The Delivery Drones Market is expected to reach a value of $1.29 billion by 2028, at a CAGR of 40% during the forecast period of 2021–2028. The increasing demand for faster delivery, technological advancements in drones, and the growing need to reduce carbon emissions are the factors driving the growth of the Delivery Drone Market.
In addition, increasing private investments in the drone industry, the rise in e-commerce, and demand for contactless delivery amidst the COVID-19 pandemic are projected to provide significant growth opportunities for the vendors operating in this market.
The outbreak of the COVID-19 pandemic emerged towards the end of December 2019 in Wuhan, China. The pandemic had a major impact on all industries globally, with numerous industries completely shutting down manufacturing operations following the directives issued by local governments or operating at minimal capacities to keep personnel safe. The revenues of major companies decreased significantly due to halted operations. The reduced economic activity and operations severely impacted e-commerce, logistics, and healthcare supply chain deliveries globally.
To avoid overcrowding at supermarkets and medical stores, governments across various countries imposed nationwide lockdowns and social distancing norms. These regulations created a wide range of opportunities for drone delivery services in the medical sector. In order to promote drone delivery services, the Federal Aviation Administration (U.S.) is speeding up the approvals for these services to help during the COVID-19 pandemic in the U.S. The main purpose of these approvals is to offer drone delivery services for food and medical items.
The COVID-19 pandemic resulted in the need to use delivery drones for automatic, contactless delivery services in remote islands, mountainous areas, and within some parts of cities. These factors are expected to increase the demand for delivery drones during the forecast period.
The rising demand for non-contact services during the COVID-19 pandemic has encouraged the Government of South Korea to speed up the testing trials of delivery drones for food deliveries across the country. According to the Ministry of Land, Infrastructure, and Transport, a test was held in the administrative city of Sejong, demonstrating the five drones delivered meals and other products to people at homes two to three kilometers away across a lake and high-rise buildings within 10 minutes.
Similarly, the southern state of Telangana, a part of the World Economic Forum's (WEF) Medicine from the Sky project, NITI Aayog, and Apollo Hospitals plans to run a trial for delivering medicines using drones.
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Increase in Demand for Faster Delivery
The rising demand for quick and same-day delivery has increased the demand for delivery drones globally. The rising adoption of online shopping among consumers has increased the demand for advanced shipping options that provide faster delivery services. The time-saving benefits and home delivery services of products purchased online are continuously driving the growth of delivery drones worldwide. In the past few years, the rising number of instant parcel deliveries to the door-steps of consumers has encouraged leading companies to support the use of delivery drones for faster and same-day deliveries.
The ability to carry and deliver packages for a long distance in a short duration using delivery drones has created significant opportunities for faster delivery of food & beverages, medicines, and retail goods. To avoid overcrowding at supermarkets and pharmacies, numerous companies have started launching drone delivery services to provide efficient delivery. Drone technology is used across quick-service restaurants, healthcare, logistics, and various e-commerce companies.
Companies such as United Parcel Service of America, Inc., Amazon.com Inc., Boeing, Zipline, Wing Aviation LLC, and Flytrex have started offering drone delivery services for retailers, e-commerce marketplaces, restaurants, and delivery companies. These companies have partnered with the local shops to deliver the packages to their customers quickly and on the same day, i.e., within 30 minutes.
Furthermore, various companies have started collaborating to support the growing demand of the drone delivery market globally. For instance, Wing Aviation LLC, a division of Alphabet, partnered with FedEx and Walgreens, as well as local businesses to deliver small packages weighing up to 1.5 pounds or less. The company offers a small drone and OpenSky navigation system to deliver fresh foods, medicines, and household items to its consumers.
Also, in 2020, United Parcel Service of America, Inc., Flight Forward, and CVS partnered to deliver prescription medicines from a CVS pharmacy to The Villages, Florida, the largest U.S. retirement community. UPS has also partnered with Wingcopter GmbH to develop a next-generation of package delivery drones.
Hybrid VTOL Segment to Grow at a Significant Pace During Forecast Period
The hybrid VTOL segment is projected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the benefits of multi-rotor platforms with fixed-wing drones and the transition between the two modes during flight. The ability to vertically take-off and land without using any launcher or runway has made hybrid VTOL delivery drones operate in any location.
