Tethered Drone Market Research Report and Outlook by 2028

The tethered drone sector is projected to expand significantly, with an anticipated increase from US$ 78.66 million in 2022 to US$ 730.17 million by 2028. This growth represents a remarkable compound annual growth rate (CAGR) of 45.0% over the six-year period.

Key users of tethered drones include commercial businesses, law enforcement agencies, and military organizations. In military contexts, these drones are invaluable for providing continuous surveillance, enhancing situational awareness. Tethered quadcopters serve multiple functions, such as intelligence, surveillance, and reconnaissance (ISR), disaster response, event security, and traffic monitoring. In defense operations, they play a crucial role in border security, monitoring checkpoints, and overseeing entry and exit points. In commercial settings, tethered drones are employed for various tasks, including monitoring vehicle checkpoints, overseeing foot traffic in expansive areas, managing security at concerts and sports events, inspecting wind turbines, conducting mining surveys, and monitoring oil and gas equipment. Additionally, ground power suppliers are essential stakeholders in the tethered drone ecosystem, ensuring that these drones can operate continuously. Their ability to maintain flight for up to 24 hours at altitudes of 200 meters in diverse weather conditions is a significant factor driving the market's growth.

Impact of the COVID-19 Pandemic on the Tethered Drone Market

The COVID-19 pandemic has notably influenced the deployment of tethered drones, particularly in law enforcement and military operations. Governments worldwide imposed strict restrictions on commercial activities, travel, and implemented lockdowns, which led to an increased reliance on drone technology to enforce compliance with regulations. For example, in 2020, a foreign drone manufacturer donated approximately US$ 0.5 million worth of drones and sensors to the Malaysian police in Kuala Lumpur for surveillance purposes. These included tethered drones that provided ongoing support for law enforcement operations, helping maintain order in the city. Such initiatives have significantly contributed to the growth of the tethered drone market during the pandemic.

Regionally, the South American tethered drone market is divided into Brazil, Argentina, and other areas. The advantages of tethered drones are propelling market growth in this region. Countries like Brazil and Colombia are increasingly adopting tethered drones for various applications. For instance, Colombian police forces utilize these drones, supported by government funding for technology acquisition. In August 2020, Medellin, Colombia, employed tethered drones to secure large gatherings, enabling police to obtain uninterrupted surveillance and visual support during events. The drones' long-range cameras transmitted live images, enhancing situational awareness for law enforcement.

Tethered drones derive their power from ground stations, allowing them to achieve longer flight durations compared to battery-operated drones. This capability enables them to remain airborne until an issue arises with the power source, such as a motor or propeller failure. The increasing demand for round-the-clock surveillance and monitoring is driving the growth of the tethered drone market in South America. Furthermore, the defense sector's rising use of tethered drones for border surveillance is expected to bolster market expansion in the region.

Moreover, the demand for tethered drones in various commercial applications, such as wind turbine inspections, building restorations, and bridge monitoring, is likely to create substantial opportunities for market players in the coming years.

Wind turbines require regular maintenance to ensure optimal performance, leading to the adoption of various technologies for inspections. Tethered drones can assist in identifying faults in turbines by providing real-time visual data to operators. Wind farms, which often have numerous turbines onshore and offshore, face challenges in promptly detecting faults. Many operators outsource maintenance tasks, which can lead to operational errors if inspections are conducted manually. Tethered drones can significantly reduce inspection times, allowing for quicker resolutions to identified issues.

Similarly, building restoration projects necessitate regular maintenance to manage older structures effectively. This includes thermographic imaging and inspections of intricate details on historic buildings, as well as thorough checks for minor cracks caused by environmental factors. Tethered drones facilitate real-time monitoring and inspection, helping to pinpoint areas requiring restoration more efficiently, thus presenting another opportunity for market players.

Key players in the tethered drone market include Elistair, Acecore Technologies, ECA Group, Fotokite, Menet Aero, Hoverfly Technologies, Novadem, Sky Sapience, Skyshot Private Limited, and Yuneec Holding Ltd.

The overall size of the tethered drone market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper insights. Interviewees included VPs, business development managers, intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the global tethered drone market.