The House of Lords' European Union Committee urged in the report for cooperation with the NASA, which is currently conducting research into a possible tracking system for commercially used drones.
"There is persuasive evidence that such a RPAS [remotely piloted aircraft systems] flight notification system could be Internet-based, or app-based, and would not be resource intensive; it could achieve a high degree of penetration given the prevalence of smartphone use," the report said.
A pilot identification system to enforce legislation governing the use of unmanned aerial vehicles, was recommended in the report that evaluated the European Commission's plans to make Europe a global leader in the drone industry.
The report also said that the misuse of drones by leisure users could undermine public perception of the technology and potentially endanger the development of a commercial drone market.
The issue of the commercial use of drones is gaining momentum around the world. Previously, drones were mainly used for military purposes, however, more and more private companies are showing interest in employing drones for their services, including Google and Amazon, among others.
According to the report, hundreds of companies in the United Kingdom alone use drones to provide such services as photography, land surveying, building inspection, and crop analysis.