More than 5 Kg Segment Projected to Grow at Highest CAGR During Forecast Period
The more than 5 Kg segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to its use in aerial shipping of packages of more than 5 kg. Delivery drones are utilized for shipping products in rural areas and dense urban areas. These drones can deliver essential supplies during medical emergencies and natural disasters. Hence, these factors boost the adoption of delivery drones.
More than 25 Km Segment to Grow at Highest CAGR During Forecast Period
The more than 25 Km segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is mainly attributed to drones being used to provide shipping services at distances of more than 25km. These drones are used in various sectors, such as logistics, e-commerce, healthcare, retailer, and food & beverage. The capability of these drones to deliver goods at distances of more than 25km has encouraged various companies to adopt drone services worldwide.
Logistics Segment to Grow at Highest CAGR During Forecast Period
The logistics segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is mainly attributed to its use in aerial shipments of small packages of commercial goods. Factors such as high speed, door-step delivery, non-requirement of road transportation, and cost-effectiveness are expected to increase the adoption of delivery drones in the logistics sectors.
North America to be the fastest-growing regional market by value
North America is expected to witness the fastest growth during the forecast period. The increasing investments by key players to promote parcel drone delivery service platforms and the increasing government measures to support the use of drone delivery services are the key factors driving the growth of the drone delivery market in North America.
The rising number of ongoing testing trials of delivery drones, rising demand for same-day delivery of medical supplies and e-commerce goods, and various Federal Aviation Administration (FAA) regulatory frameworks set by the governments in North American countries, such as the U.S. and Canada, have increased the adoption of delivery drone technology in the region.
The governments in North America have approved licenses for the operation of package-delivery services using delivery drones to companies, such as Amazon.com Inc, Drone Delivery Canada Corp. (DDC), and Wing Aviation. The approvals by the governments have encouraged various public companies, private companies, and startups to adopt delivery drone services to deliver food & beverages, retail goods, and medical supplies.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the delivery drones market over the last four years.
The key players profiled in the delivery drones market are Amazon.com Inc (U.S.), Boeing Co (U.S.), Airbus SE (Netherlands), Drone Delivery Canada Corp (Canada), Wing Aviation LLC (U.S.), Flirtey (U.S.), Zipline (U.S.), Wingcopter GmbH (Germany), FLI Drone (U.S.), Flytrex Inc (U.S.), Matternet Inc (U.S.), Deutsche Post DHL Group (Germany), United Parcel Services (U.S.), SF Express Co. Ltd. (China), and Rakuten Group Inc (Japan).
Scope of the Report
Delivery Drone Market, by Type
Delivery Drones Market, By Payload
Delivery Drones Market, by Range
Delivery Drone Market, by End User
Delivery Drones Market, by Geography
Key Questions Answered in the Report:
This report provides pre & post COVID-19 market estimates.
1. Introduction
1.1. Market Definition
1.2. Market Ecosystem
1.3. Currency and Limitations
1.3.1. Key Stakeholders
2. Research methodology
2.1. Research Process
2.2. Data Collection & Validation
2.2.1. Secondary Research
2.2.2. Primary Research
2.3. Market Assessment
2.3.1. Market Size Estimation
2.3.2. Bottom-up Approach
2.3.3. Top-down Approach
2.3.4. Growth Forecast
2.4. ASsumptions for the Study
2.5. Limitations for the Study
3. Executive Summary
4. Covid-19 Impact Analysis
4.1. Scenario A: Severe Impact
4.2. Scenario B: Moderate Recovery
4.3. Scenario C: Fast Recovery
5. Market Insights
5.1. Introduction
5.2. Market Dynamics
5.2.1. Delivery Drones Market: Impact Analysis of Market Drivers
5.2.1.1. Increasing Demand for Faster Deliveries
5.2.1.2. Technological Advancements in Drones
5.2.1.3. Rising Need to Reduce Carbon Emissions
5.2.2. Delivery Drones Market: Impact Analysis of Market Restraints
5.2.2.1. High Cost of Infrastructure
5.2.2.2. Limited Battery Life of Aerial Delivery Drones
5.2.3. Delivery Drones Market: Impact Analysis of Market Opportunities
5.2.3.1. Rising Private Investments in the Drones Industry
5.2.3.2. Increase in E-commerce Sales and Demand for Contactless Deliveries During the COVID-19 Pandemic
5.2.4. Delivery Drones Market: Impact Analysis of Market Challenges
5.2.4.1. Stringent Government Regulations for UAVs
5.2.4.2. Delivery Drones’ Susceptibility to Hacking and Data Breaches
5.3. Value Chain Analysis
6. Global Delivery Drones Market, by Type
6.1. Introduction
6.2. Multi-rotor
6.3. Fixed-wing
6.4. Hybrid VTOL
6.5. Single-rotor
7. Global Delivery Drones Market, by Payload
7.1. Introduction
7.2. Less than 2 KG
7.3. 2-5 KG
7.4. More than 5 KG
8. Global Delivery Drones Market, by Range
