Global Drone Package Delivery Market Analysis by Type, End-user, Range, Package Size, Duration, Region and segments forecast till 2033

Market Overview

The drone package delivery market is projected to grow from USD 228 Million in 2022 to USD 5,556 Million by 2033, at a CAGR of 49.0%.

Report Scope

Global Drone Package Delivery Market- Description

A delivery drone refers to an unmanned aerial vehicle (UAV) mainly deployed for express delivery of food items, parcels, medicines, and other goods. It primarily incorporates four to eight propellers and rechargeable batteries that offer thrust and carry packages underneath the drone body. Delivery drones are casually operated from a ground controlling facility that is efficient in navigating and monitoring multiple drones simultaneously. These drones can be easily negotiated in remote locations and help in saving shipping time and costs involved in conventional delivery methods. As a result, drone package delivery is being adopted diversely across varied sectors, including e-commerce, food service, retail, logistics, healthcare, etc.

The evolving e-commerce sector coupled with the surge in demand for express delivery of goods is primarily augmenting the market for drone package delivery. Additionally, the growing popularity of quick-service restaurants and the rising inclination towards instant delivery of farm-fresh food items are also driving the demand for drone package delivery. Technological advancements like VTOL, geospatial mapping, IoT, and machine learning result in higher accuracy in package delivery are some of the factors fueling the growth of the market.

AI is the next focus of the drone industry. This new technology is expected to enable drones to perform all tasks, right from their launch and navigation to data acquisition, data transmission, and data analysis. In addition, advancements in the technology of drones will help in carrying out drone package delivery operations autonomously and safely, thereby contributing to their increased adoption in the drone delivery ecosystem. Drone package delivery is being used by major retail and logistics companies around the world such as Amazon, Dominos, and others to deliver products hassle-free and with ease to the consumers. Moreover, the tech giants such as Alphabet are hailing it as the future of e-commerce. Further, major retailers such as Walmart are testing drone delivery services to achieve a profitable last-mile delivery and a better buyer experience to the customer.

Key Trends of Global Drone Package Delivery Market:

·         Demand for Faster Delivery

The growing competition in e-commerce has increased the demand for faster delivery. Moreover, the need for food delivery to avoid the city traffic, medical supplies during health emergencies, and relief goods during a calamity are the driving factors for a faster delivery ecosystem. Hence, the rise in demand for faster deliveries is driving the global drone package delivery market.

·         Surge in The Usage of Internet of Things (IoT) In Drone Delivery System

IoT enables connectivity and information sharing simultaneously between multiple drones. In addition, IoT makes drones capable to object tracking & recognition with real-time cognitive computational skills. However, such machine learning requires a sensor-cloud architecture to reduce the drone’s processing workload and enhance battery efficiency. Moreover, IoT frees users from the tedious task of controlling drones. Such features are expected to boost the global drone package delivery market.

Segmental Analysis of Global Drone Packaging Market:

Based On Duration:

• Long Duration (>30 Minutes)

• Short Duration (<30 Minutes)

Based On Package Size:

• <2 Kilograms

• 2-5 Kilograms

• >5 kilograms

The <2 Kilograms package size segment is anticipated to lead the drone package delivery platform market in 2022, owing to a rise in demand for lightweight retail good packages across the globe.

Based On Range:

• Long Range (>25 Kilometers)

• Short Range (<25 Kilometers)

Based On Type:

• Rotary Wing

• Fixed Wing

• Hybrid

The hybrid segment is estimated to register the highest CAGR during the forecast period. Drone manufacturers across the globe are focusing on the development of drones for use in the delivery of packages within the city limits and also on the advancements in drone technologies. Features such as vertical landing and AI-based collision avoidance will increase the market for hybrid drones.

Based On End-User:

• E-commerce

• Healthcare

• Food and Beverages

• Postal Services

• Others

Global Drone Packaging Delivery Market: Geographical Analysis

The Global Drone Packaging Delivery Market is further segmented into five major countries- North America, Europe, Asia-Pacific, South America, and Middle East and Africa.

The drone package delivery market in the North American region is expected to witness substantial growth and register the highest CAGR during the forecast period. The region’s growth is attributed to the increasing trend of online shopping on e-commerce platforms and favorable FAA regulations in the US. Many US companies are working to commercialize drone package delivery for food items, pharmaceutical products, logistics, and retail applications in the region which will contribute to the growth of the region during the forecast period.

Global Drone Package Delivery Market: Recent Developments

·         In April 2021, Amazon received approval from the Federal Aviation Administration (FAA) to operate its drone delivery fleet as an airline, which will allow it to expand its operations and potentially offer its services to other businesses.

·         In February 2021, UPS Flight Forward, a subsidiary of UPS announced that it will be expanding its drone delivery operations to include residential deliveries in the near future.

Global Drone Package Delivery Market: Key Companies

·         Amazon Inc.

·         Airbus SE

·         DHL International GmBH (Deutsche Post AG)

·         Drone Delivery Canada Corp.

·         Flirtey

·         Flytrex

·         Matternet Inc.

·         Rakuten, Inc.

·         Skycart Inc.

·         United Parcel Service of America Inc.

·         Workhorse Group Inc.

·         Zipline.

·         Others

Global Drone Package Delivery Market: Regional Scope

North America

·         U.S.

·         Canada

·         Mexico

Europe

·         U.K.

·         Germany

·         France

·         Italy

·         Spain

·         Rest of Europe

Asia Pacific

·         China

·         India

·         Japan

·         South Korea

·         Australia

·         Rest of Asia Pacific

South America

·         Brazil

·         Argentina

·         Rest of South America

Middle East and Africa

·         Saudi Arabia

·         UAE

·         Egypt

·         South Africa

·         Rest of Middle East and Africa

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