Press release
Indonesia Drones Market Projected to Reach USD 967.77 Million by 2033 at a CAGR of 10.42%
The Indonesia drones market size reached USD 396.59 Million in 2024. IMARC Group expects the market to reach USD 967.77 Million by 2033, exhibiting a growth rate (CAGR) of 10.42% during the forecast period 2025-2033. The market growth is driven by increasing demand from agriculture, infrastructure, defense, and logistics sectors, supported by government initiatives in digital transformation and smart farming, alongside rising indigenous drone production and startup activities.
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Indonesia Drones Market Study Assumption Years
Base Year : 2024
Historical Year/Period : 2019-2024
Indonesia Drones Market Key Takeaways
Current Market Size : USD 396.59 Million
CAGR : 10.42%
Forecast Period : 2025-2033
• The market growth is powered by rising demand in agriculture, infrastructure, defense, and logistics industries.
• Government-led digital transformation and smart farming initiatives boost drone adoption.
• Indigenous drone manufacturers and startups are rapidly expanding to meet domestic demand.
• AI integration and autonomous capabilities are transforming Indonesia into a competitive drone market player in Southeast Asia.
• Flexibility in drone services such as drone-as-a-service (DaaS) models facilitates adoption among smallholder farmers.
Indonesia Drones Market Growth Factors
Indonesia's drones market growth is strongly fueled by increased demand across multiple industries such as agriculture, infrastructure, defense, and logistics. Especially in agriculture, drones support precision farming, enabling efficient crop monitoring and management which is critical for an agrarian economy like Indonesia's.
Government initiatives toward digital transformation and smart farming play a pivotal role in fostering drone adoption. These include providing tax reliefs, reducing licensing hurdles, export promotions, and encouraging foreign investments that boost local production and innovation.
The emergence of indigenous drone manufacturers and startups catering to localized needs further strengthens the market. Collaborations between academia, startups, and government ministries enhance capacity building and local part sourcing, thus creating a government-supported ecosystem conducive to market expansion.
Indonesia Drones Market Trends
The Indonesia drones market exhibits significant trends characterized by rapid growth in precision agriculture driven by locally adapted solutions. Drones equipped with multispectral and thermal imaging enable precise crop stress detection, irrigation management, and pest control beyond human capabilities. Drone-as-a-service (DaaS) models help smallholder farmers on islands such as Sumatra, Java, and Sulawesi to access advanced drones with minimal investment, often bundled with farm management software providing real-time field insights.
Indigenous innovations are gaining momentum with companies like Bandung's BETA-UAS developing drones for multiple applications-ranging from aerial mapping to emergency response and government projects. National institutions and PT Dirgantara Indonesia are also developing UAV series for surveillance and defense, supported by government incentives.
The defense sector is experiencing a transformation towards high-end, AI-enabled unmanned systems with investments in autonomous drones, modular payloads, swarm architectures, and VTOL technology suitable for Indonesia's diverse topography. Collaborations with foreign companies enable domestic assembly and technology transfer, accelerating local UAV development.
Overall, integration of AI, autonomy, and the establishment of local manufacturing hubs are positioning Indonesia as a rising drone innovation leader in Southeast Asia, increasing its regional market share.
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Indonesia Drones Market Segmentation
Type Insights:
• Fixed Wing
• Rotary Wing
• Hybrid
Segments by type provide detailed analysis of fixed wing, rotary wing, and hybrid drone technologies prevalent in the market.
Component Insights:
• Hardware
• Software
• Accessories
The market is segmented by hardware, software, and accessories components to capture the full value chain of the drone ecosystem.
Payload Insights:
• 170 Kilograms
Payload classification covers small, medium, and heavy payload capacities for diverse drone applications.
Point of Sale Insights:
• Original Equipment Manufacturers (OEM)
• Aftermarket
Analysis includes primary OEM sales channels as well as aftermarket services and parts.
End-Use Industry Insights:
• Construction
• Agriculture
• Military and Defense
• Law Enforcement
• Logistics
• Media and Entertainment
• Others
End-use segmentation highlights diverse industry adoption including construction, agriculture, defense, law enforcement, logistics, media, and other sectors.
Regional Insights
• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others
Java dominates the Indonesia drones market with the highest market share due to its developed infrastructure and industrial base. The overall market grows at a CAGR of 10.42% during 2025-2033.
Indonesia Drones Market Recent Developments & News
In May 2025, Terra Drone Corporation's subsidiary Terra Drone Indonesia partnered with Midwest Composites to develop a bio-composite drone airframe cover for palm oil agriculture, reducing CO2 emissions by 73.2%.
In June 2025, Exail Technologies was selected by the Indonesian Navy for supplying robotic systems including surface and underwater drones for underwater mine countermeasures.
In February 2025, Indonesia obtained the advanced Bayraktar TB3 drone from Turkish firm Baykar under an export deal with the Indonesian defense firm Republikorp.
In July 2025, Indonesia proposed to repurpose Italy's decommissioned ITS Giuseppe Garibaldi aircraft carrier into a drone and helicopter warship, with Fincantieri submitting a formal proposal for the ship's conversion.
Indonesia Drones Market Key Highlights of the Report
• Comprehensive quantitative analysis of market segments and historical trends from 2019-2033.
• Detailed forecast and assessment across type, component, payload, point of sale, end-use, and regions.
• Insightful industry catalysts, challenges, and opportunities.
• Porter's five forces analysis for competitive environment understanding.
• Competitive landscape with key player profiles and strategy analysis.
Indonesia Drones Market Key Players
• Bandung's BETA-UAS
• PT Dirgantara Indonesia
• PT Vertikal Teknologi Inovasi
• Terra Drone Corporation
• Exail Technologies
• Baykar
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IMARC Group is a global management consulting firm that helps ambitious changemakers create a lasting impact. The company offers comprehensive market assessment, feasibility studies, incorporation support, regulatory assistance, branding and strategy services, and procurement research.
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