The initial excitement over drone technology may be fading a little bit. But the business of drones is just getting started. As was relayed on a list of new-age technology market predictions, the global drone market is expected to grow to US $13.37 billion by the end of 2025. This makes for a CAGR of 13.70%, which means we're going to see a noticeable uptick in drone-related businesses in the years to come.

This is perhaps not surprising. From recreation to service industries, to research, drones can be deployed for any number of exciting purposes. It's no wonder that they're projected to lead to the emergence of so much new business. What may be more surprising to some, instead, is where some of that new business may be. Looking into the market, North Dakota actually comes across as a potential hot spot.

Here's why:

State Investment

As of last year, North Dakota made the decision that it would be investing $33 million in the drone industry. This decision was aimed at turning the state into "a premier location for drone research, testing and commercialization," with the majority of the funding aimed at infrastructure. $2 million was specifically allocated to support a test site in Grand Forks, and $3 million to help improve "Grand Sky," which is the state's first "unmanned aircraft business park." These investments primarily concern larger drones and more commercial operations, but they still speak to the state's decidedly open stance toward drone-related business.

New Business Requirements

This is not a point that's specific to drone businesses. But it should be noted that the steps required in formally launching a new LLC in North Dakota are simple and self-explanatory. The entire effort boils down to making a few internal decisions (such as who will represent the business in receiving any necessary legal papers) and filing some official forms with various state entities. It requires some attention, to be sure, but it's not a prohibitively difficult process — which makes the state generally welcoming to new companies. No one considering taking advantage of North Dakota's drone-friendly atmosphere is going to balk at the requirements needed to make it official.

An Influx of Youth

While youth does not definitively lead to successful startups, few would argue against the idea that a younger population can yield more innovation — particularly where new-age tech products like drones are concerned. Thus, we consider it a point worth mentioning that millennials are thriving in North Dakota. Combining earning potential with the low cost of living, the state can actually justifiably be labeled as one of the best places for young professionals in America today. As long as this remains the case, there's clear potential for an influx of youth in North Dakota, which would only help emerging industries.

A State for Drones

Perhaps most significant of all is the fact that North Dakota has actually been ranked among the best states for setting up a drone business. This is based on a number of different factors, but there were clear benefits to be seen in North Dakota. For one thing, the state has busy oil production and agricultural industries — both of which are attractive areas for drone innovation. Additionally, the aforementioned GrandSky is a major draw for drone activity. Lastly, it was also noted that the University of North Dakota has become a leader in UAS (unmanned aerial system) education. The university actually offers a UAS degree.

Combine all of these factors, and it's fairly clear that North Dakota is well positioned to become a leader in drone innovation. Those interested in this technology and the businesses it's producing should keep a close eye on the state.