The civilian drone market - France

1.2 The global market

The global market for civilian drones is dominated by China, which offers good-quality, low-cost aircraft. This country has become the hub of drone manufacturing over the past six years, and now accounts for over **% of the global civilian drone market. [***]

In ****, according to BpiFrance, the global civilian drone market was worth $* billion. According to Mordorintelligence, the market is expected to grow at a CAGR of **% between **** and ****.

The broader drone market (***) was estimated at **.* million euros in **** by Marketsandmarkets. According to the same source, the market is expected to grow at a CAGR of *.*% over the period ****-****, almost half that forecast by BpiFrance for the civilian drone market. The drone market would then evolve as described in the table below;

evolution of drone market size World, ****-**** Source: ****

1.3 The French market

The civil drone market is growing exponentially. Over the period ****-****, French manufacturers and operators grew by ***%, according to a study by Erdyn. In ****, **% of the French civil drone market by value was represented by professional drones, compared with **% for leisure drones.[***]

Only, an article in Usine nouvelle magazine on December **, **** informs us of a loss of momentum in the sector in France after ****, the latter would have stagnated between **** and **** around *** million euros in sales. This loss of momentum is essentially due to competition from Chinese players in this market, who have come to destroy French players such as Parrot.

2.1 Demand for civil UAVs by sector

Drone market shares held by value France, ****, in Source: ****

The field of civil drones is largely dominated by professional use of these machines. In ****, as shown in the graph above, the French market was **% dominated in value terms by the civil drone market for professionals. We can imagine that this proportion is even higher today, given the growing importance of drones in all sectors of the economy.

Civilian drones for professionals can be used for a wide range of purposes, and are used in many different fields. Breakdown of civil drone use by sector France, ****, % of total Source: FPDC-Fédaration professionnell du drone civil The field in which civil UAVs are most widely used is the media, with **% of civil UAVs being used in this field in ****. The distribution of these is fairly well balanced, but the field that has seen the most rapid development in recent years is surveillance and monitoring.is surveillance and civil security, which accounted for *% of the sector in **** and will peak at **% in ****. [***]

2.2 The French and drones

In ****, Harris interactive conducted a survey of a sample of *,*** French people to understand their vision of drones.

"For each of the following adjectives, would you say it corresponds rather well or rather badly to drones?" France, ****, in % of responses "corresponds rather well" Source: ****

The graph above shows us that French people's opinion of drones in **** tended to be focused on something innovative, technological and in tune with the times. However, **% of respondents felt that drones were dangerous, and **% even found them frightening.

Share of respondents in favor of the development of civil drones France, ****, in % Source: ****

Still according to the same study, we see that respondents consider the use of civil drones for professional purposes more than for private use. ** percentage points separate responses favorable to the development of leisure drones and professional drones.

"Would you say the use of drones is a good thing for...?" France, ****, in % Source : Harris Interactive Two of the answers most validated by respondents are linked to personal rescue, as shown in the graph above. More generally, we can see that most of the answers are related to professional uses of drones, confirming the previously stated preference of the French for the development ...

2.3 Demand trends and cyclicality

evolution of interest in the search "drone" on Google France, ****-**** Source: ****

The evolution of searches for the term "drone" on Google over the last five years shows a gradual decline in interest in this type of craft. There is also a certain seasonality in demand, with an increase in searches for this term every December. We can identify this upsurge in demand with the approach of Christmas, as drones are a product that can be given as gifts. However, we can imagine that Google searches on this subject are more geared towards private consumption for personal use. Indeed, it seems strange that the various other sectors that demand drones, such as security, agriculture, construction or the media, are more inclined to place orders in the run-up to Christmas than at any other time. This can be explained by the sample of private users, who are far more numerous.

