PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1521022
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1521022
The Malaysian drone market is projected to rise at a compound annual growth rate (CAGR) of 21.44% over the forecast period to reach US$7,270.159 million by 2029, increasing from estimated value of US$2,752.224 million in 2024.
The drone market in Malaysia is growing as drones are increasingly gaining attention among the younger generation and are now seen as exciting recreational option to try. People operate drones for various activities, such as getting breathtaking shots and creating videos (aerial photography and cinematography), entertainment purposes and fun, delivery, and many others. Furthermore, there are sectors like agriculture, military, mining, construction, and many others, where drones are utilized in the country for numerous purposes.
Increasing demand for drones in various end-use industries
The Malaysia drone market is constantly growing and stimulating the trend of using drones on a larger scale. Drones are used in a diversified range of commercial applications such as agriculture, aviation, construction, and safety. Each sector requires distinct types of drones to do certain tasks. Thus, the demand for drone production and users is highly increasing in Malaysia, diversifying the drones' functionalities to carry out different types of tasks. This brings about the expansion of the country's drone industry, where the size and complexity of Malaysia's drone technologies are increasing rapidly.
As stated by the World Bank, after the slowdown in Malaysian industries, there has been significant growth in recent years. For instance, the value added by the industries in percentage of GDP increased from 37.72% in 2021 to 39.10% in 2022. This growth is anticipated to majorly impact the drone industry in the region.
The Malaysian government places a high priority on the aerospace and military industries, recognizing their potential for significant expansion. Malaysia, like other ASEAN countries, is involved in territorial conflicts with China and surrounding countries. With the help of drones, the government combats trafficking, piracy, and insurgency operations throughout the region.
Malaysia has a well-established service industry and Marine Security is a vital component of it as its shipping outs and natural resources are carried out by marine transportation. Furthermore, for the establishment of the Malaysian national aerospace sector, the Malaysia Aerospace - Blue Print 2030 has been formulated. The objective of this initiative is to make the country the leading player in the aerospace sector of Southeast Asia. Malaysia has roughly 200 aerospace enterprises, including both native and international industry stakeholders. In Malaysia's aerospace sector, drones are used for aerial surveillance, infrastructure inspection, and equipment maintenance, providing cost-effective solutions. They also contribute to research and development by providing useful data for aerodynamic studies and propulsion system testing.
Another sector that utilizes drones extensively is agriculture. Malaysia's total global agricultural trade in 2022 was $61.3 billion, with $37.4 billion in exports and $23.9 billion in imports. Indonesia, China, and Thailand are Malaysia's top agricultural commodity suppliers, with the United States ranked sixth in 2022. Despite a $13.5 billion agricultural trade surplus, Malaysia continues to rely significantly on imports for critical commodities such as wheat, rice, protein meal, dairy products, cattle, and the bulk of deciduous and citrus fruits.
The commercial segment is expected to grow significantly in the coming years
Drones are used extensively for commercial purposes. They improve efficiency such as inspection and maintenance of congested or hazardous areas by reducing risk. Drones are also used in the military, government, and telecommunication sectors, for mapping and surveying, emergency response and disaster management, medical transportation, and cargo delivery.
Due to its vast use case, the Malaysian government takes initiatives to promote the Malaysian Drone sector. The Malaysian Drone Technology Action Plan (MDTAP30) is an initiative that aims to support the drone ecosystem in Malaysia and emphasize it to an extent of a national agenda. The government of Malaysia also plans to create 100,000 employment opportunities through the drone industry by contributing RM 50 billion to the GDP by 2030. The government has identified 200 drone technology companies in Malaysia. It had also aimed to train 1000 pilots in the year 2022. Hence, these initiatives are expected to drive the drone market in Malaysia.
Additionally, the Malaysian government extensively uses drones. These are utilized by the National Security Council of Malaysia and the Royal Malaysian Police to control public security by guaranteeing the control of citizen movement. Drones are moreover utilized by the Malaysian government in times of crisis. Drones are exceptionally successful in aerial mapping of populations at times of calamities, such as earthquakes, tsunamis, floods, etc.
Government organizations like Malaysia Digital Economy Corporation (MDEC) lead the drone division within the nation. It has an initiative named 'My Drone Tech' that focuses on the utilization of drones over the complete region of Malaysia by assisting companies in testing modern items, initiating supportive approaches, and advancing tech ability within the nation that can analyze drone-captured information. Amid the flood of 2021, drones were utilized to provide food and medication supplies to victims in each nook and corner of the nation. In 2023, the Malaysian Research Accelerator for Technology and Innovation propelled Area 57. It is a center of greatness set up to advance the utilization of drones in Malaysia.