Global Drone Logistics and Transportation Market Overview

The Global Drone Logistics and Transportation market size is estimated to reach $27.3 billion by 2026, growing at a CAGR of 16.8% over the forecast period of 2022-2026. Drones are devices that can take inventory in a logistics warehouse, transport goods by air, or perform security tasks. The increasing use of unmanned aerial vehicles (UAVs) in various business applications for faster goods delivery is fueling the global market for drone logistics and transport. In addition, the rising trend in e-commerce is also increasing demand in the drone logistics and transport market.

Drones are gaining traction in the logistics industry as they provide various benefits associated with applications such as shipping, warehousing, security monitoring, and disaster recovery. Various supportive initiatives by governments in different countries related to drones' use for logistics fuel the market's sales growth. Drones have immense potential to disrupt ocean freight by streamlining the inspection and verification process. For railways, logistics; Transport drones are likely used to retrieve packages from a train as it approaches a specific destination and delivers the package to the intended recipient.

Impact of COVID-19:

Increasing supply chain and manufacturing disruptions have limited the sales of drones owing to the COVID-19 outbreak. COVID-19 lockdowns impacted the availability of subcomponents to the assembling companies in a snowball effect. Drones help provide safety and reduce cost per delivery and delivery time, thus increasing profits.

Key Takeaways from Global Drone Logistics and Transportation Market Report:

• Evaluate market potential through analyzing growth rates (CAGR %), Volume (Units), and Value ($M) data given at country level – for Solution, Sector, Drone Type, and by different industry verticals.
• Understand the different market dynamics – key driving factors, challenges, and hidden opportunities.
• Get in-depth insights on your competitor's performance – market shares, strategies, financial benchmarking, product benchmarking, SWOT, and more.
• Analyze the sales and distribution channels across key geographies to improve top-line revenues.
• Understand the industry supply chain with a deep dive on the value augmentation at each step to optimize value and bring efficiencies in your processes.
• Get a quick outlook on the market entropy – M&As, deals, partnerships, product launches of all key players for the past four years.
• Evaluate the supply-demand gaps, import-export statistics, and regulatory landscape for more than the top 20 countries globally for the market.

By Solution, the market for the Infrastructure Segment to grow at the highest CAGR during the forecast period

During the forecast period, the elective surgery segment market is predicted to develop at the fastest rate of XX%. The infrastructure segment accounted for the largest revenue share in 2020. Drones find wide application in inspecting infrastructure after a disaster to assess risk. Marine surveyors also deploy drone Logistics and transportation for physical scrutiny of vessels and cargo; whereas, loss adjusters deploy drones to evaluate ships for any damage. The use of drones allows for easier and quicker scrutiny of ships and cargo.

Drone Logistics and transportation helps improve the security of both people and assets. By offering continuous surveillance coverage of the wide-ranging transport network and fast-response when safety- and security-related occurrences are detected at places or locations that are difficult to access using existing security methods and resources.

By Drone Type, Ambulance Segment to grow at the highest CAGR during the forecast period.

The ambulance segment is predicted to develop at the fastest CAGR during the projection period. It is essential to provide proper first-aid or treatment as soon as possible after an accident to leverage the possibility of further deterioration and improve the potential of survival. Also, faster delivery of emergency response services can prove critical in preventing deaths and speeding up recovery in heart failure, traumas, drowning, and respiratory problems. Drones are considered helpful in faster transportation of lifesaving technologies, including medication and cardiopulmonary resuscitation (CPR).

In the EU, around 800.000 individuals annually experience cardiac arrest, out of which the survival rate is only 8%. The primary reason for the low rate is emergency services' relatively slow response time. Also, the freight drones segment accounted for the largest revenue share in 2020. The primary benefits of freight drones include avoiding road congestion and delays during transportation, providing rapid and on-demand delivery services, easy operability and lower cost for air-based cargo services, and enhanced access to customers in remote locations.

North America to account for the largest market share during the forecast period.

North America held the largest share of the Drone Logistics and Transportation market in 2020, with a global market share of 33%. The growth of this region is owing to the rapid adoption of advanced technologies, relaxation of federal laws about the use of drones for commercial purposes, increasing the defense budget, and increasing investment in the use of drones by companies such as Walmart and Amazon. In addition, the presence of leading players such as Drone Delivery Canada is supporting market growth.

