Delivery Drones Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Delivery Drones Market has been Segmented by Type (Rotary-wing and Fixed-wing), Capacity (Less than 10kg and Greater than 10kg), End-user (Food, Healthcare, Retail, and Logistics), and Geography (North America, Europe, Asia-Pacific, Rest of the World). The report offers market size and forecasts for all the above segments in value (USD billion).

Market Snapshot

drone delivery market overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: <14 %

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Market Overview

The delivery drones market was valued at about USD 2 billion in 2020, and it is projected to reach USD 5.6 billion by 2026, registering a CAGR of about 14% during the forecast period (2021-2026).

Due to the COVID-19 pandemic, there has been an increased deployment of drones for the delivery of a wide range of medical equipment, cargo, and parcels, due to increased emphasis on contactless deliveries to remote areas at a faster pace compared to traditional delivery channels, leading to increased demand for delivery drones in 2020.

With the increased demand for drone delivery services globally, various countries are easing the regulations to support the operation of drones in their airspace, which is expected to accelerate the growth in procurements of drones to offer new delivery routes for remote areas during the forecast period.

As the market is currently in its infancy stage with enormous opportunities in the industry, various companies, such as Google LLC, Inc., and Deutsche Post DHL Group, have been investing in developing and deploying their fleet of delivery drones. Furthermore, various companies entered the market over the years, performed their first flights, and received approvals from bodies regarding the usage of delivery drones. Such developments are anticipated to propel the growth of the market in the coming years.

The increased investments toward the development and integration of beyond visual range of sight (BVLOS) capabilities to the drones will allow companies to cover far greater distances, which is anticipated to drive the growth of the market.

Scope of the Report

A delivery drone is an unmanned aerial vehicle (UAV) used for the transportation of food, packages, medical supplies, or other goods. The market includes the procurement of drones as well as delivery services offered by drone delivery service providers. The market is segmented based on type into rotary-wing and fixed-wing. By capacity, the market is segmented into less than 10kg and greater than 10kg. By end-user, the market is segmented into food, healthcare, and retail, and logistics. The report also covers the market sizes and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided by value (USD billion).

Less than 10kg
Greater than 10kg
Retail and Logistics
North America
Rest of the World

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Key Market Trends

The Retail and Logistics Segment Held the Largest Market Share by Revenue in 2020

The retail and logistics segment currently dominates the market, and it is expected to continue its dominance during the forecast period due to the increased demand for drones to deliver parcels and packages from retailers, e-commerce providers, last-mile delivery companies, shore-to-ship drone operations, and postal companies. Major e-commerce companies and local postal authorities, in collaboration with local governments, are launching drone delivery services to minimize the efforts to deliver packages and parcels to remote islands, mountainous areas, and cities. For instance, as of November 2020, the United Kingdom was in plans to allow drones to deliver goods to rural areas as part of a plan to introduce advanced transport technologies in the isolated towns/remote parts of the country and reduce carbon emissions. Furthermore, due to the COVID-19 pandemic, various sectors have been implementing drone delivery technology to promote contactless deliveries. In April 2021, the Maritime and Port Authority of Singapore began a new program to use drones for the transportation of documents, supplies, and parts to vessels at anchor in its harbor as part of the country’s plan to integrate advanced drone technologies for marine applications. Due to the lack of delivery personnel and the impact of the global pandemic, the necessity to respond to changes in the logistics industry has become more urgent than ever before, and the use of drones may help realize automatic, contactless delivery services on remote islands, mountainous areas, and even within the cities. This is strengthening the demand for the segment during the forecast period.

drone delivery market trends

Asia-Pacific is Expected to Witness the Highest Growth During the Forecast Period

Asia-Pacific is expected to witness the highest growth during the forecast period. With the changing regulations in the countries, the increasing support of commercial drone operations is propelling the growth of drone delivery operations in the region. China is the largest market for delivery drones due to increased drone delivery operations from major e-commerce companies like and Alibaba Group. The government of China, through the State Post Bureau of the People’s Republic of China, issued a new Specification for Express Delivery Service by Unmanned Aircraft (Standard), which came into effect from January 2021. The Standard was developed by EHang,, and ZTO Express to improve the last-mile delivery service and promote the development of intelligent aerial logistics of the urban air mobility (UAM) industry. With the support of such changes in the drone regulations in various countries of the region, companies have been robustly developing plans for the drone delivery services sector. In April 2021, ANA Holdings Inc. entered a partnership with Wingcopter to accelerate the deployment of drones to deliver vital pharmaceuticals and other consumer products to the country’s remote islands and mountainous regions. The company plans to commercialize drone delivery services by 2022, as Japan's government plans to relax drone regulations by the end of 2020. Such plans of the companies to introduce drone services are expected to propel the market's growth during the forecast period.

