Drone Package Delivery Market

Market Overview 2023-2028:

The global drone package delivery market size reached US$ 1,149.9 Million in 2022. Looking forward, IMARC Group expects the market to reach US$ 4,514.3 Million by 2028, exhibiting a growth rate (CAGR) of 23.5% during 2023-2028. The growing demand for express delivery of goods, rising concerns about traffic congestion, and thriving e-commerce industry represent some of the key factors driving the market.

Increasing Demand for Faster Delivery Augmenting Market Growth

The rising demand for faster delivery currently represents one of the primary drivers resulting in the increasing utilization of drone package delivery. Last-mile delivery is a choke point for the delivery of packages to consumers, especially in e-commerce companies. This final segment of the supply-chain accumulates larger delivery time. Moreover, with the rapid commercialization of unmanned aerial vehicles (UAVs), there is a growing interest in drone delivery with the increasing demand for last-mile delivery. Drone delivery service targets to overcome the limitations of larger delivery time and provide faster delivery using the aerial route. It has been reported that drones can reduce half of the time as compared to other transportation systems for deliveries. Thus, delivery drones carry packages to the desired setpoint without getting affected by road traffic conjunction and on a planned optimized route, thereby favoring faster delivery time.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented due to the presence of a large number of global and regional players. The competitive environment in this market is expected to intensify due to an increase in innovations and mergers and acquisitions (M&As) in the near future. The volume of new entrants is moderate in the drone package delivery industry as low product differentiation and switching costs, fragmented market structure, and high market growth increases the threat from new entrants. On the other hand, high capital investment and high brand loyalty restricts the entry of new players in the industry.

What is Drone Package Delivery?

A delivery drone refers to an unmanned aerial vehicle (UAV) that comprises four to eight propellers and rechargeable batteries that provide thrust and carry packages underneath the drone body. It is remotely operated from a ground controlling facility that is efficient in navigating and monitoring multiple drones simultaneously. It can easily maneuver in remote locations and help in saving shipping time and costs involved in conventional delivery methods. It is widely employed for express delivery of food items, parcels, medicines, and other goods. As a result, drone package delivery finds applications in the e-commerce, food and beverage (F&B), and logistics industries across the globe.

COVID-19 Impact:

With the outbreak of COVID-19, many production plants brought down their capacity utilization rates while others suspended their manufacturing operations owing to the global lockdowns and being in compliance with directives from the government. Few plants continued their production, burdened with supply disruptions from the raw materials industry, labor shortages, and low stocks. The coronavirus pandemic threatened the logistical and transportation slowdown. Restrictions on on-road movement impacted the supply in the short term. However, the global pandemic also observed a significant growth in the demand for drones for various purposes. With the growing demand for drones from multiple sectors, UAV players encountered many problems during the pandemic. The countries which were import-dependent experienced delays in the hardware delivery for assimilation of the parts due to delays in customs, restrictions on trade and delays in research work. The unprecedented demand for contactless deliveries on account of rising health concerns related to hygiene and fear of the COVID-19 virus spread has impacted the drone delivery market positively. Thus, in the face of the global COVID-19 pandemic, there have been reported attempts to utilize drone technology in different scenarios. This is resulting in an increasing market for drone delivery in the coming years.

Drone Package Delivery Market Trends:

At present, the increasing demand for drone package delivery due to the rising integration of drone package delivery systems with sensors, night-vision cameras, landing pads, and collision control equipment represents one of the key factors supporting the growth of the market. Besides this, the growing demand for express delivery of goods, along with the thriving e-commerce industry around the world, is offering a favorable market outlook. In addition, the increasing utilization of automated delivery solutions due to rising concerns about traffic congestion leading to the delayed delivery process is propelling the growth of the market. Moreover, the growing inclination towards instant delivery of farm-fresh food items is positively influencing the market. Apart from this, the rising adoption of long-range delivery drones by several military and disaster management units for providing food packages and medicines during natural calamities is strengthening the growth of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global drone package delivery market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on solution, duration, range, capacity, type and end-use industry.

