and rescue missions, damage assessment, and even logistics.

Several industries can realize significant cost savings due to application of drones instead of conventional means of production processes. This cost-effectiveness can be among the main drivers behind adoption of drone technology and also by studying the feasibility Study To Start A Drone Business In India.

•    Drones have completely transformed how media films its content today giving breathtaking scenes during their operations. This technological leap forward has opened potential new forms of creativity and commercial opportunities. Domains like Film & Television, Commercial Advertising, Weddings and Events can leverage a lot through drones and its applications.

Major Brands in the Segment

In 2023, the top 20 players accounted for around ~USD 75 million of revenue contributing a modest 8%. Among these players, ideaForge stood out significantly by making an impressive USD 41.6 million which is quite reasonable for the brand to lead others collectively. Looking at the data that was gained through Market Research Services For Drone Business In India. 

However, the situation in the market seems to be changing with established companies like Garuda Aerospace, Aarav Unmanned Systems and Asteria Aerospace. New entrants like General Aeronautics and Asteria Aerospace have generated revenue of USD 1.5 million each in 2023. 

The brands have developed new products that are helping them succeed within this fast-growing industry based on disruptive technologies. They also challenge traditional assumptions with their unique offerings and narrow specialization. 

As a result of the growing industry, competition has intensified leading to technology development as well as revenue growth limitations being pushed forward. Developments such as drone swarms for improving efficiency through integrated AI autonomous flight control systems along with hybrid drones capable of performing vertical take-offs from ground will continue pushing this sector further ahead. The agriculture field can benefit from these improvements among alongside other sectors such as security, surveillance, etc. Know more by getting Market Feasibility Study To Build A Drone Business In India.

How The India Watch can Help? 

If you are an international or a domestic business house looking to enter or expand in the Drone manufacturing and other ancillary business verticals, then The India Watch can help you with tailor made research and insights solutions. Our range of services include the following 

- Feasibility Study To Start A Drone Business In India

- Market studies and scanning

- India market entry strategies for foreign investors and business houses

- Custom intelligence on market sizing, major suppliers, market share analysis, customer segments & groups, value chain structure, etc. 

- For any further information or to get Feasibility Study To Launch A Drone Start-Up feel free to drop us a mail at info@theindiawatch.com.

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