Usage of drones will increase substantially over the coming years especially with its potential to help with deliveries and solve the last-mile problem. Moreover, rising investments in drone technology for military operations should enable prominent drone manufacturers GoPro (GPRO) and AeroVironment (NASDAQ:AVAV) to profit substantially in the coming months. But which of these stocks is a better buy now? Read more to find out.GoPro, Inc. (GPRO) and AeroVironment, Inc. (AVAV) are two prominent players in the drone market. GPRO develops and sells cameras, drones, and mountable and wearable accessories designed for use in activities ranging from action sports to professional videography. The company also offers mobile applications and software to enable users to edit, manage, and share their files. On the other hand, AVAV designs, delivers and supports a portfolio of robotic systems and related services for government agencies and businesses. The company supplies UAS, tactical missile systems, and related services primarily to organizations within the U.S. Department of Defense and to international allied governments.
Rising demand for drones in military and non-military applications such as agriculture, media & entertainment, oil & gas, insurance, logistics, mining, and construction has enabled the drone market to gain popularity worldwide. Also, the usage of drones in transportation and delivery, aerial spraying, and public space monitoring have increased since the onset of the pandemic, as it facilitates smooth and timely delivery while complying with the social distancing restrictions.
Drones and drone technology are also gaining traction primarily from military operations to gather intel, conduct important missions without risking human life and help detect threats in any environment. The global drones market is expected to grow at 3.9% CAGR and reach $5.44 billion by 2027. So, both GPRO and AVAV are expected to benefit from the industry’s long-term growth prospects.