8.1. Introduction
8.2. Less than 25 km
8.3. More than 25 km
9. Global Delivery Drones Market, by End User
9.1. Introduction
9.2. Retail and E-commerce
9.3. Healthcare
9.4. Logistics
9.5. Food & Beverages
9.6. Other End Users
10. Delivery Drones Market, by Geography
10.1. Introduction
10.2. Asia-Pacific
10.2.1. China
10.2.2. Australia
10.2.3. Japan
10.2.4. South Korea
10.2.5. India
10.2.6. Rest of Asia-Pacific
10.3. Europe
10.3.1. Germany
10.3.2. U.K.
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Rest of Europe (RoE)
10.4. Latin America
10.5. North America
10.5.1. U.S.
10.5.2. Canada
10.6. Middle East & Africa
11. Competitive Landscape
11.1. Introduction
11.2. Key Growth Strategies
11.3. Market Share Analysis (2020)
11.3.1. Zipline
11.3.2. Matternet, Inc.
11.3.3. Wingcopter GmbH
12. Company Profiles (Business Overview, Financial Overveiw, Product Portfolio, Strategic Developments)
12.1. Amazon.com Inc.
12.2. The Boeing Company
12.3. Airbus SE
12.4. Drone Delivery Canada Corp.
12.5. Wing Aviation LLC
12.6. Flirtey
12.7. Zipline
12.8. Wingcopter GmbH
12.9. Fli Drone
12.10. Flytrex Inc.
12.11. Matternet, Inc.
12.12. Deutsche Post DHL Group
12.13. United Parcel Service, Inc.
12.14. SF Holding Co., Ltd.
12.15. Rakuten Group Inc.
13. Appendix
13.1. Questionnaire
13.2. Available customization
List of Tables
Table 1 The Impact of COVID-19 on the Global Delivery Drones Market Size, by Scenario (USD Million)
Table 2 Global Delivery Drones Market size, by Type, 2019–2028 (USD Million)
Table 3 Global Multi-rotor Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 4 Fixed-wing Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 5 Hybrid VTOL Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 6 Single-rotor Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 7 Global Delivery Drones Market size, by Payload 2019–2028 (USD Million)
Table 8 Less than 2 kg Payload Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 9 2-5 KG Payload Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 10 More than 5kg Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 11 Global Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 12 Less than 25 Km Range Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 13 More than 25 km Range Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 14 Global Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 15 Delivery Drones Market Size For Retail and E-Commerce, by Country/Region, 2019–2028 (USD Million)
Table 16 Delivery Drones Market Size for Healthcare, by Country/Region, 2019–2028 (USD Million)
Table 17 Delivery Drones Market Size for Logistics, by Country/Region, 2019–2028 (USD Million)
Table 18 Delivery Drones Market Size for Food & Beverages, by Country/Region, 2019–2028 (USD Million)
Table 19 Delivery Drones Market Size for Other End Users, by Country/Region, 2019–2028 (USD Million)
Table 20 Global Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 21 Asia-Pacific: Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 22 Asia-Pacific: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 23 Asia-Pacific: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 24 Asia-Pacific: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 25 Asia-Pacific: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 26 China: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 27 China: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 28 China: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 29 China: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 30 Australia: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 31 Australia: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 32 Australia: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 33 Australia: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 34 Japan: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 35 Japan: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 36 Japan: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 37 Japan: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 38 South Korea: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 39 South Korea: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 40 South Korea: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 41 South Korea: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 42 India: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 43 India: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 44 India: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 45 India: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 46 Rest of Asia-Pacific: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 47 Rest of Asia-Pacific: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 48 Rest of Asia-Pacific: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 49 Rest of Asia-Pacific: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 50 Europe: Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 51 Europe: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 52 Europe: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 53 Europe: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 