The drone battery market is an integral component of the growing drone industry. Lithium-ion batteries dominate the market owing to their high energy density and lightweight properties essential for drones. These batteries can power drones for longer durations, enabling applications in various sectors. The Global Drone Battery Market is estimated to be valued at US$ 8.7 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the drone battery are DJI, LG Chem, Panasonic, Samsung SDI, Tattu (Shenzhen Grepow Battery Co., Ltd). DJI dominates the commercial drone market with its diverse product portfolio.
The growing popularity and adoption of drones for recreational activities and hobbies have been driving the demand for high-capacity lithium-ion batteries in recent years. Government approvals for commercial drone delivery and operations are anticipated to further propel the sales.
Major battery manufacturers are investing in production facilities globally to cater to the increased demand. For instance, Samsung SDI expanded its production of high-capacity lithium-ion batteries in Hungary and China in 2023.
Market Key Trends
One of the key trends in the drone battery market is the ongoing research and development for enhanced battery life and energy density. Li-po battery technology has reached maturity with current batteries enabling up to 30 minutes of flight time for small drones. Companies are developing lithium iron phosphate and lithium sulfur chemistries to achieve higher energy densities while improving safety.
Battery swapping technology is gaining traction as an effective solution to increase the runtime of drones. Key players like DJI provide drone models compatible with standardized swappable batteries. This reduces downtime and enables continuous usage of the drone. With advancements, swappable batteries with capacities exceeding 20,000mAh are expected to deliver uninterrupted flight times of over 1 hour.
Porter's Analysis
Threat of new entrants: High upfront investments required for infrastructure and R&D act as a barrier for new players. Bargaining power of buyers: Buyers have high bargaining power due to the presence of numerous manufacturers offering similar products. Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of component manufacturing companies. Threat of new substitutes: Threat of substitution is low as drones are dominating aerial imaging over other alternatives. Competitive rivalry: Intense competition between existing giant players to gain more market share.
Geographical Regions
North America currently holds the largest market share in terms global value owing to high demand from commercial applications such as agriculture, inspection, and survey. The Asia Pacific region is expected to record the fastest CAGR during the forecast period due growing demand for recreational and commercial drones from countries like China and India.
The United States accounts for the major share of the North America drone battery market currently. This can be attributed to high penetration of commercial drones for various applications in industries such as agriculture, insurance, and infrastructure. China is anticipated to emerge as the fastest growing regional market in Asia Pacific. This is due to increasing sales of recreational drones coupled with rising application of drones across industries such as surveillance, agriculture, and filmmaking.
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
