Artificial Intelligence (AI) In Drone Market Report, Size, Share, Opportunities, And Trends By Technology Type (Software, AI-pilot, Others), By Offerings (Hardware, Software), By End-User (Defence, Logistics and Delivery, Agriculture and Precision Farming, Disaster Management and Search & Rescue, Environmental Monitoring, Others), And By Geography - Forecasts From 2025 To 2030

Description

Artificial Intelligence (AI) in Drone Market Size:

The AI in the drone market is projected to grow at a CAGR of 30.49% over the forecast period, increasing from USD 31.923 billion in 2025 to USD 120.410 billion by 2030.

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AI in the drone market is revolutionizing unmanned aerial vehicle (UAV) applications across industries. Drone AI solutions power intelligent drones and autonomous UAVs, enabling advanced navigation, obstacle avoidance, and mission planning. Smart drones, integrated with drone robotics, enhance precision in sectors like agriculture, logistics, and surveillance. Drone data analytics, driven by drone software AI, processes real-time data for actionable insights, optimizing tasks such as mapping and monitoring. As demand for efficiency and automation grows, this market is pivotal in delivering scalable, intelligent solutions that redefine operational capabilities, safety, and data-driven decision-making in diverse industrial ecosystems. The AI in drones offers its application across multiple industries, like defense, agriculture, surveillance, surveys, and logistics, among others. In the agriculture sector, AI-based drones can map and monitor livestock and crop production.

Artificial Intelligence (AI) in Drone Market Trends:

The AI in drone market is experiencing exponential growth, driven by the surging adoption of AI-powered drones in the global logistics and e-commerce sectors. Artificial intelligence (AI) revolutionizes drone delivery by enabling real-time navigation, obstacle detection, and optimized routing, significantly enhancing last-mile delivery efficiency. Leading companies like Amazon have pioneered drone delivery solutions, launching services in countries such as the UK and Italy in October 2023, demonstrating the transformative potential of AI drones in e-commerce logistics (Amazon press release, 2023).

According to the U.S. Census Bureau, e-commerce retail sales in the U.S. grew from $287,855 million in Q1 2024, representing 15.8% of total retail sales, to $292,567 million in Q2, and reached $300,053 million in Q3 2024. This rapid expansion underscores the critical role of AI-driven drones in meeting delivery demands. AI technologies, including machine learning, computer vision, sensor fusion, and deep learning, empower drones to navigate complex urban environments, ensuring precision, safety, and speed in delivery operations.

Innovative trends are reshaping the AI drone market. Drone-in-a-box systems enable automated, on-demand deployments, ideal for logistics and emergency response. Beyond Visual Line of Sight (BVLOS) operations expand drone autonomy and operational range, unlocking applications in remote areas. Drone-as-a-Service (DaaS) and AI as a Service (AIaaS) provide scalable, cloud-based solutions for industries like agriculture, infrastructure monitoring, and security. Climate-smart drones, incorporating energy-efficient designs and eco-friendly materials, align with sustainable drone operations, addressing environmental concerns. Real-time drone insights, powered by AI analytics, enhance decision-making, while predictive maintenance minimizes downtime, boosting operational reliability.

North America leads the market, supported by advanced technology infrastructure, regulatory frameworks, and R&D investments. Asia-Pacific, particularly China, India, and Japan, is a fast-growing region due to e-commerce expansion, urbanization, and government support for drone technology. Challenges like regulatory compliance and data privacy persist, but AI innovations and standardized protocols are mitigating these issues. The AI in the drone market is poised for transformative growth, fueled by drone automation, sustainability, logistics efficiency, and industry-specific applications, cementing its role in the future of intelligent aerial solutions.

Artificial Intelligence (AI) in Drone Market Growth Drivers:

• Growing global defense expenditure

AI drones offer a key application in the global market. In the defense sector, drones help enhance the efficiency of surveillance systems and improve military capabilities. With the rising global military and defense expenditure in the global market, the demand for AI in the drone market is expected to significantly increase.

The Stockholm International Peace Research Institute, in its global report, stated that in 2023, the global military expenditure witnessed a growth of about 6.8% compared to 2022. The agency stated that in 2023, the total military expenditure of the USA and China was recorded at US$916 and US$296 billion, respectively. Similarly, the military expenditure of Russia and India was recorded at US$109 and US$83.6 billion, respectively.

