A MarketsandMarkets report predicts the unmanned aerial vehicles industry to experience a compound annual growth rate of 7.73 percent over the next six years.
The research firm said Thursday the worldwide UAV market could be worth approximately $10.6 billion by 2020, from its $6.8 billion value during 2014.
Demand for autonomous technology and systems designed to improve drone efficiency will be a key contributor to the sector’s growth, the report states.
MarketsandMarkets estimates North America’s share of the worldwide UAV business stands at nearly 69 percent and expects Asia-Pacific to further invest in drones for defense and commercial usage.
The report cited strict airspace policies, defense spending cuts and pilot shortage as factors that could hinder the growth of the market.