2.4 Drones, a popular choice for delivery systems

Drones are highly coveted in the delivery sector. whether it's the giants of e-commerce, mass retailing or the medical sector, the use of drones on a large scale is under intense scrutiny, not least to meet the challenges of the "last mile".Most drone deliveries are currently made in rural areas. This mode of delivery is deemed optimal for areas with fewer than **,*** inhabitants, as they are less constrained than other vehicles in terms of movement. This means they can be used to deliver to areas where there is little infrastructure. At present, they are mainly used for medical deliveries, thanks to their speed. Swiss Post delivers laboratory samples to hospitals in Zurich, Berne and Lugano using a drone developed by Matternet. During the health crisis, they provided a rapid solution for transporting tests to hospitals. In France, the Aix-en-Provence hospital is planning to deliver blood via drone by ****. The plan is to establish a link between the hospital and the Etablissement Français du Sang center in Aix. [***]

Moving away from the medical field, other players are looking at drones as a means of delivery. In the retail sector, two major players are competing to be the first to set ...

2.5 Demand from the main sectors

Some sectors are particularly interested in drones, here's a list and why drones are a big advantage:

Security and surveillance:

The security and surveillance sector is surely the one in which demand has intensified the most in recent years. Given their speed, ease of operation, discretion and ability to evolve in a programmed manner, drones are ideally suited to surveillance and reconnaissance missions in hard-to-reach or dangerous areas. These devices are capable of making automatic rounds while carrying a thermal camera, with the aim of detecting any intrusion into a defined area.

The drone enables the best possible detection of individuals, without exposing the guard, allows immediate detection of a fire outbreak, and eliminates the need to multiply the number of video surveillance cameras on the same site. The drone's HD ***° stabilized camera, optical zoom, thermal camera and precise on-board sensors enable professionals to intervene quickly and efficiently. [***]

In telecommunications :

The telecoms field is developing a lot of activities around drones today, particularly for optimizing network quality. In an interview with BFMTV, Cédric Botella, CEO of Instadrone, states that the field most in demand for his services is telecommunications. He takes the example of Free Mobile, one of their partners, ...

3.1 Market value chain

Source: ****

It's important to note that each box represents a different profession, and the link between them is essential.

Since civilian drones are used in a wide variety of ways, there are many different players in the sector:

Contractors data users Manufacturers: uAVs sensors and measurement chains drone systems, which assemble the drone with the capture/measurement chain and all the equipment enabling it to be operated remotely, equipment for identifying and limiting the performance of drones in flight, systems for detecting and neutralizing, or even destroying, malicious drones.equipment for identifying and limiting the performance of drones in flight, and systems for detecting, neutralizing or even destroying malicious drones

Operators: responsible for drone operations, in compliance with all safety regulations remote pilots, whose qualified expertise enables them to operate the drone on-board equipment operators Service providers: organizations that process acquired data managers of processed data, who transform it into a product or service that can be marketed to the user or client organizations providing telecommunications, navigation and surveillance services organizations providing air traffic information tools organizations providing air traffic control organizations providing meteorological data organizations training remote pilots Insurers

Source: ****

3.2 Market forces and players

Focus on the civil drone industry

Data on the players in this market is either limited or relatively dated. With the help of an article published on December **, **** in the magazine usine nouvelle, we can state that in the same year there were **,*** jobs linked to the civil drone market, including *,*** in drone construction. These words are supported by Carine Donzel, deputy director of aeronautical construction at the DGAC.

Key players in the French civil drone industry:

Source: ****

To get a more global idea of what this market represents today, we'll refer to the data linked to NAF code **.**Z: "Aeronautical and space construction".

number of companies in the aerospace industry ****-**** Source: ****

the graph above shows that the number of companies remains relatively stable, after rising slightly between **** and ****. In view of the number of employees shown in the graph below, we can imagine that the number of employees per company is relatively high, and that the sector's companies are of considerable size. A ratio of the number of employees in **** to the number of companies in the same year gives a figure of around *** employees per company. number of employees in the aircraft and shipbuilding sector France, ****-****, in ...

3.3 A market where innovation is key to standing out from the crowd

With Chinese competition offering quality drones at lower cost, France's civil drone industry needs to differentiate itself in other ways. Innovation and product enhancement are two of the ways in which they do this.

Most innovations revolve around hardware solutions (***) and connected objects, drones for civilian use are of great interest to major companies like Boeing and tech giants like Amazon, Google, IBM and even Apple, who prefer to stay one step ahead of the competition.

