Cargo Drones Market Expected to Reach $16.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cargo Drones Market," The cargo drones market was valued at $0.68 billion in 2022, and is estimated to reach $16.9 billion by 2032, growing at a CAGR of 38.1% from 2023 to 2032.

Asia-Pacific includes countries such as China, India, Japan, South Korea, and the rest of Asia-Pacific. The cargo drones market is expected to grow significantly in the Asia-Pacific region owing to the rise of the e-commerce industry, with consumers increasingly relying on online shopping for their needs. This has led to a surge in demand for fast and efficient delivery services with the help of cargo drones.

Testing of technologically advanced drones are continuously reshaping the cargo drones market. For instance, in June 2022, the Aviation Industry Corporation of China (AVIC), an aircraft manufacturer from China conducted test flights with its new drone, the TP500. Moreover, the country explores the use of cargo drones for military logistics, surveillance, and reconnaissance purposes. These cargo drones can transport military supplies, equipment, and personnel to areas that are difficult to reach by road or air. For instance, in April 2022, the Chinese People's Liberation Army (PLA) Joint Logistics Support Force organized an inspection event to find the drone to enhance the Chinese military's logistics support capabilities and boost the PLAs' overall combat capabilities. Therefore, the development and deployment of cargo drones to enhance the military operations drive the growth of the market.

Cargo drones are increasingly being used in the country in the healthcare industry to deliver vital supplies like drugs, diagnostic samples, vaccines, blood, and related components. Moreover, China is focused on investing in the design, research, and development of cargo drones to keep up with the growth in e-commerce. For instance, in January 2023, AirWhiteWhale, a Chinese unmanned aircraft manufacturer announced to raise $14.7 million and $22.1 million for the development of a fleet of cargo drones.

Japan aims at the adoption of cargo drones to transport goods and speed up the movement of equipment in remote locations. Cargo drones are increasingly being used for various industries such as civil engineering or construction sites, agricultural fields, and others. For instance, in December 2022, Japan Post, the national mail service announced full-scale drone delivery services. Moreover, there is a rise in the development and testing of cargo drones in the country. For instance, in February 2020, SkyDrive Inc., a Japanese cargo drone developer launched test flights of a cargo drone.

The government of India has increased its emphasis on the drone sector owing to the rising popularity of cargo drones in the country. For instance, according to the Civil Aviation Ministry, India's drone business is expected to generate a total revenue of $1.63-2.04 billion by 2026, up from its present revenue of around $ 10.88 million reported in October 2021. India is testing the application of cargo drones in the healthcare sector to deliver vaccines, clinical medications, medical pathological testers, and others. For instance, in September 2021, a drone made a “Beyond Visual Line of Sight” (BVLOS) flight carrying a box of life-saving medicines and vaccines in the Vikarabad district of Telangana under the Medicines from the Sky” project designed to improve healthcare access in remote areas.

Hybrid-powered cargo drones are unmanned aerial vehicles that use a combination of different propulsion systems, typically electric and gasoline-powered engines, to achieve greater flight range and payload capacity than single-powered drones. The hybrid system combines the benefits of both electric and gasoline-powered drones, enabling longer flight times, higher payloads, and more versatile flight capabilities.

Hybrid-powered cargo drones have gained popularity in industries such as logistics and transportation, where there is a need for drones that can carry heavier payloads over longer distances. They offer several advantages over single-powered drones, such as reduced fuel consumption, increased flight endurance, and improved safety. Many drone manufacturers focus on revolutionizing the logistics and delivery industry by offering a more efficient, cost-effective, and environmentally friendly way to transport goods over medium to long distances. For instance, in April 2022, Aergility, a U.S. based aerospace startup, developed an electric vertical takeoff and landing (eVTOL) cargo drone called the Atlis Gen 3. The drone is designed to carry payloads of up to 300 pounds and travel at speeds of up to 100 miles per hour for up to 300 miles.

COVID-19 Impact Analysis

The outbreak of COVID-19 led to lockdowns and restrictions on movement to slow the spread of the virus. This led to a significant decrease in economic activity, with many businesses forced to close or reduce their operations. However, post-pandemic, there was a surge in demand for delivery services, as people shifted toward online shopping and home delivery to avoid public places. In addition, cargo drone manufacturers and operators continued to invest in R&D, further improving the capabilities and efficiency of cargo drones. For instance, in February 2022, the Defense Research and Development Organization (DRDO), an agency of the Government of India responsible for the development of technology announced its plans to develop a new class of drones that are able to carry loads at high-altitude region.

KEY FINDINGS OF THE STUDY

• By propulsion, the hybrid segment is anticipated to exhibit significant growth in the near future.
• By wing type, the hybrid segment is anticipated to exhibit significant growth in the near future.
• By industry, the healthcare segment is anticipated to exhibit significant growth in the near future.
• By payload, the above 1000 kg segment is anticipated to exhibit significant growth in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global cargo drones market include Dronamics, Volocopter GmbH, Ehang Holdings Ltd, Pipistrel d.o.o, Singular Aircraft, UAVOS Inc, Elroy Air, NATILUS, ARS Aerosystems, and SkyDrive Inc. The companies are adopting strategies such as product launch, agreement, expansion, and others to improve their market positioning