Drone Logistics & Transportation Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||North America|
|Largest Market:||North America|
|CAGR:||> 15 %|
*Disclaimer: Major Players sorted in no particular order
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Drone Logistics & Transportation Market Analysis
The drone logistics and transportation market is projected to register a CAGR of over 15% during the forecast period (2022-2027).
The COVID-19 outbreak has proven to be a boon for the drone industry. Drones are now being used for several innovative applications to limit physical contact among people and disinfect facilities. As the world reeled from the imposed lockdowns, drone deliveries skyrocketed as critical medical supplies were delivered to health facilities without violating the norms of the lockdown.
Although the drone delivery industry is still young, it has witnessed consolidation activities and major investments. Over the years, investments in drone startups have grown strongly. Delivery drone companies are also experiencing a downpour of investments from major conglomerates and venture capitalists. These investments are projected to fuel the growth and expansion of the players, thereby making the market more competitive and boosting the R&D in various technologies related to delivery drones.
Drone Logistics & Transportation Industry Segments
Drones are unmanned aerial vehicles (UAVs) of different sizes and payload capacities designed for specific purposes. Logistic drones are mainly designed for delivering cargo to end-users. The market study includes drones or UAVs for transportation and logistics. The drone logistics and transportation market is segmented by sector, application, and geography. By sector, the market has been segmented into commercial and military. The market has been segmented by application into retail and logistics, food, and medical supplies. The report also covers the market size and forecasts for the drone logistics and transportation market across major regions. The market sizing and forecasts for each segment have been represented in value (USD million).
|Retail and Logistics|
|Rest of the World|
Drone Logistics & Transportation Market Trends
This section covers the major market trends shaping the Drone Logistics & Transportation Market according to our research experts:
The Retail and Logistics Segment to Witness Rapid Growth During the Forecast Period
Drone delivery is a disruptive technology redefining the traditional shipping/delivery market with great applications in the future for the retail industry. For online retailers, the drone delivery method has proved to be highly convenient and cheap for ensuring last-mile delivery. Thus, retailers worldwide are piling money into programs that ensure faster product delivery. For instance, Chinese companies like Alibaba and JD.com have been using drones to deliver items to shoppers in hard-to-reach rural areas since 2017. Emerging drone service providers are also ramping up their capabilities to serve an emerging clientele efficiently. In May 2022, Skye Air Mobility, a Delhi-based drone delivery logistics provider, unveiled its long-range drone called ‘Artemis’ equipped to carry a payload of 6 kg to 100 km.
On the other hand, major logistics service providers are also investing financial resources to integrate drone delivery capabilities into their existing business model. In June 2022, the global logistics giant Amazon announced that it would begin delivering parcels using Prime Air drones in Lockeford, a small town in California, in late 2022. The company plans to use its learnings from the test in Lockeford to improve the services when it expands.
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North America to Dominate the Market During the Forecast Period
Drone package delivery is gaining popularity, albeit only in a few limited markets. North America, with favorable drone policies and home to several market players, held the largest market share in 2021 and is expected to continue its market dominance during the forecast period. The Federal Aviation Administration's (FAA) Beyond Visual Line of Sight (BVLOS) ARC delivered a set of recommendations to the aviation authority, including a push for a case-by-case approach to BVLOS operations. It is also increasing the number of permits offered for drone operators each year, which is expected to drive market growth in the region in the years to come. The FAA also permits exemptions to existing rules to enable the use of drones in the delivery service industry. In recent years, companies like Alphabet's Wing and UPS Flight Forward were granted exemptions that permitted limited drone delivery operations. Deliveries using drones are expected to cost less than traditional transportation and are believed to increase the businesses of the service companies. However, the lack of a UAV traffic management system, differences in logistical operations, payloads, size, and the ongoing public debate over privacy and security concerns will act as a barrier to the market's growth in the region. The companies continue to operate under FAA exemptions and test delivery by drone at FAA-approved test sites across the United States. Furthermore, technological improvements to drone architecture and performance are expected to render a positive outlook for North America's drone logistics and transportation market during the forecast period.
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Drone Logistics & Transportation Market Competitor Analysis
Zipline International Inc., Amazon.com Inc., DHL, Drone Delivery Canada, and Matternet are some prominent market players studied. The advent of players from logistics, healthcare, and food delivery sectors into the market studied led to increased competition for logistics drone manufacturers. While players like Uber Technologies Inc. started manufacturing their drones, other players had either acquired small drone manufacturers or entered strategic partnerships with the existing players. The drone logistics and transportation 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 are planning to use the huge opportunities in the market.
Drone Logistics & Transportation Market Top Players
Drone Delivery Canada
Zipline International Inc.
*Disclaimer: Major Players sorted in no particular order
Drone Logistics & Transportation Market Recent Developments
In April 2022, Wing, an Alphabet-owned startup, announced launching a commercial drone delivery service in Frisco and Little Elm, a pair of towns in the Dallas/Fort Worth metroplex.
In November 2021, TCI Express, an express logistics company, announced its plan to begin drone deliveries in 2022. This announcement came following the completion of initial trials of delivering medicines and other urgent/immediate delivery packages in Ahmedabad.
Drone Logistics & Transportation Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD million, 2018 - 2027)
5.2.1 Retail and Logistics
5.2.2 Food delivery
5.2.3 Medical Supply
5.3.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Drone Delivery Canada
6.2.2 Zipline International Inc.
6.2.3 United Parcel Service of America, Inc.
6.2.6 Workhorse Group Inc.
6.2.7 Uber Technologies Inc.
6.2.8 Flytrex Aviation Ltd
6.2.9 Alphabet Inc.
6.2.10 Amazon.com Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Drone Logistics & Transportation Market Research FAQs
What is the study period of this market?
The Drone Logistics and Transportation Market is studied from 2018 - 2028.
What is the growth rate of Drone Logistics and Transportation Market?
The Drone Logistics and Transportation Market is growing at a CAGR of >15% over the next 5 years.
Which region has highest growth rate in Drone Logistics and Transportation Market?
North America is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Drone Logistics and Transportation Market?
North America holds highest share in 2021.
Who are the key players in Drone Logistics and Transportation Market?
Drone Delivery Canada, Amazon.com, Inc., Matternet, DHL, Zipline International Inc. are the major companies operating in Drone Logistics and Transportation Market.
Drone Logistics and Transportation Industry Reports
In-depth industry statistics and market share insights of the Drone Logistics and Transportation sector for 2020, 2021, and 2022. The Drone Logistics and Transportation research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Drone Logistics and Transportation report PDF.