The Asia Pacific is set to be the fastest-growing over 2021-2026. This growth is owing to the development of the organized retail sector, the rising popularity of e-Commerce, especially in developing countries such as India, and the emergence of third-party logistics (3PL) and fourth-party logistics (4PL) service providers. Also, rising disposable income and a more extensive consumer base in the Asia Pacific are factors fueling the growth of the market in the region.

Market Dynamics

Driver:

The Increasing demand for drones in last-mile delivery solutions to leverage cost reduction benefits.

Increasing demand for drones in last-mile delivery solutions to leverage cost reduction benefits is crucial, fueling market revenue growth. For example, Prime Air delivery drones Amazon could ship out parcels directly from warehouses to each customer within 30 minutes for a minimal price of USD 1.00. Companies engaged in the last mile and small package delivery are considered the most appropriate logistics business units for the initial deployment of drones, owing to the characteristics and current technological limitations. Thus, rising demand for last-mile delivery by e-Commerce firms and online food delivery services providers like Dominos is driving demand for drone logistics and transportation.

Challenge:

The issues associated with drone battery backup may hamper revenue growth.

The issues associated with drone battery backup may hamper revenue growth to some extent over the forecast period. Drone flight time capacity is relatively short owing to the need to balance a drone's power and weight ratio. The lithium-polymer battery, which is used in most drones, offers limited backup. Also, short flight time is due to manufacturers' programming of smart batteries to extend battery service life. These smart batteries will discharge themselves till they reach around 30% of the storage capacity. Thus, the drone may not achieve its full flight time due to batteries self-discharging during flight.

Key Market Players

Key Players in the Global Drone Logistics and Transportation Market consist of Zipline, CANA Advisors, Flirtey, Flytrex Aviation Limited, Hardis Group, Drone Delivery Canada, Workhorse Group PLC, Matternet, PINC Solutions, and Uber Technologies Inc.

Recent Developments:

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

Report Coverage and Scope

The report "Global Drone Logistics and Transportation Market" by Research Informatic covers an in-depth detailed analysis for the following segment covered under the scope.

By Solution

• Warehousing
• Shipping
• Infrastructure
• Software

By Sector

• Military
• Commercial

By Drone Type

• Freight drones
• Passenger drones
• Ambulance drones

By Geography

• North America
• Europe
• APAC
• RoW

Chapter 1 Drone Logistics and Transportation Market Overview

1.1 Product Overview and Scope of Drone Logistics and Transportation

1.2 Drone Logistics and Transportation Market Segmentation By Solution

1.2.1 Warehousing

1.2.2 Shipping

1.2.3 Infrastructure

1.2.4 Software

1.3 Drone Logistics and Transportation Market Segmentation By Sector

1.3.1 Military

1.3.2 Commercial

1.4 Drone Logistics and Transportation Market Segmentation by Regions

1.4.1 North America

1.4.2 China

1.4.3 Europe

1.4.4 Southeast Asia

1.4.5 Japan

1.4.6 India

1.5 Global Market Size (Value) of Drone Logistics and Transportation (2015-2027)

Chapter 2 Global Economic Impact on Drone Logistics and Transportation Industry

2.1 Global Macroeconomic Environment Analysis

2.1.1 Global Macroeconomic Analysis

2.1.2 Global Macroeconomic Environment Development Trend

2.2 Global Macroeconomic Environment Analysis by Regions

Chapter 3 Global Drone Logistics and Transportation Market Competition by Manufacturers

3.1 Global Drone Logistics and Transportation Production and Share by Manufacturers (2020 and 2021)

3.2 Global Drone Logistics and Transportation Revenue and Share by Manufacturers (2020 and 2021)

3.3 Global Drone Logistics and Transportation Average Price by Manufacturers (2020 and 2021)

3.4 Manufacturers Drone Logistics and Transportation Manufacturing Base Distribution, Production Area and Product Type

3.5 Drone Logistics and Transportation Market Competitive Situation and Trends

3.5.1 Drone Logistics and Transportation Market Concentration Rate

3.5.2 Drone Logistics and Transportation Market Share of Top 3 and Top 5 Manufacturers

3.5.3 Mergers & Acquisitions, Expansion

Chapter 4 Global Drone Logistics and Transportation Production, Revenue (Value) by Region (2015-2021)

