Global Drone Package Delivery Markets, 2022-2030 - Surging Demand for Quick, Instant, Same-Day Delivery and Emergency Supplies to Drive the Market

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Jun 21, 2022, 08:30 ET

DUBLIN, June 21, 2022 /PRNewswire/ -- The "Global Drone Package Delivery Market by Solution (Platform, Infrastructure, Software, Service), Type (Fixed-Wing, Multirotor, Hybrid), Range (Short <_5 km_="km_">25 Km), Package Size, Duration, End Use, Operation Mode, Region (2022-2030)"</_5> report has been added to ResearchAndMarkets.com's offering.

The drone package delivery market is projected to grow from USD 228 million in 2022 to USD 5,556 million by 2030, at a CAGR of 49.0% from 2022 to 2030.

Increasing private investments in drones and increase in e-commerce sales and demand for contactless delivery post-pandemic are some of the factors fueling the growth of the market.

During the COVID-19 pandemic, various countries have realized the potential of drone technologies and have provided relaxation in terms of their regulation. In addition, the hardware, technology, and services being cost-efficient and easy to access compared to traditional methods have led to the emergence of drone startups and drone delivery service providers in the aviation industry.

Based on operation mode, the partial autonomous segment is projected to lead the drone package delivery market during the forecast period.

Based on operation mode, the drone package delivery market has been segmented into remotely piloted, partially autonomous, and fully autonomous. With the success of remotely piloted drones, the industry started moving to partially autonomous drones wherein the pilot controls only critical operations. All the functions and working are similar to that of an autonomous drone, but during the flight, it will be under constant or periodic observation by an operator at the ground station.

In December 2021, in Palghar (Maharashtra), India, a batch of 300 vaccines was transported from Jawhar to Zaap village, a remote village situated in rugged terrain. The task, which would have otherwise taken more than 40 minutes, was completed in just a little over nine minutes. The delivery was done using an autonomous drone, but an operator was periodically monitoring the drone during its flight in the rugged terrain.

Based on duration, the short duration segment is projected to lead the drone package delivery market during the forecast period.

Based on duration, the drone package delivery market has been segmented into short duration (<_0 minutes_="minutes_" and="and" long="long" duration="duration">30 minutes). Duration refers to the time taken by drones to deliver packages to customers. According to Flexport, Inc., ecommerce giants such as Amazon.com, Inc. are anticipated to charge a higher service price for drone deliveries within 30 minutes than that for more than 30 minutes.</_0>

Major delivery drone OEMs, such as Boeing (US) and Wingcopter (Germany), are focusing on the development of drones that can operate for more than 30 minutes on a single charge. Demand for instant delivery of intercity packages is anticipated to drive the growth of the long duration (>30 minutes) segment.

The North American and Asia Pacific regions are projected to be high growth potential markets for the drone package delivery during the forecast period.

The drone package delivery market in the North American region is expected to witness substantial growth and register the highest CAGR during the forecast period. Rules regarding drone flights in the US have been liberal, paving the way for legal use of drones for delivery in the country's civil & commercial airspace.

Many US companies are working to commercialize drone package delivery for food items, pharmaceutical products, logistics, and retail applications. Google-parent Alphabet's Wing is a drone delivery service in partnership with FedEx (US) and Walgreens (US).

It delivers select FedEx packages as well as health and wellness products, like over-the-counter medicines, from Walgreens. Wing's drones deliver packages that weigh between two and three pounds right to customers' doorsteps while taking advantage of Wing's ability to improve speed and cut costs

The market in Asia Pacific is expected to exhibit highest market share due to the increasing demand for online shopping among the huge population. Major players such as JD.com and Alibaba are investing heavily in this space. Over the past two years, Meituan, one of China's largest internet companies, has flown 19,000 meals to 8,000 customers across Shenzhen, a city with close to 20 million people.

Competitive landscape

Major players in the drone package delivery market are Alphabet Inc. (US), DHL International GmbH (Germany), Zipline (US), United Parcel Service of America, Inc. (US), FedEx (US), Matternet Inc., (US), Airbus S.A.S. (Netherlands) EHang (China), and The Boeing Company (US).

