The drone market - Italy (2023)

1.2 The global market

The global commercial drone market has seen decisive growth in recent years, and it is estimated that the value of the market will continue to expand over the next decade. This industry is estimated to reach $**.** billion in **** and is expected to grow at a CAGR of **.* percent from **** to ****. This increase is mainly attributable to the increasingly corporate application of drones in various industries.[***]

Global drone market World, ****-****, US$ billion Clayton Country Register

The outlook for the European market

Since ****, the European Union has invested numerous funds (***) to develop useful drone technologies for innovative applications, funding *** drone-related projects under its research and innovation programs. Beginning in ****, the European Commission has been working to lay the foundations for a comprehensive EU drone policy, arriving, over time, at an official document "A Drone Strategy *.* for a Smart and Sustainable Unmanned Aircraft Eco-System in Europe," where it outlines how Europe can promote the development of large-scale commercial drone operations, while simultaneously offering new opportunities in the sector.

The strategy envisions drone services becoming an integral part of everyday life in Europe by ****:

emergency services, mapping, imagery production, inspection and surveillance by civilian drones, subject to applicable regulatory frameworks, as well as for ...

1.3 The local market

The professional drone market is growing significantly in Italy. It reached *** million euros in **** , up ** percent from ****, returning to pre-drone levels (***). The value, similar to Germany and Portugal, is on average higher than other European countries, including France.

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Professional drone market Italy, ****-****, € million Economyup

Below is the production in value(***). It can be seen how from **** to **** - the latest available data - this value has grown exponentially, registering an increase of **.* percent.

Drone production in value Italy, ****-****, millions of € Istat

1.4 Analysis of imports and exports

In the drone market, it can be seen that Italy represents a player heavily dependent on imports, which present a value of US$**.* million. This negative trade balance can be attributed to several situations:

domestic demand: in recent years there has been an increase in the demand for drones used for different purposes, such as commercial, agricultural or surveillance. The growing demand far exceeds domestic production and, consequently, the product is imported; advanced technology: since the drone was born abroad, there are foreign manufacturers who have invested in the care of the product's technology and performance; this aspect drives a significant import of more "advanced" drones. globalized sector: the drone industry is one of the most "global" industries; the main biggies in the sector have foreign nationality and it is complex for Italy to compete.

Analyzing the top five purchasing countries of Italian drones, we see that the main Italian partner is the Republic of Korea (***). As for Ukraine, it is noticeable that the demand for drones is closely related to the outbreak of the conflict with Russia; the Ukrainian government, in addition to being heavily dependent on the import of the product, has initiated economic bonuses to sustain local businesses, ...

1.5 Impact of Covid-19 and the conflict between Russia and Ukraine

The global market has seen a predictable increase, influenced by a variety of factors, in the use of drones. The Covid-** pandemic triggered a series of radical transformations in consumer behavior and in the operational dynamics of companies, pushing toward greater use of drone analysis and utilization. This trend was accentuated by the need to adapt to a business environment that had to abruptly shift toward the digital environment.

At the same time, the conflict in Ukraine has added a dimension of uncertainty and fluctuation to the global economy, acting as a catalyst for significant technological advancement in the defense arena. In the current era of conflicts in which technological supremacy proves to be as decisive as numerical strength, strategic management in drone analysis for businesses in all sectors is necessary to cope with the constant changes in consumer tastes and the changing geopolitical situation. In this context, the work of several players stands out, such as the firm Marduk, which specializes in the production of electro-optical devices capable of tracking drones otherwise concealed from conventional radar, elevating the sophistication of the battlefield; in parallel, the creations of Milrem Robotics, driven by an ethos of preservation of human life, have forged ...

2.1 Demand characteristics

The demand for drones by Italian consumers presents an evolving picture, with trends reflecting customer profiles and opinions regarding this market segment. Starting with the professional drone market, it emerges how the value of Italian sales has reached *** million euros (***), which is expanding the use of drones beyond recreation to more complex and lucrative professional uses. [***] Worldwide applications for drones World, ****, % Economy Up going to analyze the average monthly household spending on cameras and camcorders (***) we see an increasing reduction in the spending item, mainly due to the fact that this includes all the devices on the market to carry out photographic activities. In fact, over the years, cameras and video cameras have gradually been replaced by the consumption of more technological telephone devices, which allow the same actions to be carried out. Specifically, reference is made to a reduction in spending from **** to **** of **.*%.

Household monthly expenditure item - cameras and camcorders Italy, ****-****, in current &euro Istat

2.2

2.3 Geographical distribution of demand

To visualize the geographic distribution of demand, a map was created with monthly household spending on cameras and camcorders by Italian macro-region, which is assumed to be in line with monthly household spending for the subgroup of photo drones.

The north presents the highest figure, with *.** €/month, in the center the expenditure is *.** €/month while, in the south, households spend an average of only *.** €/month on cameras and camcorders.

2.4 Use of drones in the agricultural sector

The use of drones in the Italian agricultural sector presents a landscape of growing interest and potential, despite the presence of some regulatory and practical limitations.

