Drone Logistics and Transportation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Drone Logistics and Transportation Market Analysis and it is segmented by Sector (Commercial and Military), Application (Retail and Logistics, Food, and Medical Supplies), and Geography (North America, Europe, Asia-Pacific, and the Rest of the World). The Market Size and Forecasts Are Provided in Terms of Value (USD Million) for All the Above Segments.

Drone Logistics and Transportation Market Size

Drone Logistics And Transportation Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
CAGR > 15.00 %
Fastest Growing Market North America
Largest Market North America

Major Players

Drone Logistics And Transportation Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Drone Logistics and 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 and 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.

Drone Logistics And Transportation Market : Revenue (%), by Application, Global, 2021

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.

Drone Logistics And Transportation Market : Growth Rate (%), by Region, 2022-2027

Drone Logistics and Transportation Industry Overview

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 and Transportation Market Leaders

  1. Drone Delivery Canada

  2. Amazon.com, Inc.

  3. Matternet

  4. DHL

  5. Zipline International Inc.

*Disclaimer: Major Players sorted in no particular order

Drone Logistics And Transportation Market Concentration
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Drone Logistics and Transportation Market News

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 and Transportation Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    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 and Forecast by Value - USD million, 2018 - 2027)

    1. 5.1 Sector

      1. 5.1.1 Commercial

      2. 5.1.2 Military

    2. 5.2 Application

      1. 5.2.1 Retail and Logistics

      2. 5.2.2 Food delivery

      3. 5.2.3 Medical Supply

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 France

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

      4. 5.3.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Drone Delivery Canada

      2. 6.2.2 Zipline International Inc.

      3. 6.2.3 United Parcel Service of America, Inc.

      4. 6.2.4 Flirtey

      5. 6.2.5 Matternet

      6. 6.2.6 Workhorse Group Inc.

      7. 6.2.7 Uber Technologies Inc.

      8. 6.2.8 Flytrex Aviation Ltd

      9. 6.2.9 Alphabet Inc.

      10. 6.2.10 Amazon.com Inc.

      11. 6.2.11 DHL

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Drone Logistics and Transportation Industry Segmentation

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).

Sector
Commercial
Military
Application
Retail and Logistics
Food delivery
Medical Supply
Geography
North America
United States
Canada
Europe
United Kingdom
France
Asia-Pacific
China
India
Rest of the World
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Drone Logistics and Transportation Market Research FAQs

The Drone Logistics and Transportation Market is projected to register a CAGR of greater than 15% during the forecast period (2024-2029)

Drone Delivery Canada, Amazon.com, Inc., Matternet, DHL and Zipline International Inc. are the major companies operating in the Drone Logistics and Transportation Market.

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Drone Logistics and Transportation Market.

The report covers the Drone Logistics and Transportation Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Drone Logistics and Transportation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Drone Logistics and Transportation Industry Report

Statistics for the 2024 Drone Logistics and Transportation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Drone Logistics and Transportation analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Drone Logistics and Transportation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)