(WIP) Exploring Global Drone Trends, Part 2: Singapore, Indonesia, and Thailand
kanriDrone technology has advanced at remarkable speed. What was once confined to military or hobbyist applications has rapidly expanded into agriculture, logistics, infrastructure inspection, disaster response, and numerous other commercial sectors. The commercial drone market—already valued at more than USD 60 billion in 2024—is expected to exceed USD 1.4 trillion by 2034. In this article, we review developments in the drone markets of major ASEAN economies—particularly Singapore, Indonesia, and Thailand—and outline key insights for companies evaluating future business opportunities and investment strategies.
Global Drone Trends: A Rapidly Expanding Market
The global drone industry is experiencing exponential growth. Commercial drone applications are broadening quickly, supported by advances in automation, sensors, and aviation technologies. Forecasts estimate the commercial drone market will grow from about USD 60 billion in 2024 to roughly USD 1.445 trillion by 2034—representing a striking CAGR of nearly 37%. Drone services, including surveying, mapping, inspection, and delivery, are projected to rise from USD 24.6 billion in 2024 to more than USD 555 billion by 2034, representing CAGR of 36.6%.
Applications are diversifying at pace:
- In agriculture, drones are already used for crop monitoring and precision spraying.
- In logistics, drone delivery is expected to surge—the global delivery drone market alone is forecast to grow from USD 1.8 billion in 2023 to USD 12.3 billion in 2028 (CAGR 46.5%).
- Infrastructure inspection, surveying, media production, and disaster management are also expanding areas of demand.
Government Policies and Regulatory Directions
Singapore
Singapore’s Civil Aviation Authority (CAAS) maintains a comprehensive regulatory framework to ensure safe unmanned aircraft operations. Under the Unmanned Aircraft Operations Regulations, which came into effect in February 2025, drones weighing 250g or more must be registered, and a licensing system has been formalized for operators. Commercial drone activities require a UA Pilot Licence, and as of July 2024, 24,567 drones were registered nationally.
From December 2025 onward, drones weighing 250g or more must also be equipped with Broadcast Remote Identification (B-RID), enabling real-time identification of aircraft and operators. Singapore launched a Drone Delivery Trial Support Programme in 2024, offering designated airspace access and financial assistance to participating companies. By the end of 2025, monthly commercial drone flights are expected to grow by 30% year-on-year to approximately 5,000 flights. However, compliance obligations—such as B-RID module installation costing SGD 120–250—continue to present cost challenges for operators.
Indonesia
Indonesia regulates drones under Ministry of Transportation Regulation PM 37/2020. Registration is mandatory for drones weighing 250g or more, and commercial operations require authorization from the Directorate General of Civil Aviation (DGCA). As of 2024, the number of licensed commercial drone operators has risen to approximately 3,500, representing 25% growth year-on-year. While recreational flights do not require approval, commercial flight permits typically take around 14 business days to process.
In January 2025, Terra Drone conducted Indonesia’s first multi-drone UTM-based demonstration in Sentul City, showcasing simultaneous drone operations across agriculture, logistics, and security, utilising ADS-B and Remote-ID technologies. With a population of 280 million, Indonesia is expected to become the second-largest drone market in Southeast Asia, generating significant industry attention.
Thailand
Thailand is promoting drone usage across commercial, agricultural, logistics, and emergency-response fields while tightening safety and privacy regulations. Flight restrictions include prohibitions on night flights (6 p.m.–6 a.m.), flying within 9 km of airports, exceeding 120 m altitude, or operating beyond 500 m visual range. Violations may result in penalties of up to five years’ imprisonment or fines of up to THB 100,000.
Logistics-Driven Demand and Business Opportunities
Singapore
Logistics optimization remains a strategic priority for Singapore, driving strong demand for autonomous cargo-drone solutions. The city-state’s drone logistics market was valued at approximately SGD 250 million in 2024 and is forecast to reach SGD 300 million in 2025, marking 20% year-on-year growth. Startup F-drones has developed a drone capable of carrying up to 500 kg, aimed at transforming port logistics. Full commercial deployment at Singapore Port is expected in 2025, potentially reducing transport times by around 30%.
Indonesia
Indonesia’s geography—spanning more than 17,000 islands—creates significant logistical challenges and strong demand for drone-based delivery solutions. Drones are increasingly viewed as a viable option for transporting medical supplies and daily necessities to remote or infrastructure-poor areas. The broader drone market is seeing steady expansion: Indonesia’s drone industry is projected to reach USD 9.453 million in 2025 and USD 12.832 million by 2030, with a CAGR of 6.30%. Growth is fueled not only by government defense investments but also by rising commercial adoption in agriculture, construction, and surveying.
Thailand
Drone logistics in Thailand is also gaining momentum, supported by ongoing technological innovation and government initiatives. Traffic congestion in urban areas and limited access to rural communities have heightened interest in drone-enabled delivery solutions. Thailand’s drone market is expected to generate USD 4.8727 million in 2025, with a CAGR of 1.65% from 2025 to 2029. Broader commercial adoption across multiple industries is anticipated to support economic expansion. Recent regulatory revisions by the Civil Aviation Authority of Thailand (CAAT) have enabled wider applications, including agricultural drones. The medical sector is also advancing adoption, with Skyports Drone Services expanding drone-based medical delivery operations within the country.
