PUBLISHER: The Business Research Company | PRODUCT CODE: 1429776
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429776
Delivery drone services encompass the offerings facilitated by unmanned aerial vehicles (UAVs), designed for transporting lightweight packages. These services, provided by delivery drone service providers, emphasize contactless delivery solutions.
The package sizes for delivery drone services are categorized into less than 2kg, 2kg to 5kg, and more than 5kg. Services for payloads less than 2 kilograms involve the use of UAVs or drones to transport goods weighing 2 kilograms or less. This segment operates within the evolving landscape of drone technology and logistics, aiming to offer swift and efficient delivery solutions for lightweight items. Delivery drones operate within different ranges, covering distances less than or equal to 25 kilometers and more than 25 kilometers. They are utilized for delivering a wide array of products, including but not limited to e-commerce goods, medical aids, and food delivery services.
The delivery drone market research report is one of a series of new reports from The Business Research Company that provides delivery drone market statistics, including delivery drone industry global market size, regional shares, competitors with a delivery drone market share, detailed delivery drone market segments, market trends and opportunities, and any further data you may need to thrive in the delivery drone industry. This delivery drone market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The delivery drone services market size has grown exponentially in recent years. It will grow from $5.32 billion in 2023 to $8.12 billion in 2024 at a compound annual growth rate (CAGR) of 52.8%. The expansion observed in the historical period can be attributed to several factors, including the relaxation of regulations supporting drone operations, a surge in the usage of drones, increased demand for same-day delivery and emergency supplies facilitated by drones, and significant private investments in the drone industry.
The delivery drone services market size is expected to see exponential growth in the next few years. It will grow to $25.88 billion in 2028 at a compound annual growth rate (CAGR) of 33.6%. Forecasted growth is driven by eased regulations supporting drones, increased usage, demand for same-day and emergency deliveries, and private investments. Key trends include expanding services globally, focusing on healthcare deliveries, exploring multi-site operations, targeting online food delivery, investing in drone companies, and integrating IoT for better drone tracking.
The surge in demand for drone deliveries, particularly during the COVID-19 pandemic, is anticipated to be a driving force behind the growth of the delivery drone services market in the foreseeable future. With the emphasis on contactless distribution amid the pandemic, drones have emerged as crucial assets, facilitating minimal contact between companies and clients. This trend is particularly evident in the context of delivering essential goods and medications to populations under lockdown. An illustrative example is the collaboration between Zipline, a U.S.-based company specializing in delivery drone operations, and the Government of Ghana. This partnership, revealed in March 2021, aimed to leverage drones for the delivery of COVAX vaccinations, addressing critical healthcare needs during the pandemic, especially in remote areas.
The expansion of the e-commerce industry is poised to contribute significantly to the growth of the delivery drone services market. The e-commerce sector, characterized by online buying and selling of goods and services, is intricately linked to the adoption and advancement of delivery drone services. The efficiency and innovation brought about by these drones play a pivotal role in the growth and evolution of the e-commerce landscape. For instance, the U.S. Census Bureau's Department of Commerce reported that retail e-commerce sales in the USA attained $222.5 billion in the second quarter of 2021, reflecting a 3.3% increase from the preceding quarter. This data underscores the substantial impact of the growing e-commerce industry in propelling the delivery drone services market forward.
The integration of the Internet of Things (IoT) into drones designed for delivery, aiming to minimize the necessity for manual control, stands out as a burgeoning trend in the drone delivery services market. IoT, a technology that facilitates communication and data exchange among physical objects, is increasingly permeating various devices, including drones. Drones, as novel IoT devices navigating the skies, exhibit comprehensive network communication capabilities. The incorporation of intelligent features in drones, equipped with robust computational capabilities, allows for automated recognition and tracking of objects. This shift towards automation alleviates users from the manual control burden, exemplified by instances such as KORE's demonstration in June 2021. KORE showcased IoT connectivity, empowering Swoop Aero, an Australian drone-powered logistics business, to efficiently distribute COVID-19 vaccines to remote locations globally.
An emerging trend in the drone delivery services market is the heightened investment from private companies seeking to enhance and expand their drone delivery capabilities. Illustratively, Flytrex, an Israeli startup engaged in partnerships with major entities such as Walmart and Chilli's for drone-based delivery services, secured a substantial $40 million in funding in November 2021. This funding infusion is earmarked for advancing both hardware and software development, fostering additional business collaborations, and awaiting regulatory approvals for expanding its drone delivery service to more markets across the United States. Another notable investment in this space occurred in September 2021 when Wingcopter, a pioneer in drone delivery, received a strategic investment from Expa, a global network supporting entrepreneurs through experience, access, and financial backing.
In December 2021, Delivery, an Indian supply chain services company, acquired Transition Robotics Inc., a US-based developer specializing in unmanned aerial system (UAS) technology for drone delivery and operational IPs. Through this acquisition, Delivery obtained Transition Robotics' entire intellectual property portfolio registered in the United States. This includes various technologies such as autopilot-assisted vertical take-off and landing (VTOL), flying wing aircraft, capabilities in aerial photography, infrastructure inspection, surveys, remote sensing, as well as expertise in autopilot electronics, software design, and manufacturing.
Major companies operating in the delivery drone services market report are Deutsche Post DHL Group, Zipline, United Parcel Service Inc., Matternet, Inc., Wing Aviation LLC, Uber Technologies Inc., FedEx Corporation, Flirtey, Flytrex, JD.com, Inc., Kotak Delivery Drone Services, IIFL Delivery Drone Services, Axis Bank Delivery Drone Services, Edelweiss Wealth Alibaba, SF Express, Meituan Unveils, Udaan, TAS, Dunzo, Zomato, Swiggy, Rakuten, Seiyu, Alibaba, Royal Mail, DPD France, Azure Drones,SAS, Parrot Drones, Terra Drone, Onyx Scan Advanced LiDAR systems, AltiGator Unmanned Solutions Amazon.com, Inc., Boeing, Drone Delivery Canada Corp, Aeryon Labs, Sky Guys, Amazon Prime Air, UPS Flight Forward, Speedbird Aero, Velbrax, XMobots, Santos Lab, Gyrofly Innovations, XFly Brasil, Novarum Sky Technology Ltd., Global Drone Tech, iFood, Latin American drone delivery company, Sky go, Zain group, Eniverse Technologies, Quix, Orbital Africa, Microdrone Africa, Astral Aerial, Ken drone, Geoid technologies Ltd., Milkor pty Ltd., Denel Dynamics
Asia-Pacific was the largest region in the delivery drone services market in 2023. The regions covered in the delivery drone services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the delivery drone services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The delivery drone services market includes revenues earned by entities by providing services such as drone repair, drone training courses, package delivery by drones, drone advertising, and marketing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Delivery Drone Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on delivery drone services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for delivery drone services? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The delivery drone services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.