Drone Logistics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | > 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Drone Logistics Market Analysis
The Global Drone Logistics Market is expected to register a CAGR of greater than 4% during the forecast period.
- Key drivers of market revenue growth include the rising adoption of drones for expedited deliveries, bolstered by the expanding e-commerce landscape, heightened R&D investments in drone technology, and broader technological advancements. Once exclusive to military applications, drones now play a pivotal role in global logistics and transportation.
- Unmanned aerial vehicles (UAVs) are swiftly becoming a norm for consumer package deliveries, often completing trips in mere minutes, especially in select regions. In 2022, over ten drone operators managed over 5,000 commercial deliveries, with a leading player boasting hundreds of thousands of successful shipments. The global drone delivery count surged by over 80% from 2021 to 2022, nearing 875,000 deliveries. Notably, June 2023 alone witnessed 500,000 commercial drone deliveries.
- Highlighting the trend, the UK government is spearheading the concept of 'drone corridors' to streamline and expedite goods delivery. In a significant move in mid-2022, it greenlit 'Project Skyway,' paving the way for a 265 km UAV corridor. PwC's 'Skies Without Limits v2.0' report projects that such UAV adoption could yield a net cost saving of EUR 22 billion by 2030, slash carbon emissions by 2.4 million tonnes, and generate 650,000 jobs in the United Kingdom.
- The most significant impact of drone deliveries is evident in the last-mile segment. Amazon, a frontrunner in logistics, introduced its 'Prime Air' drones in 2020. These drones can whisk packages from the warehouse to the customer in just 30 minutes at a mere USD 1 cost. Beyond deliveries, operational efficiencies are also on the horizon. By bypassing the traditional steps of warehousing, truck loading, and customer deliveries, drones promise significant time savings.
Drone Logistics Market Trends
North America dominates the global market share due to the increasing adoption of drones in delivery services in the coming years
- In recent years, there has been a surge in the market, propelled by advancements in drone technology, a growing appetite for swift deliveries, and the quest for efficient logistics.
- Walmart has forged alliances with four drone delivery firms—DroneUp, Flytrex, Zipline, and most recently, Wing—transforming 36 of its stores across seven US states into drone-centric delivery hubs. Amazon Prime Air has rolled out its drone delivery initiative, which is currently in trial runs across California and Texas. Tesco, in partnership with Manna, debuted its drone delivery service in Galway in 2020, successfully completing nearly 10,000 deliveries in its inaugural year.
- Regulations are beginning to take shape. In a notable move, the US Federal Aviation Administration (FAA) formed the Beyond the Visual Line of Sight (BVLOS) Advisory and Rulemaking Committees (ARC). By 2022, the ARC underscored the urgency of establishing a regulatory framework, including airworthiness certification, for commercial BVLOS flights in more challenging environments. In September 2023, the FAA greenlit BVLOS operations at seven designated sites, waiving the need for Visual Observers, and granted the green light to two major players: UPS Flight Forward and Zipline.
- By January 2024, Walmart's ambitions were clear. In collaboration with Wing and Zipline, it aimed to extend its drone delivery reach to cover 75% of Dallas-Fort Worth by year-end. Their service footprint would encompass 1.8 million households, ensuring deliveries within a 30-minute window. Notably, 75% of the 120,000 items typically found in a Supercenter meet the criteria for drone delivery in terms of size and weight.
The commercial segment gaining the traction in the future
- By early 2022, global commercial drone deliveries surpassed 2,000 per day, which has since escalated. While this number remains a fraction of total deliveries, it underscores the shift from mere testing to operational use. Drones, poised to revolutionize last-mile deliveries, can cater to a spectrum of needs, from consumer goods like prepared food and small packages to critical B2B services like transporting medical samples.
- Under specific conditions, drones are not just a futuristic vision but a cost-effective reality, especially in regions with inadequate road infrastructure or when consolidating deliveries isn't feasible. Their eco-friendly profile is impressive, boasting CO2 emissions lower than even electric cars and vans on a single trip and significantly trumping those of gasoline vehicles.
- India's drone start-up investments in the financial year 2023 neared USD 50 million, nearly doubling the 2022 figures. Bolstering this, the Indian government unveiled a robust 1.2 billion Production Linked Incentive (PLI) scheme for the drone manufacturing sector in the same year.
Drone Logistics Industry Overview
The report covers major international players operating worldwide. The market is highly fragmented, with large companies claiming significant market share. Players in the market expand their businesses through mergers, acquisitions, strategic partnerships, and services. Some of the Major companies are Wingcopter GmbH, Amazon.com, Infinium Robotics, Drine Delivery Canada, and Hardis Group, among others.
