PUBLISHER: The Business Research Company | PRODUCT CODE: 1436219
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436219
Drone logistics and transportation involve the use of unmanned aircraft to transport goods and packages. These drones, controlled through software-controlled remotes, efficiently deliver small cargo packages to designated locations in minimal time.
Drone logistics and transportation solutions encompass various types, including warehousing, shipping, infrastructure, and software. Drones play a crucial role in warehouses, updating and coordinating inventory management databases while facilitating the transfer of goods between warehouses. Different drone types, such as freight drones, passenger drones, and ambulance drones, find applications in both military and commercial settings, contributing to efficient logistics and transportation solutions.
The drone logistics and transportation market research report is one of a series of new reports from The Business Research Company that provides drone logistics and transportation market statistics, including drone logistics and transportation industry global market size, regional shares, competitors with a drone logistics and transportation market share, detailed drone logistics and transportation market segments, market trends and opportunities, and any further data you may need to thrive in the drone logistics and transportation industry. This drone logistics and transportation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The drone logistics and transportation market size has grown exponentially in recent years. It will grow from $14.85 billion in 2023 to $18.05 billion in 2024 at a compound annual growth rate (CAGR) of 21.6%. The growth observed in the historic period can be attributed to factors such as the pursuit of operational efficiency, efforts to reduce costs, addressing challenges in last-mile delivery, regulatory support, and a growing emphasis on environmental sustainability.
The drone logistics and transportation market size is expected to see exponential growth in the next few years. It will grow to $40.49 billion in 2028 at a compound annual growth rate (CAGR) of 22.4%. The anticipated growth in the forecast period can be attributed to infrastructure development, urbanization trends, the expansion of global trade and e-commerce, a focus on supply chain resilience, and increased public perception and acceptance of drone technology. Major trends expected in this period include collaborations and partnerships, the development of beyond visual line of sight (BVLOS) operations, advancements in hybrid and vertical take-off and landing (VTOL) drones, a heightened focus on environmental sustainability, and the ongoing development of regulatory frameworks.
The growing utilization of drones for logistics and transportation is propelling the drone logistics and transportation market forward. Drones are becoming increasingly popular for delivering small to mid-sized packages, offering a combination of convenience and cost savings. The adoption of drones saw a significant uptick following the COVID-19 pandemic, driven by the emphasis on social distancing and heightened awareness of hygiene. A survey conducted by Virginia Tech in April 2021 revealed that 87% of respondents expressed a positive sentiment toward drone delivery, with 89% indicating their likelihood to use the service or already having done so. This surge in demand for drones in the logistics sector is a key factor driving the advancement of the drone logistics and transportation market.
The surge in urbanization is anticipated to be a major catalyst for the growth of the drone logistics and transportation market. Urbanization, characterized by the expanding growth of cities and the migration of populations from rural to urban areas, has created a demand for efficient and innovative transportation solutions. Drone logistics and transportation play a pivotal role in addressing the challenges associated with urbanization, offering efficient solutions for last-mile delivery, reducing congestion, and meeting the evolving transportation needs of densely populated urban areas. As of April 2022, the World Economic Forum reported that more than 4.3 billion people, constituting 55% of the world's population, lived in urban settings. This number is expected to escalate to 80% by 2050. The increasing trend of urbanization is a driving force behind the growth of the drone logistics and transportation market as it continues to provide solutions to enhance mobility and address logistical challenges in urban environments.
Technological advancement is a pivotal trend shaping the landscape of the drone logistics and transportation market. Leading companies are directing their efforts toward developing cutting-edge products to stay competitive and meet the evolving demands of the industry. A prime illustration of this trend is the June 2022 initiative by Blueflite, a US-based B2B drone delivery services startup. Blueflite introduced an innovative drone-based solution tailored for logistics companies throughout the USA. The Blueflite drones feature vertical takeoff and landing technology (VTOL), coupled with an AI-based system that facilitates independent runway settings, advanced maneuverability, and control. This sophisticated system equips logistics companies with the capabilities to deliver fast and efficient services, particularly in remote areas where traditional transportation methods may face challenges. The commitment to technological advancement exemplified by companies such as Blueflite underscores the industry's determination to push the boundaries of drone logistics and transportation capabilities.
Major companies in the drone logistics and transportation market are strategically emphasizing the introduction of point-to-point drone transport supply chain logistics services to gain a competitive advantage. Point-to-point drone transport services involve the direct transportation of goods from one specific location to another within the supply chain, optimizing efficiency. A case in point is TSAW Drones, an India-based software company, which launched its logistics arm, DRONECO, in January 2023. DRONECO is specifically designed to facilitate point-to-point drone transport supply chain logistics services, with a primary focus on ensuring prompt delivery of goods to customers. To achieve this, DRONECO leverages its cloud-based UAV system, known as the Drone Cloud Intelligence System (DCIS), to create safe and secure drone flight paths on demand. This strategic move reflects the industry's commitment to leveraging point-to-point drone transport solutions for more streamlined and efficient supply chain logistics.
In December 2021, Delhivery, a prominent India-based logistics and supply chain company, successfully acquired Transition Robotics for an undisclosed amount. This strategic move is poised to augment Delhivery's capabilities across various applications, including aerial photography, remote sensing, inspection, and surveys. Additionally, the acquisition positions Delhivery to explore and potentially introduce drone delivery services in the Indian market. Transition Robotics, based in California, specializes in the development of unmanned aerial system platforms. This acquisition underscores Delhivery's commitment to advancing its technological capabilities and exploring innovative solutions in the logistics and supply chain industry, particularly in the realm of unmanned aerial systems.
Major companies operating in the drone logistics and transportation market report are Amazon.com Inc., Alphabet Inc., DHL Group, United Parcel Service of America Inc., FedEx Corp., Uber Technologies Inc., Meituan, Volocopter GmbH, Hardis Group, Microdrones GmbH, Wingcopter GmbH, FlytBase Inc., Zipline International Inc., Wing Aviation LLC, Flytrex Inc., EHang Holdings Limited, Pinc Solutions, Workhorse Group Inc., DroneUp LLC, Flirtey Inc., Drone Delivery Canada, Infinium Robotics Inc., Cana LLC, Unifly NV, AirMap Inc., DroneScan Inc., Avia Tech International Training Academy Inc., DJI Technology Co. Ltd., Skylogic Research LLC, UAV Systems International Ltd.
North America was the largest region in the drone logistics and transportation market in 2023. The regions covered in the drone logistics and transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the drone logistics and transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The drone logistics and transportation market consists of revenues earned by entities by providing services such as drone delivery of packages and cargo, sales logistics, recovery logistics, and recycling logistics. The market value includes the value of related goods sold by the service provider or included within the service offering. The drone logistics and transportation market also includes sales of fixed wing drones, rotor drones, and hybrid drones as well as software tools, which are used in providing drone logistics and transportation services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
Drone Logistics And Transportation 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 drone logistics and transportation 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 drone logistics and transportation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The drone logistics and transportation 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.