The Global Drone Package Delivery Market was valued at USD 520 Mn in 2020 and is expected to reach USD 8281 Mn by 2027, with a growing CAGR of 48.5% during the forecast period.
A delivery drone is a type of Unmanned Aerial Vehicle (UAV) used for distributing packages to consumers during the last mile delivery process. These types of drones commonly have 4-8 propellers, rechargeable batteries, and the capacity to hold lightweight containers. They can be operated both autonomously using AI technology and remotely, with distribution facilities and operators overseeing the flight.
The high investments in the UAV industry are expected to propel the growth of the drone package delivery market during the forecast period. The drone manufacturing companies focus on developing cost-effective components and technologies capable of carrying heavy payloads over long distances, such as transitioning from VTOL to fixed-wing forward flight, unified aerial traffic management systems, and various cloud-based services. For instance, according to Droneii.com, in 2019, the industry witnessed record-breaking investments surpassing USD 1.2 Bn. Moreover, the increasing demand for faster and safer package delivery is expected to accelerate the market growth during the forecast period. For instance, according to Convey, 81% of retailers are planning to boost spending on more complex last-mile logistics initiatives. Therefore, these facts support the growth of the market.
By Package Weight
Based on the type, the rotary wing segment is expected to hold the largest revenue share during the forecast period owing to the larger payload capacity
Based on the type, the drone package delivery industry has been segmented into fixed wing, rotary wing, and hybrid. The rotary wing segment is expected to hold the largest revenue share during the forecast period owing to the larger payload capacity as compared to the other drones. Moreover, rotary drones provide easy controllability, operate in headless mode, and can fly autonomously in the intended direction. Thus, this segment has a larger revenue share during the forecast period.
Based on the application, the medical segment is expected to grow at the highest CAGR during the forecast period due to the increasing need to deliver life-saving medical supplies in remote areas
Based on the application, the drone package delivery industry is segmented into retail & e-commerce, food delivery, medical, logistics, agriculture, and military. The medical segment is expected to grow at the highest CAGR during the forecast period due to the increasing need to deliver life-saving medical supplies in remote areas. For instance, in June 2021, Flipkart, an Indian e-commerce company entered into a partnership with the Telangana government. Through this partnership, the company deliver medical supplies by drones in the remote areas under the 'Medicines from the Sky' project. Thus, this segment is growing at the highest CAGR during the forecast period.
Based on region, North America is expected to dominate the drone package delivery market during the forecast period
North America is expected to dominate the drone package delivery market during the forecast period owing to the presence of prominent players such as Amazon, UPS, Google, and DHL. These players are providing the services of drone delivery in an inaccessible area in the region, which is anticipated to increase the demand for delivery drones. Moreover, the government in the region encourages the involvement of drones for the delivery of the products. For instance, in April 2019, Wing (US), the Alphabet-owned start-up engaged in the drone delivery, has been approved by Federal Aviation Administration (FAA) for delivery drones in the U.S. Furthermore, the growing trend of online shopping on an e-commerce platform is one of the major factors that influence the demand for the drone package delivery market. For instance, according to secondary sources, e-commerce sales in the US alone are expected to surpass USD 740 Bn by 2023.
The report also provides an in-depth analysis of drone package delivery market dynamics such as drivers, restraints, opportunities, and challenges:
COVID-19 Impact on the Drone Package Delivery Market Analysis:
The COVID-19 pandemic impacted various industries such as manufacturing, retail, and others owing to the strict lockdown imposed by the government to curb the spread of the virus. The supply chain of products and services was disrupted owing to the production halt from the different industries. However, the COVID-19 pandemic is expected to positively influence the growth of the drone package delivery market because of the increased deployment of drones for the delivery of medical supplies, food, packages, and others. This is attributed to the increased emphasis on contactless deliveries to urban and remote areas. For instance, in April 2020, Matternet’s M2 drone system delivered clinical prescriptions from a CVS pharmacy to villages in Florida to assist senior citizens. Thus, the COVID-19 pandemic positively influenced the growth of the drone package delivery market.
*Note: A detailed analysis is specific to the drone package delivery market will be provided in the report
The report also provides an in-depth analysis of key trends in the drone package delivery market:
The report also provides an in-depth analysis of recent news developments and investments:
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Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping
Regional Market Analysis