Safety First: Addressing Battery Standards in the Drone IndustryPosted by Amrut Mahajani on September 14th, 2023  The Drone Battery Market is gearing up for impressive expansion, with projections indicating a surge from USD 4.0 Billion in 2021 to USD 9.6 Billion by 2026, reflecting a robust CAGR of 19.0% between 2021 and 2026. This meteoric rise can be attributed to the escalating utilization of drones in goods delivery, particularly within the transportation and logistics sector. This trend is opening up lucrative opportunities for both established drone and drone component manufacturers and emerging market players. Furthermore, industry leaders are channeling their efforts toward crafting drones endowed with extended flight durations, augmented payload capacities, and cutting-edge technologies. Simultaneously, the global e-commerce sector's expansion, coupled with the increasing integration of drones, is poised to drive demand for high payload capacity hybrid drones, consequently fueling the growth of the Drone Battery Industry throughout the forecast period. Request Sample PDF Report (Use Corporate E-mail ID for Higher Priority): https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=131005766 Impact of COVID-19 on the Drone Battery Market The onset of the COVID-19 pandemic has ushered in both short-term disruptions and long-term structural shifts. This dynamic has culminated in a tepid growth trajectory for the e-commerce sector, particularly in nascent online categories such as groceries and homecare. This unique scenario has prompted suppliers to embrace autonomous delivery methods, exemplified by the deployment of drones and robots for contactless goods delivery. Concurrently, the mounting demand for drones in healthcare applications has become a catalyst for the drone battery market's growth. Healthcare organizations have turned to drones to execute essential tasks such as disinfectant spraying and the delivery of critical medical supplies, COVID-19 test kits, and test samples, among other functions. Akin to many industries, the energy storage sector has encountered its fair share of challenges, including manufacturing constraints, shipment delays, project development hurdles, and research and development setbacks. Additionally, stakeholders within the supply chain have grappled with substantial challenges, exposing the market to short-term risks. Notably, prominent lithium-ion (Li-ion) battery manufacturers in China have announced production delays, which have implications for original equipment manufacturers (OEMs) reliant on China for batteries and raw materials. For example, U.S.-based drone manufacturer Skydio has faced supply chain disruptions due to delays in the manufacturing of component parts. Simultaneously, China-based DJI, a major drone manufacturer, has encountered supply chain disruptions, affecting the supply of raw materials and drone components, leading to delays in shipments. Driver: Increasing Demand for Drones Across Various Applications Drones have garnered surging demand across a diverse spectrum of applications, including surveillance, inspection, defense, cinematography, and agriculture on a global scale. These unmanned aerial vehicles have witnessed robust demand from defense forces, finding applications in intelligence, surveillance, and reconnaissance (ISR) activities, combat operations, and battle damage assessment. Simultaneously, drones have found utility in agriculture for tasks such as crop spraying, pest control, and crop inspection. Maritime security applications have also harnessed drone technology, particularly in combatting maritime piracy. For instance, drones have been deployed for patrolling pirate-prone areas, enhancing the identification and monitoring of suspicious vessels, thus fortifying the protection of key shipping lanes. Furthermore, drones have offered law enforcement agencies swift, cost-effective, and safer surveillance capabilities. This was exemplified during the COVID-19 pandemic in 2020 and 2021, as police forces worldwide employed drones for crowd control, management, and surveillance. Restraint: High Cost Associated with Energy-Dense Batteries While energy-dense batteries, such as lithium-sulfur or lithium metal, hold promise for extended endurance missions owing to their superior charge capacity compared to traditional batteries, they are plagued by relatively high costs. The cost factor is primarily attributed to limited competition among manufacturers and the nascent stage of technological research and development. Consequently, the adoption of these advanced battery technologies in the market remains sluggish and limited, with the most advanced high-capacity batteries primarily serving technology demonstration missions or prototypes. Widespread commercial and consumer adoption of these newer batteries hinges on achieving cost-effectiveness. Opportunity: Innovations in Smart Battery Technology The proliferation of cost-effective microprocessors has empowered manufacturers like Shenzhen Grepow (China) and Maxell (Japan) to offer lithium-ion or polymer batteries equipped with integrated battery management systems (BMS). These BMS systems encompass functions such as charge and discharge management, temperature management, short-circuit management, data logging, and other essential features. These functionalities not only extend battery life but also enable real-time system monitoring. When combined with Internet of Things (IoT) technology and smart chargers, these BMS-equipped batteries can calculate optimal charging times and provide diagnostic insights. With the ascent of IoT technology and seamless systems integration, these features are poised to become standard