The Drones for Insurance Market was valued at USD 3.2 billion in 2023 and is projected to grow at a CAGR of 21.4% through 2030, reaching USD 12.5 billion. The insurance industry is increasingly adopting advanced technologies to enhance its operations. The expanding insurance sector, coupled with the growing number of insurance companies, is driving the adoption of drones for various insurance applications. Drones are playing a crucial role in areas such as risk pricing, natural disaster monitoring, inspections, risk assessment, claims adjustment, and fraud prevention, thanks to their ability to improve the efficiency and effectiveness of claims processing, risk management, and data collection.
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High Energy Efficiency of Fixed-Wing Drones Augments the Segment Growth
Fixed-wing drones can withstand long endurance flights as they are energy efficient. They use less energy since their lift is generated passively. In addition, they can cover a large area and also have faster flight speeds in comparison to rotary-winged drones. Owing to these characteristics, they are widely used in aerial mapping and pipeline and power line inspection. The insurance industry is increasingly using fixed-wing drones for inspection in disaster management and agriculture applications. Thus, the fixed-wing drone segment is growing at a significant pace in drones for insurance market.
Rising Adoption of Commercial Drones is Driving the Hardware Segment
There has been significant growth in the commercial drone market in recent years owing to the rise in popularity and increasing applications. According to the Federal Aviation Administration (FAA), as of November 2023, there have been 858,857 drones registered in the U.S. 59% (506,635) of drones were registered for recreational purposes while 41% (352,222) were for commercial applications. In addition, recent advancements in drone technologies such as the advancement of dynamic routing handoffs between machine and human controllers and system-failure reactions are further driving the demand for commercial drones for insurance market. The drone companies are investing substantially in drone development, recognizing the market’s huge potential. Thus, the hardware segment is the largest segment in the drones for insurance market.
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High Support from the Government for Farmers Drives the Market in North America
North America region is among the early adopters of drones for insurance applications. Increasing support from the government for protecting the farmers in the region is driving the market in the region. According to the US Department of Agriculture, as of 2023, about 444 million acres of agricultural land are insured under the federal crop insurance program. This includes more than 80% of the acres of major field crops planted in the US. Thus, increasing government support is driving the drones for insurance market in the region.
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The Key Players are Highly Competitive to Capture the Market Share
Drones are increasingly being used to improve claims processing by inspecting damaged property and collecting data on natural disasters, which can be used to process claims more quickly. Drone manufacturers, drone software developers, and drone service providers are actively expanding their portfolios with the growing insurance industry. The drones for insurance market is dominated by a few key global market players having a significant market share and competitive numbers of small regional and local players. Some of the key players in the market are AeroVironment, AeroVironment, Delair, DJI, DroneDeploy, EagleView, Parrot, Pix4D, PowerVision, and PrecisionHawk.
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