These companies have strong distribution networks in the logistics business across North America, Europe, Asia Pacific and other regions in turn driving the demand for last mile deliveries and drone package deliveries.

Premium Insights

Surging Demand for Quick, Instant, Same-Day Delivery and Emergency Supplies to Drive the Market
Platform Segment Projected to Lead During Forecast Period
Hybrid Segment Projected to Lead During Forecast Period
Short-Range Segment Projected to Lead During Forecast Period
Short-Duration Segment Projected to Lead During Forecast Period
Medical Aids Delivery Segment Projected to Lead During Forecast Period
Partially Autonomous Segment Projected to Lead During Forecast Period
Asia-Pacific Projected to Grow at Highest CAGR During Forecast Period

Market Dynamics

Drivers

Surging Demand for Quick, Instant, Same-Day Delivery, and Emergency Supplies
Technological Advancements Like Vtol, Geospatial Mapping, Iot, and Machine Learning Result in Higher Accuracy in Package Delivery
Cost-Effectiveness of Drones Compared to Electric Ground Delivery Vehicles
Increasing Need to Reduce Carbon Emissions

Restrains

Avoiding Power Lines
Bad Weather Maybe a Roadblock to Drone Delivery Schemes
High Cost of Infrastructure
Limited Bandwidth and Battery Life of Aerial Delivery Drones

Opportunities

Increasing Private Investments in Drones
Increase in Ecommerce Sales and Demand for Contactless Delivery Post-Pandemic
Development of Aerial Delivery Drones for Use in Geographically Challenging Areas
Incorporation of IoT in Ecosystem of Delivery Drones

Challenges

Package Stealing
Data Security Breaches and Drug Trafficking Using Aerial Delivery Drones
Stringent Government Regulations and Lack of Air Traffic Management
Lack of Risk Management Framework and Insurance Cover for Aerial Delivery Drones
Consumer Acceptance and Health Issues due to Noise from Delivery Drones
COVID-19 Impact on Drone Package Delivery Market
Ranges and Scenarios
Trends/Disruption Impacting Customers' Business
Revenue Shift and New Revenue Pockets for Drone Package Delivery Service Providers

Value Chain Analysis

Drone Package Delivery Market Ecosystem

Technology Analysis

Need to Perfect Sense and Avoid Technology to Develop Thinking Drones
Delivery Modes of Drones
Ai in Drones

Industry Trends

Technology Trends

Drone Swarm Technology
Fog Computing
Wireless Charging
Automated Ground Control Stations
Autonomous Levels in Unmanned Aerial Systems
Level 1
Level 2
Level 3
Level 4
Level 5
Computer Vision
Multi-Sensor Data Fusion for Effective Navigation
Advanced Algorithms and Analytics for Drone Delivery
Machine Learning-Powered Analytics
5G Technology
Manufacturing Through 3D Printing
Blockchain
Advanced Battery Technologies
Supply Chain 4.0
Drone Insurance
Inflatable Drones

Use Cases: Drone Package Delivery

Zipline Drones Used to Deliver COVID-19 Vaccines
Transfer of Medical Prescriptions Using Drones from Manna Aero
Regulators Approve Brazil's First Drone Delivery Operations
Delivery Drones Used to Innovate Supply Chain to Reach Patients in Remote Areas of Malawi
Mexico-Based Logistics Company Uses Drones to Deliver Medical Essentials
Cargo Drone Field Tests in Amazon Forest in Peru

Connected Use Cases

Nuro Autonomous Delivery Robots Providing Cost-Effective Grocery Delivery Services for Kroger
Pepsico Delivers Snacks to College Students Using a Fleet of Ground Robots
Fedex Delivers Parcels Using Sameday Delivery Bot
Domino's Using Ground Delivery Robots to Deliver Pizza
Starship Technology Offers Food Deliveries at George Mason University's Fairfax Campus
Jd.Com Started Deliveries Using Ai-Equipped Ground Robots

Companies Mentioned