Drone Package Delivery Market Worth USD 31,188.7 Million, At Exhibiting a CAGR of 53.94% Growing Number of Health-Conscious Consumers Around the World by 2029
The global drone package delivery market size is projected to reach USD 7,388.2 million by 2028, exhibiting a CAGR of 41.8% during the forecast period. Widespread deployment of drones to deliver medical and food supplies amid the COVID-19 pandemic is expected to aid the market make substantial gains, observes Fortune Business Insights™ in its report, titled “Drone Package Delivery Market Size, Share & Industry Analysis, By Type (Fixed Wing and Rotary Wing), By Package Size (Less Than 2 Kg, 2-5 Kg, and above 5 Kg), By End Use (Restaurant & Food Supply, E-commerce, Healthcare, Retail Logistics & Transportation and others), and Regional Forecast, 2020-2028”.
The report states that the market value stood at USD 642.4 million in 2019 and shares the following information:
- Comprehensive depiction of the industry outlook and trends;
- Detailed insights into the upcoming opportunities in the market;
- Tangible analysis of the market drivers, restrains, and all possible segments; and
- In-depth assessment of the regional and competitive dynamics impacting the market.
Emergence of Drone Startups in Logistics to Augment Market Potential
The growing demand for enhancing the efficiency of logistics operations has triggered a sudden emergence of startups specializing in drone technologies to cater to these needs. For example, DroneScan, a South Africa-based startup, designs drones that transmits live data of scanned items in warehouses, making inventory management more efficient and upping the productivity quotient of workers. An Italy-based startup, Archon, provides autonomous robotic drone services to facilitate supervised as well as unsupervised inspection of warehousing and logistics operations. The drone startup culture is gathering momentum in developing countries as well. For example, in India, several startups have spawned in the past few years that are providing next-gen drone services. Aarav Unmanned Systems, for instance, was started in 2013 and is India’s first drone company to develop drone solutions for commercial applications in the public and private sectors. These developments are expected to power the drone package delivery market growth in the forthcoming years.
List of Key Companies Profiled in the Drone Package Delivery Market Report:
- DroneScan (South Africa)
- Cheetah Logistics Technology (US)
- Flytrex (Israel)
- Flirtey (US)
- Matternet, Inc. (US)
- Boeing (US)
- Amazon Inc. (US)
- Wing Aviation LLC (US)
- Workhorse Group Inc. (US)
- Drone Delivery Canada Corp. (Canada)
- Zipline (US)
- DHL International GmbH (Germany)
- United Parcel Service of America, Inc. (US)
- FedEx (US)
North America to Top Other Regions Backed by Rising Preference for Drone Deliveries by Shoppers
North America is set to dominate the drone package delivery market share during the forecast period owing to the increasing inclination of online shoppers towards delivery of goods through unmanned aerial vehicles (UAVs). With a market size of USD 237.7 million in 2019, the region is likely to retain its leading position, which will be supported by the strong financial support to drone startups in the US and Canada.
In Europe, the market is anticipated to be driven by the growing presence of tech companies that are expanding their operations in the region through collaborations and partnerships. Asia Pacific is expected to create exciting opportunities for market players on account of the emerging trend of online purchasing of groceries in the large cities of India, China, and Indonesia.
Supportive Regulations to Novel Ideas to Feed Competitive Ardor of Key Players
With the scope for innovation widening, key players in the market drone package deliveries are engaged in coming up with novel drone solutions, especially during the current coronavirus crisis. Supporting their efforts are regulatory bodies that are easing flying norms and rules to ensure timely delivery of essential supplies to people.
- August 2020: Amazon secured clearance from the Federal Aviation Administration (FAA) to deploy its Prime Air delivery drone fleet to efficiently and securely deliver packages to customers. Amazon is now the third company to receive FAA approval to operate drones on a commercial scale after UPS and the Alphabet-owned company, Wing.
- May 2020: Wing, a subsidiary of Google’s parent company Alphabet, announced that it has made thousands of drone deliveries in Australia during the pandemic. Launched in Canberra in 2019, the demand for Wing’s services rose by 500% between February and April 2020.