Drone logistics Market Expected to Reach $53.32 Billion by 2031

According to a new report published by Allied Market Research, titled, “Drone logistics Market," The drone logistics market was valued at $8.20 billion in 2021, and is estimated to reach $53.32 billion by 2031, growing at a CAGR of 20.8% from 2022 to 2031.

North America is expected to dominate the global drone logistics market in 2021. North America is a technologically advanced region and adoption rate is higher. The region has witnessed a significant surge in use of advanced drone technologies to reduce human labor and improve output quality in the logistics sector. North American countries are investing heavily on adoption of drone services to augment performance of their operations and improve time management in supply chain. Increase in investments by North American countries propels development of advanced drone equipment and software across North America. Presence of competitive e-commerce and fast-moving consumer goods (FMCG) sectors in North America further increases contribution of North American countries in the drone logistics market.

Development and deployment of drones for sending and receiving packages along with autonomous freight trains and unmanned heavy-lift freight airplanes has been observed. For instance, in April 2021, Slovenian aerospace company Pipistrel announced development of a heavy cargo hybrid vertical take-off and landing (VTOL) drone in partnership with SF Express. The cargo drone will aid SF express to expand its delivery network fleet through addition of large cargo unmanned aerial vehicles with VTOL capability.

Growth of the drone logistics market has propelled, owing to rise in demand for time-efficient delivery service and rise in demand for drones in last mile delivery. However, cybersecurity issues associated with drones and short flying duration are the factors that hamper growth of the market. Furthermore, revamped government regulatory framework is the factor expected to offer growth opportunities during the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic wreaked havoc on social and economic systems all across the globe. The tragic loss of human life and the emergence of unprecedented challenges to the world of labor, food systems, and public health have resulted in significant catastrophic damages to societies and enterprises all across the globe. The pandemic has also posed an existential danger to millions of businesses, as well as an unemployment catastrophe for billions of people around the world.

However, drone services have been developed and utilized by drone service providers during the COVID-19 pandemic, including lab sample pick-up and delivery and transportation of medical supplies to reduce transportation times and minimize infection exposure, aerial spraying of public areas to disinfect potentially contaminated areas and public space monitoring and guaranty. In the event of the COVID-19 pandemic, these applications have increased demand for different types of drones to capture ground activities from the sky.

Moreover, post-pandemic, several logistics companies are focusing on developing a network for last mile deliveries based on drones, which in turn is expected to boost the growth of the drone logistics market during the forecast period.

KEY FINDINGS OF THE STUDY

• By component, the services segment is anticipated to exhibit significant growth in the near future.
• By application, the transportation management segment is anticipated to exhibit significant growth in the near future.
• By end-use, the commercial 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 drone logistics market include Amazon.com Inc., Deutsche Post DHL Group, Drone Delivery Canada, DroneScan, FedEx, Flytrex Inc., Hardis Group, Infinium Robotics, Matternet, Pinc Solutions, United Parcel Service of America, Inc., Wing Aviation LLC, Workhorse Group, Wingcopter, and Zipline International Inc.