BOSTON, Mass., Oct. 14, 2014—The market for commercial uses of unmanned aerial vehicles (UAVs), or drones, will grow to $1.7 billion in 2025, driven by a broad range of applications led by agriculture, according to Lux Research.
Advanced sensors that are at the heart of the drones will claim a large chunk of the UAV cost stack, accounting for $670 million, nearly 40% of the overall pie. However, regulation remains the single biggest hurdle for commercial adoption.
“Drones have the potential for a wide array of commercial applications, but the current state of regulation is chaotic. Many countries have no regulations, making UAV flight technically legal but poorly regulated, while others — including the U.S. — still ban all commercial use,” said Maryanna Saenko, Lux Research Analyst and the lead author of the report titled, “UAV Landscape and Market Size: The Impact of Technology and Regulation on Commercial Applications.”
“Regulators will first approve use in sparsely populated areas, benefitting applications like agriculture as well as oil and gas exploration,” she added.
Lux Research analysts evaluated the UAV landscape and built a model for commercial adoption, based on numerous factors including regulatory obstacles, technical limitations, cost, and performance. Among their findings:
The report, titled “UAV Landscape and Market Size: The Impact of Technology and Regulation on Commercial Applications,” is part of the Lux Research Autonomous Systems 2.0 Intelligence service.
About Lux Research
Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.