July 23, 2024
Ict

Delivery Drones Market Poised for Strong Growth due to Rising E-commerce Purchases

The delivery drones market has seen significant growth in recent years driven by higher demand for contactless delivery of online orders during the pandemic. Delivery drones offer advantages such as swift deliveries, lower delivery costs compared to traditional methods, and minimal human contact.

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: 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 companies collectively held over 45% of the global market share in 2022.

Key opportunities: Emerging applications of delivery drones in delivering emergency medical supplies, food deliveries, and retail parcel deliveries are expected to drive new growth opportunities. Additionally, technological advancements enabling longer ranges and payloads are expanding the addressable market for delivery drones.

Global expansion: Leading drone makers are focusing on global expansion opportunities through partnerships with logistics companies. They are launching specialized drones customized for regional weather conditions and regulatory requirements. Asia Pacific is expected to witness high growth due to the large customer base and supportive infrastructure development in countries like China and India.

Market drivers

Rising e-commerce purchases are a major driver for the delivery drones market. Online purchases of food, medicines, retail goods, and other daily essentials surged globally during the pandemic. Delivery drones help retailers and logistics companies tackle the challenge of fulfilling time-bound deliveries for online orders cost-effectively, thereby improving customer experience. This is expected to significantly drive the adoption of delivery drones over the forecast period.

PEST Analysis
Political: Regulatory policies by civil aviation bodies like FAA govern licensing and operations of drones. Regulations differ across countries and regions.
Economic: Rising incomes and online shopping trends are fueling demand for last-mile delivery services. Drone deliveries offer cheaper solution vs traditional delivery fleets.
Social: concerns around privacy, safety and noise pollution need addressing. Public acceptance grows as drones prove reliability and safety.
Technological: Advances in batteries, autonomous navigation, computer vision are enhancing payload, range and reliability of drones. 5G networks will enable real-time surveillance and navigation support.

Geographical concentration: North America currently dominates the market in value terms, accounting for over 35% share due to extensive trials and commercial launches of drone delivery services by leading players. Europe and Asia Pacific also account for sizable shares with many pilots underway to test drones for healthcare deliveries, food/beverage and ecommerce deliveries. China and Japan are large consumer markets driving trials.

Fastest growing region: Asia Pacific region is poised to be the fastest growing regional market through the forecast period with a projected CAGR of around 45%. This can be attributed to growing e-commerce adoption, large untapped potential of last mile delivery service in South and Southeast Asian countries and regional tech giants accelerating pilots. Opening up of airspace regulations will further fuel commercialization.

*Note:

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