As drone applications expand from surveillance and logistics to agriculture and urban mobility, there is a growing demand for advanced AI that offers greater efficiency, endurance, and reliability. This market growth is further supported by increasing defense investments, supportive regulatory frameworks, and a surge in demand for autonomous aerial operations.

By end user, the commercial segment is projected to account for the largest share during the forecast period.

By end user, the commercial segment is projected to account for the largest share of artificial intelligence (AI) in drones market during the forecast period. The segment's growth is attributed to the increasing use of AI-powered drones, fueled by the increasing demand across industries like construction, agriculture, energy, infrastructure, and logistics. These industries are using drones for purposes, such as last-mile delivery, asset inspection, precision agriculture, and crop health monitoring. Additionally, AI enables predicting decision-making, real-time analytics, and object detection automatically through drones, making operations more efficient and lowering the cost of labor. With advancements in drone-as-a-service (DaaS) models and connectivity with enterprise software platforms, commercial clients can access high-end AI capabilities at a low initial upfront investment. Moreover, the increasing concerns for safety, compliance, and sustainability promote the adoption of AI-powered drones in business activities, thereby driving the growth of the commercial segment.

By function, the flight & mission operations segment is projected to account for the largest share during the forecast period.

By function, the flight & mission operations segment is projected to account for the largest share during the forecast period. Flight and mission operations represent the core of AI-driven drone functionalities, encompassing autonomous navigation, route optimization, obstacle avoidance, and swarm coordination. AI enables drones to dynamically adjust to evolving environments, weather conditions, or obstacles in real time, making safe and dependable mission accomplishments possible. In industries like e-commerce, defense, and disaster relief, the capability to automate and optimize the flight paths of drones is imperative for cost-efficient and timely operations. For example, delivery services employ AI to minimize route durations and enhance logistical efficiency, whereas emergency response operators use drones for search-and-rescue or reconnaissance in hostile environments. With expanding use cases and increasingly sophisticated AI models, the growth of the flight & mission operations segment is projected to continue as the most significant application area for the market.

North America is projected to account for the largest share during the forecast period.

North America is projected to lead the artificial intelligence (AI) in drones industry during the forecast period, driven by its strong defense infrastructure, heavy R&D expenditures, and the dominant presence of leading drone companies. Additionally, the increasing use of drones generates high demand for sophisticated propulsion systems ranging from internal combustion engines and gas turbines to electric and hybrid-electric propulsion units. The region is witnessing the growing use of drones in delivery services, agriculture, infrastructure inspection, and emergency services, all of which need reliable and efficient propulsion systems. Supporting regulations from the FAA and innovation clusters in the US and Canada have fostered a strong drone startup and AI solution provider ecosystem. Besides, the region's emphasis on R&D, cybersecurity, and AI chip manufacturing accelerates the implementation of drones.

Major Players in artificial intelligence (AI) in drones  companies are DJI (China), DroneDeploy (US), Teledyne FLIR LLC (US), Skydio Inc. (US), ShieldAI (US), ideaForge Technology Ltd. (India), DAC.digital (Poland), Aerovironment, Inc (US), Pix4D SA (Switzerland), Draganfly (Canada), Dedrone (US), Percepto Ltd. (US), Qualcomm Technologies, Inc. (US), Honeywell International Inc. (US), and 3DSurvey (Slovenia).