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Delivery drones market expected to reach $5.6 billion by 2028

August 27, 2021 by David Edwards

The global market for delivery drones is expected to be valued at $5,586.5 million by 2028, at a compound annual growth rate of 41.3 percent during the forecast period (2021-2028).

The figure are highlighted in a report published by Coherent Market Insights.

Market dynamics

Increasing number of vehicles on roads and expanding global population has led to traffic conjunction, which is likely expected to drive the global delivery drones market over the forecast period.

Currently, delivery drones are becoming increasingly popular as they can avoid traffic congestion to deliver customer package in a specific time.

Companies such as Amazon, Google, Uber, Matternet, Aria Insights, and United Parcel Service (UPS) are focused on adoption of electric-powered flying machines for package deliveries.

For instance, in January 2018, Boeing introduced a new unmanned cargo air vehicle prototype called electric vertical-takeoff-and-landing (eVTOL).

This product is designed to transportpayloads weighing up to 500 pounds for autonomous cargo delivery, logistics, and other transportation applications.

Furthermore, increasing use of delivery drones in various industries such as healthcare, food, and others is driving growth of the global delivery drones market.

For instance, in June 2019, Zomato an India-based online ordering and food delivery platform, tested its firstfood delivery via drone technology in Gurugram.

However, low battery life of delivery drones is one of the major challenges for the growth of global delivery drones market.

Impact of coronavirus

The outbreak of Covid-19 is expected to positively influence the global delivery drones market growth. The Covid-19 pandemic increased demand for delivery drones to deliver goods to the customer without human involvement.

For instance, in March 2020, UPS, a US based multinational package delivery company, entered into a collaboration with German drone-maker Wingcopter GmbH to accelerate the adoption of aerial drones for contactless delivery.

Key trends and analysis

Among drones type, rotor drones segment held the highest market share in the year 2020, and is expected to retain its market share over the forecast period, owing to flexibility in operation, ease in use, and low maintenance cost.

Furthermore, increasing demand for delivery drones from commercial, residential, healthcare, and other sectors is expected to boost growth of the segment over the forecast period.

Asia Pacific is the fastest-growing region in the delivery drones market. The growth of the Asia Pacific market is mainly attributed to the presence of fast-growing economies such as China and India.

The fast-growing economies in the region offer growth opportunities and hence, the major online retail companies are looking forward to reducing their delivery time by using delivery drone.

For instance, in April 2017, China-based JD.com, developed 150 drone operation sites in the Sichuan province, China.

This new operations site allows the company to deliver products via drone to its customers, which is creating major demand for delivery drones in the region.

Competitive market

Major companies operating in the global delivery drones market include:

  • Airbus
  • Deutsche Post DHL Group
  • Drones America
  • EHang
  • JD.com
  • Matternet
  • SkyCart
  • DJI
  • Boeing
  • Wing Aviation
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Filed Under: Features, Industry Tagged With: delivery, drones, expected, global, growth, market

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