4.1 Global Drone Logistics and Transportation Production by Region (2015-2021)

4.2 Global Drone Logistics and Transportation Production Market Share by Region (2015-2021)

4.3 Global Drone Logistics and Transportation Revenue (Value) and Market Share by Region (2015-2021)

4.4 Global Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

4.5 North America Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

4.6 Europe Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

4.7 China Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

4.8 Japan Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

4.9 Southeast Asia Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

4.10 India Drone Logistics and Transportation Production, Revenue, Price and Gross Margin (2015-2021)

Chapter 5 Global Drone Logistics and Transportation Supply (Production), Consumption, Export, Import by Regions (2015-2021)

5.1 Global Drone Logistics and Transportation Consumption by Regions (2015-2021)

5.2 North America Drone Logistics and Transportation Production, Consumption, Export, Import by Regions (2015-2021)

5.3 Europe Drone Logistics and Transportation Production, Consumption, Export, Import by Regions (2015-2021)

5.4 China Drone Logistics and Transportation Production, Consumption, Export, Import by Regions (2015-2021)

5.5 Japan Drone Logistics and Transportation Production, Consumption, Export, Import by Regions (2015-2021)

5.6 Southeast Asia Drone Logistics and Transportation Production, Consumption, Export, Import by Regions (2015-2021)

5.7 India Drone Logistics and Transportation Production, Consumption, Export, Import by Regions (2015-2021)

Chapter 6 Global Drone Logistics and Transportation Production, Revenue (Value), Price Trend by Type

6.1 Global Drone Logistics and Transportation Production and Market Share by Type (2015-2021)

6.2 Global Drone Logistics and Transportation Revenue and Market Share by Type (2015-2021)

6.3 Global Drone Logistics and Transportation Price by Type (2015-2021)

6.4 Global Drone Logistics and Transportation Production Growth by Type (2015-2021)

Chapter 7 Global Drone Logistics and Transportation Market Analysis by Application

7.1 Global Drone Logistics and Transportation Consumption and Market Share by Application (2015-2021)

7.2 Global Drone Logistics and Transportation Consumption Growth Rate by Application (2015-2021)

7.3 Market Drivers and Opportunities

7.3.1 Potential Applications

7.3.2 Emerging Markets/Countries

Chapter 8 Drone Logistics and Transportation Manufacturing Cost Analysis

8.1 Drone Logistics and Transportation Key Raw Materials Analysis

8.1.1 Key Raw Materials

8.1.2 Price Trend of Key Raw Materials

8.1.3 Key Suppliers of Raw Materials

8.1.4 Market Concentration Rate of Raw Materials

8.2 Proportion of Manufacturing Cost Structure

8.2.1 Raw Materials

8.2.2 Labour Cost

8.2.3 Manufacturing Expenses

8.3 Manufacturing Process Analysis of Drone Logistics and Transportation

Chapter 9 Industrial Chain, Sourcing Strategy and Downstream Buyers

9.1 Drone Logistics and Transportation Industrial Chain Analysis

9.2 Upstream Raw Materials Sourcing

9.3 Raw Materials Sources of Drone Logistics and Transportation Major Manufacturers in 2021

9.4 Downstream Buyers

Chapter 10 Marketing Strategy Analysis, Distributors/Traders

10.1 Marketing Channel

10.1.1 Direct Marketing

10.1.2 Indirect Marketing

10.1.3 Marketing Channel Development Trend

10.2 Market Positioning

10.2.1 Pricing Strategy

10.2.2 Brand Strategy

10.2.3 Target Client

10.3 Distributors/Traders List

Chapter 11 Market Effect Factors Analysis

11.1 Technology Progress/Risk

11.1.1 Substitutes Threat

11.1.2 Technology Progress in Related Industry

11.2 Consumer Needs/Customer Preference Change

11.3 Economic/Political Environmental Change

Chapter 12 Global Drone Logistics and Transportation Market Forecast (2021-2027)

12.1 Global Drone Logistics and Transportation Production, Revenue Forecast (2021-2027)

12.2 Global Drone Logistics and Transportation Production, Consumption Forecast by Regions (2021-2027)

12.3 Global Drone Logistics and Transportation Production Forecast by Type (2021-2027)

12.4 Global Drone Logistics and Transportation Consumption Forecast by Application (2021-2027)

12.5 Drone Logistics and Transportation Price Forecast (2021-2027)

Chapter 13 Appendix