Today, drones in ASEAN have moved beyond experimentation to become key enablers of industrial transformation and an integrated component of smart city development. Their applications go far beyond supporting construction and infrastructure projects—they also contribute directly to enhancing urban livability and resilience. From traffic monitoring and medical deliveries to environmental management and public safety, drones are shaping the essential features of future smart cities across the region.
This article explores the ASEAN’s drone market landscape, highlighting current trends, industry opportunities, and the challenges that must be addressed for to unlock future opportunities.
The drone industry in ASEAN is experiencing strong growth. According to Statista, market revenue was valued at around USD 43 million in 2025, reflecting a 15% CAGR between 2020 and 2025. Looking ahead, market revenue is projected to reach USD 59 million by 2030, supported by rising adoption across industries.
At present, drone applications in ASEAN are concentrated in 6 major sectors:
| – | Agriculture: | precision farming, crop monitoring, and yield management |
| – | Construction & Infrastructure: | site mapping, monitoring, and project management |
| – | Mining: | exploration, mapping, and operational monitoring |
| – | Defense & Security: | surveillance, reconnaissance, target acquisition, crowd monitoring, and search operations |
| – | Energy: | asset inspection, maintenance, and grid monitoring |
| – | Oil & Gas: | surveying, exploration mapping, and pipeline inspection |
Beyond these industries, drones are also emerging as a transformative force in smart city development. Their applications extend from the construction phase, such as urban planning and infrastructure monitoring, to operational services that directly improve quality of life. This includes road traffic monitoring and control, environmental surveillance, disaster management, medical transportation, and even logistics and delivery services with multiple pilot programs are already underway across ASEAN.
A GUTMA study on Unmanned Traffic Management (UTM) maturity shows ASEAN’s varying readiness for scalable drone operations:
| – | Singapore: | Tier 2 (Advanced) |
| – | Malaysia: | Tier 3 (Developed) |
| – | Indonesia & Thailand: | Tier 4 (Emerging) |
| – | Philippines & Vietnam: | Tier 5 (Nascent) |
The report identifies limited progress in Technology and Business & Market aspects, which could constrain the feasibility and attractiveness of the ASEAN drone market.
On the technology side, most ASEAN countries lack systems for dynamic airspace management and secure data exchange. Only Singapore and Malaysia have foundational UTM capabilities. Singapore operates a Centralized Flight Management System (CFMS) integrated with eSOMS and the “FlySafe” app, while Malaysia provides basic UTM services through the LOOKA Platform. Both countries are developing more advanced UTM systems to further enhance drone registration, monitoring, and airspace integration.
On the business side, market awareness remains low. Most ASEAN countries have limited understanding of the economic potential of drone services, lacking insights on market sizing, value chain mapping, and business models. Currently, only Malaysia has conducted a market size analysis, including an assessment of drone services’ contribution to national GDP and the job market by 2030.
The drone industry in ASEAN is evolving within a uniquely complex landscape shaped by fragmented regulations and diverse national priorities for adoption.
While most ASEAN-6 countries have already established general regulatory frameworks for drone operations, significant differences remain in how these rules are applied—creating barriers for seamless regional growth.
For example, Singapore requires drones weighing more than 250 grams to be registered, compared to 20 kilograms in Malaysia and 2 kilograms in Thailand. These variations in permit processes, licensing, import restrictions, and safety requirements reflect the broader regulatory fragmentation that complicates cross-border operations and market entry for drone businesses.
At the same time, ASEAN countries also pursue different application priorities. Agricultural economies such as Malaysia, Indonesia, Thailand, and the Philippines have focused on drones for farming and forestry, while Singapore has applied them mainly to infrastructure monitoring and urban management. More recently, Indonesia, the Philippines, and Thailand have expanded beyond agriculture into security-related uses, including counter-insurgency and border surveillance, reflecting rising domestic and regional security concerns.
The ASEAN low-altitude economy, particularly the drone sector, has strong growth potential. However, penetrating this market requires industry players to effectively manage both legal and commercial risks in order to capture the opportunities.
Given ASEAN’s smart city ambitions, localization strategies will be critical. Each country has unique urban challenges, and solutions must address specific needs of each city, whether related to infrastructure, mobility, disaster management, or public safety, companies need to provide tangible value which accelerate smart city progress.
Achieving this requires deep understanding of local markets and a physical presence to navigate diverse regulatory and commercial landscapes. One effective strategy is to leverage government initiatives. For example, Malaysia has introduced a regulatory sandbox that enables companies to test and refine drone solutions in real-world conditions, ensuring they meet both regulatory requirements and actual market needs. Equally important is building strong partnerships with local stakeholders—from government agencies to industry players. Such collaborations not only help in navigating regulatory hurdles but also provide critical insights into local practices, enabling companies to deliver solutions that are both compliant and relevant.
To unlock full potential, companies must take a structured approach, mapping the market landscape across regulatory, technological, and commercial dimensions, while also fostering regional collaboration that will be integral for long-term growth.
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Febrizal, Associate of IGPI Singapore
Prior to joining IGPI, Febrizal worked at YCP Solidiance and PwC Indonesia, where he successfully completed a range of consulting projects, including market entry strategy, growth strategy, and business model identification, across diverse industries such as Agriculture, Automotive, and Industrial. He has extensive experience in M&A activities, including conducting commercial due diligence, valuations, and providing deal advisory services (connecting buy-side and sell-side). Febrizal holds a degree in Economics from Binus University.
IGPI Group is a Japan rooted premium management consulting & Investment Group headquartered in Tokyo with a footprint in Osaka, Singapore, Hanoi, Shanghai & Melbourne, as well as parts of Europe and India. The organization was established in 2007 by former members of the Industrial Revitalization Corporation of Japan (IRCJ), a USD 100 billion sovereign wealth fund focusing on turn-around projects in Japan. IGPI Group has 13 institutional investors, including Nomura Holdings, SMBC, KDDI, Recruit and Sumitomo Corporation to name a few. IGPI Group has vast experience in supporting Fortune 500s, Govt. agencies, Universities, SMEs and funded startups across Asia and beyond for their strategic business needs and hands-on support across a wide variety of industries. IGPI group has approximately 8,500 employees on a consolidated basis.
* This material is intended merely for reference purposes based on our experience and is not intended to be comprehensive and does not constitute as advice. Information contained in this material has been obtained from sources believed to be reliable, but IGPI does not represent or warrant the quality, completeness, and accuracy of such information. All rights reserved by IGPI.
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