Delivery Drones Market Size & Growth (2022 - 2027):
Delivery drone market Size was valued at USD 2.01 billion in 2021 and is expected to reach USD 5.6 billion by 2026 and also anticipated to exhibit a CAGR of 14% during the forecast period.
Delivery Drone is a type of uncrewed aerial vehicle used to deliver packages to customers anywhere. This drone appears in three different types, including fixed-wing drones, rotor drones, and hybrid drones. These drones are specially designed with 4-8 propellers and rechargeable batteries and can fly at high speeds while carrying a packet. The drone delivery market is projected to grow significantly during the forecast period. It is primarily because of the increasing number of drones in the commercial sector. In addition, with the introduction of new shipments, delivery drones have increased in the e-commerce area, fast food restaurants, convenience stores, and healthcare sector. Therefore, it is expected that the use of imported drones will increase significantly by the end of the forecast period.
The demand for fast drone delivery is growing, and customers are willing to pay more for same-day delivery. With the introduction of new freight forwarding and increased investment by transportation companies, the use of e-commerce delivery drones, fast-food restaurants, convenience stores, and the retail sector is increasing daily. According to Invest (US), as of 2018, approximately 51% of online retailers worldwide prefer faster / same-day delivery of the package. Invest also predicts that, by 2021, the total number of online buyers opting for speedier delivery than long-term delivery will be more than 65% worldwide. These are the primary factors that are responsible for an increase in the adoption of aerial drones in the global e-commerce industry. Traders try to reduce their lead times and improve the flexibility and speed of delivery by keeping the drone-assisted storage units (SKUs). In addition, air delivery drones are expected to help increase product delivery rates in large congested cities. Therefore, owing to these factors, the global delivery drone market witnesses significant growth during 2022 - 2027.
Currently, drone delivery services are in their early stages. Operating costs are increasing because they are new technologies and have limitations on the weight and space used. Lack of infrastructure due to its high investment costs is slowing down the global delivery drone market growth of air transport services. These drones received limited access to emerging economies, such as Vietnam and India, due to a lack of adequate infrastructures, such as land control stations and mobile towers outside urban areas and the cost considerations involved in their establishment. The unavailability of necessary facilities in developing economies can also make it challenging to have facilities such as airports, charging stations, and low-fulfillment facilities to ensure the efficiency of drone delivery. These factors are currently limiting the global delivery drone market growth.
Delivery Drones Market By Type:
The fixed-wing segment is expected to grow at a very high CAGR during the forecast period. Growing applications related to drones with fixed wings for aerial photography and analysis are increasing their demand in several countries. In addition, the growing demand for long-range UAVs will further drive partial growth of the global delivery drone market in the future.
Delivery Drones Market By Capacity:
The less than 10 kg segment has had the largest market share of drone delivery in 2018 and is predicted to escalate at a higher CAGR from 2022 - 2027. This is because strict rules used by the Federal Aviation Administration (FAA) regarding the load-carrying limit of drones brought under 2025 and >10 kg segment is expected to hold significant CAGR during the forecast period.
Delivery Drones Market By application:
The e-commerce segment tends to dominate the delivery drone market in 2018 and is expected to grow at a very high CAGR at forecasting. The increasing adoption of drones or the delivery of products in the e-commerce industry is driving partial growth. For example, in June 2019, Amazon released the latest version of the Prime Air Delivery Drone, further increasing the delivery drone market growth in the upcoming years.
Delivery Drones Market By Component:
The propulsion system segment is anticipated to hold the highest market share in 2020 and will retain market share over the forecast period. Moreover, owing to increasing fuel prices and rising demand for energy are major concerns for online retailers. Therefore, using a hybrid-electric propulsion system can significantly reduce fuel price consumption in delivery drones, which is expected to propel the segment growth.
Delivery Drones Market By End-User:
The healthcare segment is witnessed to rise at the highest CAGR during the forecast period. The retail and logistics segment currently dominates the global delivery drone market. Moreover, it is projected to continue its highest growth in the next six years due to increasing demand for drones to deliver packages from vendors, e-commerce providers, end-to-end delivery companies, and shipping drone operations. In addition, due to the COVID-19 epidemic, various sectors have been using drone delivery technology to promote uninterrupted delivery. Due to the shortage of service delivery personnel and the impact of the global epidemic, the need to respond to changes in the transportation industry is more urgent than ever, and the use of drones can help deliver automated delivery services, which propels the delivery drone market share.
