Right here at The Drone Woman, we speak rather a lot about investing in drone firms. However how are drone firms themselves investing the funds they’ve? German-based analytics agency Drone Trade Insights sought to learn how drone firms will prioritize how they spend cash in 2024 — and the reply definitely isn’t {hardware} or software program growth.
‘Advertising and gross sales’ is the main precedence amidst drone firms for the subsequent 12 months, a minimum of in response to DII’s 2023 International Drone Trade Survey. That survey was created primarily based on on-line survey responses from 1,113 drone business individuals throughout 85 nations, and was launched in August 2023 by DII.
As a part of the survey, DII requested respondents to state their priorities concerning useful resource allocation, with six potential choices: advertising and marketing & gross sales, funds & funding, workers growth, {hardware} growth, software program growth, and different (e.g. worldwide enlargement, enhancing drone operations, fostering enterprise growth). Observe that respondents may choose a number of solutions.
In the end, 31% of respondents chosen advertising and marketing & gross sales. In the meantime, solely 17% chosen software program growth, and 13% chosen {hardware} growth as areas the place they’ll primarily spend cash in 2024
Right here’s a breakdown of spending areas that drone firms are prioritizing this yr, so as from most to least:
- Advertising & gross sales: 31% (down from 33% in 2022)
- Employees growth: 18% (down from 19% in 2022)
- Software program growth: 17% (up from 16% in 2022)
- Funds and funding: 15% (unchanged since 2022)
- {Hardware} growth: 13% (up from 12% in 2022)
- Different: 6% (up from 5% in 2022)
In line with DII, that curiosity in prioritizing funds towards advertising and marketing has in truth tripled since 2018. In a comparable survey performed by DII final yr, the outcomes had been additionally comparatively comparable, with 33% of firms prioritizing market & gross sales spending, simply 16% prioritizing software program growth, and 12% chosen {hardware} growth — all figures inside one or two proportion factors.
Why are firms spending cash on advertising and marketing in 2024?
So why are so many drone firms prioritizing spending cash on advertising and marketing in 2024? Considered one of DII’s theories is just because the drone business has matured sufficient to the purpose the place now they merely have to promote and promote their services and products somewhat than develop extra of them.
And for what it’s price, there is no such thing as a scarcity of subtle {hardware} and software program already current out there. That features the whole lot from highly effective mapping software program to spectacular follow-me drones. Previously digicam drones have developed into strong, industrial powerhouses, such because the Sony Airpeak S1, which was constructed by Sony initially to hold its Alpha collection of cameras. In that instance, in April 2023 Sony launched some important updates to its drone that included including an RTK GNSS system for centimeter-level accuracy.
And whereas DJI nonetheless dominates, there are many different up-and-coming rivals, significantly relating to American drone firms throughout the industrial house. With all these firms comes the necessity for each to distinguish their distinctive promoting factors — which is primarily accomplished by way of communications and advertising and marketing.
Apparently, the quantity two spending space for drone firms is workers growth. It’s not sufficient to be an excellent drone pilot with a Half 107 certificates lately. Because the panorama grows aggressive, firms want to rent specialists in areas like precision mapping, modeling and photogrammetry — in addition to people who won’t even get near drones day-to-day however are professionals in different features of enterprise.
However to circle again to that concept that little or no emphasis is being positioned on {hardware} and software program recently, it’s a compelling level. In line with DII’s report, emphasis on product growth has been slashed in half since 2018. 4 years in the past, {hardware} and software program had been the important thing spending areas for a plurality of drone firms, with advertising and marketing solely taking 11% of the important thing focus.
Right here’s a take a look at how all these spending areas have modified over the previous six years, primarily based on DII’s gathering of data of that survey query yearly of its report:
Obtain extra insights from the 2023 Drone Trade Barometer by studying the complete report right here, accessible free for obtain.