54 Europe: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 55 Germany: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 56 Germany: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 57 Germany: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 58 Germany: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 59 U.K.: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 60 U.K.: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 61 U.K.: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 62 U.K.: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 63 France: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 64 France: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 65 France: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 66 France: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 67 Italy: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 68 Italy: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 69 Italy: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 70 Italy: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 71 Spain: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 72 Spain: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 73 Spain: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 74 Spain: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 75 Rest of Europe: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 76 Rest of Europe: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 77 Rest of Europe: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 78 Rest of Europe: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 79 Latin America: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 80 Latin America: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 81 Latin America: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 82 Latin America: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 83 North America: Delivery Drones Market Size, by Country/Region, 2019–2028 (USD Million)
Table 84 North America: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 85 North America: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 86 North America: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 87 North America: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 88 U.S.: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 89 U.S.: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 90 U.S.: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 91 U.S.: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 92 Canada: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 93 Canada: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 94 Canada: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 95 Canada: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 96 Middle East & Africa: Delivery Drones Market Size, by Type, 2019–2028 (USD Million)
Table 97 Middle East & Africa: Delivery Drones Market Size, by Payload, 2019–2028 (USD Million)
Table 98 Middle East & Africa: Delivery Drones Market Size, by Range, 2019–2028 (USD Million)
Table 99 Middle East & Africa: Delivery Drones Market Size, by End User, 2019–2028 (USD Million)
Table 100 Recent Key Developments, by Company (2019–2022)
List of Figures
Figure 1 Market ecosystem
Figure 2 Currency and Limitations
Figure 3 Key Stakeholders
Figure 4 Research Process
Figure 5 Key Secondary Sources
Figure 6 Primary Research Techniques
Figure 7 Key Executives Interviewed
Figure 8 Market Sizing and Growth Forecast Approach
Figure 9 Key Insights
Figure 10 Global Delivery Drones Market Size, by Type (2028)
Figure 11 Global Delivery Drones Market Size, by Payload (2028)
Figure 12 Global Delivery Drones Market Size, by Range (2028)
Figure 13 Global Delivery Drones Market Size, by End User (2028)
Figure 14 Geographic SnapShot: Global Delivery Drones Market
Figure 15 The Impact of COVID-19 on the Global Delivery Drones Market
Figure 16 Market Dynamics
Figure 17 Value Chain of DELIVERY Drones MARKET
Figure 18 Global Delivery Drones Market Size, by Type, 2021 vs. 2028 (USD Million)
Figure 19 Global Delivery Drones Market Size, by Payload, 2021 vs. 2028 (USD Million)
Figure 20 Global Delivery Drones Market Size, by Range, 2021 vs. 2028 (USD Million)
Figure 21 Global Delivery Drones Market Size, by End User, 2021 vs. 2028 (USD Million)
Figure 22 Global Delivery Drones Market Size, by Geography, 2021 vs. 2028 (USD Million)
Figure 23 Global Delivery Drones Market, by Region
Figure 24 Key Growth Strategies Adopted by Leading Players (2019–2022)
Figure 25 Leading Players' Market Share Analysis (2020)
Figure 26 Amazon.com Inc.: Financial Overview (2020)
Figure 27 The Boeing Company: Financial Overview (2020)
Figure 28 Airbus SE: Financial Overview (2020)
Figure 29 Deutsche Post DHL Group: Financial Overview (2020)
Figure 30 United Parcel Service, Inc.: Financial Overview (2020)
Figure 31 SF Holding Co., Ltd.: Financial Overview (2020)
Figure 32 Rakuten Group Inc.: Financial Overview (2020)
This report provides pre & post COVID-19 market estimates.
This report provides pre & post COVID-19 market estimates.
Published Date: Jan-2024
