Drone Logistics Market by Drone Type (Medical Drones, Freight Drones, Passenger Drones); by Solution (Infrastructure, Shipping Solutions, Warehousing and Distribution); by End-Use Industry (Commercial, Military); and by Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2021 to 2027

The global Drone Logistics market gathered revenue around USD 5.7 billion in 2020 and market is set to grow USD 29.9 billion by the end of 2027 and is estimated to expand at a modest CAGR of 21.4% during the prediction period 2021 to 2027.

A drone is an aerial vehicle that is being operated by using a remote by a human operator.  It is used for multiple applications such as military surveillance and filming. It makes use of various hardware components such as cameras, navigation systems, sensors, GPS systems and others. These are primarily made up of lightweight materials that will help in reducing the overall weight of the drones. The drone has its uses in areas where it is difficult for humans to reach for inspections, security, aerial photography and various other applications. Moreover, it can be used in transferring food and medical supplies due to speedy delivery and its ability to reach remote locations.

Global Drone Logistics Market Dynamics:

The market demand for drone logistics is increasing owing to growing usage in military services, border surveillance, delivery of medical supplies in remote places, and other commercial uses. Drone logistics are used in the transportation and warehousing of food and medicine, inventory tracking, and management. Logistics is a highly growing sector owing to the rapidly growing demand for healthcare and other industries that are further accelerating the drone logistics market. Many end-use industries are adopting drones to optimize operational costs, reduce time, and speedy delivery parcels.

In addition to this, the COVID-19 outbreak has proven to be a boon for the drone industry. To restrict physical contact amongst humans and disinfect facilities, drones are getting used for numerous innovative applications, consisting of monitoring the body temperature of pedestrians at a shipping hub. Drones have emerged as a feasible option to conduct inspection missions in cities, towers, and factories, in which they could easily identify humans violating the imposed safety norms. As the globe reeled from the imposed lockdown, drone deliveries skyrocketed as numerous important medical resources had been delivered to health facilities without violating the norms of the lockdown. For instance, in April 2020, the Zipline (US) drones are used to take the flight to carry COVID-19 tests to labs in Africa.

Report Coverage

Based on drone type, the freight drones segment is expected to project the largest market share during the forecast period owing to the high demand for drones in the first mile and last-mile delivery

Based on the drone type, the drone logistics industry has been segmented into medical drones, freight drones, and passenger drones. The freight drones segment accounted for the largest market share in 2020 and is expected to show this pattern during the forecast period owing to the high demand for drones in first and last-mile delivery. The growth in the e-commerce sector is one of the prominent reasons to adopt drones as a service because it is a highly convenient and cost-effective mode of transportation. For instance, Chinese companies like Alibaba and JD.com have been using drones to deliver items to shoppers in hard-to-reach rural areas since before 2017. Thus, proliferating segmental growth during the forecast period.

Based on the end-use, the commercial segment is expected to show its dominance during the forecast period due to a large number of deliveries in the logistics industry especially in the e-commerce sector

Based on the end-use, the drone logistics industry is segmented into commercial and military. The commercial segment accounted to dominate the market in 2020 and is expected to show its dominance during the forecast period due to a large number of deliveries in the logistics industry, especially in the e-commerce sector. Moreover, the growing consumer demand for the same day or next day delivery also contributed to the growth of this segment. For instance, in 2019, Amazon invested around USD 1.5 Bn to expand its next-day shipping service.

Based on region, the Asia Pacific region is expected to grow at the highest CAGR during the forecast period

The Asia Pacific region is expected to grow at the highest CAGR during the forecast period owing to the strong growth in the countries like India, China, Japan, and Korea and the rising disposable income of the population. Moreover, the rapid growth in the e-commerce industry along with the increasing penetration of smartphones driving the market growth. For instance, according to the report by GSMA published in 2020, it is stated that the Asia Pacific will have the three largest smartphone markets by 2025 such as China (1,493 Mn), Indonesia (351 Mn), and India (1,041 Mn), which together will account over 40% of global connections. Moreover, as per eMarketer, the retail e-commerce sales in the Asia Pacific accounted for USD 2,448 Bn in 2020. Therefore, these facts supported the growth of the e-commerce industry coupled with the penetration of smartphones is one of the prominent factors for the growth of the drone logistics market in the region.    

