Drones, also called Unmanned Aerial Vehicles (UAVs) are remote-controlled aircraft that range from hand-operated systems to long endurance, high altitude systems similar in operation to small aircraft. Drones were primarily focused towards the defense sector to gather intelligence and provide a surveillance and reconnaissance function for the armed forces. However, apart from the sole domain of the defense sector, drones have expanded into the commercial sector with images of spectacular crashes, daring search-and-rescues, breathtaking mountain summits, and acrobatic pizza deliveries. By size, drones can be classified as large sized, medium sized, small sized drones and miniature drones. Nano drones are a type of miniature drones. Nano drones can fit into the palm and are easy to operate.

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Since nano drones are built with smaller sized rotors and motors, they are easier to control and navigate. Furthermore, they are equipped with advanced payloads and require low development and procurement cost. Therefore, they are witnessing increasing demand from defense sector primarily to monitor cross-border terrorism and revolts. They are also used for spying during a close combat mission. Moreover, in the commercial applications, they are increasingly preferred owing to increased operational efficiency with minimal human intervention.

However, strict airspace regulations is the major factor restraining the nano drones market.  The chief danger that unmanned aircraft pose to manned aircraft is accidental collision. As the number of drones already outpaces the number of manned aircrafts, the air is expected to become crowded in the near term. Drones are also prohibited in restricted zones such as military facilities that are carrying out experiments and military trainings. These growing restrictions are affecting the nano drones market as the users can be subjected to either ethical or legal violations.

The nano drones market can be classified on the basis of type, propulsion system, payload, application, and geography. Based on type, the nano drones market can be segmented into fixed wing and rotary wing. On the basis of propulsion system, the market can be bifurcated into solar, hydrogen cell, fuel cell, lithium ion battery, and hybrid. Based on payload, the nano drones market can be segmented into camera, sensors, video screen, telemetry systems, and others. In terms of application, the nano drones market can be segmented into commercial and defense. Based on geography, the nano drones market can be segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America. Asia Pacific is expected to be the most attractive region for the nano drones market owing to increasing investments in developing nations such as China, Japan, and India to manufacture nano drones with innovative technology solutions and low cost.

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Prominent players operating in the nano drones market include Aerovironment Inc., Elbit Systems, Ltd., Lockheed Martin Corporation, Microdrones GmbH, The Boeing Company, Thales Group, Israel Aerospace Industries Ltd., LLC, UDIRC Toys Co. Ltd, Swarm Systems Ltd., TRNDlabs, XK Innovations, Drona Aviation Pvt. Ltd., Hubsan Technology Company Ltd.,  Guangdong Cheerson Hobby Technology Co., Ltd, Parrot SA, SAAB AB, BAE Systems, Inc., Mota Group, Inc., 3D Robotics Inc., and DA-Jiang Innovations Science and Technology Co., Ltd.  among others.

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