In the dynamic landscape of India's emerging drone industry, a transformative journey unfolds, driven by cutting-edge technology and innovative solutions. Startups and industry leaders are at the forefront, revolutionizing diverse sectors such as defence, agriculture, surveillance, logistics, healthcare, entertainment, environmental monitoring, disaster management, and infrastructure inspection. As we navigate this intricate terrain, we encounter both immense potential and critical challenges that demand attention for sustained growth.

The Indian drone industry aims to become a global hub by 2030, anticipating a significant investment of Rs 5,000 crore in manufacturing and components.

Projections indicate a substantial scale-up, with the drone services industry expected to reach Rs 30,000 crore in the next three years, aligning with the global surge from $30 billion in 2022 to a projected $178.81 billion by 2030.

This report delves into the current state and charts a pragmatic roadmap for the future of the drone industry in India, focusing on regulatory reforms, industry dynamics, and supply chain intricacies. It draws insights from extensive research and consultations to offer solutions for a successful transition of India as the 'global drone hub.'

Drone Industry Introduction and Growth

The historical trajectory of unmanned flying machines traces back to military applications, with the commercial potential gaining prominence after 2013. As India positions itself for robust macroeconomic growth post-COVID-19, the drone industry becomes a linchpin in the nation's journey toward becoming a $5 trillion economy.

With the global drone market projected to reach $54 billion by 2025, India's drone manufacturing potential could surge to $4.2 billion by 2025.

Despite these strides, challenges persist, necessitating a nuanced approach for sustained growth.

Current State

In the rapidly evolving drone industry, global demand is driving the market to an estimated $54.6 billion by 2030. Services dominate, constituting 80% of activities, while hardware anticipates notable growth at a 9.3% CAGR. Despite Asia, led by China, maintaining its status as the largest market, the Middle East & Africa exhibit remarkable growth, projecting a 15.4% CAGR. The Indian drone market is rapidly expanding, driven by applications in agriculture, surveillance, e-commerce, and entertainment.

Procurabl's analysis indicates a market value of nearly $1.08 billion in 2022, with an expected 18% growth rate from 2023 to 2030.

The success of Indian drone companies, such as IDeaforge, Garuda Aerospace, and BotlabDynamics, highlights the innovation emanating from India's drone industry. These companies are strategic partners to the Indian Army, pioneers in global unmanned aerial systems, and specialists in live drone shows, respectively.

Government Regulations and Promotion of the Indian Drone Sector:

The Indian government has implemented crucial initiatives to fortify the domestic drone sector. The Production-Linked Incentive (PLI) scheme, with a dedicated ₹120 crore allocation, serves as a pivotal driver to propel drone manufacturing within the country. The Drone Shakti initiative targets startups, promoting the use of drones as a service across various sectors. The import ban on drones, with exceptions for critical categories like defence and research & development, emphasizes the significance of indigenous manufacturers.

To regulate and streamline the sector, the government has introduced The Drone Rules, 2021, providing a comprehensive framework. The Digital Sky Platform complements these rules, offering a centralised hub for licensing applications, information dissemination, and regulatory compliance. The SVAMITVA scheme utilises drones for land mapping, showcasing their versatile use cases adopted by 1 Lakh villages from 9 major cities.

Engage with our expert team to explore localization manufacturing capabilities under the PLI scheme, Schedule a consultation today for insights and strategies to leverage Procurabl's expertise in advancing your manufacturing initiatives.

Drone Use cases and applications

Unmanned Aircraft Systems (UAS), commonly known as drones, have ignited a revolution across multiple industries, introducing efficiency and innovation on an unprecedented scale. Their applications are far-reaching and impactful, reshaping sectors in remarkable ways.

Sector	Future Projection
Surveying	$2-$3 billion by 2028
Surveillance	> $8 billion by 2028
Mapping	$455 million by 2028
Defense	$35 billion by 2030
Construction	>$4 billion by 2028
Land Surveying	$8061 million by 2033
Traffic Management	$1 billion - $2 billion by 2028
Mining Industry	$1-2 billion by 2028
Volumetric Survey Drones	$1.5 billion in 2028
Disaster Response and Relief	$1-2 billion by 2028

Supply Chain Challenges in India for Drone Manufacturers:

Sourcing Complexity

Securing reliable suppliers with specialized expertise in drone components poses a challenge. Limited manufacturing capabilities create bottlenecks, necessitating strategic alliances for consistent supply and industry growth.

Pricing Uncertainty

Market standardization absence and pricing differences complicate cost estimation. Addressing this challenge is crucial for market accessibility and economic viability.

Explore how Procurabl reduced costs in our case study

Quality Challenges

Prevalence of low-quality components in imported drone manufacturing poses a significant challenge. Implementing robust quality assurance is essential for competitiveness.

Explore Procurabl's commitment to quality on our Certification Page.

Skills Gap in Drone Manufacturing

Scarcity of skilled engineers and technicians in drone manufacturing poses a critical challenge. Bridging this gap is pivotal for sustained growth and innovation in India's drone sector.

Minimum Order Constraints

Minimum order quantities by drone part vendors hinder startups. Overcoming this involves innovative solutions like collaborative procurement for scalability.

Current State of Major Drone Components (Import or Locally Manufactured)

The following table shows the current state of major drone components in India:

Component	Current Status	Future Outlook
Propeller Multiple spinning blades providing lift and thrust	Stable supply, sourced from various manufacturers globally.	Need for more local production or diversified sources.
Motors Electric motors powering propellers, controlled by the flight controller.	Dependence on international suppliers.	Efforts to establish local motor production.
Flight Controller The brain of the drone, processing data and issuing commands to motors.	Limited local production	Investment in R&D and local production capabilities may increase for strategic autonomy.
Sensors GPS, accelerometers, gyroscopes, magnetometers, ultrasonic rangefinders for position, orientation, and obstacle detection.	Some local sourcing, but critical components may still be imported.	Development of indigenous sensor manufacturing capabilities.
Radio Controller The remote used by operators to control the drone.	Available from international manufacturers	Local production may become essential to ensure supply chain resilience.
Battery Provides power to motors and electronics.	Batteries are often sourced internationally, with potential for local production.	Local manufacturing initiatives, aligned with global environmental goals.
Camera Optional component for photography, videography, and mapping	Cameras sourced from international manufacturers.	Partnerships or local production agreements with camera technology companies.

Delve into Procurabl's expertise in Drone components like Cameras and Propulsion Systems and Enhance your manufacturing capabilities with our quality components.

Procurabl's Value Addition to the Drone Ecosystem:

Procurabl, a leader in supply chain services in the mobility industry, stands out as a crucial strategic partner for drone manufacturers. Leveraging its expertise as a vertically integrated automotive company, Procurabl excels in optimizing supply chains, tackling challenges, providing access to a reliable global supplier network, addressing the talent gap, ensuring regulatory compliance, fostering partnerships, promoting technology adoption, and championing local manufacturing initiatives.

In conclusion, as India charts its course to become a global drone hub, addressing challenges and leveraging strategic partnerships will be paramount.

Seize the opportunity to transcend traditional supply chain management. Partner with Procurabl to overcome challenges, drive innovation, and contribute to environmental sustainability.

Contact Procurabl Today and Elevate Your Drone Manufacturing Excellence!