Soaring Skies: India’s Dynamic Drone Landscape
Unmanned Aircraft Systems (UAS), or drones, have emerged as a cornerstone in India’s technological landscape, promising vast potential across defense, surveillance, internal security, disaster management, agriculture, healthcare, geo-spatial mapping, mining, infrastructure, as well as aerial photography and cinematography, among numerous other domains.
The annual sales turnover of the industry may grow from INR 60 Cr in 2020-21 to over INR 900 Cr in FY 2023-24 generating over 10,000 direct jobs. It is expected that the drone services industry (operations, logistics, data processing, traffic management etc.) will grow to over INR 30,000 Cr in the next 3 years, potentially employing over five lakh people as noted here. The proactive initiatives of the Indian government, such as the formation of a drone task force, the launch of a dedicated portal for drone operations, and the implementation of a Rs. 120 crore Production-Linked Incentive (PLI) scheme, emphasize a dedicated commitment to nurturing the growth of indigenous drone manufacturing as mentioned here.
Drones have found diverse applications in various industries. In agriculture, they enable efficient crop monitoring, mapping, and irrigation system analysis, offering farmers substantial cost and time savings. Environmental conservation benefits from drones through wildlife monitoring, habitat management, and flood assessments. In media coverage, drones provide affordable aerial shots for local journalists and small-scale media houses. For search and rescue operations, drones equipped with infrared sensors prove invaluable in locating individuals during disasters. Additionally, the burgeoning use of drones in e-commerce and healthcare delivery has gained prominence, especially underscored by the COVID-19 pandemic, emphasizing the need for drone-friendly policies in India.
In the drone market, fixed-wing drones dominate with a notable 44% market share, prized for their versatility in military and surveillance applications due to flexible flying time, range, and speed. Mapping and surveying applications take the spotlight, meeting varied needs from large-scale mapping to urban modeling and defense monitoring. Microdrones, weighing between 250 g and 2 kg, command a substantial market share, prized for quick navigation, high communication range operations, and their lightweight design.
India’s drone business is confronted with several obstacles. Lack of clear and consistent legislation creates regulatory uncertainty, which hinders the industry and affects privacy, flight clearance, and data protection. Industry growth is hampered by manufacturing obstacles such as a lack of domestic capacity and a reliance on imports for drone parts. Drone technology integration is not as common as it might be due to barriers to business adoption such cost, regulatory complexity, and awareness. Moreover, general technical growth is hampered by a lack of specific knowledge in programming, data analytics, and design. Drone technological advancement is further hindered by infrastructure deficiencies, which include inadequate landing pads, charging stations, and air traffic control systems as mentioned here
India has a vibrant drone startup ecosystem, featuring over 200 startups that significantly contribute to the sector’s dynamism. In 2022, the India Drone Market witnessed the dominance of the Indian startup ideaForge, holding a substantial market share of over 47% and boasting more than 20 registered patents. Other notable contributors to the growth of the drone industry include companies such as Asteria Aerospace, Fly High, among many others.
India’s drone market is navigating a transformative journey characterized by growth, innovation, and a spectrum of opportunities. As the industry evolves, addressing regulatory nuances, bolstering manufacturing capabilities, and fostering business awareness will be pivotal in unleashing the full potential of drones across sectors.
Startup Funding Summary
EMotorad, Pune-based EV manufacturer, has raised $20 Mn in series B funding from Panthera Growth Partners, xto10x, Alteria Capital and Green Frontier Capital – Read More
PhiCommerce, Pune-based fintech startup, has raised $10 Mn in series A1 funding from BEENEXT and Opus Ventures – Read More
Innovist, Gurgaon-based beauty and personal care brand, has raised $7 Mn in series A funding from Amazon Smbhav Venture Fund, 72 Ventures, the family office of Nykaa, Accel India and Sauce.vc – Read More
GrowXCD, Chennai-based fintech startup, has raised $6 Mn in series A funding from Lok Capital – Read More
Zyla Health, Gurgaon-based healthtech startup, has raised $4 Mn in series A funding from Exfinity Venture Partners, Sony Innovation Fund, Venture Catalysts and Aureolis Ventures – Read More
M&A Snippets
Kolkata-based chemical manufacturer PCBLwill acquire Pune-based chemical manufacturer Aquapharm Chemicals for $456 Mn – Read More
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