UAVs Stocks – The Complete Drone investment Guide

11 minutes

Introduction

The UAV industry is growing very fast with advancing technology. According to investment experts, the potential of this industry to grow is as high as aircraft. This high-flying tech’s popularity is growing day-by-day. According to the FAA, in 2021, there are more than  375k commercial registered drones, which is still increasing. Drones are being used in several fields like photography, racing, search and rescue, and many more. Other industries, like agriculture, are researching ways to utilize UAV. This means that the potential of this industry to grow is very high.

What are UAVs?

UAVs are unmanned aerial vehicles also known as drones. Drones are aircraft that are flying without any pilot in them. Drones are usually driven by robots that are controlled by pilots from far away. The development of fully-automated drones is still in progress. The main idea behind drones’ development was to use military aircraft in an easier and safer place. As there is no pilot in it, drones are useful in those areas where flying is difficult. Apart from military use, many industries started using drones for their advantages, like photography.

Drones have different shapes and designs, but four main components are necessary for every drone’s functionality. These four parts are battery, microcontroller, motor, and sensor. Smartphone parts are also used in the development of a drone. Investment in smartphone parts has made the cost of drones cheaper, which makes it accessible and affordable for customers to buy and use it.

Drones require a good build quality with smart internet to make it work more efficiently. This combination is necessary to acquire accurate results of drone activity. It also created many job opportunities for drone pilots.

UAV adoption by industry

UAV  are evolving in terms of usage by several industries. Originally, drones were being used by the military, but now it’s expanding its usage. The consumer market is already using drones, and now this industry is making its way to the commercial market. Other government sectors like firefighting and farming are also bringing in the use of drones to make their jobs more efficient. This industry is predicted to have a market growth of more than $100 billion in the coming year.

Have a look at how each industry will impact the growth of the Drone market:

Military

Drones were designed as a cheaper, more efficient replacement for man-handled aircraft. Even in the future, this sector’s advancement will further help the military use UAVs in more effective ways. The forecasted sales that this industry is to make in the military sector is $70 billion.

Consumer

Today, a lot of drones can be seen in the sky while walking through the streets. The reason for that is the use of drones by local markets such as photographers. The consumer market was the first that utilized drones outside of the military for the first time. This market is said to participate in the growth of the drone industry by $17 billion.

Commercial and Civil

Commercial and Civil governments can potentially increase the growth faster than the other sectors. Researches are being conducted to learn the possibilities of drone usage in the future by the government and commercial sectors. It is predicted that these sectors will be spending around $13 billion+ in the coming years.

Drone Industry

Drones are in use in many sectors nowadays. Following are the top industries that are using UAVs:

Agriculture

To improve the yield of their crops. Drones have been introduced in the agriculture sector to collect data on their crops easily and efficiently. This collection is then used to improve the health of the crops.

Chemicals

The chemical industry started using drones to collect the data on Chemicals stores in the storerooms. This ensured safety and reduced the chemical exposure for the inspectors. These drones are used to analyze the chemical processes via video data.

Conservation

In this field, drones are being used to stud the water running through an area. Also, seeds are thrown via drones to ease the process of reforestation. Forestry work and water mapping can also be done with the help of drones.

Construction

Before construction, it is important to take a walk in the area for surveying. If the site is a huge one, then walking the entire area can be hard and time-consuming. The introduction of drones makes this process easier in the construction field as drones can fly over the area, and it will give you a video analysis of the site. This is a time-efficient way to speed up the construction process as contractors can have a clear view of the site in no time, and after that, they can proceed with the construction planning.

Delivery

Delivery of goods via drone is yet to be popularized around the world. But in some cases, such as the delivery of medicines is already being carried out by drones. Drones are used to carry the medicines, and they leave the package at the targeted address. The drones are handled remotely by the experts.

Filmmaking

Filmmaking with drones has been around for a while now. Probably, it is the most popular use of drones that can be seen. Aerial shots with the help of drones are easy and more cost-effective than the use of helicopters for the same purpose.

Mining

Many mining companies are using drones like Elios 2 to locate and analyze their targeted area. This is a safer way to start mining somewhere. This can provide more accurate results before starting the proceedings.

Insurance

Insurance companies are using drones to visualize the damaged sites. Drones are being used to check the damage on the roofs to ensure the claims of their clients. Insurance companies also use drones to supervise automobile collisions to validate the claims of automobile owners.

Oil and Gas

Elios 2 drones are being used by Oil and Gas companies to provide them with visual data on oil tanks’ condition. These drones are used in tanks, FCC units, and risers to provide the inspector with all the necessary visual data on oil and gas.

Power Generation

Power plants are using drones to collect visual data on boilers in nuclear power plants. This step of using drones is taken to ensure safety and improve accessibility in the areas where it’s difficult for the inspector to go. The risk of radiation exposure is reduced by using drones in this sector.

Public Safety

Public safety sectors like firefighters, search and rescue, and police use drones to improve their efforts in serving the public. Firefighters use drones to record thermal data; with this data, they know which point to focus on extinguishing the fire. Search and rescue teams use drones with thermal and motion sensors to get more help in finding a missing person in the wilderness. Police drones are used to monitor the local area to ensure the safety of the general public from several crimes.

Sewer Maintenance

For regular sewer maintenance, indoor drones are used to visualize the sewers’ inner part to detect the source of the problem. These drones also assist with regular maintenance.

The list mentioned above is not the entire sector that is using drones these days. As advancements in the drone industry are increasing day by day, more and more companies are adapting to UAVs.

Check out our other industries coverage

What drives UAV industry growth?