drone delivery market growth

Competitive Landscape

The market of delivery drones is highly fragmented, with many new players entering the market. The prominent players in the aircraft delivery drones market are DJI, United Parcel Service of America Inc., Zipline, Deutsche Post AG, Flytrex, and Inc. The advent of players from the logistics, healthcare, and food delivery sectors into the drone market led to increased competition for delivery drone manufacturers. To further increase their share in the market, the companies are investing in increasing their fleet of drones and begin their operations with new regulatory approvals. For instance, Amazon announced that the company received approval from the Federal Aviation Administration (FAA) to operate its fleet of Prime Air delivery drones. The company received certification under Part 135 of FAA regulations that will allow the company to perform beyond the visual line of sight operations to package parcels on small drones. The market is expected to become more competitive during the forecast period, as many companies from various sectors are eyeing the potential benefits of drone delivery and planning to use the huge opportunities in the market.

Recent Developments

  • In November 2021, Drone Delivery Canada (DDC) announced that it has successfully conducted the initial test of its next-generation Sparrow unmanned aerial system (UAS). The drone was tested for its avionics system configuration, communications with the Flyte management system and the next generation smart battery system, testing of the propulsion system and on-board sensors.
  • In October 2021, Walgreens, an American company that operates the second-largest pharmacy store chain in the United States, has begun test-flying packages by drone to residents in a pair of Texas cities in partnership with Google’s drone-making affiliate, Wing. It will be Wing’s first commercial expansion in the U.S. after testing the concept for years in Virginia and parts of Australia and Finland.
  • In June 2021, ANRA Technologies Private Limited and Swiggy, India’s on-demand delivery platform, announced that stakeholders from the India Ministry of Defense (MoD), Directorate General of Aviation (DGCA), and Ministry of Civil Aviation (MOCA), awarded final clearances for the ANRA Technologies led consortia to commence trials for Beyond Visual Line of Sight (BVLOS) operations in India. One consortium consists of ANRA, along with their partners Swiggy, renowned Indian Institute of Technology, Ropar, and BetterDrones, a drone service provider which will focus on food delivery. The second consortium includes ANRA and the Indian Institute of Technology, Ropar, and will focus on medical deliveries.
  • In May 2021, Israeli drone delivery company Flytrex received FAA approval for drone delivery and flight over people. This will allow Flytrex to expand drone delivery of retail goods in Fayetteville, NC. Flytrex performs drone deliveries in cooperation with long-time partner Causey Aviation. However, the approval does not allow for flights beyond the visual line of sight (BVLOS).
  • In September 2020, Walmart entered a partnership with Flytrex to launch an on-demand drone delivery pilot program in Fayetteville, United States.
  • In April 2020, the Oman Logistics Centre (OLC) and ASYAD, an integrated logistics provider, experimented with parcel delivery and inventory stock counting using drones.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Type

      1. 5.1.1 Rotary-wing

      2. 5.1.2 Fixed-wing

    2. 5.2 Capacity

      1. 5.2.1 Less than 10kg

      2. 5.2.2 Greater than 10kg

    3. 5.3 End-user

      1. 5.3.1 Food

      2. 5.3.2 Healthcare

      3. 5.3.3 Retail and Logistics

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Rest of the World


    1. 6.1 Company Profiles

      1. 6.1.1 Airbus SE

      2. 6.1.2, Inc.

      3. 6.1.3 EHang Holdings Limited

      4. 6.1.4 DJI

      5. 6.1.5 Flirtey

      6. 6.1.6 Wingcopter GmbH

      7. 6.1.7 Alphabet Inc.

      8. 6.1.8 Zipline

      9. 6.1.9 TechEagle Innovations Private Limited

      10. 6.1.10 FedEx Corporation

      11. 6.1.11 Drone Delivery Canada

      12. 6.1.12 United Parcel Service of America Inc.

      13. 6.1.13 FLYTREX

      14. 6.1.14 Deutsche Post AG


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Frequently Asked Questions

The Delivery Drones Market market is studied from 2018 - 2026.

The Delivery Drones Market is growing at a CAGR of <14% over the next 5 years.

The Delivery Drones Market is valued at 2 Billion USD in 2018.

The Delivery Drones Market is valued at 5 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020. Inc., DJI, Deutsche Post AG, United Parcel Service of America Inc., Zipline are the major companies operating in Delivery Drones Market.

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