Fully automated, pilotless drones are already taking over Australia’s mining sites, but the "holy grail" is their use in smart cities.

The global drone market is expected to increase by 34 per cent to $US11.2 billion by 2020, according to Goldman Sachs, and the Australian mining industry is providing fertile ground for global start-ups to prove their worth.

"Our drones are being used for security, mapping, surveying, measurements and inspections, but all of that is in the industrial space," says Efrat Fenigson, the head of marketing at Israeli automated drone start-up Airobotics. "If you want to talk outside the industrial space, which is our vision, our vision is to fly in cities.

Australia's mining industry is providing fertile ground for start-ups in automated drones. Supplied

"To get there, mostly because of the regulation, you have to prove you are safe enough," says Fenigson, who was in Australia recently for the International Mining and Resources Conference (IMARC). "Drones are so well suited to mining because of the wide open spaces and well-defined perimeters.

"Obviously you can talk about delivering a pizza or a package but if you compare that to saving lives, that is the holy grail. Think about a fire happening – you could send a drone there in a couple of minutes before the fire truck gets there to give a live feed of video from the area to help the firefighters know what to do when they arrive. Same thing with blood samples or a police chase providing live surveillance.