The increasing demand for faster and safer package delivery is expected to drive the growth of the drone package delivery market during the forecast period.
The Global Drone Package Delivery Market is expected to grow from USD 520 Mn in 2020 to USD 8281 Mn by 2027, at a CAGR of 48.5%.
The growing demand for faster and safer package delivery is expected to propel the drone package delivery market growth during the forecast period due to the increasing competition in the e-commerce industry. Moreover, the need for food delivery avoiding the city traffic, medical supplies during health emergencies, and relief goods during a calamity are the major influencing factor for a faster delivery ecosystem. For instance, according to conveyco.com, 41% of consumers are willing to pay a charge for same-day delivery while nearly a quarter (24%) of shoppers said they would pay more to receive packages within one-or two-hour window of their choosing.
The increasing use of the Internet of Things (IoT) in drone delivery systems proliferating the growth of the drone package delivery market during the forecast period. IoT allows connectivity and data sharing simultaneously among multiple drones. In addition, IoT makes drones capable of product tracking & recognition with real-time cognitive computational skills. However, such system learning requires a sensor-cloud architecture to lessen the drone’s processing workload and enhance battery efficiency. Therefore, such functions are predicted to reinforce the global drone package delivery market.
Data security breaches are considered as one of the major challenges for the growth of the drone package delivery market during the forecast period. Operational security is the main concern with the use of aerial delivery drones in commercial applications. The increasing use of these drones in commercial applications has also resulted in an increased number of drone hacking incidents. Lack of proper security in these drones makes them vulnerable to hacking. However, the rising spending in the drone industry by private players is one of the lucrative opportunities for market growth. For instance, in August 2021, RattanIndia Enterprises invested in the US-based, Matternet, the world’s most significant urban drone logistics platform. Due to this agreement, an Indian subsidiary will be formed to focus on the drone business in India.
In terms of geography, the Asia Pacific region is growing at the highest CAGR during the forecast period owing to the increasing penetration of the e-commerce industry coupled with a large consumer base. For instance, according to The Social Shepherd, the Asia-Pacific region is expected to account for 62.6% of all digital sales which is estimated to be USD 2.4 trillion. Moreover, the changing regulations and the increasing support for commercial drones is anticipated to accelerate the market growth in the region. China is the largest market for drone delivery operations due to the major e-commerce companies such as JD.com and Alibaba Group. The government of China, via the State Post Bureau of the People’s Republic of China, issued a new Specification for Express Delivery Service through Unmanned Aircraft, which came into effect from January 2021. Thus, this fact supports the market growth in the region.
The Global Drone Package Delivery Industry Segmentation:
Global Drone Package Delivery Market by Type Industry Outlook (Revenue, USD Million, 2021-2027):
Global Drone Package Delivery Market by Range Industry Outlook (Revenue, USD Million, 2021-2027):
Global Drone Package Delivery Market by Package Weight Industry Outlook (Revenue, USD Million, 2021-2027):
Global Drone Package Delivery Market by Application Industry Outlook (Revenue, USD Million, 2021-2027):