Drone Package Delivery Market by Type (Fixed Wing, Rotary Wing, Hybrid); by Range (Long Range (Above 25 Km), Short Range (Less Than 25 Km)); by Package Weight (Less Than 2 Kg, 2 Kg to 5 Kg, Above 5 Kg); By Application (Retail & E-Commerce, Food Delivery, Medical, Logistics, Agriculture, Military), and by Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2022 to 2027

The global Drone Package Delivery market gathered revenue around USD 560 Million in 2020 and market is set to grow USD 8290 Million by the end of 2027 and is estimated to expand at a modest CAGR of 49.5% during the prediction period 2022 to 2027.

A delivery drone is a type of Unmanned Aerial Vehicle (UAV) used for distributing packages to consumers during the last mile delivery process. These types of drones commonly have 4-8 propellers, rechargeable batteries, and the capacity to hold lightweight containers. They can be operated both autonomously using AI technology and remotely, with distribution facilities and operators overseeing the flight.

Global Drone Package Delivery Market Dynamics:

The high investments in the UAV industry are expected to propel the growth of the drone package delivery market during the forecast period. The drone manufacturing companies focus on developing cost-effective components and technologies capable of carrying heavy payloads over long distances, such as transitioning from VTOL to fixed-wing forward flight, unified aerial traffic management systems, and various cloud-based services. For instance, according to Droneii.com, in 2020, the industry witnessed record-breaking investments surpassing USD 1.9 Bn. Moreover, the increasing demand for faster and safer package delivery is expected to accelerate the market growth during the forecast period. For instance, according to Convey, 82% of retailers are planning to boost spending on more complex last-mile logistics initiatives. Therefore, these facts support the growth of the market.

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

Drivers

• Increasing demand for faster and safer package delivery
• High investment in the UAV industry
• The growing demand for drones to reduce carbon emission

Restraints

• High cost of infrastructure

Opportunities

• Government support for the adoption of delivery drones

Challenges

• Data security breaches

Report Coverage

Based on the type, the rotary wing segment is expected to hold the largest revenue share during the forecast period owing to the larger payload capacity

Based on the type, the drone package delivery industry has been segmented into fixed wing, rotary wing, and hybrid. The rotary wing segment is expected to hold the largest revenue share during the forecast period owing to the larger payload capacity as compared to the other drones. Moreover, rotary drones provide easy controllability, operate in headless mode, and can fly autonomously in the intended direction. Thus, this segment has a larger revenue share during the forecast period.

Based on the application, the medical segment is expected to grow at the highest CAGR during the forecast period due to the increasing need to deliver life-saving medical supplies in remote areas

Based on the application, the drone package delivery industry is segmented into retail & e-commerce, food delivery, medical, logistics, agriculture, and military. The medical segment is expected to grow at the highest CAGR during the forecast period due to the increasing need to deliver life-saving medical supplies in remote areas. For instance, in June 2021, Flipkart, an Indian e-commerce company entered into a partnership with the Telangana government. Through this partnership, the company deliver medical supplies by drones in the remote areas under the 'Medicines from the Sky' project. Thus, this segment is growing at the highest CAGR during the forecast period.

Based on region, North America is expected to dominate the drone package delivery market during the forecast period

North America is expected to dominate the drone package delivery market during the forecast period owing to the presence of prominent players such as Amazon, UPS, Google, and DHL. These players are providing the services of drone delivery in an inaccessible area in the region, which is anticipated to increase the demand for delivery drones. Moreover, the government in the region encourages the involvement of drones for the delivery of the products. For instance, in April 2019, Wing (US), the Alphabet-owned start-up engaged in the drone delivery, has been approved by Federal Aviation Administration (FAA) for delivery drones in the U.S. Furthermore, the growing trend of online shopping on an e-commerce platform is one of the major factors that influence the demand for the drone package delivery market. For instance, according to secondary sources, e-commerce sales in the US alone are expected to surpass USD 740 Bn by 2023.

Some of the prominent players in the Drone Package Delivery Market include:

• United Parcel Service of America, Inc.
• FedEx
• Matternet, Inc.
• DHL
• Flirtey
• Zipline
• Flytrex Inc.
• Drone Delivery Canada
• Cheetah Logistic Technology
• Workhorse
• Airbus
• Wing Aviation LLC
• DRONESCAN.CO
• SKYCART INC.
• Altitude Angel
• edronic
• BIZZBY

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 Type

• Fixed Wing
• Rotary Wing
• Hybrid

By Range

• Long Range (Above 25 Km)
• Short Range (Less Than 25 Km)

By Package Weight

• Less Than 2 Kg
• 2 Kg to 5 Kg
• Above 5 Kg

By Application

• Retail & E-Commerce
• Food Delivery
• Medical
• Logistics
• Agriculture
• Military

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

COVID-19 Impact on the Drone Package Delivery 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 package delivery 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 April 2020, Matternet’s M2 drone system delivered clinical prescriptions from a CVS pharmacy to villages in Florida to assist senior citizens. Thus, the COVID-19 pandemic positively influenced the growth of the drone package delivery market.

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

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

• The growing demand for drone delivery in the COVID-19 era is the major trend that drives the market growth. During the COVID-19 pandemic, contactless distribution increased, and drones played an important role in ensuring the companies and customer communication as much as needed.
• The increasing concept of fast delivery and growing demand to reduce carbon emission is considered a major trend that propels the growth of the market.

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

• In February 2021, Zipline (US) signed a service level agreement with the Kaduna State Government to use drones in the health supply chain system. The delivery will consist of everyday medical supplies, which includes blood pints and medicines, and deliberate delivery of COVID-19 vaccines.
• In November 2020, Matternet (USA) introduced a medical drone delivery network via a delivery pilot at Labor Berlin Charité Vivantes, a health system in Berlin, Germany. Matternet claims this to be the first city beyond-visual-line-of-sight (BVLOS) medical drone delivery network in the biggest city of the EU, with the capacity to serve millions of patients every year.

Key Points Covered in Drone Package Delivery Market Study:

• Growth of Drone Package Delivery in 2021
• 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 Package Delivery and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Drone Package Delivery Consumption Analysis
•  Drone Package Delivery Production Analysis
•  Drone Package Delivery and Management