Drones Market Revenue in Power Sector to Touch $515 Mn by 2030

With the surge in adoption of technologically advance activities in the power sector such as digital transformation, remote monitoring and operational cost optimization, the market for drones in the power and utility sector will continue to expand at a compound annual growth rate (CAGR) of 23.6 percent and will reach USD 515 million by 2030, as revealed by a research & consulting firm.

Moreover, the ongoing digital transformation trends across the power & utility industry and an increase in the adoption rate of drones to ensure the security of power supply under current challenging conditions are expected to sustain this growth, analyzed by Frost & Sullivan in its report – Drones in the Global Power and Utilities Industry, Forecast to 2030.

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While explaining about the importance of drones, Swagath Manohar, Senior Research Analyst at Frost & Sullivan, commented, “drones minimize the need to send human employees onsite and can be deployed for monitoring, operations, and maintenance services.”

He further added that “as the global power and utility industry continues to tackle the impact of the ongoing COVID-19 pandemic, drones can be potential game-changers in combating the challenges it poses.”

On current scenario, the report highlighted that current adoption rate of drones in power & utility sector is less than 10 percent worldwide, however, it is steadily rising as companies acknowledge the role of drones in providing reliable, safe and efficient inspections of power generation and transmission & distribution (T&D) assets.

However, in a short span of time, the research agency suggested that power companies should focus on building operational resilience by leveraging emerging technologies and forming strategic partnerships with tech companies and service providers to tackle the challenges posed by the pandemic.

In fact, the Drone service providers (DSPs) should also utilize this opportunity to explore new business models and services such as performance contracts, pay-per-mile, and pay-per-time to improve their revenues, it added.

On the long term scenario, Manohar opined that “power and utility companies should explore the option of an in-house drone team in the long term. The current pandemic presents the right opportunity for them to test their strengths and weaknesses in developing their in-house drones capabilities and identify the right technology partner who can provide the required services.”

Meanwhile, some of the companies like Tata Power Delhi Distribution (Tata Power-DDL) are already using drones for maintenance of their power lines, poles and towers.