• Increasing demand for the AI-powered software in drones

The growth of AI in the drone software segment is primarily driven by better data analysis and interpretation, automated processing of data, accuracy, productivity, and advanced analytics functionalities. Such software connected to AI is expected to be more significant due to efficiency in the processing of the enormous amounts of data collected by drones in the form of pictures, videos, and sensor readings, to reduce the consumption of time and effort to do this processing. It can also define possible patterns, unusual behaviors, and trends in drone data for improved and more informed decisions. The enhancement in this segment is mainly attributable to the high adoption of AI in the drone industry.

Further, SafePro AI delivered SpotlightAI ONSITE, a real-time AI-powered drone image processing introduced in December 2024. This is a real-time threat detection software for over 150 land mines and unexploded ordnance classes from drone imagery, in support of forward operations. It offers extensive practical field experience in Ukraine under real-world testing by Safe Pro AI, a subsidiary of Safe Pro AI. It is designed to work with virtually any drone. Thus, these latest innovations and advancements result in more demand for increased AI in drone software technologies, which in turn will increase the market in the years to come.

Additionally, AI-powered software in drones is opening a doorway for certain new applications, such as precision agriculture, infrastructure inspection, and delivery services. The AI-powered drone software providers are launching software for various sector applications such as environmental monitoring, search and rescue, and logistics-specific solutions. On an application basis, this segment is witnessing an expansion across industries, which is contributing to the market growth.

Artificial Intelligence (AI) in Drone Market Geographical Outlook:

By geography, the AI in the drone market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as the ASEAN countries.

North America AI in Drone Market

North America is expected to have a significant market share for AI in the drone market. USA AI in the drone market is witnessing growth due to emerging technology advances in machine learning, computer vision, and natural language processing, which are opening up an avenue for future-proofing solutions. Such advanced AI technologies allow drones to perform more sophisticated functions while managing tasks within autonomy. Increased demand for industrial automation in the region is improving efficiency in task performance and reducing costs and safety incidents, which supports the case for using AI-powered drones for outsourcing tasks like data collection, inspections, and deliveries.

Additionally, as per Federal Aviation Administration data of the U.S. of October 2024, there were 791,597 registered drones, while 396,746 drones were commercial registered and 415,635 were remote pilot certified. The increasing density of drones in the region indeed necessitates advanced technologies like AI to address the challenges of space complexity, safety, and enhanced drone capabilities. The huge amount of data produced by drones will provide a fertile ground for AI R&D towards training algorithms for object detection, navigation, and decision-making, among other tasks, as well as increase utilization in the security and surveillance purposes by the defense sector of the USA.

Besides that, the increasing numbers of drones bring new avenues for regional AI companies to work on the development and deployment of AI-based solutions for drone operations, such as traffic management systems, collision avoidance systems, and payload delivery systems. The innovations are making complex information accessible and can democratize the adoption of AI-powered drone solutions, leading to the promotion of their utilization in agriculture, delivery, and infrastructure inspection in the region.

Artificial Intelligence (AI) in Drone Market Segment Analysis:

• The AI in the drone market, by technology type, is divided into software, AI pilot, and others. The software category is forecasted to attain a greater market share.
• By offerings, the AI in the drone market is divided into hardware and software. The hardware category is forecasted to attain a greater market share.
• The AI in the drone market, by end-user, is divided into defense, logistics & delivery, agriculture & precision farming, disaster management and search & rescue, environmental monitoring, and others. The defense category is forecasted to attain a greater market share.

Artificial Intelligence (AI) in the Drone Market Key Developments:

The market leaders for AI in the drone market are Folio3 Software Inc., Saiwa, Shield AI, Skydio, Lockheed Martin Airobotic Nearthlab, Percepto, Ayaan Autonomous Systems Pvt. Ltd., AI Aerial Dynamics, Asteria Aerospace, Skylark Drones, and Blue Bear Systems Research Ltd. The key players in the market implement growth strategies such as product launches, mergers, acquisitions, etc., to gain a competitive advantage over their competitors. For Instance,

• In January 2024, Nearthlab, a prominent developer of autonomous drone technologies, made a big stir through the launch of its “AIDrone”, representing the merging of AI with drone technology.
• In December 2023, Dronewatch launched ChatUAV, described as the world's first AI-powered drone knowledge base to answer all queries and questions that are drone-related, from hobbyist to professional regulatory issues.
• In October 2023, Maris-Tech launched “Jupiter Drones,” an Ultra-Compact AI-powered video analytics product for the autonomous aerial vehicle market. A wide range of professional civilian, homeland security, and defense applications is suitable for Jupiter Drones.

