Delivery Drones Market Trends

Statistics for the 2023 & 2024 Delivery Drones market trends, created by Mordor Intelligence™ Industry Reports. Delivery Drones trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Delivery Drones Industry

Retail and Logistics Segment Dominates the Market During the Forecast Period

The retail and logistics segment 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.

Despite stringent FAA regulations, there are several companies testing drone delivery systems in the US. For instance, in 2023, Amazon tested drones under its Prime Air brand (86% of its packages weigh less than five pounds). Amazon has a network of more than 75 fulfillment centers throughout the US. The company plans to provide drone deliveries to customers located within a 10-mile radius of these centers. Also, UPS is testing drones that can be launched from a traditional delivery vehicle, allowing drivers to deliver more packages and save on fuel costs.

Furthermore, the companies working in unmanned systems have emphasized research and development and product innovation. For instance, in May 2023, Asio Technologies (Israel) completed several demonstrations of its NavGuard optical navigation system to strategic customers in the US. The demonstrations, conducted in response to civil customer requests, involved a rotary-wing unmanned aerial vehicle (UAV) performing aerial navigation activities as well as automatic point-to-point deliveries of packages over urban and rural areas without relying on GNSS signals. 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 cities. This is strengthening the demand for the segment during the forecast period.

Drone Delivery Market: Projected Commercial Drone Hardware Unit Shipments (Million), Global, 2020-2023

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

The changing regulations in the major countries across the region and growing support for commercial drone operations are propelling the growth of drone delivery operations. 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 in 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 in the urban air mobility (UAM) industry.

Many countries in the region have launched projects related to drone delivery services. For instance, in October 2023, Skyports Drone Services partnered with RigiTech to launch a new project in Yeosu City, South Korea. The project aimed to deliver pharmaceuticals and foodstuffs between islands using drones. It was supported by the Korean Ministry of Land, Infrastructure, and Transport, the Korea Institute of Aviation Safety Technology, and the Yeosu City government.

Similarly, the Indian government is working on developing drone corridors to promote cargo delivery services. Thus, growing investment in promoting drone deliveries and the rising development of advanced delivery drones from OEMs boost the growth of the market across the region.

Drone Delivery Market: CAGR (%), By Region, Global, 2023

Drone Delivery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)