Solution Insights:

• Service
• Platform
• Infrastructure
• Software
   

The report has provided a detailed breakup and analysis of the drone package delivery market based on the solution. This includes service, platform, infrastructure, and software. According to the report, service represented the largest segment due to the growing demand for fast delivery, burgeoning e-commerce sector, rising amendments in regulatory frameworks to encourage drone package delivery services, and increasing demand for lowering carbon emissions.

Duration Insights:

• Short Duration (<30 minutes)
• Long Duration (>30 minutes)
   

A detailed breakup and analysis of the drone package delivery market based on the duration has also been provided in the report. This includes short duration (<30 minutes) and long duration (>30 minutes). According to the report, short duration (<30 minutes) accounted for the largest market share as it does not require much of a battery backup to cover shorter distances. Moreover, the growing demand for short duration drones to deliver the essentials, such as food and medicines, to customers at their homes is positively influencing the market.

Range Insights:

• Short Range (<25 kilometers)
• Long Range (>25 kilometers)
   

A detailed breakup and analysis of the drone package delivery market based on the range has also been provided in the report. This includes short range (<25 kilometers) and long range (>25 kilometers). According to the report, short range (<25 kilometers) accounted for the largest market share due to the growing demand for faster delivery system. In addition, short-range drone package delivery majorly includes delivery service of packages, food, and other products after their purchase using drones over short distances, less than 25 KM, in a single charge.

Capacity Insights:

• <2 kilograms
• 2-5 kilograms
• >5 kilograms
   

A detailed breakup and analysis of the drone package delivery market based on the capacity has also been provided in the report. This includes <2 kilograms, 2-5 kilograms, and >5 kilograms. According to the report, <2 kilograms accounted for the largest market share as the small payload drones with less than 2 kilograms capacity offer larger flight hours and better fuel efficiency during smaller package delivery.

Type Insights:

• Rotary Wing
• Fixed Wing
• Hybrid
   

A detailed breakup and analysis of the drone package delivery market based on the type has also been provided in the report. This includes rotary wing, fixed wing, and hybrid. According to the report, rotary wing accounted for the largest market share as it provides the best balance between lift, control, maneuverability, ease of use, capacity, and cost.

End Use Industry Insights:

• E-Commerce
• Healthcare
• Food and Beverages
• Postal Services
• Others
   

A detailed breakup and analysis of the drone package delivery market based on the end use industry has also been provided in the report. This includes e-commerce, healthcare, food and beverages, postal services, and others. According to the report, e-commerce accounted for the largest market share due to the growing usage of the internet of things (IoT) in drone delivery systems, rising demand for faster delivery, and increasing employment of carbon emission-free transport solutions

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • United Kingdom
  • Germany
  • France
  • Others
• Asia-Pacific
  • China
  • Australia
  • Japan
  • Others
• Other Regions
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (United States and Canada), Europe (United Kingdom, Germany, France, and Others), Asia Pacific (China, Australia, Japan, and Others), and Other Regions. According to the report, North America (United States and Canada) was the largest market for drone package delivery. Some of the factors driving the drone package delivery market in North America included the growing trend of online shopping on e-commerce platforms, advanced infrastructure, and favorable FAA regulations for the ease of drone delivery business. Moreover, there is a rise in investments from key players to support start-up companies for establishing parcel service platforms in the region.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global drone package delivery market. Some of the companies covered in the report include:

• Amazon Inc.
• Airbus SE
• DHL International GmBH (Deutsche Post AG)
• Drone Delivery Canada Corp.
• Flirtey
• Flytrex
• Matternet Inc.
• Rakuten Group, Inc.
• Skycart Inc.
• United Parcel Service of America Inc.
• Workhorse Group Inc
• Zipline
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the drone package delivery market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global drone package delivery market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the drone package delivery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.