As described earlier, drones are being used in many industries, but this industry can further grow in several other sectors. Some key factors will help make this industry a growth factor. Delivery services such as DHL and Amazon already tried their delivery system with drones. This can be a cost-effective way if companies start adopting the use of drones in such cases. The reason for that is shipment costs even within the country and takes a lot of time, but if this can be replaced with drones, customer’s orders will be delivered to them without wasting any time.

This service can be further modified by designing the drones in a way that they can carry more weight. Automated aircraft can be used to transport passengers from one place to another. Companies like Uber are working with other industries to make the ‘flying a cars’ dream come true. It is predicted that by the end of 2023, we will see and use air rides with the autopilot system in it.

Furthermore, the construction industry is already using drones to visualize the sites but the advancement to use drones more effectively is yet to come. Companies are focusing on using drones to carry heavy material on the top of tall buildings to ensure more safety for the labour.

Emergency services can be a huge jump in the drone industry. Use of UAV to help reach the accident spot without any hurdles. This will be extremely useful to allow emergency teams to reach the affected area faster and easier.

Investing in the UAVs industry

There are many ways to invest in UAVs , but we are going to focus on the following:

UAV Stocks 

You can invest in any UAV sector via stock investment. It means that you can buy shares of a particular company that you think has the potential to grow in the future. In this way, you will be making a profit from the company as the company grows. You can explore all the most relevant UAV stocks via eToro best UAV stocks

Top online brokers

Trading Platform Fees Leverage Review Promotion Website
1xtb review Zero commission*
  • Spread from 0.1 pips
Up to 1:500*

Varies per instruments type and client type
  • None Available at this time
2vantagefx Zero commission*
  • Spread from 1 pip
1:30*

Varies per instruments type and client type
  • None Available at this time
3Admiral Markets Review (2) (1) Zero commission*
  • Spread from 0.7 pips
Up to 1:500*

Varies per instruments type and client type
  • It offers 100% bonus and cash back.
  • *It is not applicable for CySEC clients.
4plus500 Zero commission*
  • Spread applies
Up to 1:300*

Varies per instruments type and client type
  • Welcome Bonus* (Only for Australian users)
6Skilling-min Zero commission*
  • Spread from 0.7 pips
Up to 1:500*

Varies per instruments type and client type
  • None Available at this time
7black bull Zero commission*
  • Spread from 0.8 pips
Up to 1:500*

Varies per instruments type and client type
  • None Available at this time
8vantagefx Zero commission*
  • Spread from 1.4 pips
Up to 1:500*

Varies per instruments type and client type
  • 50% Welcome Bonus
5Libertex Commission applies
  • Spread from 0 pips
Up to 1:999*

Varies per instruments type and client type
  • It offers 100% bonus and cash back.
  • *It is not applicable for CySEC clients.

UAV Pre-IPO

Pre- IPO (Initial Public Offering) is investing in a company by  units of stocks. The companies offer this selling of the stocks before the stocks are made public. Because you will be buying huge blocks of stocks, it means more risk is involved in this. That’s why companies offer a discount for the buyers in Pre-IPO placement.

You can Invest through trusted online platforms such as Equitybee, Sharespost, and EquityZen

Investing in pre IPO companies is risky yet beneficial. If you choose wisely and make the right investment, you can make huge money through pre IPO investment.

DroneTech Copyportfolio – Top Drone stocks

Copyportfolio is one of the premium services by eToro. This is an advanced version of copy trading. The Drone Technology Copyportfolio by eToro is specifically designed for investing in Drone. The main aim of this is to reduce the risk and benefit the current market. The Copyportfolio is rebalanced every quarter to adapt to the best investing strategies. Each instrument in Copyportfolio is counted as a single trader, and each trade depends on the percentage of funds you have. It is similar to copying another trader. 

Interested in CopyPortfolios?

67% of retail CFD accounts lose money

The minimum investment starts from $1000, invest in eToro DroneTech funds today.

dronetech-copyportfolio

Top ETF Platforms

Trading Platform Fees Available ETFs Review Leverage Website Minimum
Deposit
1Admiral Markets Review (2) (1) *No commissions
  • Spread from 0.7 pips
376
  • 1:20
  • $1000
2eToro (1) *No commissions
  • Fees for short or leveraged positions.
249
  • 1:2
  • $200
3xtb review *No commissions
  • Fees for short or leveraged positions.
140
  • 1:10
  • $500
4Skilling-min *No commissions
  • Spread from 0,03 Pips
40
  • 1:5
  • $1000

UAV market growth

By the end of 2020, eToro “DroneTech” yielded a 22% profit. This is a consistent number, when compared to an average 20% gain year return during the 2015-2020 period.

In accordance with analysis, this number is expected to be increased in 2021.

Summary

The UAV industry is expanding. Ever since the military has embraced drone usage, the number of other sectors that have adopted UAVs has increased. One of the best industries to invest in is found in this market. Drones are starting to enter a variety of delivery, mining, film making, oil and gas industries. Industry profits were also consistently profitable in the past, and this may continue to be the case in the future. Investing in this industry can be done in several ways, most notably through Stock Investment, Pre-IPO placement, and CopyPortfolio investment.

Leave a Reply

Your email address will not be published.

Cryptostec
DISCLAIMER The information contained on this website is provided for informational purposes only and is not intended to substitute for professional financial, legal or tax advice. You should consult a professional before acting on any information you find here. This website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. Any references to third party products, rates, or websites are subject to change without notice. Please do the appropriate research before participating in any third party offers. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage © Copyright 2021 Cryptostec