Owing to benefits such as faster and more flexible processes, improved collision avoidance and situational awareness capabilities due to technological modernity, and cost efficiency, drone transponders are experiencing rapid adoption as opposed to traditional methods like bar codes, optical character recognition, magnetic stripes or manual means, thus fostering progress in global drone transponders market.

Covid-19 Impact & Market Status

Business models are being thoroughly revised to align with current business dynamics and appropriately address all the challenges that have sprung amidst the ongoing Covid-19 pandemic and its associated implications. Market players in the global drone transponders market are aggressively targeting new opportunities to emerge from the pandemic inflicted growth downturn and reverse the financial vulnerabilities.

The global Drone Transponders market worth USD47.38billion by 2029, growing at a CAGR of 28.58%

New working models that have emerged are being promoted and adopted by market veterans to unravel new growth possibilities. New market participants are also steadily coining ways to sustain tremendous competition. The world economy has been showing signs of deterioration, thus flaring up risk factors for the global drone transponders market. Under prevailing circumstances, several new, as well as established players in the global drone transponders market, are maneuvering ways to recoup growth.

This report has a detailed outlook of the many changes that have emerged in the drone transponders industry chain depending on upstream and downstream market conditions. A deep analysis of the Covid-19 pandemic inflicted changes in the businesses and the best industrial practices to restore growth trends across regions and countries have been documented in thorough detail to encourage progressive investment decisions by players and aspirants in the global drone transponders market.

Mode S Drone Transponders Type to Emerge as the Most Lucrative Segment

The global drone transponders market is classified into mode A, mode B, mode S and ADS-B based on transponder type. Among these, the is poised to incur the highest revenue streams owing to several advantages such as it is significantly advanced than Mode A and Mode C drone transponders. Also, they are capable of interrogating one aircraft at a time to reduce transponder workload, has robust communication protocol, facilitates reduction in frequency congestion and enables improved position accuracy. Adoption across diverse end-use applications is likely to support segment expansion in the forecast years.

Rotary-Wing Platform to Remain Atop

The global drone transponders market is classified into fixed-wing and rotary-wing based on platform. Among these, the fixed wing platform accounted maximum market share of global drone transponders market owing to multiple factors like light-weight, ease of control and use, safety benefits, and superlative vertical takeoff & landing (VTOL) capabilities.

>5kg to Ensure Revenue Maximization

The global drone transponders market is classified into >5kg, 5-25 kg, 25-105 kg based on Drone Weight. Among these, the >5kg recorded substantial market growth in 2020 and is expected to grow considerably in the forecast years.  

Experience Intense Market Competition

The global drone transponders market is classified into manned & unmanned aviation, military aircraft, civil aviation, and others based on Application. Among these, the manned & unmanned aviation segment have seen higher adoption of drone transponders the global drone transponders market for they enable faster and more flexible processes, improved collision avoidance and situational awareness capabilities due to technological modernity, and cost efficiency.

North American Region to Render Ample Investment Avenues

Based on regional performance and segmentation, the North American region is likely to garner the lion's share of revenues in the forecast years. This is evident from the rapid UAVs, aviation, traditional aircraft, automation, material handling, aviation, vehicle tracking applications of the drone transponders across countries such as the US and Canada.

Additionally, technological developments owing to dominance of several research initiatives, commercial mergers of research institutes with leading companies, besides corporate M&A agreements are clearly improving growth feasibility in the region. Following suit the European  market is also emerging as a lucrative region based on similar market dynamics in global drone transponders market. Moreover, in the forecast years, the Asia Pacific region is also likely to emerge as a significant region backed by intense developments across emerging countries such as China and India.

The need to maintain safe distances between a drone and other manned or unmanned aircrafts especially in smaller drones that are invisible to main air traffic control radar has accentuated the reliance on drone transponders as they provide collision avoidance and situational awareness capabilities.

Rapid applications of drone transponders in both manned and unmanned aircrafts and other applications for drone transponders in consumer photography, homeland security, surveillance etc have made a remarkable progress in global drone transponders market.

Advantages such as superlative tracking and remote identification capabilities, collision avoidance and situational awareness abilities, traffic alert, and operational advantages over existing methods encourage further adoption of drone transponders. 

A transponder is a device that enables wireless communication, monitoring, and control that automatically detects and responds to an incoming signal. Transponders are crucial in smaller drones that are less visible to main air traffic control radar. Global drone transponders market growth is fuelled due to their unique features like high-data integrity and flexibility. Transponders are extensively used automation, material handling, aviation, vehicle tracking, and other systems.

Factors like, recent advances in miniaturization and electronic technologies have led the development of compact and lightweight miniature transponders and micro-transponder that can be installed even on the smallest UAVs has driven the global drone transponders market.

However, the biggest limitation of transponder that is read range greatly impacting the devices' operational properties and suitability for particular applications and complexities in detection are some technical challenges limiting the adoption of transponders and hampering the global drone transponders market. Additionally, drones transportation strongly dominated by technical and regulatory challenges due to security and other critical issues are depriving the growth of global drone transponders market. Conversely, advanced versions of mode S transponders, increasing public acceptance of drone transportation and other uses, and drones facilitating surveillance/sensing missions are anticipated to be growth opportunity to the global drone transponders market.

The major players in global drone transponders market are DJI, Parrot , 3DRobotics, Qualcomm, Airphrame, DroneDeploy, Yunees, Kespry, Autel Robotics, Skydio, Institu, Deliar, EHANG, senseFly, Aerialtronics, FreeFly, Flyability, DraganFly, Innovations, Action Drone USA, GoPro, Intel, Ambarella, FLIR, Workswell, and UDI among others. These drone transponder manufacturers provide defense and civil solutions engineered with high standards and tested to meet rigorous environmental and performance specifications. The robust drone transponders developed by these firms provide situational awareness of both civil and military aircraft. Thus drone transponders developed by these firms are highly preferred by customers across the world propelling their market share in global drone transponders market. Further, renowned industry players are unraveling new product portfolios and technological advancements for market fortification amidst Covid-19 impact in global drone transponders market.

Latest Innovations in the Global Drone Transponders Market: a Snapshot

• New drone rules have been announced in the US by the Dept. of FAA (Federal Aviation Administration) favoring safety and smooth transportation. The development is expected to lure further adoption and growth in the global drone transponders market

The governments of India and the US have agreed to develop high-end UAV to power airforce defense capabilities across both countries.

Drone Transponders Market Scope

Key Segments of the Global Drone Transponders Market

Type Overview (USD Billion)

• Mode A
• Mode B
• Mode S
• ADS-B

Platform Overview (USD Billion)

• Fixed-wing
• Rotary-wing

Drone Weight Overview (USD Billion)

• >5kg
• 5-25 kg
• 25-105 kg

Application Overview (USD Billion)

• Manned & unmanned aviation
• Military aircraft
• Civil aviation
• others

Regional Overview (USD Billion)

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

Middle East and South Africa