Drone Logistics and Transportation Market is estimated to reach a CAGR of 19.5% during the forecast period 2021 to 2028

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Market Size – USD 7.53 Billion in 2020, Market Growth – at a CAGR of 19.5%, Market Trends – Advancements in technology

 

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The global drone logistics and transportation market size is expected to reach USD 31.84 Billion at a revenue CAGR of 19.5% in 2028, according to latest analysis by Emergen Research. Robust global drone logistics and transportation market revenue growth can be attributed to steady growth of the e-Commerce sector and increasing emphasis by e-Commerce firms on use of drones to transform delivery services in a commercial setting. Many governmental policies that have initially hindered the use of drones for logistics and transportation purposes have been amended and are supporting e-Commerce players, along with various parcel delivery firms, including FedEx deploying drones for delivery of packages. The US Federal Aviation Administration (FAA) formerly has excluded the use of drones for delivery of commercial goods. Recently however, FAA modified its policies allowing use of drones for logistics purposes under a number of clauses.

Increasing use of drones for faster delivery of goods is a significant factor driving global drone logistics and transportation market revenue growth

Use of drones for transportation of customer purchases provides a substantially beneficial solution for heavy traffic congestion in urban areas and enables reaching sites where accessibility is tough/impossible with other transportation modes. Drones are also used in scanning of pallets within warehouses and distribution centers, allowing operations teams to inspect stored inventory and locate lost or misplaced merchandise in places that are hard-to-reach. In addition, drones are deployed for security surveillance of large logistics facilities, including warehouses.

Drone logistics and transportation market in North America accounted for largest revenue share in 2020, attributed to rapid adoption of advanced technologies, relaxation of federal laws pertaining to use of drones for commercial purposes, increasing defense budget, and increasing investment in use of drones by companies such as Walmart and Amazon. In addition, presence of leading players such as Drone Delivery Canada is causative of robust revenue growth of the market in the region.

Some Key Highlights From the Report

In October 2021, Korea Seven, which is a subsidiary firm of Lotte Group and manages South Korean 7-Eleven brand, made an announcement about launching a pilot run of drone delivery services the same year. Korea Seven announced its partnership agreement with Pablo Air, which is a developer hardware and software for drones, for pilot test of drone services.

Among the type segments, freight drones segment accounted for larger revenue share in 2020. The main benefits delivered by freight drones include avoidance of road congestion and delays during transportation, provision of rapid and on-demand delivery services, easy operability and lower cost for air-based cargo services, and enhanced access to customers in remote locations.

Among the application segments, infrastructure inspection segment accounted for largest revenue share in 2020. Drones find wide application in inspection of infrastructure after a disaster for the purpose of assessing risk and locating survivors or injured persons. Drone logistics and transportation is also deployed by marine surveyors for physical scrutiny of vessels and cargo; whereas, loss adjusters deploy drones to evaluate ships for any damage.

Drone logistics and transportation market in North America accounted for largest revenue share in 2020, attributed to rapid adoption of advanced technologies, relaxation of federal laws pertaining to use of drones for commercial purposes, increasing defense budget, and increasing investment in use of drones by companies such as Walmart and Amazon. In addition, presence of leading players such as Drone Delivery Canada is causative of robust revenue growth of the market in the region.

Companies included in the global market report are Zipline, CANA Advisors, Flirtey, Flytrex Aviation Limited, Hardis Group, Drone Delivery Canada, Workhorse Group PLC, Matternet, PINC Solutions, and Uber Technologies Inc.

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