May 21, 2024
Ict

Delivery Drones Market Estimated to Witness High Growth Owing to Surge in Demand for Contactless Deliveries

The delivery drones market has witnessed significant growth in recent years. Delivery drones, also known as drone delivery systems, are unmanned aerial vehicles designed for logistics services to transport packages, food or other goods. They provide efficient, low-cost, and environment-friendly services for last-mile delivery. Delivery drones are integrated with advanced technologies such as artificial intelligence, IoT and navigation systems to perform autonomous operations. Their compact size and ability to operate in narrow spaces enables them to reach areas difficult to access through conventional means. This has increased their demand across various applications like online food delivery, emergency services, aerial photography and inspection.

The Global delivery drones market is estimated to be valued at US$ 497.5 Mn in 2024 and is expected to exhibit a CAGR of 41% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Delivery Drones market are Airbus SE, Deutsche Post DHL Group, Drones America, EHang, JD.com, Matternet Inc., SKYCART INC., SZ DJI Technology Co. Ltd., The Boeing Company, and Wing Aviation LLC. These players are focusing on developing advanced delivery drone systems with longer flight range and heavier payload capacity to meet the growing demand.

The delivery drones market offers significant growth opportunities owing to rising partnerships between e-commerce companies and drone manufacturers for package delivery services. Various companies are also exploring hybrid delivery models using drones along with ground fleets to provide faster deliveries.

Globally, North America dominated the delivery drones market in 2019 due to rapid technological advancements and increasing adoption of drones across industries in the US and Canada. However, Asia Pacific is expected to witness the highest CAGR during the forecast period driven by growing e-commerce industry, focus on infrastructure development and increasing use of drones for food delivery in countries like China and India.

Market Drivers

The major driver boosting the growth of delivery drones market is the surge in demand for contactless deliveries amidst the ongoing COVID-19 pandemic. Delivery drones provide a safer, quicker and inexpensive mode of transportation compared to traditional methods while maintaining social distancing norms. They are proving beneficial for emergency medical deliveries as well as large scale deliveries for corporates. Moreover, increasing focus of governments worldwide on developing drone regulations to ensure safety of operations is further expected to fuel the market growth over the coming years.

PEST Analysis
Political: Regulations around autonomous delivery drones are still evolving. Stringent safety and certification rules may pose challenges to commercialization of delivery drones in some regions.
Economic: The delivery drones market is expected to grow rapidly with increasing investments from logistics companies seeking to optimize last mile delivery. Wider adoption could lower delivery costs.
Social: Public concerns around drone privacy and security will need addressing. However, delivery drones may gain social acceptance by enabling contactless deliveries during situations like pandemics.
Technological: Advancements in battery technology, autonomous navigation and package carrying capacity are driving the commercial viability of delivery drones. Increased payloads will support delivery of larger orders.

The United States and China currently account for over half of the global delivery drones market in terms of value. This is due to early adoption by major logistics companies and supportive regulatory environment for business applications in these countries. Europe is also emerging as a major regional market, led by UK and Germany.

The Asia Pacific region excluding China is projected to be the fastest growing regional market during the forecast period. This is attributed to expanding e-commerce industries, concentrated investments by leading drone manufacturers and logistics startups, and relatively relaxed regulations compared to Western markets. Countries like India, Japan, South Korea and Australia are expected to drive substantial future growth.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it