The drone industry continues to grow by leaps and bounds.  Currently, at $33.7 billion sales, the industry will grow annually by a CAGR of 7.1% to reach $55.6 billion by 2030 – a cumulative 65% increase over the 7-year period.  Most of the growth is being driven by commercial sectors like real estate, construction, agriculture and logistics – with CAGRs near or above 15% – but public safety, conservation and media/entertainment are also showing a healthy upward trend.

Broadly speaking, drone companies can be divided into two functional areas:  “service” and “delivery.”  The leading service providers tend to be Asia- or Europe-based; by contrast, the leading delivery drone firms are most likely U.S.-based.  The past year witnessed some new faces entering the top ranks of performance in each area.  Here is an overview of the top three in each category, based on their size and rate of growth, financial performance, breadth of operations and media presence and overall reputation, according to a report released by Drone II.

Service

Aerodyne.  The Malaysia-based company topped the list last year, and does so again.  Founded in 2014, the company has over 1000 employees and earns between $65-70 million in annual revenues.  Aerodyne operates worldwide in 45 countries and manages nearly 800,000 assets in the drone-based inspection and aerial sensing markets.

Terra Drone.  Founded in 2106, this Japan-based company ranked #1 in 2020, but has fallen slightly since then.  Also active in the infrastructure inspection market (especially oil and gas), the company recently received major infusions of investment capital from Mitsui and Wa’ed, the venture capital arm of Saudi Arabia’s ARAMCO.  In August 2023, the company acquired majority shares of Unifly, a global leader in the rapidly expanding UTM market.

Cyber Hawk.   Founded in 2008, this UK-based firm has long specialized in electric power grid inspections, especially in the western U.S.  The company recently ascended the ranks of global drone service providers thanks to its massive 5-year deal with the oil giant Shell.  Cyber Hawk will apply its custom cloud-based iHawk software to all of Shell’s onshore, offshore, and subsea assets and to Shell’s global construction projects.

Delivery

Zipline.  Founded in 2016, the South San Francisco-based drone company cut its teeth with medical supply deliveries in Rwanda, Ghana and Japan before turning its attention in 2019 to the US consumer market where it’s steadily gaining new customers and credibility.  The FAA’s decision to grant Zipline BVLOS authority earlier this year has spurred the company to develop a scale model for long-distance drone fleet deliveries in Texas and elsewhere.  New investments are pouring in as Zipline the company is expanding into the retail consumer market through partnerships with Walgreens, Walmart and a number of small restaurant food chains.

Wing.  Like Zipline, the Google subsidiary first established its credibility overseas – in Australia and New Zealand and later Finland – before turning to the US consumer market with a vengeance.  Its own recent BVLOS certification has allowed the company to introduce a separate scale model for long-distance fleet deliveries in some of the same drone hubs (e.g. Dallas-Ft. Worth) where Zipline is operating.  But Wing is also establishing a major new beach head in Ireland where Manna, a local company, has held sway for several years.

Matternet. Rounding out the top three is the pioneering Mountain View, CA-based company Matternet founded in 2011.  The company broke new ground earlier this year by forging a partnership with Ameriflight to make larger cargo drone deliveries with Matternet’s state-of-the art M2 drone. Matternet already partners with UPS to make package deliveries in North Carolina and conducts routine medical deliveries with medical supply companies in the UAE and Abu Dhabi.  And its own fleet delivery model – featuring a single remote pilot coordinating 20 different drones – is being touted as the most advanced in the world.

These are just the top three rankings in the two categories.  A number of companies in each category are surging forward in 2023 and could easily make it into the top tier – if not the top 3, the top 10.

In the services area, two Indian firms, Garuda Aerospace and Aereo, are poised for major expansion, based largely on their aerial mapping and precision agriculture services – a huge growth area in the world’s most populous nation.  Garuda Aerospace, which already enjoys the support of ten leading institutional investors, recently acquired $250 million in new funding as well as the public endorsement of M.S. Dhoni, the world’s leading cricket player.  In the US, Skydio, which is expanding rapidly from infrastructure inspections in the private sector to defense and law enforcement and fire-fighting, is also ascending the ranks

In the delivery area, Australia’s Swoop Aero and Germany’s Wingcopter are among the companies making the biggest strides.  Swoop Aero, which assists U.N. health agencies to develop their aerial delivery networks, climbed into this year’s top 5 and could well climb even higher next year.  Wingcopter, a one-time Zipline competitor in Africa, is making a new foray into aerial food deliveries in Hesse as a prelude to expanding nationwide.  Like Zipline, the six-year old company appears to be transitioning out of the medical supply niche and embracing the retail goods sector.

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