In this sense, patents are pouring in for civil drones, with a **% increase in **** compared with ****, according to a study entitled "The state of Drone Technology" by CB Insights. [***] In the same study, the company estimated that ** sectors are or will be affected by the drone revolution.

To further set itself apart, Chinese giant DJI, for its part, teamed up with Microsoft and Azure in ****. Their collaboration is relatively straightforward, but will enable data captured by drones to be processed and delivered almost instantaneously. DJI drones will therefore capture data in order to send it to Microsoft's Azure cloud, enabling customers to quickly consult their data. [***]

4.1 Prices and drone types

Drones by budget:

From €** to €*** At this price, you'll find drones that are very small and others that are a little larger, mainly designed to fly indoors or in the absence of wind, these drones are perfect for learning to fly. On the other hand, their range is generally limited to a few meters and, when they can film, the quality is often mediocre.

From €*** to €*,*** In this price range, you'll find quality videos, with a range of several hundred meters and greater autonomy. Most of these drones can be controlled via an app downloaded onto a smartphone or tablet, giving access to some very useful features. Over €*,*** These drones are very powerful, with extended autonomy, increased range and many other features. They are mainly used by professionals in a wide range of fields, as we saw earlier.

Focus on the different features of drones:

Size and weight The more compact and lightweight a drone is, the easier it is to transport. Some can even be folded to fit in a bag. If the drone weighs more than *** grams, it must be registered online, and the user must undergo training (***). The camera While most drones can film and/or take photos ...

4.2 Market trends

Offering services provided by drones:

Many companies are increasingly turning to service providers who offer a complete range of services, i.e. drone rental, pilots and specialists who analyze the data collected by the drones. These services can be of many kinds, but they are mainly offered in the following sectors: communications, telecommunications, surveying, inspection and surveying, agricultural services and training.In an article from November ****, BFMTV reports on an interview with Cédric Botella, founder of the Instadrone network, a French company specializing in this type of service. He claims that the civil sector that has most understood the need for drones is telecommunications. Next in line is agriculture, which he believes has great potential for the use of these machines, and is likely to make increasing use of them. The company is said to have recorded ***% growth in **** compared with ****, when it achieved sales of *.* million euros, which testifies to the dynamism of this market.

The future of this type of offering lies in its players convincing the various sectors of the economy of the importance of this type of service. Cédric Botella takes the example of the georeferencing accreditation that Instadrone obtained in ****, which reinforces its legitimacy ...

4.3 Influences on supply

Chinese competition:

French civilian drone manufacturers are experiencing difficulties as Chinese competitors such as DJI enter the market in ever greater numbers. These competitors offer low prices for good quality. An article published in Usinenouvelle magazine on December **, **** relates the effect of the arrival of Asian players on the market on the giant Parrot, the main French player on this market. Henry Seydoux, the company's CEO, claims to have gone from sales of *** million euros in **** to ** million in ****, largely due to Asian manufacturers. However, the recent tensions between China and the United States have opened up new opportunities for French players, something that Henry Seydoux has not let pass him by. Indeed, the CEO of the French company has seized this opportunity to develop a communication campaign in favour of Parrot. In ****, on the set of BFMTV, he assured that PARROT drones "guarantee data sovereignty", and that he was convinced that DJI drones "collect data without their users' knowledge". [***] Parrot has thus succeeded in convincing certain players, especially in the United States, to use their products rather than Chinese ones.

The cost of raw materials:

The year **** was marked by high inflation, particularly in raw materials. However, the drone industry ...

5.1 Regulations governing the use of recreational drones

Regulations governing civil UAVs are constantly evolving, given the total absence of legislation governing civil airspace. There are two main sets of standards: European and French.

European regulations :

Source: ****

French regulations :

Source: ****

Sub-category regulations :

Drones intended for private use are divided into classes (***). There are therefore regulations specific to this classification.

Source: ****

6.1 Segmentation

• Parrot
• Delta drone
• Azurdrones
• Delair tech
• Instadrone
• DJI
• Lifelines
• Exail (Gorgé Groupe)
• Seaber
• Drone Geofencing
• Milton Innovations Drônes
• Novadem
• Survey Copter (Airbus Group)
• SupAirVision