Usage and potential

Drones, thanks to their ability to fly at low altitude and the use of advanced sensors, are able to provide high spatial resolution data. With common multispectral sensors, useful information such as reflectance in the visible or infrared bands can be detected. These represent crucial data in monitoring plantation health, identifying water stress, and assessing photosynthesis through indices such as NDVI(***) mapping, crop health monitoring, irrigation optimization, and more optimal management of livestock and irrigation systems.

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In Italy, the total area of cultivated fields is a key element of the agricultural sector. The country will have about ** million hectares of agricultural land in **** , divided between the cultivation of cereals, fruits, vegetables, grapes and olives and various other types of products. The distribution of crops varies greatly from region to region, influenced by geographic and climatic factors. This extensive cultivated area not only provides a basis for national food supply, but also plays a significant economic role, contributing to domestic production. From **** to **** , there is an increase in cultivated fields of **.* percent. ...

3.1 Market Structure and Dynamics

The drone market has grown significantly in popularity in recent years, both in the commercial and private sectors, enabling them to capture breathtaking aerial images, inspect difficult-to-access sites, and conduct surveys with precision. Drones can be small, inexpensive and easy to use, as well as large ones with more sophisticated technologies; this product has definitely revolutionized the way by which people live, work and play, offering endless possibilities for innovation and application.

For these reasons, there are multiple companies entering the drone market, trying to stay abreast of the latest trends, technologies and market players. Below, to understand the value of the market, the top drone manufacturers in the world are listed, based on their impact, innovation, and consumer satisfaction.

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Photography and videography

Industrial applications

Mapping and surveying

Agriculture

Top ten manufacturers by revenue

Against a backdrop of continued growth in the drone industry, it is noticeable that some companies are generating significant revenue:

DJI: With an estimated market share of more than ** percent, DJI is the undisputed leader in the drone industry. The company's revenue for **** is estimated at about $* billion. Parrot: This French drone company has been in existence since **** and has diversified into a range of drone-related ...

3.2 Value Chain

By value chain in the drone market, we refer to a concept that describes the activities companies undertake to deliver the product to the market. This consists of a series of steps that can be divided into primary and supporting activities, which create added value for the end customer.

Research and development: in this phase, constant innovation of new drone technologies is carried out, improving their flight capabilities, autonomy, endurance, and adaptation to different regulations provided locally and internationally; Design: a time when the creation of new drone prototypes, the design of integrated systems, and the development of new software for the control and analysis of collected data is carried out; Procurement: later the purchase of materials and components needed to build the drones, such as sensors, microprocessors, cameras and batteries, is carried out; Marketingand sales: the market is strongly influenced by the promotion of the product and its application potential to different sectors, from surveillance to aerial photography, from agriculture to goods delivery; Distribution: involves the logistics of drone delivery to consumers or end users and stock management. After-sales support service: represents the time for technical support, maintenance, repair, and software upgrades.

3.3 Distribution channels

Drones can be used for different purposes; drones with civilian and military purposes are analyzed here. Regarding drones with civilian purposes, we cite the specific example of Switzerland, where the Swiss Post pioneered the logistics of this product. Between **** and ****, drones were used to carry out the transportation of laboratory samples between hospitals and laboratories. This method offered a more flexible and environmentally friendly delivery without the limitations given by road traffic, making drones particularly valuable for urgent deliveries or in hard-to-reach locations.[***]

The following is an overview of the main distribution channels: retail, wholesale, and trade intermediaries. Retail trade targets end consumers, i.e., ordinary customers. Specifically, it involves the sale of products in smaller quantities or in individual units at a price that tends to be higher than wholesale trade, but accessible to individual buyers. Below is the number of active enterprises in the Non-Specialized Retail Trade sector of computers, peripherals, telecommunications equipment, audio and video consumer electronics, and home appliances, a category within which the sale of drones is included. From **** to ****, there was a percentage increase in the activity of these businesses of **.* percent. In **** , the highest value of active enterprises was recorded, amounting to *,***, given decreased ...

4.1 Type of Offering

The type of supply in this market is highly varied, as there are different types of products in the market. An analysis of the main categories is proposed below:

multi-rotor drones: these are the most popular type of drones, both for professional and amateur users; they are typically used for photography and videography. fixed-wing drones: these drones are equipped with a wing similar to that of a common airplane to lift themselves up (***); they are used for long-distance operations and can cover large areas. Fixed-wing Hybrid VTOL: they combine the benefits of fixed-wing drones with stationary flight capability; they can take off and land vertically. single-rotor helicopters: they are similar to real helicopters in design and operation; they have a large rotor for lifting and a small tail rotor for control; they can be powered by gas or electric motors. nano drones: many small products that are also often used for indoor entertainment, but can also have applications in security and surveillance. military drones: these are classified according to their technology and operational use. precision agriculture drones: these drones are mainly used in yield optimization and monitoring of crop growth and production. Specifically, these drones provide precise information on crop growth ...

