Fairfield Market Research Drone Logistics Market Size, Share, Report, Insights Trends 2030

Drone Logistics Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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Industry: Information & Communications Technology


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The global drone logistics market size was more than US$8 Bn in 2021 and is projected to grow at a robust pace during the forecast period. The report would uncover how the growth of this market will unfold over the upcoming years.

Market Analysis in Brief

The growth of the drone logistics sector has been spurred by increased demand for time-efficient delivery services, as well as the pacing adoption of drones in last mile delivery. Drone adoption in production and manufacturing is still in its early stages. Furthermore, a restructured government regulatory environment is likely to provide economic prospects during the forecast period. However, experts are excited as ample opportunity appears in airborne photography, monitoring, and safety inspection areas. Furthermore, to counter the mounting risks of terrorism, the government is investing more in military drones. Drone research and development, and drone purchases currently account for a substantial proportion of the international defence budget. The demand for military drones will thus experience a hike in the upcoming years. However, the potential cybersecurity risks, and limited flight durations continue to be the key limiting factors for the drone logistics market.

Key Report Findings

  • The drone logistics market space that surpassed US$8 Bn in revenue in 2021 is all set for solid expansion in the years to come
  • The unprecedented eCommerce expansion, and soaring adoption rates across the last mile delivery sector significantly drive the market ahead
  • Demand from the commercial sector will be substantially high
  • Drone delivery demand received a strong impetus during the COVID-19 pandemic with the rise of critical categories like medical supplies, and vaccines
  • North America leads while Asia Pacific develops a highly profitable market for drone logistics companies

Growth Drivers

Upsurge in Demand for Faster Delivery

The global market for eCommerce and logistics has expanded recently. The expansion of the eCommerce and logistics sectors fuels the demand for convenient delivery options for shipping vital commodities worldwide. This will predominantly drive the expansion of the global drone logistics market.

Drone delivery systems have been introduced by the two largest eCommerce and logistics companies, Amazon, and DHL, to perform speedy deliveries and ship products to locations unreachable to traditional transportation methods. For instance, DHL Express, and EHang formed a strategic alliance in May 2019 to introduce an intelligent and completely automated innovative drone delivery solution in China's urban areas. The smart drone delivery system in China will provide an energy-saving, practical, and economical autonomous delivery service. This will increase drone logistics demand.

Aggressive Uptake in Last Mile Delivery

Drones are perfect for last-mile delivery because of their small size, swift speed, low operating costs, and minimal impact on the environment. As a result, eCommerce behemoths like Amazon and Walmart are attempting to use drone delivery to reach out to rural and distant places. Several logistics stakeholders is investigating drone technology in an effort to lower operating expenses, solve traffic jams, reduce vehicular emissions, and sate consumer demand for on-demand and instant delivery.

Furthermore, drones are being used all over the world to deliver groceries, food, vaccines, medical supplies, and other products due to the great potential of last mile drone deliveries. Drone last mile delivery use cases are expanding daily all around the world, in turn elevating the prospects of drone logistics market.

COVID-19 Impact

Drone service providers especially developed and used drone services like lab sample pickup and delivery, transportation of medical supplies to cut down on travel time and infection exposure, aerial spraying of public areas to disinfect potentially contaminated areas, and monitoring and assurance of public spaces. These applications also raised demand for various drone types to record ground activity from the air. Additionally, following the pandemic, several logistics firms chose to focus on strengthening their networks for drone-based last mile deliveries, which has influenced the growth of the drone logistics market to a large extent.

Growth Challenges

Lack of Skilled and Trained Personnel for Operation

The security of the entire drones, which consists of UAVs, ground control stations, and communication equipment, must be ensured by personnel operating drones. Drones may fly at a variety of altitudes and need trained operators to be remotely controlled and operated. There are few pilots available for high-precision operations. The deployment of drones in the commercial drone delivery, and transportation sectors is increasing, which contributes to the rising demand for qualified drone pilots. This however remains a longstanding challenge facing the drone logistics market.

To avoid collisions while in operation, drones must be outfitted with technology that provides them with an autonomous sense, and avoidance capabilities. Currently, attempts are being made to increase the autonomy of these systems, thereby lowering the involvement of human operators, to decrease the frequency of mishaps brought on by the weak control abilities of drone operators.

