The Malaysia drone market is expected to grow at a CAGR of 21.42%, reaching a market size of US$12,993.298 million in 2030 from US$4,928.072 million in 2025.
The drone market in Malaysia is growing as drones are increasingly gaining attention among the younger generation and are now seen as exciting recreational options to try. People operate drones for various activities, such as getting breathtaking shots and creating videos (aerial photography and cinematography), entertainment purposes, fun, delivery, and many others. Furthermore, there are sectors like agriculture, military, mining, construction, and many others where drones are utilized in the country for numerous purposes.
Moreover, the Malaysian government is also supporting the drone market growth while establishing regulations to ensure safe drone operations. These guidelines increase people's assurance in utilizing and investing in drones. Comprehensively, Malaysia's drone market is getting increasingly fascinating, with new developments and innovations being introduced regularly.
Further, the increasing demand for drones in various industries has also increased the market demand and the growth of various other industries. As stated by the World Bank, after the slowdown in Malaysian industries, there has been significant growth in recent years. For instance, the value added by the industries as a percentage of GDP increased from 37.72% in 2021 to 39.10% in 2022. This growth is anticipated to majorly impact the drone industry in the region.
With the advent of the Internet of Things (IoT), artificial intelligence (AI), and data analytics, the use and applications of drones have grown beyond aerial photography, package delivery, and dazzling drone light displays. The scope for enhancement and advancement of drone technology is envisaged for many sectors, including energy, agriculture, and oil and gas.
Due to their manifold merits, drone cameras are expected to be adopted by both the government and the general public. It is projected that the IoT sector will contribute RM 42.5 billion to the GDP by 2025, according to MAMPU. The government stood to gain by investing more in technology as the returns on the Internet of Things (IoT) in the country were increasing, even though imports had gone dramatically high.
Government actions and regulations have a significant impact on the Malaysian drone market, determining its growth trajectory and operating landscape. The government hopes to exploit the promise of drone technology through proactive measures and strategic interventions while maintaining safety, security, and regulatory compliance. Government initiatives play an important role in creating an environment conducive to the use of drones across several industries. The government promotes firms to engage in drone technology by offering financial incentives, subsidies, and grants, resulting in increased market demand and innovation.
For instance, in the 2023 Drone Readiness Index (DRI), Malaysia's drone industry was placed first in Southeast Asia. The Malaysian government argues that the country has enormous potential to become a major participant in the global drone industry, which is anticipated to reach USD 127 billion by 2025.
The Malaysian drone sector has witnessed a significant surge in the adoption of fixed-wing drones, largely driven by evolving market trends and lucrative opportunities. One key trend shaping this growth is the increasing demand for aerial surveillance and monitoring solutions across various sectors, including agriculture, infrastructure, and environmental management.
According to the Department of Statistics, Malaysia, construction activity increased by 8.6% year-on-year in the fourth quarter of 2023, marking the seventh consecutive month of expansion, albeit at a slower pace compared to the previous three-month period. Despite a slight moderation in residential and special trade sectors, steady increases in non-residential building (27.7%) and civil engineering (41.9%) outputs hint at continued demand for aerial surveying and monitoring solutions. As construction projects intensify, fixed-wing drones become indispensable tools for efficient site mapping, progress tracking, and resource management.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Malaysia Drone Market Size in 2025 | US$4,928.072 million |
| Malaysia Drone Market Size in 2030 | US$12,993.298 million |
| Growth Rate | CAGR of 21.42% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
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| List of Major Companies in Malaysia Drone Market |
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| Customization Scope | Free report customization with purchase |