4.2 Prices

There are multiple categories of drones available on the market, which differ not only in selling price but also in the type of use you plan to make of them. The main factors that are taken into consideration when choosing drones are as follows:

size and weight: for beginners, it is advisable to choose lightweight drones, to be used in covered places to familiarize yourself with the maneuvers. control system, range of action, maximum height and speed: there are drones that can be controlled via remote controls with a very small range of action and low maximum height that can be reached. Others, however, are controllable via Bluetooth or Wi-Fi, with the help of a smartphone or tablet (***). battery autonomy: drones offer a rather low autonomy, hardly exceeding half an hour of continuous flight. However, this is a variable parameter and should be evaluated before purchase according to your needs. Some drones offer a replaceable battery system, which you can recharge separately to extend the service time. photo and video camera support: almost all drones integrate a photo and video camera, with which to take photos and shoot from above. The quality of these is reflected in the price of the ...

4.3 New Trends in Supply

In recent years, the drone industry is embracing several new trends:

vehicle-to-vehicle communication: emphasis is being placed on experimenting with vehicle-to-vehicle (***) communication systems essential for real-time tactical deconfliction, enabling drones to operate safely and without human interference. detection and avoidance systems: advances in DAA technologies aim to improve safety by enabling drones to autonomously recognize and avoid hazards, facilitating integration into airspace.[***] drone swarms: the ability to deploy more drones simultaneously can lead to greater efficiency, productivity, and resilience. AI and machine learning: the integration of artificial intelligence is making drones more autonomous and capable of processing data in real time. battery technology: advances in battery life and charging technology are enabling longer flight times and greater operational efficiency.[***] *G integration: the launch of *G networks is expected to greatly enhance the capabilities of drones, with faster data rates and improved communication. use of solar power: development has recently begun in the use of solar power for drones, which could extend flight times and reduce the need for frequent recharging, particularly beneficial for surveillance and security applications.[***]

5.1 Rules and regulations

In Italy, drone regulation is defined through national regulations and European regulations. As of January *, ****, the new European Regulation on Drones came into effect. This regulation has been implemented by significant specific regulatory updates, made through a regulatory review dated November *, ****.

In order to legally use a drone in Italy, basic regulations must be met:

eU drone license: before you can fly a drone, you must obtain an EU drone license and register as a pilot by applying for an operator number. minimum age for pilots: article * of the EU regulations states that the minimum age for remote pilots operating a UAS in the open and specific category is ** years. No minimum age is required for remote pilots operating in the subcategory of UAS considered toys. registration and use during the day: recreational drones must be registered and may only be used during the day (***) and in authorized areas. height limits: drones can fly at a maximum height of *** meters; a lower limit of ** meters in height has been set for recreational drones. dronevisibility: the drone must be visible to the pilot at all times during the entire time of flight

5.2 Geozone: where you can fly your own drone

Performing drone flight carries responsibilities designed to protect aircraft and people on the ground; for this reason, geographical zones for drones or "geo zones" have been circumscribed. Geo zones are portions of airspace where the activities of drones, or, to use the more official term, unmanned aircraft (***), are facilitated, restricted, or excluded. Geozones are established to:

minimize risks associated with security; protect the privacy of others; address security issues; deal with environmental issues.

There are three main geo zones for which member states may adopt a color code to ensure that airspace users can quickly identify which zone they intend to refer to:

▇ Red zone: operations in all or certain classes of flights are prohibited; therefore, drones are not allowed to fly there.

▇ Yellow zone: uAS operations are restricted and are subject to compliance with the set of conditions imposed in these zones. You must have prior authorization to fly your drone, as you may be near areas such as airports, heliports, national parks, military installations, hospitals, nuclear power plants or any type of major industrial site, etc

▇ Green zone: in the "open" category, UAS operations are facilitated, so you can fly your drone.

▇ Blue zone: a ...

5.3 How to become a professional drone pilot

In order to obtain a license authorizing the piloting of ARPs (***), it is necessary to take an ad hoc drone pilot course and then take an exam.

Pilot course: operation and requirements

The following refers to the use of drones for civilian purposes only. Pilot courses are conducted in ENAC-approved training centers located throughout the country. These centers tend to be placed a long distance from population centers, since they almost always contain a flying field (***), during which the theoretical parts are covered:

general principles of flight and drone components; meteorology; aviation regulations and legislation; aeronautical phonics.

Following this first theoretical phase, practical training is provided, with about three days of practical flying lessons. Together with the instructor, it will be possible to perform the thirty missions of an average duration of ** minutes each. These missions are the experience necessary to be able to take the final test that will measure the candidate's knowledge and skills.

To be eligible as a candidate for the license examination in drone piloting, you must:

be of legal age; pass the medical examination: conducted by an Aeromedical Examiner and a trained physician at an aerospace medical center, to obtain a medical certificate valid for * years. ...

6.1 Actor Segmentation

Italian companies manufacture of aircraft, spacecraft and related devices nca (***)

Aerial filming activities in the field of photography (***)

• Leonardo s.p.a.
• Ge Avio
• Eurotech
• Alpi Aviation
• Eliocompany
• Drone Arezzo
• Italdron