List of Top Artificial Intelligence (AI) In Drone Companies:

• Folio3 Software Inc.
• Saiwa
• Shield AI
• Skydio
• Lockheed Martin

Artificial Intelligence (AI) in Drone Market Scope:

Artificial Intelligence (AI) in Drone Market is analyzed into the following segments:

• By Technology Type
  • Software
  • AI-pilot
  • Others
• By Offerings
  • Hardware
  • Software
• By End-User
  • Defence
  • Logistics and Delivery
  • Agriculture and Precision Farming
  • Disaster Management and Search & Rescue
  • Environmental Monitoring
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Rest of Asia-Pacific

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Table Of Contents

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

2.3. Data Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4.  Industry Value Chain Analysis

5. AI IN THE DRONE MARKET BY TECHNOLOGY TYPE

5.1. Introduction

5.2. Software

5.3. AI-pilot

5.4. Others

6. AI IN THE DRONE MARKET BY OFFERINGS

6.1. Introduction

6.2. Hardware

6.3. Software

7. AI IN THE DRONE MARKET BY END-USER

7.1. Introduction

7.2. Defence

7.3. Logistics and Delivery

7.4. Agriculture and Precision Farming

7.5. Disaster Management and Search & Rescue

7.6. Environmental Monitoring

7.7. Others

8. AI IN THE DRONE MARKET BY GEOGRAPHY

8.1. Global Overview

8.2. North America

8.2.1. By Technology Type

8.2.2. By Offerings

8.2.3. By End-User

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Technology Type

8.3.2. By Offerings

8.3.3. By End-User

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Rest of South America

8.4. Europe

8.4.1. By Technology Type

8.4.2. By Offerings

8.4.3. By End-User

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Italy

8.4.4.5. Spain

8.4.4.6. Rest of Europe

8.5. Middle East and Africa

8.5.1. By Technology Type

8.5.2. By Offerings

8.5.3. By End-User

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. United Arab Emirates

8.5.4.3. Rest of Middle East and Africa

8.6. Asia-Pacific

8.6.1. By Technology Type

8.6.2. By Offerings

8.6.3. By End-User

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. South Korea

8.6.4.4. India

8.6.4.5. Indonesia

8.6.4.6. Thailand

8.6.4.7. Taiwan

8.6.4.8. Rest of Asia-Pacific

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Folio3 Software Inc.

10.2. Saiwa

10.3. Shield AI

10.4. Skydio

10.5. Lockheed Martin

10.6. Airobotics

10.7. Nearthlab

10.8. Percepto

10.9. Ayaan Autonomous Systems Pvt. Ltd. 

10.10. AI Aerial Dynamics

10.11. Asteria Aerospace

10.12. Skylark Drones

10.13. Blue Bear Systems Research Ltd (Saab UK Ltd.)

List of Tables

Table 1: Research Assumptions

Table 2: AI in the Drone Market, Key Findings

Table 3: Global AI in the Drone Market, By Technology Type, USD Billion, 2020 to 2030

Table 4: Global AI in the Drone Market, By Offerings, USD Billion, 2020 to 2030

Table 5: Global AI in the Drone Market, By End-User, USD Billion, 2020 to 2030

Table 6: Global AI in the Drone Market, By Geography, USD Billion, 2020 to 2030

Table 7: North America AI in the Drone Market, By Technology Type, USD Billion, 2020 to 2030

Table 8: North America AI in the Drone Market, By Offerings, USD Billion, 2020 to 2030

Table 9: North America AI in the Drone Market, By End-User, USD Billion, 2020 to 2030

Table 10: North America AI in the Drone Market, By Country, USD Billion, 2020 to 2030

Table 11: South America AI in the Drone Market, By Technology Type, USD Billion, 2020 to 2030

Table 12: South America AI in the Drone Market, By Offerings, USD Billion, 2020 to 2030

Table 13: South America AI in the Drone Market, By End-User, USD Billion, 2020 to 2030

Table 14: South America AI in the Drone Market, By Country, USD Billion, 2020 to 2030

Table 15: Europe AI in the Drone Market, By Technology Type, USD Billion, 2020 to 2030

Table 16: Europe AI in the Drone Market, By Offerings, USD Billion, 2020 to 2030

Table 17: Europe AI in the Drone Market, By End-User, USD Billion, 2020 to 2030

Table 18: Europe AI in the Drone Market, By Country, USD Billion, 2020 to 2030

Table 19: Middle East and Africa AI in the Drone Market, By Technology Type, USD Billion, 2020 to 2030

Table 20: Middle East and Africa AI in the Drone Market, By Offerings, USD Billion, 2020 to 2030