Asia-Pacific is anticipated to dominate the global delivery drone market during the forecast period. With the changing laws of the countries, increasing support for drone operations is driving the growth of drone delivery operations within the region. China is the largest market for drones delivery due to the increase in drone delivery performance in major e-commerce companies such as JD.com and Alibaba Group.
North America tends to hold the significant delivery drone market growth due to many key players, including Amazon, Google, and some others, which provide a delivery drone system to the regions in North America.
In October 2021, Flytrex has announced that it is expanding services to new locations. Moreover, it has introduced its drone delivery service in a little town namely, Holly Springs, where it comprises of around 25000 population. This saves time, and those in charge of delivery do not have to negotiate traffic in busy areas. Also, it's cheaper to order.
In April 2020, Both, The Technical Teams of Oman Logistics Center (OLC) and ASYAD, took the help of drones in order to deliver parcels and stock calculations at a speed rate. The experiment demonstrates the benefits of adopting four industrial transformation technologies to improve planning activities' efficiency, reduce costs, and increase productivity.
Market Key Players:
Impact of Covid-19 on Delivery Drone Market:
The outbreak of COVID-19 is expected to positively impact the growth of the global market for drone delivery. There has been a rise in the distribution of drones for the delivery of medical supplies, food, packages due to the increased emphasis on untouchable delivery in urban and remote areas. In addition, increasing demand for contactless delivery systems in supply chains is expected to drive global delivery drone market growth during 2022 - 2027.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferences
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquisition Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 delivery drone market, By Type
6.1.3 Market Size Estimations & Forecasts (2022 - 2027)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 delivery drone market, By Capacity
6.2.1 less than 10kg
6.2.2 greater than 10kg
6.2.3 Market Size Estimations & Forecasts (2022 - 2027)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 delivery drone market, By Application
6.3.2 quick-service restaurant
6.3.3 Convenience stores
6.3.5 Market Size Estimations & Forecasts (2022 - 2027)
6.3.6 Y-o-Y Growth Rate Analysis
6.3.7 Market Attractiveness Index
6.4 delivery drone market, By Component
6.4.2 propulsion system
6.4.6 Market Size Estimations & Forecasts (2022 - 2027)
6.4.7 Y-o-Y Growth Rate Analysis
6.4.8 Market Attractiveness Index
6.5 delivery drone market, By End-User
6.5.3 retail, and logistics
6.5.5 Market Size Estimations & Forecasts (2022 - 2027)
6.5.6 Y-o-Y Growth Rate Analysis
6.5.7 Market Attractiveness Index
7. Geographical Landscape
7.1 Global delivery drone market, by Region
7.2 North America - Market Analysis (2022 - 2027)
7.2.1 By Country
7.2.2 By Type
7.2.3 By Capacity
7.2.4 By Application
7.2.5 By Component
7.2.6 By End-User
7.3.1 By Country
188.8.131.52 Rest of Europe
7.3.2 By Type
7.3.3 By Capacity
7.3.4 By Application
7.3.5 By Component
7.3.6 By End-User
7.4 Asia Pacific
7.4.1 By Country
184.108.40.206 South Korea
220.127.116.11 South East Asia
18.104.22.168 Australia & NZ
22.214.171.124 Rest of Asia-Pacific
7.4.2 By Type
7.4.3 By Capacity
7.4.4 By Application
7.4.5 By Component
7.4.6 By End-User
7.5 Latin America
7.5.1 By Country
126.96.36.199 Rest of Latin America
7.5.2 By Type
7.5.3 By Capacity
7.5.4 By Application
7.5.5 By Component
7.5.6 By End-User
7.6 Middle East and Africa
7.6.1 By Country
188.8.131.52 Middle East
7.6.2 By Type
7.6.3 By Capacity
7.6.4 By Application
7.6.5 By Component
7.6.6 By End-User
8. Key Player Analysis
8.1 Amazon Inc.
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.4 DHL International GmbH
8.6 Drone Delivery Canada Corp.
8.8 Workhorse Group Inc.
8.9 Wing Aviation LLC
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures
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