M&A in the commercial drone market takes off

The UK commercial drone market has experienced rapid growth, fuelled by advancements in technology and demand for innovative solutions. Future innovations are set to ignite further growth in the UK market and accelerate M&A within the sector.

Over the past decade, the commercial drone market in the UK has experienced rapid growth, fuelled by advancements in technology and the increasing demand for innovative solutions. Commercial drones have revolutionised various industries, including surveying, inspection and elements of policing. These unmanned aerial vehicles (UAVs) offer numerous benefits, such as improved safety, increased efficiency, cost-effectiveness, and environmental friendliness. In this article, we will explore the factors driving the use case for commercial drones, discuss future innovations that are set to ignite further growth in the UK market and look at the acceleration of M&A within the sector. 

Factors Driving the Use Case for Commercial Drones 

  1. Enhanced Surveying Capabilities 

Commercial drones have transformed the surveying industry by providing efficient and accurate data collection capabilities. Equipped with high-resolution cameras and advanced imaging sensors, drones can quickly capture aerial images and create detailed maps, 3D models, and topographic surveys. This technology enables faster and more cost-effective surveying processes, reducing the need for manual labour and traditional surveying methods. Surveyors can now access remote and hard-to-reach areas with ease, making drone surveying particularly valuable for large-scale infrastructure projects, construction sites, and land management. 

  1. Efficient Inspection and Monitoring 

In industries such as energy, utilities, and infrastructure, regular inspections are vital to ensure safety, detect anomalies, and maintain infrastructure integrity. Commercial drones have revolutionised inspection processes by providing a cost-effective and efficient alternative to traditional methods. Drones equipped with thermal cameras and other specialised sensors can quickly identify heat signatures, gas leaks, and structural defects that may be invisible to the naked eye. 

By utilising commercial drones for inspections, companies can significantly reduce the need for manual inspections, which are often time-consuming, expensive, and pose risks to human inspectors. Drones can access difficult-to-reach areas such as tall structures, rooftops, or haardous environments, making inspections faster and safer. Furthermore, drones can capture high-quality visual and thermal data, which can be analysed using advanced software to detect and predict potential issues, improving maintenance planning and asset management. 

  1. Transforming Policing and Public Safety 

Commercial drones are increasingly being adopted by police forces and law enforcement agencies to enhance public safety and improve operational efficiency. Drones equipped with cameras, thermal imaging, and real-time video streaming capabilities can provide valuable situational awareness, assist in search and rescue missions, and support emergency response operations. 

In policing, drones can be deployed for crime scene investigations, crowd monitoring, traffic management, and surveillance in remote or inaccessible areas. These aerial perspectives enable law enforcement agencies to gather critical evidence, assess risks, and make informed decisions in real-time. Drones can also be instrumental in monitoring public events, identifying potential threats, and ensuring the safety of both the public and law enforcement personnel. 

Future Innovations Igniting the UK Commercial Drone Market 

The UK commercial drone market is poised for further growth and innovation, driven by advancements in technology and evolving regulatory frameworks. Here are some potential future innovations that are expected to fuel the market: 

  1. BVLOS Operations 

Beyond Visual Line of Sight (BVLOS) operations, where drones can fly beyond the operator’s line of sight, have the potential to revolutionise the commercial drone industry. Currently, BVLOS operations are restricted in the UK due to regulatory limitations. However, ongoing research and development efforts, along with collaboration between industry stakeholders and regulatory bodies, aim to establish guidelines for safe and widespread BVLOS operations. 

Once BVLOS operations are permitted, commercial drones can cover longer distances, access remote locations, and perform a wider range of tasks, including long-range deliveries and infrastructure inspections. This advancement will further enhance the efficiency and scalability of commercial drone applications, unlocking new opportunities for businesses in various sectors. 

  1. Artificial Intelligence and Automation 

The integration of artificial intelligence (AI) and automation technologies in commercial drones is set to transform the industry. AI algorithms can enable drones to perform complex tasks autonomously, such as obstacle avoidance, object recognition, and real-time decision-making. This capability will enhance the safety and reliability of drone operations, reducing the risk of accidents and human errors. 

Automation technologies, coupled with AI, will also streamline workflows and increase operational efficiency. For example, drones can be programmed to follow predefined flight paths, conduct inspections or surveys, and automatically transmit data for analysis. This level of automation will save time, reduce costs, and enable businesses to scale their drone operations effectively. 

Merger & Acquisition Activity in the UK Commercial Drone Market 

The UK commercial drone market has witnessed increasing merger and acquisition (M&A) activity in recent years, reflecting the industry’s growth and consolidation. These strategic partnerships and acquisitions aim to combine expertise, technologies, and market presence to drive innovation and expand market reach. These acquisitions are occurring along all stages of the value chain.  

Recent deals include: 

BAE Systems acquisition of Malloy Aeronautics, a specialist in the design and manufacture of heavy lift drones 

Westbridge-led secondary buy-out of Survey Solutions, an engineering surveying and monitoring services business that utilises UAV technology 

DroneBase’s acquisition of Inspection, an AI-enabled surveying business. 

M&A activity in the UK commercial drone market reflects the industry’s potential and the increasing demand for drone-based solutions across various sectors. As the market continues to evolve, we can expect further collaborations, partnerships, and acquisitions that will shape the future of the UK commercial drone industry. We note that the private equity community is taking a strong interest in the sector given the significant growth potential. 


The UK commercial drone market has experienced rapid growth, driven by factors such as enhanced surveying capabilities, efficient inspection and monitoring, and the transformation of policing and public safety. Future innovations, including BVLOS operations and the integration of AI and automation, are set to ignite further growth in the market.  

The M&A activity in the UK commercial drone market reflects the industry’s dynamism and potential. As the commercial drone market continues to evolve, we can expect further advancements, collaborations, and opportunities that will shape the future of this promising industry. 

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