Global Commercial Drone Market To Hit $2 Billion by 2022, Grand View Research Says

Driven primarily by increased utility in law enforcement and agricultural applications, the global commercial drone market is expected to reach about $2 billion by 2022, said a report released Tuesday by Grand View Research. The firm said it expects drones to "revolutionize the retail sector" and "positively shape" market growth once regulatory clearance is authorized in the U.S. and other countries. High penetration of commercial drones is predicted for Europe, due to its regulatory scenario, which the report said is "more conducive to market growth as opposed to the U.S." The Federal Aviation Administration is considering rules that would further address the issue of commercial drone usage, and said Tuesday it has given out more than 1,000 Section 333 exemptions to its 2012 Modernization and Reform Act rules, allowing exemption holders to conduct commercial drone flights in non-restricted areas at or below 200 feet. Monday, commercial drone advocates, including Amazon, backed congressional involvement in the process of commercial drone approval (see 1508030069), while privacy advocates pushed for industry to accept drone privacy rules (see 1508030053). Grand View said North America generated more than 55 percent of 2014 global commercial drone revenue and that government drone applications, including law enforcement, infrastructure and research, contributed more than 40 percent of market revenue.