Competitive Rivalry

Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

• Company Overview
• Company Market Share/Positioning Analysis
• Product Offerings
• Financial Performance
• Recent Initiatives
• Key Strategies Adopted by Players
• Vendor Landscape
• List of Suppliers
• List of Buyers

Some of the prominent players in the Drone Logistics Market include:

• AirMap Inc.
• Altitude Angel
• CANA Advisors
• Deutsche Post AG
• Drone Delivery Canada
• Flirtey
• Flytrex Inc.
• Hardis Group
• Infinium Robotics
• Matternet
• PINC Solutions
• SKYCART INC.
• Skyward
• Workhorse
• Zipline

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2027 and covers subsequent region in its scope:

By Drone Type

• Medical Drones
• Freight Drones
• Passenger Drones

By Solution

• Infrastructure
• Shipping Solutions
• Warehousing and Distribution

By End-Use Industry

• Commercial
• Military

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

The report also provides an in-depth analysis of drone logistics markets dynamics such as drivers, restraints, opportunities, and challenges:

Drivers

• Rapid growth in the e-commerce industry
• Highly convenient and cost-effective mode of logistics & transportation
• Increasing demand for a drone for military and commercial applications

Restraints

• Lack of skilled drone operators

Opportunities

• High investment coupled with increasing government initiatives

Challenges

• Concern related to the bandwidth of the drone

COVID-19 Impact on the Drone Logistics Market Analysis:

The COVID-19 pandemic impacted various industries such as manufacturing, retail, and others owing to the strict lockdown imposed by the government to curb the spread of the virus. The supply chain of products and services was disrupted owing to the production halt from the different industries. However, the COVID-19 pandemic is expected to positively influence the growth of the drone logistics market because of the increased deployment of drones for the delivery of medical supplies, food, packages, and others. This is attributed to the increased emphasis on contactless deliveries to urban and remote areas. For instance, in May 2020, Zipline partnered with North Carolina’s Novant Health to ferry small products including masks, gloves, and gowns weighing not more than 4 pounds from a medical centre to a supply storage location, making trips of approximately 20 to 30 miles. Thus, the COVID-19 pandemic positively influenced the growth of the drone logistics market.

*Note: A detailed analysis is specific to the drone logistics market will be provided in the report

The report also provides an in-depth analysis of key trends in the drone logistics market:

• The increasing demand from the retail & e-commerce industry owing to the highly convenient and cost-effective mode for last-mile deliveries is the major trend that drives the market growth.
• The growing technological advancements such as Artificial Intelligence (AI), Machine Learning (ML), and LiDAR is one of the important factors for the adoption of drones.

The report also provides an in-depth analysis of recent news developments and investments:

• In December 2021, Delhivery (India) acquired Transition Robotics Inc. (US), the company focused on developing Unmanned Aerial System (UAS) platforms. The acquisition will reinforce Delhivery's capabilities in an extensive range of applications, which include aerial photography, remote sensing, inspection, and surveys.
• In July 2020, UAS Drone Corp. (Israel) acquired Duke Robotics, Inc. (US), the purveyor of an innovative military UAS drone with superior stabilization technology, according to which Duke Robotics has become a wholly-owned subsidiary of UAS Drone Corp. The combined company will focus on Duke Robotics' business, increasing its presence in the military drone market with TIKAD – a UAS Octocopter Integrated with Six Degrees of Freedom ("6 DOF") Robotic Gimbal system that allows remote, real-time firing of small arms and light weapons.

Research Methodology

In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Drone Logistics market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts during the production of the Drone Logistics market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Drone Logistics markets more accurate and reliable.

Key Points Covered in Drone Logistics Market Study:

• Growth of Drone Logistics in 2022
• Market Estimates and Forecasts (2017-2027)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Drone Logistics and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Drone Logistics Consumption Analysis
•  Drone Logistics Production Analysis
•  Drone Logistics and Management