Drone Logistics & Transportation Market Trends and Analysis by 2027

The drone logistics and transportation market was valued at US$ 36.79 million in 2019 and is projected to reach US$ 1,626.98 million by 2027. The Drone logistics and transportation market is expected to grow at a CAGR of 60.6% during the forecast period of 2020 to 2027.

In the recent drone industry, several companies worldwide are offering third party services to different industries to cater their needs of delivery. The number of third party drone logistics & transportation providers are increasing rapidly year on year, attributing to the significant demand generated from the end users, which is helping the market for drone logistics & transportation to propel over the years. The drone logistics & transportation market is fragmented as the industry is heavily captured by a number of small and medium scaled players in different geographies. The market players continuously investing significant amounts to deliver advanced and best quality drone logistics & transportations to their clients. The drone logistics & transportation market in the current scenario is progressing substantially, as the governments of several countries are simplifying the laws and regulations for drone logistics & transportations, which is rising the number of drone operating companies. Recently, Federal Aviation Administration has simplified the rules for delivering goods through unmanned aerial systems, which has increased the number of applications from different companies. Attributing to the stringent legislations, the aerial delivery companies were restricted from using the service. The delivery segment in the global drone market is niche in the current scenario, as very few companies offer this service. Zipline is one of the prominent delivery drone service providers in the US, which delivers medicines, blood and vaccines in Africa. Matternet, a Swiss logistic company is engaged in delivering medical supplies through drones and the city is concentrated with drones. The company has been recognized by the FAA for testing of delivery services in the US owing to the technology and track record in the operating city.       

Factors including increasing developments in the e-commerce sector and rising acceptance owing to various benefits offered are significantly driving the global drone logistics & transportation market. However, lack of skilled operators and difficulties in operation are impeding the market growth. Proliferation in rural deliveries is opportunistic for the growth of the market. For instance, in 2017, Tanzanian government announced the partnership with Zipline with an objective to provide emergency on-demand access to medicines, vaccines and blood in the region.

Drone Logistics & Transportation Market: Strategic Insights

Drone Logistics and Transportation Market Insights

Rising acceptance due to various benefits offered

The benefits of drone deliveries that have attracted parcel delivery industry players and e-commerce industry players include reduced roadway congestion, improved safety, optimized route flexibility, reduced greenhouse gas emission, and overnight or one-day delivery. The market is anticipated to escalate in the coming years though deliveries, as the drone delivery service reduces the logistics cost of the end users greatly. With the further alterations in regulations, and an increasing number of logistics partners and e-commerce players opt for drone service, the number of third party service providers are also anticipated to rise, thereby accentuating the market in the forthcoming years. Several governmental regulations have restricted the usage of drones for commercial delivery purposes in the earlier years, however, with the amendments in this regulations are helping the e-commerce industry players as well as several parcel delivery companies to use the service.

Type -Based Market Insights

Broad array of applications are present for drones which facilitates easy and rapid transportation of parcels. These are extensively utilized for the transportation of small items, medical products, and carries passengers as well. These drones have its own flying limits depending upon its usage. Drones are neither allowed to fly at a low range as it would hit the mid-sized and tall buildings nor at a high range to hit any airlines. The aviation industry specified their flying limits. In first categorization of drones’ type, it is segmented in to freight drones, passenger drones, and ambulance drones. The freight drones is further segmented into cargo and delivery drones.

Application -Based Market Insights

Delivery drones are used in logistics and transportation industry to make the entire delivery of parcels easy and convenient. In a current scenario, unmanned aerial vehicles, called as drones are gaining popularity among non-military uses. Now the organizations particularly logistics are checking the validity of drones for delivery purpose. The drone logistic & transportation market by application was led by the shipping segment which held a highest market share.

Players operating in the Drone logistics and transportation market focus on strategies, such as market initiatives, acquisitions, and product launches, to maintain their positions in the drone logistics and transportation market. A few developments by key players of the drone logistics and transportation market are:

In January 2019, Drone Delivery Canada has started testing on the flacon, which is a new cargo delivery drone designed with a travel range of 60kms and lifting capacity of 50 pounds of cargo.

In January 2019, Flytrex has recently raised $7.5 million in Series B funding. The company is granted with funds Benhamou Global Ventures (BGV) along with additional investment from the btov. With the help of raised finance, It would scale-up the technology, operations of Flytrex in respect to drone delivery in Iceland and North Dakota.

Drone Logistics & Transportation

The regional trends and factors influencing the Drone Logistics & Transportation Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Drone Logistics & Transportation Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Drone Logistics & Transportation Market Report Scope

Drone Logistics & Transportation Market Players Density: Understanding Its Impact on Business Dynamics

The Drone Logistics & Transportation Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Drone Logistics and Transportation Market – by Type

• Freight Drone
  • Cargo Freight Drones
  • Delivery Freight Drones
• Passenger Drone
• Ambulance Drone

Drone Logistics and Transportation Market – by Application

• Military
• Commercial

Drone Logistics and Transportation Market – by Industry Verticals

• BFSI
• Healthcare
• Government
• Retail
• Manufacturing
• Others

Drone Logistics and Transportation Market – by Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Spain
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • India
  • Japan
  • Australia
  • Rest of APAC
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA
• SAM
  • Brazil
  • Rest of SAM

Drone Logistics and Transportation Market – Company Profiles

• Cheetah Logistic Technology (MercuryGate)
• Drone Delivery Canada
• Flirtey
• Flytrex Inc.
• Hardis Group
• Infinium Robotics
• PINC Solutions
• Volocopter GmBH
• Workhorse
• Zipline