Table 21: Middle East and Africa AI in the Drone Market, By End-User, USD Billion, 2020 to 2030

Table 22: Middle East and Africa AI in the Drone Market, By Country, USD Billion, 2020 to 2030

Table 23: Asia Pacific AI in the Drone Market, By Technology Type, USD Billion, 2020 to 2030

Table 24: Asia Pacific AI in the Drone Market, By Offerings, USD Billion, 2020 to 2030

Table 25: Asia Pacific AI in the Drone Market, By End-User, USD Billion, 2020 to 2030

Table 26: Asia Pacific AI in the Drone Market, By Country, USD Billion, 2020 to 2030

Table 27: AI in the Drone Market, Strategy Analysis of Key Players

Table 28: AI in the Drone Market, Mergers, Acquisitions, Agreements, and Collaborations

Table 29: Folio3 Software Inc., Products and Services

Table 30: Saiwa, Products and Services

Table 31: Shield AI, Products and Services

Table 32: Skydio, Products and Services

Table 33: Lockheed Martin, Products and Services

Table 34: Airobotics, Products and Services

Table 35: Nearthlab, Products and Services

Table 36: Percepto, Products and Services

Table 37: Ayaan Autonomous Systems Pvt. Ltd., Products and Services

Table 38: AI Aerial Dynamics, Products and Services

Table 39: Asteria Aerospace, Products and Services

Table 40: Skylark Drones, Products and Services

Table 41: Blue Bear Systems Research Ltd (Saab UK Ltd.), Products and Services

List of Figures

Figure 1: Global AI in the Drone Market Size, USD Billion, 2020 to 2030

Figure 2: Global AI in the Drone Market Segmentation

Figure 3: Market Drivers Impact

Figure 4: Porter’s Five Forces Analysis: Bargaining Power of Suppliers

Figure 5: Porter’s Five Forces Analysis: Bargaining Power of Buyers

Figure 6: Porter’s Five Forces Analysis: Threat of New Entrants

Figure 7: Porter’s Five Forces Analysis: Threat of Substitutes

Figure 8: Porter’s Five Forces Analysis: Competitive Rivalry in the Industry

Figure 9: Global AI in the Drone Market, Industry Value Chain Analysis

Figure 10: Global AI in the Drone Market Share (%), By Technology Type, 2025 and 2030

Figure 11: Global AI in the Drone Market Attractiveness by Technology Type, 2030

Figure 12: Global AI in the Drone Market, By Technology Type, Software, USD Billion, 2020 to 2030

Figure 13: Global AI in the Drone Market, By Technology Type, AI-pilot, USD Billion, 2020 to 2030

Figure 14: Global AI in the Drone Market, By Technology Type, Others, USD Billion, 2020 to 2030

Figure 15: Global AI in the Drone Market Share (%), By Offerings, 2025 and 2030

Figure 16: Global AI in the Drone Market Attractiveness by Offerings, 2030

Figure 17: Global AI in the Drone Market, By Offerings, Hardware, USD Billion, 2020 to 2030

Figure 18: Global AI in the Drone Market, By Offerings, Software, USD Billion, 2020 to 2030

Figure 19: Global AI in the Drone Market Share (%), By End-User, 2025 and 2030

Figure 20: Global AI in the Drone Market Attractiveness by End-User, 2030

Figure 21: Global AI in the Drone Market, By End-User, Defence, USD Billion, 2020 to 2030

Figure 22: Global AI in the Drone Market, By End-User, Logistics and Delivery, USD Billion, 2020 to 2030

Figure 23: Global AI in the Drone Market, By End-User, Agriculture and Precision Farming, USD Billion, 2020 to 2030

Figure 24: Global AI in the Drone Market, By End-User, Disaster Management and Search & Rescue, USD Billion, 2020 to 2030

Figure 25: Global AI in the Drone Market, By End-User, Environmental Monitoring, USD Billion, 2020 to 2030

Figure 26: Global AI in the Drone Market, By End-User, Others, USD Billion, 2020 to 2030

Figure 27: Global AI in the Drone Market Share (%), By Geography, 2025 and 2030

Figure 28: Global AI in the Drone Market Attractiveness by Geography, 2030

Figure 29: North America AI in the Drone Market, USD Billion, 2020 to 2030

Figure 30: North America AI in the Drone Market Share (%), By Country, 2025 and 2030