Drone Logistics Market Leaders
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Wingcopter GmbH
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Amazon.com
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Infinium Robotics
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Drone Delivery Canada
*Disclaimer: Major Players sorted in no particular order
Drone Logistics Market News
- October 2023: Amazon plans to expand its drone delivery service to the United Kingdom and Italy by the end of 2024. The e-commerce giant also unveiled new warehouse robots and technology to improve efficiency and speed. The new MK30 model of delivery drones will be able to operate in more extreme weather conditions. Amazon has installed a new robotics system called Sequoia in one of its Texas logistics centers, which can identify and put away stock in warehouses up to 75% faster.
- May 2023: German drone technology and services start-up Wingcopter GmBH secured EUR 40 million (approximately USD 44 million) in fresh funding from the European Investment Bank. The investment aims to bolster the production of its flagship drone hardware and extend its delivery services across Europe and beyond. Specializing in fixed-wing drones capable of vertical take-off and landing, Wingcopter also offers last-mile logistics, catering to a range of items from tools and spare parts to food and groceries. The company has conducted humanitarian drone operations in Malawi, Africa, facilitating the delivery of vital medicines and medical supplies to remote and underserved regions.
Drone Logistics Market Report - Table of Contents
1. Introduction
1.1 Study Assumptions
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Insights
4.1 Current Market Scenario
4.2 Government Regulations and Initiatives
4.3 Technological Trends and Automation Insights
4.4 Impact of the COVID-19 Pandemic on the Market
5. Market Dynamics
5.1 Market Drivers
5.1.1 Cost Efficiency and Time Efficiency
5.1.2 Increasing E-commerce Sector
5.2 Market Restraints
5.2.1 Regulatory Environment
5.2.2 Technical Limitations
5.3 Market Opportunities
5.3.1 Advance Batteries and Solar-Powered Drones
5.3.2 Fuel Cell Technology and lightweight Materials
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Buyers/consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitutes
5.4.5 intensity of Competitive Rivalry
6. Market Segmentation
6.1 By Component
6.1.1 Software
6.1.2 Hardware
6.1.3 Services
6.2 By Application
6.2.1 Warehouse and Storage Management
6.2.2 Transportation Management
6.3 By End-user
6.3.1 Commercial
6.3.2 Military
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.1.3 Mexico
6.4.2 Europe
6.4.2.1 Germany
6.4.2.2 France
6.4.2.3 Italy
6.4.2.4 United Kingdom
6.4.2.5 Spain
6.4.2.6 Rest of Europe
6.4.3 Asia Pacific
6.4.3.1 China
6.4.3.2 India
6.4.3.3 Japan
6.4.3.4 Australia
6.4.3.5 Singapore
6.4.3.6 Indonesia
6.4.3.7 South Korea
6.4.3.8 Malaysia
6.4.3.9 Rest of Asia-Pacific
6.4.4 Middle East and Africa
6.4.4.1 Saudi Arabia
6.4.4.2 Qatar
6.4.4.3 Oman
6.4.4.4 Rest of Middle East and Africa
6.4.5 Latin America
6.4.5.1 Brazil
6.4.5.2 Argentina
6.4.5.3 Chile
6.4.5.4 Rest of Latin America
7. Competitive Landscape
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Wingcopter GmbH
7.2.2 Amazon.com
7.2.3 Infinium Robotics
7.2.4 Drone Delivery Canada
7.2.5 Hardis Group
7.2.6 United Parcel Service of America Inc.
7.2.7 DHL
7.2.8 Workhorse Group Incorporated
7.2.9 FedEx Corporation
- *List Not Exhaustive
7.3 Other Companies
8. Future Outlook Of The Market
9. Appendix
Drone Logistics Industry Segmentation
Drone logistics is the use of drones to transport packages from a base location to a customer's site. Drones are small or medium-sized unmanned aerial vehicles (UAVs) that can drive remotely and autonomously. They can receive remote commands from a pilot or rely on software for autonomous flight.
The drone logistics market is segmented by component (software, hardware, and services), by application (warehouse and storage management, and transportation management), by end-user (commercial, military, and others), by geography (North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America). The report offers market sizes and forecasts in USD for the above-mentioned segments.
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| Warehouse and Storage Management | |
| Transportation Management |
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| Military |
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Drone Logistics Market Research FAQs
What is the current Drone Logistics Market size?
The Drone Logistics Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Drone Logistics Market?
Wingcopter GmbH, Amazon.com, Infinium Robotics and Drone Delivery Canada are the major companies operating in the Drone Logistics Market.
Which is the fastest growing region in Drone Logistics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Drone Logistics Market?
In 2024, the North America accounts for the largest market share in Drone Logistics Market.
What years does this Drone Logistics Market cover?
The report covers the Drone Logistics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Drone Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Drone Logistics Industry Report
Statistics for the 2024 Drone Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Drone Logistics analysis includes a market forecast outlook for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
