Tethered Drones Market Overview
The tethered drones market size was valued at $ 75 MN in 2019, and it is expected to reach $554MN by 2023 by registering a CAGR rate of 40% in the forecast period. Drones are now used in so many places, and the military department is one of them. A tethered drone is an aerial vehicle that is connected to the ground station. The ground station converts the A.C. into D.C., and the drone has a DC-DC converter to supply lower-voltage power to the camera and the other components. The tethered drone power supply comes from the power station. Tethered drones have various applications in various industries. The tethered drone system is used for safety, military, and commercial purposes. Drones have played a huge role in the defense industry for so many years, and the demand for drones has increased rapidly across the years.
Tethered drones are used in the border area for base protection. Tethered drones systems can be operated in most climates to track enemy movements as well. Additionally, the private and public sectors have also started to take advantage of the tethered drones to reduce risks and optimize the processes. These affordable tethered drones are also used in crisis monitoring and for reliable aerial coverage. The use of tethered drones can also be seen in wildlife research, where these drones are used to capture the coverage of days together without any additional support.
Another role of the tethered drone is in inspecting industrial infrastructure such as fire stacks of an oil refinery. Workers working at that place are at risk of accidents that can be life-threatening. So the drone helps the industries to reduce the chance of shutdown in case of a nan accident and avoid placing workers at that place. Nowadays, the construction sites and mining sectors also use tethered drones for stockpile management and pre & post-blast data. In the agriculture sector, tethered drones are used to take a wide look. Due to all these factors, the demand for tethered consumer drones will rise in the forecast period.
Due to the emergence of COVID-19 many sectors and industries struggled highly, and their demand declined. Due to this, the world economy took a massive hit as well. To reduce the rapid spread of the corona virus, the governments around the world imposed a lockdown. Due to the lockdown, the production's manufacturing process was on a halt, and the supply chain got disrupted. Additionally, the travel restriction across all the regions made things worse for many industries. Due to all the factors, the tethered drone companies suffered massively. Tethered drones are used in so many sectors, but due to lockdown, almost all the sectors were closed, so the demand for tethered drones decreased.
Furthermore, the industries faced many financial problems due to which they didn't invest in the tethered drones. So overall, the COVID-19 hurt the market. But the situation is coming back to normal, and the tethered drone companies are trying to make up for the loss. Due to this, the tethered drones market is expected to rise in the forecast period.
Drivers in the tethered drones
One of the major drivers in the market is the increasing military use of tethered drones. Drones have played a big role in the defense sector since 1916 in the form of radio-controlled monoplanes. With technological advancement, drones are now capable of many things, and the military department across all countries is taking advantage of it. Tethered drones are used to track the activities in the border area, and they can be used in most climate conditions. They can also track the enemy, which can be a great advantage for any army camp. Due to this, the demand for tethered drones is rapidly increasing. U.S. Defense invested 1.2 billion in MQ-9, a drone, in 2017. Additionally, tethered drones are also used in commercial applications to capture aerial activities and strengthen the security of an organization, which will drive the tethered drones market in the coming years.
Opportunities in the tethered drones
The tethered drones are used in so many places to capture aerial photographs and video, document wildlife, and public service missions. In the past years, tethered drones have had a crucial role in the agriculture sector, generating more opportunities for the market and boosting the market growth. Some drones manufacturers are building advanced drones that come with many features that will bring opportunities to the market.
Restraints in the tethered drones
One of the major restraints in the tethered drones market is the rules and restrictions imposed by governments worldwide. The FAA is in charge of governing all aviation activities in the U.S. Free-flaying of drones is not allowed, and the government can take legal actions for it. Every country has different rules and regulations regarding using drones. These factors can hamper the tethered drones' growth as well.
Challenges in the tethered drones
One of the major challenges faced by tethered drones is safety concerns. There is a fear that drones can stop functioning anytime, and they can fall on people, and they can lead to accidents as well. Additionally, people in underdeveloped regions are not aware of tethered drones. Drones are very expensive, and most people can't afford them, which has become a challenge for the tethered drones market.
Cumulative growth analysis
The demand for the tethered drones market is increasing due to a wide range of applications of tethered drones in different sectors. The market is set to witness a CAGR of 40% and grow rapidly in the forecast period.
The market is segmented on type, application, component, and region.
Based on type, the market is segmented into military drones and commercial drones. The military drones segment holds the highest share among these.
Based on components, the market is further divided into sensors, cameras, controller systems, batteries, and others. The segment holds the highest tethered drones market share among these sensors, and the controller system is the fastest-growing segment.
Based on application, the market is segmented into law enforcement, inspection and monitoring, surveying, mapping, and others. Among these, the monitoring segment holds the highest share and the mapping is the fastest-growing segment.
Based on region, the market is segmented into North America, Europe, Asia Pacific, and the rest of the world.
The major regions in the tethered drones market are North America, Europe, Asia Pacific, and the rest of the world. Among these, the North American region holds the highest share owing to the technological advancement led by huge investment in the R&D sector. Also, the government in this region is investing heavily in the defense sector, which boosts the market in this region.
The market in the European region also has a large share in the tethered drones market owing to the huge demand for tethered drones in the defense sector for surveillance. Additionally, the economic development in this region plays a vital role in the market growth in this region.
The Asia Pacific region is expected to grow faster and register the highest rate of CAGR due to the presence of emerging economies like China and India. These countries are also investing in the defense sector, which will boost the market in this region. The Asia Pacific also has many big key players in the market, further driving the tethered drones market.
The major key players in the tethered drones market are
Among these key players, Drone Aviation (U.S.) contributes highly to the tethered drones market.
In October 2019, Drone Delivery Canada partnered with Air Canada and Edmonton International Airport (EIA) and launched an airport-based drone delivery hub. This partnership is to promote the drove delivery services in Canadian-controlled airspace.
This tethered drones market report gives a brief explanation about the market. This report includes the Covid-19 report that explains the impact of Covid-19 on the market. This report also highlights the market dynamics such as the drivers, opportunities, restraints, and challenges in the market. Furthermore, this report also tells about market segmentation, competitive landscape, regional analysis, and recent developments.
The tethered drones market expects to witness a 40% CAGR in future.
2020-2027 is the analysis period for the global tethered drones market’s growth.
The main growth factor for global tethered drones market is attributed to the increasing application areas of tethered drones, increasing uses and rising demand for drones for public safety and rapid technological advancements
The Americas is the leading region which high market shares. Currently, it is leading because of huge technological advancements that are being led by the substantial investments made in the R&D sector
Sky Technologies, Drone Aviation, Hoverfly Technologies, and UAVTEK are some of the top players of the global tethered drones market.