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0 According to Fortune Business Insights™, the global drone power sources market size was valued at USD 2.45 billion in 2020 and is projected to grow from USD 2.57 billion in 2021 to USD 5.33 billion by 2028, exhibiting a CAGR of 11.0% during the forecast period. North America led the global market in 2020, accounting for a 47.35% share.
Drone power sources such as batteries, fuel cells, solar cells, and hybrid energy systems are critical to providing reliable propulsion and endurance for unmanned aerial vehicles (UAVs). Battery-powered drones, especially lithium-based, are widely adopted for small and recreational UAVs. However, the growing need to extend drone flight time is accelerating innovation in high-density energy sources, including fuel cells and hybrid systems.
Key Companies Profiled
SZ DJI Technology Co., Ltd. (China)
Skydio, Inc. (U.S.)
HES Energy Systems (Singapore)
Sion Power Corporation (U.S.)
Honeywell International Inc. (U.S.)
Hylium Industries, Inc. (South Korea)
Sky Power GmbH (Germany)
Intelligent Energy Limited (U.K.)
UAV Engines LTD (U.K.)
PBS INDIA PRIVATE LIMITED (India)
Guangzhou EHang Intelligent Technology Co. Ltd (China)
Denchi Power Limited (U.K.)
EaglePicher Technologies (U.S.)
Pegasus Aeronautics (Canada)
UAV Factory (U.S.)
MicroMultiCopter Aero Technology Co. Ltd. (China)
Northwest UAV, Inc. (U.S.)
OXIS Energy Ltd (U.K.)
Source
https://www.fortunebusinessinsights.com/drone-power-sources-market-105558
Market Segmentation
By Drone Type:
The market is segmented into MALE (Medium Altitude Long Endurance), HALE, special mission drones, medium and small drones, nano drones, and passenger drones. Among these, the MALE segment held a significant share in 2020. This dominance is attributed to the rising procurement of military drones with long endurance and high payload capacity for surveillance and combat operations.
By Power Source:
Power sources in the market include batteries (Li-ion, Li-Po, Ni-Cd), fuel cells, solar cells, non-renewable, and hybrid systems. Battery-powered drones currently dominate the market, especially in the commercial sector due to their availability and low cost. However, fuel cells are gaining momentum owing to their ability to provide extended flight times, which are crucial for long-range missions such as BVLOS operations and tactical surveillance.
By Flight Time:
This segment is categorized into below 1 hour, 1–25 hours, 25–50 hours, and more than 50 hours. The 1–25 hours category led the market in 2020, supported by the rising use of drones in parcel delivery services and military operations that require moderate to extended endurance.
By Point of Sale:
The market is split into OEM and aftermarket. In 2020, the aftermarket segment dominated due to the routine need for battery replacements and upgrades. However, the OEM segment is expected to grow significantly over the forecast period as drone manufacturers increasingly integrate fuel cell power systems into new UAV models to enhance performance and range.
Market Drivers
1. Rising Adoption of Drone Technology in Commercial Sectors
Drones are increasingly used in applications such as aerial surveying, agriculture, infrastructure inspection, and logistics. This growth fuels demand for advanced power sources that offer longer flight duration and lightweight design.
2. Increasing Demand for Long-Endurance Military UAVs
Countries are investing in MALE and HALE drones for surveillance, reconnaissance, and strike missions. These UAVs require high-performance power systems capable of supporting extended operations.
Market Restraints
Stringent Government Regulations
Government restrictions and evolving regulations surrounding drone operations—especially in urban airspace—could slow the pace of commercial drone deployment, affecting overall market expansion.
Latest Trends
Technological Advancements in Batteries and Fuel Cells
Companies are focused on upgrading UAV energy systems with LiPo batteries and hydrogen-based fuel cells to improve endurance. LiPo batteries offer higher performance, lower weight, and better efficiency compared to traditional batteries.
Regional Insights
North America held the largest share of the drone power sources market in 2020, valued at USD 1.16 billion. This leadership is driven by strong defense budgets, rapid adoption of UAVs in military and commercial sectors, and the presence of major players such as Skydio, Honeywell International, and EaglePicher Technologies. The U.S. continues to invest in high-endurance drones for surveillance, logistics, and tactical missions.
Europe is projected to see steady growth due to increased R&D spending, drone adoption in environmental and agricultural monitoring, and rising demand for UAVs in border patrol and disaster response. Countries like Germany, France, and the U.K. are leading the integration of UAVs into public safety and industrial applications.
Asia Pacific is expected to grow at the highest CAGR, led by China, India, and Japan. This growth is fueled by rising military drone procurement, government support for UAV innovation, and expanding commercial drone use in sectors like agriculture, infrastructure, and logistics. China, in particular, is emerging as a major producer and consumer of drone technologies.
Report Coverage
The report offers a detailed overview of the drone power sources market, covering:
Market size, share, and growth projections
Drone types and power source technologies
Regional analysis and forecast
Key players, product innovations, and industry developments
Challenges and strategic recommendations
Competitive Landscape
Key Developments
April 2021 – The U.S. Naval Research Laboratory tested a solar and hydrogen fuel cell-powered drone (Tiger UAV) with a 24-hour endurance capability.
February 2021 – Intelligent Energy Limited launched a high-pressure valve (CV414) for hydrogen cylinders used in UAVs, enhancing drone fuel cell systems.
Leading Player Initiatives
DJI offers a variety of drones powered by custom LiPo battery packs to maximize performance.
H3 Dynamics is focused on liquid hydrogen energy systems for BVLOS drones.
Companies like Parrot are investing in advanced UAV platforms and power systems to stay competitive.
