Drones are Evolving Beyond Their Military Origin, Creating a Market Too Big to Ignore

Drones have evolved beyond their military origin to become powerful business tools. They’ve leaped into the consumer market and are now deployed in commercial and civil government applications, creating a market opportunity too significant to ignore.

The global commercial drone market was estimated at $29.86 billion in 2022, but Goldman Sachs estimates drones would reach a $100 billion cap by 2030.

Drones started as safer, cheaper, and often more capable alternatives to manned military aircraft, taking over 70% of investments for years. But now, as technology improves, the fastest growth opportunity comes from the following segments: Agriculture, mining, insurance, media, and civil government applications.

Here's where you might see them; airborne pipeline inspections for oil and gas companies, giving helicopter pilots coordinates for water drops during fire outbreaks, and helping farmers inspect up to 1,000 acres of farmland daily.

The rapid growth of the drone industry has outpaced the development of rules to govern their use. However, the Federal Aviation Administration (FAA) is expected to ease restrictions keeping drones from reaching their full potential.

As the safety, efficiency, and cost benefits that appeal to the military make drones more attractive for the above segments, the $100 billion market opportunity Goldman Sachs forecasts will likely be 3x that number by 2030.

Here is a list of drone stocks not focused on military functionality: AeroVironment (AVAV)  , Amazon (AMZN)  , EHang Holdings (EH) , Joby Aviation (JOBY) , Alphabet (GOOGL), and AgEagle Aerial Systems Inc. (UAVS) .

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