While it’s natural to assume that tech giants or military organizations are the biggest spenders on drone technology, new data indicates otherwise. According to a recent report, real estate companies top the list of major players investing in drone reveals, with some spending upwards of $500,000 annually.

With a plethora of summer holidays including Juneteenth, Fourth of July celebrations, and Independence Day, it’s likely that many Americans witnessed an array of vibrant fireworks displays across the country during the past few weeks. For those who had been fortunate enough to observe, a drone was present. Regardless of whether one assumes the United States will continue to assert its global leadership role or not? Are the investors the most crucial spenders on drone manufacturers’ product unveilings, assuming another instance? Countries that are spending the most on drone displays might surprise you globally.

Sph Engineering, a leading developer of drone capabilities, has recently released a research study that shines a light on the countries spending the most on drone shows – specifically, which types of organizations are behind these commissions.

The report, titled “Drone Present Market Evaluation,” was published in June 2024, a collaborative effort between the market analysis group Duamentes World Alliance and primary sources from 1,000 drone expos across 62 countries.

By mid-summer 2024, the global drone presence market has already reached a significant milestone, valuing at approximately $338.99 million, with projections indicating continued growth. The U.S. Typically spends massive amounts of money, particularly when it comes to drone displays – a fact evident in the global market, with North America accounting for a significant share of $84.15 million in the overall drone show revenue. The European region garnered a significant share of $66.19 million, trailed closely by the Asia-Pacific area with an impressive haul of $15.19 million.

According to available data, a specific percentage of overall drone releases is allocated across various regions, with each area accounting for a corresponding share.

• North America accounted for 34 percent of all drone-related events by the number of raw performances.
• Europe: 16%
• Asia Pacific area: 12%
• China: 7%

SPH Engineering compiles the information – along with additional insights – into a comprehensive infographic, easily accessible for reference.

Where do clients typically spend the most money on drone services?

In terms of expenditure per gift, the United States ranks among the top spenders globally, with Americans typically allocating a significant proportion of their budgets towards festive celebrations. This is far from being the very best. In reality, it ranks among the fewest.

China’s spend on drones is remarkable, with a typical model costing a staggering $114,564, making it the country that likely invests the most in this technology. Within the top three by value per share currently? Across the Middle East and North Africa region, expenditure averages around $112,250 per person, while in India, it stands at approximately $91,700 per capita.

In Europe, the market price for a common drone typically stands at $42,034. In Latin America, the average price of a common drone is $25,550. In reality, this represents just a paltry 22% of the enormous sums being spent on this endeavor in China.

The high cost of drone reveals in China stems from a combination of factors, including the country’s complex regulatory environment, high demand for aerial displays, and limited domestic supply.

What drives the higher costs of reveals in China, the Middle East, and India is primarily rooted in local market conditions. In these regions, events require elaborate infrastructure to accommodate large crowds, which translates into substantial expenditures. Briefly, they’re bigger and grander. According to recent statistics, an average of approximately 660 drones are currently in use in China. The notion that certain drone reviews are overburdened with excessive content is quite apparent. The UVS Festival in Korea was a notable event where UVify showcased its innovative drone technology by deploying 5,293 units of its IFO series drones.

While drones may not dominate conversations in the U.S. to the same extent as they do globally. The country’s sluggish economy, partly hampered by the lingering effects of the pandemic, has led to widespread concern about the potential impact on future economic growth and stability. The rise of drone-related startups has led to an influx of smaller, more DIY-focused companies emerging into the market. In North America, a standard drone typically operates with just 218 drones.

Consider investing in a personal drone available for just $10,000 – potentially offering unparalleled convenience and flexibility. On another occasion, I witnessed an astonishing display of technology when I saw a massive drone swarm comprising 500 individual units. Sky Components claims that their existing costs start at a minimum of $15,000 for smaller projects.

The present value of a drone’s expected cash flows is typically calculated using discounted cash flow (DCF) analysis. This involves estimating the future cash inflows and outflows associated with the drone, such as revenue from aerial photography services or equipment sales, and then discounting those cash flows to their present value using a discount rate that reflects the time value of money.

To set the present value of a drone, you would first estimate the expected annual free cash flow (FCF) generated by the drone. This could involve forecasting revenue and expenses associated with the drone’s operations, such as fuel costs, maintenance expenses, and salaries for personnel involved in flying the drone.

Next, you would calculate the terminal value of the drone using a multiple of the estimated FCF in the final year of the projection period. The terminal growth rate is typically assumed to be equal to the market’s growth rate or the industry’s average growth rate.

The present value of the drone is then calculated by discounting the expected FCF and terminal value using a discount rate that reflects the time value of money, such as the weighted average cost of capital (WACC) or the hurdle rate used in the investment decision.

Typically, the success of a drone operation is directly correlated with the specific number of drones employed. Certainly, there are other relatively minor costs such as allowing for travel to the situation, scouting, worker coaching, and. Typically, these rates remain relatively stable and do not fluctuate significantly depending on the quantity of drones employed.

The cost per individual can vary significantly, ranging from $1,000 to $2,000. A single “660-drone” presence in China can be equivalent to a hardware investment exceeding $600,000, possibly even surpassing $1.3 million, given these estimates.

The excellent news? Drones possess a significant advantage in being reusable, with their overall value essentially realized upfront in a one-time investment. Unlike fireworks, which have a singular purpose and are consumed in a single display? You’re essentially burning money on a fleeting spectacle, wasting resources to fuel another display.

As companies become equipped to amortize significant upfront costs, expect drone-related expenditures to decrease in cost over time. Already, we’re witnessing evidence of this. According to SPH data, the prevailing price of a drone in China currently stands at $175. It’s unlikely that Chinese language drone manufacturers are using that value at such a low level. Typically, gift wrapping costs as much as what you’d spend to place something on a present. You’ll be able to predict that approximately 1,000 drones will be present in China, valued at around $175,000.

Meanwhile, financial expenditures for a single drone average around $233 within the United States. An unprecedented display of 1,000 drones would cost a staggering $230,000 or more. For a limited budget of $20,000, you could acquire a modest gift package featuring approximately 100 drones. Data shows that our reports on drone prices in the US align with market trends. According to Sky Components, a prominent player in the drone industry, prices start at around $15,000 for their most basic models.

Spending on Drone Reveals: A Regional Comparison

While some areas may prioritize more conventional methods of surveillance, others have found great value in investing in cutting-edge drone technology. But just how much are these regions willing to spend on drone reveals? Let’s take a look at the numbers and find out.

Rounded up and sorted by average spend per capita:

Tech-savvy consumers who crave cutting-edge innovation and are eager to stay ahead of the curve in their pursuit of aerial photography, videography, or recreational activities.

Who’s fueling the frenzy over drone reveals with their hefty investment? It seems that governments – including those of native and metropolitan areas – are the culprits. In line with SPH Engineering’s research findings, approximately 18 percent of the firm’s current drone clientele comprise metropolitan government entities. Industrial firms account for approximately 15% of drone purchasers, solidifying their position as the second-largest customer base. The top three categories are evenly split between sports activities and art festivals, both accounting for 9% of total customers.

Vendors are now emerging at resorts, theme parks, and trade shows, a trend that is far from novel. Today, Disney Springs is wowing audiences with its cutting-edge technology. At the 2018 Consumer Electronics Show (CES), the world’s largest electronics commerce event, CES collaborated with Intel to stage an innovative showcase.