The Global Drone Logistics Market was valued at USD 5.6 Bn in 2020 and is expected to reach USD 29.1 Bn by 2027, with a growing CAGR of 21.4% during the forecast period.
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.
The Global Drone Logistics Market Segmentation:
By Drone Type
By Solution
By End-Use Industry
By Region
Drone Logistics Market Company Profiles and Competitive Intelligence:
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.
The report also provides an in-depth analysis of drone logistics markets dynamics such as drivers, restraints, opportunities, and challenges:
Drivers
Restraints
Opportunities
Challenges
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 report also provides an in-depth analysis of recent news developments and investments:
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Market Introduction
Research Methodology
Executive Summary
Premium Insights
Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
Market Dynamics
COVID – 19 Opportunity Mapping
Regional Market Analysis
Company Profiles
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