Delivery Drones Market

Global Delivery Drones Market (2023 to 2028)

The global delivery drone market size is expected to be worth USD 2.61 billion in 2023. It is expected to grow at a CAGR of 14% during the forecast period and reach a value of USD 5.03 Billion by 2028.

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 the 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 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 will witness significant growth from 2022 to 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. The lack of infrastructure due to its high investment costs is slowing down the growth of the global delivery drone market in 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 growth of the global delivery drone market.

Impact of COVID-19 on the 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, and 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 from 2022 to 2027.

REPORT COVERAGE:

This research report on the global delivery drones market has been segmented and sub-segmented into the following categories.

Delivery Drones Market - By Type:

• Fixed-Wing
• Rotary-wing

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:

• Less than 10kg
• Greater than 10 kg

The less than 10 kg segment had the largest market share of drone delivery in 2018 and is predicted to escalate at a higher CAGR from 2022 to 2027. This is because of strict rules used by the Federal Aviation Administration (FAA) regarding the load-carrying limit of drones brought under 2025, and the>10 kg segment is expected to hold a significant CAGR during the forecast period.

Delivery Drones Market - By Application:

• E-commerce
• Quick service restaurant
• Convenience Stores
• Others

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:

• Airframe
• Controller system
• Propulsion system
• Navigation
• Battery
• Others

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:

• Food 
• Healthcare
• Retail and logistics
• Others

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.

Delivery Drones Market - By Region:

• North America 
• Asia-Pacific
• Europe
• Latin America
• Middle East and Africa

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 drone 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 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.

KEY MARKET PLAYERS:

Companies such as Amazon Inc., FedEx, Boeing, DHL International GmbH, Flirtey, Drone Delivery Canada Corp., Flytrex, Workhorse Group Inc., Wing Aviation LLC and DroneScan are playing a leading role in the delivery drones market.

RECENT HAPPENINGS IN THE MARKET:

• In October 2021, Flytrex 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 a population of around 25,000. 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.