Are you ready to step into the future where sightings of drones whizzing overhead will be a commonplace occurrence?
Drones are commonplace in the military sector. In fact, it’s the biggest market for drones so far and it is estimated to be worth in the region of around $70 billion.
Presently, drones are used for reconnaissance and range from bird size to the size of a $220 million UAV that is a massive surveillance platform in the sky.
The military is expected to remain top gun when it comes to technological developments and the major driver in the coming years with a shift into civil and commercial industries.
Smart drones for commercial uses has the biggest growth potential and this means that as an investor or trader, there will be unlimited scope to invest and make substantial profits.
Drones are getting more sophisticated and bigger.
In fact, some UAVs (unmanned aircraft vehicles) are huge and are as large as passenger jets.
R&D into drones is a major driver and is expected to become a $100 billion market opportunity by 2020.
Just imagine the future where most companies have integrated drones as part of their efforts to grow their business.
A future where your groceries are delivered by a drone, your pizza order or global packages.
The sky will come alive with drones!
The reality is, this is no longer Sci-Fi.
Our world is changing fast and in fact…
There is an ever growing list of diverse applications for drones that will change our lives.
Drones can be used to inspect oil and gas pipelines, sending real-time images whilst also detecting any potential hazards.
Another use for drones is that they can also be used in the agricultural sector for monitoring thousands of acres relating to irrigation and detecting hydration, diseases and insects, all with the aim of maximizing the growth of crops.
Currently, they are manned by helicopters as opposed to drones which have proved to be much more cost effective and a lot cheaper to manufacture.
And that’s not all…
We can also expect to see drones in warehouses doing logistics like receiving and shipping orders which can be done in a fraction of the time than human labor can do it.
It will have a significant impact on warehouses, increasing profitability and efficiency.
If you think about it, adopting a drone strategy with artificial intelligence or AI for countless applications will be the future forward for most businesses and will be the key growth factor for the market’s expansion.
The global commercial drone market at the end of 2017 was estimated at $1.7 million and by 2025, it is expected to balloon to $179 billion with the key growth factor in smart commercial drones.
What about the consumer industry?
Drones are becoming a major part of the consumer industry as camera-carriers for sporting events, sailing, cycling and more.
They are also being used for concerts and mass gatherings as well as a tool for advertising in the real estate industry.
Drones are becoming increasingly popular for recreational use and take up a major part of the $17 billion market according to Lux Research.
Here’s another interesting thing:
The commercial/civil market for drones is expected to show the fastest growth and is estimated to reach $13 billion next year!
They will be used for smart cities, policing, construction, agriculture and more.
Here are more uses for drones:
- Humanitarian organizations
- Search and rescue efforts on land and sea
- Reconnaissance and evacuation of casualties
- Private security
And it does not end what industries will benefit.
You can also expect to see growth in specialty processors, batteries, sensors, cameras and other components related to drones taking a chunk of the market.
Research and development by some of the biggest companies in the world like VC Investments and M&A are developing solutions related to the drone industry.
Yes, it’s true!
With research and development, it will create significant growth potential in the market.
Unfortunately, there is an obstacle: regulation
It’s holding back the market at the moment with restrictions from the Federal Aviation Administration (FAA), making the use of drones impossible in various industries.
Here are some of the challenges that are restricting commercial uses:
- A drone is limited to fly at a height of 400 feet (or around 120 meters)
- It cannot be flown over people
- The flight distance to the pilot’s line of sight is limited
At least one of these regulations needs to be changed for the expansion of commercial use. This has led to lobbyists in the commercial sector trying to change the regulations.
In 2016, Amazon Prime Air announced that they were going to offer 30-minute deliveries which as yet has not happened.
Probably, it is related to the FAA restrictions.
The sky is the limit for clients at eToro who are looking to gain exposure to the huge long-term potential in the drone industry.
The ‘DroneTech CopyPortfolio’ comprises of some of the biggest movers and shakers in the industry and are bundled into the convenient and easily accessible copyportfolio.
What it means is this
Here, you will find tech companies like Google and Amazon, chip-makers Intel and NVIDA, and aviation giants Boeing and Airbus.
Including companies are committed to the use of drone technology which ranges from supporting technologies to production.
The best part?
Is that you will discover the huge growth potential with all the exciting possibilities of investing in the hottest market the future has to offer, all at your fingertips.
The point is…
The drone industry is on the verge of unleashing the hottest investment ever and according to Goldman Sachs, it has a market share of $100 billion by 2020.
Between now and 2020, we forecast a $100 billion market opportunity for drones—helped by growing demand from the commercial and civil government sectors.
-Goldman Sachs Research
Once it shifts from military to commercial, there is unlimited potential.