Figure 31: North America AI in the Drone Market Attractiveness, By Country, 2030

Figure 32: United States AI in the Drone Market, USD Billion, 2020 to 2030

Figure 33: Canada AI in the Drone Market, USD Billion, 2020 to 2030

Figure 34: Mexico AI in the Drone Market, USD Billion, 2020 to 2030

Figure 35: South America AI in the Drone Market, USD Billion, 2020 to 2030

Figure 36: South America AI in the Drone Market Share (%), By Country, 2025 and 2030

Figure 37: South America AI in the Drone Market Attractiveness, By Country, 2030

Figure 38: Brazil AI in the Drone Market, USD Billion, 2020 to 2030

Figure 39: Argentina AI in the Drone Market, USD Billion, 2020 to 2030

Figure 40: Rest of South America AI in the Drone Market, USD Billion, 2020 to 2030

Figure 41: Europe AI in the Drone Market, USD Billion, 2020 to 2030

Figure 42: Europe AI in the Drone Market Share (%), By Country, 2025 and 2030

Figure 43: Europe AI in the Drone Market Attractiveness, By Country, 2030

Figure 44: United Kingdom AI in the Drone Market, USD Billion, 2020 to 2030

Figure 45: Germany AI in the Drone Market, USD Billion, 2020 to 2030

Figure 46: France AI in the Drone Market, USD Billion, 2020 to 2030

Figure 47: Italy AI in the Drone Market, USD Billion, 2020 to 2030

Figure 48: Spain AI in the Drone Market, USD Billion, 2020 to 2030

Figure 49: Rest of Europe AI in the Drone Market, USD Billion, 2020 to 2030

Figure 50: Middle East and Africa AI in the Drone Market, USD Billion, 2020 to 2030

Figure 51: Middle East and Africa AI in the Drone Market Share (%), By Country, 2025 and 2030

Figure 52: Middle East and Africa AI in the Drone Market Attractiveness, By Country, 2030

Figure 53: Saudi Arabia AI in the Drone Market, USD Billion, 2020 to 2030

Figure 54: United Arab Emirates AI in the Drone Market, USD Billion, 2020 to 2030

Figure 55: Rest of Middle East and Africa AI in the Drone Market, USD Billion, 2020 to 2030

Figure 56: Asia Pacific AI in the Drone Market, USD Billion, 2020 to 2030

Figure 57: Asia Pacific AI in the Drone Market Share (%), By Country, 2025 and 2030

Figure 58: Asia Pacific AI in the Drone Market Attractiveness, By Country, 2030

Figure 59: China AI in the Drone Market, USD Billion, 2020 to 2030

Figure 60: Japan AI in the Drone Market, USD Billion, 2020 to 2030

Figure 61: South Korea AI in the Drone Market, USD Billion, 2020 to 2030

Figure 62: India AI in the Drone Market, USD Billion, 2020 to 2030

Figure 63: Indonesia AI in the Drone Market, USD Billion, 2020 to 2030

Figure 64: Thailand AI in the Drone Market, USD Billion, 2020 to 2030

Figure 65: Taiwan AI in the Drone Market, USD Billion, 2020 to 2030

Figure 66: Rest of Asia Pacific AI in the Drone Market, USD Billion, 2020 to 2030

Figure 67: Global AI in the Drone Market Share Analysis (2024)

Figure 68: Folio3 Software Inc., Key Developments

Figure 69: Saiwa, Key Developments

Figure 70: Shield AI, Key Developments

Figure 71: Skydio, Key Developments

Figure 72: Lockheed Martin, Financials, 2022-2024

Figure 73: Lockheed Martin, Segment Revenues, 2022-2024

Figure 74: Lockheed Martin, Geographical Revenue, 2022-2024

Figure 75: Lockheed Martin, Key Developments

Figure 76: Airobotics, Key Developments

Figure 77: Nearthlab, Key Developments

Figure 78: Percepto, Key Developments

Figure 79: Ayaan Autonomous Systems Pvt. Ltd., Key Developments

Figure 80: AI Aerial Dynamics, Key Developments

Figure 81: Asteria Aerospace, Key Developments

Figure 82: Skylark Drones, Key Developments

Figure 83: Blue Bear Systems Research Ltd (Saab UK Ltd.), Key Developments

Companies Profiled

Folio3 Software Inc.

Saiwa

Shield AI

Skydio

Lockheed Martin

Airobotics

Nearthlab

Percepto

Ayaan Autonomous Systems Pvt. Ltd. 

AI Aerial Dynamics

Asteria Aerospace

Skylark Drones

Blue Bear Systems Research Ltd (Saab UK Ltd.)

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