Overview of Key Segments

Software to Dominate as Advancements Pick Pace

The drone logistics market has been divided into three segments based on solution: hardware, software, and services. During the forecast period, the software segment is expected to increase at the fastest compound annual growth rate. This expansion can be linked to rising technological improvements in commercial and military drones, which are boosting the demand for advancements in software technology.

Commercial Category Spearheads

The commercial segment of the global drone logistics market is expected to rise at a high CAGR during the projected period due to increasing demand for unmanned aerial vehicles in logistics and transportation. Most of this segment's contribution will depend on drone delivery services, notably in the eCommerce business.

Drones are increasingly being employed on the battlefield for a variety of purposes, including intelligence, surveillance, and reconnaissance (ISR), combat operations, and battle damage control. Militaries are also investigating the use of drones for logistics purposes, such as supplying soldiers with food, ammunition, gasoline, and spare parts. Military logistics is accompanied with a potential risk defence organisations are attempting to reduce the amount of employees required for logistics by implementing autonomous drones.

According to Navy statistics, 90% of ships and aircraft pulled out of mission-capable status when deployed require simple components like electronics or wiring assemblies, 90% of which weigh less than 50 pounds and may be delivered by drones rather than manned aircraft. The US Navy demonstrated in August 2021 that small drones may replace manned platforms in delivering essential spare parts and food supplies between ships at sea.

Growth Opportunities Across Regions

Exploding Growth of eCommerce Hoists North America’s Market

Due to the use of drones for package delivery by corporations such as Amazon, DHL, and UPS, North America leads the global drone logistics market. The civic and commercial segments of the drone logistics market are expected to grow throughout the forecast period. The quantity of logistics deliveries, particularly in the eCommerce industry, is constantly increasing in North America, boosting the region's drone logistics and transportation business.

The growing use of drones for commercial and military applications is strengthening the North American logistics and transportation business. Drones are employed in commercial and military applications such as tracking, food delivery, medical supply delivery, border surveillance, and parcel delivery, which is boosting the region's drone logistics and transportation landscape.

Adoption Rises in Asia Pacific as Cross-border Unrest Prevails

The Asia Pacific drone logistics market is predicted to grow rapidly and at the fastest CAGR over the forecast period. The rise in political tensions in several Asia Pacific countries has led to the deployment of UAVS to secure border security, which has contributed to the growth of the market in this area. This is one of the most important reasons driving the Asia Pacific drone logistics and transportation industry.

China is developing novel technology to produce low-cost drones. The China Aerospace Science and Technology Company (CASC, China) began mass manufacturing of the CH-5 UAV in 2017, after it successfully completed its first flight test in August 2015.

Global Drone Logistics Market: Key Industry Players

Drone Delivery Canada, DroneScan, FedEx Corporation, Flytrex Inc., Hardis Group, Infinium Robotics, Matternet, Inc., PINC Solutions, Amazon.com, Inc., United Parcel Service of America, Inc., Wing Aviation LLC, Workhorse Group Incorporated, Zipline International Inc., and Wingcopter GmbH are a few of the notable participants in the worldwide drone logistics market space.

Notable Developments

  • During the COVID-19 outbreak, the Indian state governments worked with a leading drone delivery company TechEagle to ensure distribution of vaccines, medical supplies, and other critical medical goods. This caused an immediate push in the need for drones in the logistics sector
  • In April 2021, ANA Holdings Inc. and Wingcopter announced a cooperation to hasten the development of essential drone delivery infrastructure for pharmaceuticals, and consumer goods. The collaboration intends to establish a drone delivery system throughout Japan
  • In February 2022, Wing Aviation LLC has partnered with KFC (Australia) to transport various menu items directly to homes and workplaces in Logan, Queensland
  • In March 2022, Hardis Group announced the formation of a new firm, Darwin Drones, to advance the Eyesee inventory drone system, which was invented and patented by Hardis Group, and co-developed with Squadrone System
  • In April 2022, Zipline, and Toyota Tsusho Corporation, a member of the Toyota Group announced their collaboration over distribution medical supplies to pharmacies and hospitals across Japan's Goto Islands using Zipline's autonomous aircraft

Regional Classification of the Global Drone Logistics Market is Described Below:

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • Spain
  • U.K.
  • Italy
  • Russia
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Mexico
  • Rest of Latin America

Middle East and Africa

  • GCC
  • South Africa
  • Rest of Middle East and Africa

 

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Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

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