offerings in drone batteries of the future. Challenge: Lack of Safety Standards in the Drone Battery Industry The drone battery industry grapples with a dearth of safety standards in battery design. This gap in safety measures exposes drone batteries to risks such as thermal runaway. A study conducted by the Consumer Product Safety Commission (CPSC) identified 200 drone incidents between 2012 and 2017, with 50% of these incidents occurring during charging. Operating at high altitudes and being exposed to temperature fluctuations, vibrations, and shock, drone batteries are particularly susceptible to damage, which can lead to explosions, posing risks to operators and property. Establishing robust safety standards in the drone battery industry is imperative. Based on Technology, Lithium-Based Batteries to Lead the Market In terms of technology, the lithium-based segment is poised to assume leadership in the drone battery market throughout the forecast period. Advancements in lithium-metal and lithium-sulfur technology are anticipated to invigorate the growth of lithium-based batteries. Furthermore, the increased demand for alternative modes of transportation, driving the autonomous urban air mobility trend, is expected to boost demand for fuel cell batteries in drones. Battery Management System (BMS) Segment to Exhibit High Growth Concerning components, the battery management system (BMS) segment is projected to register the highest Compound Annual Growth Rate (CAGR) during the forecast period. The heightened emphasis on monitoring crucial battery parameters, including current, voltage, temperature, state of health, and state of charge, underscores the growth of the BMS segment. Aftermarket Segment to Experience Strong Growth Based on the point of sale, the aftermarket segment is poised to witness the highest CAGR during the forecast period. The surge in demand for modifying and upgrading commercial and military drones is the driving force behind the aftermarket segment's growth. While drones typically come equipped with 1–2 batteries upon purchase, industry recommendations often encourage the acquisition of additional batteries to meet the flight demands, further stimulating demand for spare battery management within the aftermarket. Military Segment to Lead the Drone Battery Market By platform, the military segment is anticipated to hold the reins in the drone battery market from 2021 to 2026. This leadership position is attributed to increased investments in unmanned aerial systems by the defense sector, underscored by the growing importance of intelligence, surveillance, reconnaissance, combat operations, and battle management applications. The military segment encompasses drone batteries of varying sizes and capacities, with companies like HES Energy Systems, Plug Power, EaglePicher, Inventus Power, and Oxis Energy Ltd. catering to this sector's diverse needs. Fixed-Wing Drones to Dominate Drone Battery Market Based on drone type, the fixed-wing segment is projected to lead the drone battery market from 2021 to 2026. Fixed-wing drones offer remarkable stability and endurance, particularly in commercial and civil applications. These drones primarily rely on lithium-polymer batteries, known for their high voltage capacity, enabling long-range flight. Passenger Drones to Exhibit High Growth In terms of function, the passenger drone segment is anticipated to record the highest CAGR during the forecast period. The burgeoning application of drones in urban air mobility, encompassing drone taxis, air ambulance services, and air shuttles, is the driving force behind this growth. Both hydrogen-based fuel cells and lithium-ion batteries are integral components of passenger drones. Speak to an Analyst Or Face-to-face Meeting: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=131005766 North America to Lead the Drone Battery Market The North American region is poised to spearhead the drone battery market during the forecast period. The region's ascendancy can be attributed to the growing adoption of drones across commercial and defense domains. In recent years, drone manufacturers have concentrated their efforts on developing cost-effective, energy-efficient, lightweight drones capable of carrying larger payloads over extended distances. These drones are ideally suited for diverse commercial applications, including last-mile delivery services, encompassing the transportation of products, medicines, and postal deliveries, among other offerings. Notably, the Federal Aviation Administration's (FAA) authorization for the operation of military, private, and commercial drones in U.S. airspace in 2015 triggered a surge in drone deployments within the country's defense sector, thereby expanding the drone battery market. The Drone Battery Market is poised for remarkable growth, propelled by the expanding applications and surging demand for drones across diverse sectors. The COVID-19 pandemic has accelerated drone adoption, particularly in healthcare and contactless goods delivery. As drone technology advances, innovations in battery technology, safety standards, and cost-effectiveness will play pivotal roles in shaping the market's trajectory. With lithium-based batteries at the forefront, the drone battery market presents significant growth potential, offering lucrative opportunities for industry stakeholders to capitalize on. About MarketsandMarkets™ MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report. MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients. Earlier this year, we formally transformed into one of America's best management consulting firms as per a survey conducted by Forbes. 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