Geographic Conditions and Operational Suitability
Singapore
Singapore covers approximately 728 square kilometers and has a population density of around 8,600 people per square kilometer (2024 estimate). Its highly developed infrastructure and urban-concentrated economy make it an ideal environment for last-mile drone delivery and infrastructure inspection. Since the rollout of 5G services in 2020, more than 95% of the country has been covered by 5G networks. In February 2024, StarHub Mobile announced that its 5G population coverage exceeded 99%, enabling high-precision real-time control and data transmission for drone operations.
A nationwide unmanned traffic management (UTM) system is scheduled for introduction in 2025, and is expected to cover roughly 90% of Singapore’s urban areas, significantly improving flight-approval efficiency and operational scalability.
Indonesia
Indonesia, as an archipelagic nation composed of more than 17,000 islands, presents a highly dispersed geography. In the agricultural sector, drones are increasingly used in large-scale palm oil plantations across Sumatra and Kalimantan for fertilizer application and crop-health monitoring. Terra Drone Corporation, supported by Japan’s Ministry of Agriculture, Forestry and Fisheries, has conducted pilot programs in Indonesia using high-precision positioning technologies for pesticide and fertilizer spraying.
However, drone operations in Indonesia continue to face challenges due to underdeveloped telecommunications infrastructure and sudden weather changes typical of tropical climates. To address these issues, local companies and international partners are collaborating on technology development and operational frameworks to improve reliability and safety.
Thailand
Thailand features diverse landscapes—including mountainous regions in the north, fertile plains in the central region, and coastal areas in the south—creating favorable conditions for drone utilization. In the Chao Phraya River basin at the center of the country, rice production is a major industry, and precision-agriculture drones are increasingly being adopted. In northern mountain areas, where the risks of flooding and landslides are high, drones are being integrated into disaster-monitoring and early-warning systems.
From a regulatory standpoint, flight altitudes are limited to 90 meters above ground level, and flights are prohibited near airports, government facilities, and military zones.
Market Growth Outlook and Key Challenges
Singapore
Singapore continues to promote drone integration in urban environments by designating dedicated “drone zones,” providing companies and research institutions with controlled spaces for test flights. Government agencies are also adopting drones to improve operational efficiency and address labor shortages, conducting pilot projects for MRT inspections, maritime surveillance, and environmental monitoring.
The country’s aerospace and defense market is projected to expand from USD 6.82 billion in 2023 to USD 19.07 billion by 2032, representing a CAGR of 12.51%.
Key Challenges
- Need for continuous technology upgrades: Ongoing advancements require companies to regularly update drone systems.
- Shortage of skilled labor: Securing qualified personnel for drone operations and maintenance remains a bottleneck.
- Geopolitical risks: Regional tensions in the Asia–Pacific could affect market stability.
Indonesia: Agricultural Growth and Smallholder Constraints
In Indonesia, drone adoption in agriculture is progressing steadily. Recent pilot programs focusing on pesticide and fertilizer spraying for oil palm plantations have highlighted the value of drone-enabled smart farming. Local companies and international partners are deepening collaboration, while Terra Drone is accelerating the development and refinement of spraying technologies to enhance agricultural efficiency and sustainability.
Key Challenges
- Prevalence of smallholder farms: The dominance of small-scale producers slows the adoption of smart farming technologies.
- Barriers to technology deployment: While consortium-led pilot projects are advancing data collection and localization of technologies, establishing scalable business models will take time.
- Need for talent development: Specialized knowledge and technical skills are essential, making human-resource development a continuing challenge.
Thailand: Agriculture-Driven Growth and Regulatory Gaps
Thailand is seeing rising demand for agricultural drones as smart-farming initiatives gain momentum. The country has a large population of photography enthusiasts and tech-forward farmers, creating an attractive market for drone manufacturers and distributors.
Across the broader Asia–Pacific region, the drone market is forecast to grow at a CAGR of 14.00% between 2023 and 2029.
Key Challenges
- Regulatory gaps: The absence of clear rules governing beyond-line-of-sight (BLOS) operations is limiting market expansion.
- Shortage of trained pilots: Insufficient certified operators continues to hinder wider adoption.
- Safety and security concerns: Persistent concerns around operational safety and data security may slow the pace of market growth.
Summary
The evolution of drone technologies in the ASEAN region is opening new pathways for business expansion. While drones provide powerful advantages—ranging from streamlined logistics to precision agriculture—successful participation requires strategic investment, regulatory compliance, and a clear understanding of local market dynamics.
Urban-focused solutions in Singapore, wide-area logistics in Indonesia, and agricultural innovation in Thailand each offer compelling entry points. Companies that build early expertise and tailor their approach to regional conditions will be best positioned to secure long-term advantage in this rapidly growing market.
Feel free to contact us
At MAY Planning, we provide advisory services on business-model development for drone applications across Singapore, Indonesia, Thailand, and other ASEAN markets. We also support regulatory compliance, including legal guidance and permit applications, to help clients accelerate successful market entry.
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