Global Drone Package Delivery Market Set to Reach USD 6,051 Million 2026 – Facts & Factors
Global Drone Package Delivery Market is Growing Due to Soaring Retail and E-Commerce Sector in Urban Areas and Retail Companies Leveraging New Technologies for Rapid Delivering
Drones are is an unmanned aerial vehicle and is operated with different degrees of autonomy. Drone deliveries are carried out using manually operated or autonomous unmanned aerial vehicles (UAV). Drones can be used for delivering packages, food, and beverages, medical supplies, etc. Drone is used for delivering medicinal and pharmaceutical products, food and beverages, etc. Drones have up to 4-8 propellers and are rechargeable. Drones are used for packaged delivery because these UAV’s can travel through congested streets and make sure that the product is delivered quickly.
The global drone package delivery market was valued at around USD 530 million in the year 2019 and is estimated to grow at a CAGR of approximately 42% over the projected period and is estimated to be valued at a market value of USD 6,051 million by the end of 2026.
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Drones were mainly developed for military applications in 2006. However, several federal authorities have allowed the use of drones for business purposes. In 2006, the U.S. Federal Aviation Administration issued the first permit for the use of drones for commercial purposes. Companies operating in industries like retail, logistics, and food and beverages are leveraging the use of drones for package delivery, as drones can travel faster than delivery vans through congested areas. Drones can ensure a quick delivery by flying over buildings and various types of obstacles. Drones are being used by companies for quick delivery in areas where delivery cars and vans are unable to reach. In 2019, Prime Air received permission to fly R&D missions in specific flight areas. Also, United Parcel Service (UPS), in 2020, partnered with Wingcopter to design and develop a delivery drone, which is expected to be used by United Parcel Service (UPS) for logistic purposes. In October 2019, Flight Forward, a subsidiary of United Parcel Service (UPS), was granted permission to operate a drone airline. Logistic and retail companies are looking for drones that can travel for longer durations and deliver packages to real-time locations. Further, many logistic companies are working with drone companies to develop drones with long ranges, ensuring delivery to rural areas.
One of the key driving factors for the market is the rising use of drones for commercial purposes. Logistic companies are using drones for reducing the time and costs associated with package delivery. Retail and logistic companies are more inclined towards using drones for the delivery of low cost as well as lightweight packages. Further, the development of autonomous drone technology by several companies is expected to create new avenues for the global drone package delivery market. The rise of technologies such as wireless charging, advanced battery technologies, long-range communication technologies, and the use of analytics for drone delivery is anticipated to create avenues for the global drone package delivery market in years ahead. However, complexity and technical barriers associated with operating drones as well as the high cost of UAVs are some of the factors that are restraining the market growth.
Top Market Players
- Edronic
- DHL International GmbH
- Drone Delivery Canada Corp.
- Matternet Inc.
- FedEx
- Zipline
- Flirtey
- Amazon.com Inc.
- BIZZBY
- Flytrex
- Boeing
- United Parcel Service of America Inc.
- Workhorse Group Inc.
- Cheetah Logistics Technology
- Altitude Angel
- Airbus S.A.S.
- Wing Aviation LLC
- Skycart Inc.
- DroneScan
- Fli Drone
To know an additional revised 2020 list of market players, request a sample report
In terms of solution, the drone package delivery market worldwide is classified into software, infrastructure, service, and platform. Based on solutions, the service segment held the major share in the global drone package delivery market in 2019, accounting for a market share of 35% in 20199. Based on the range, the drone package delivery market is segmented into a long-range and short-range. In 2019, the short-range segment held a major share in the global market, however, the long-range segment is expected to record the highest growth over the forecasted period. Based on package size, the global drone package delivery market is bifurcated into less than 2 Kg, between 2-5 Kg, and more than 5 Kg. Based on geography, the market is segmented into North America, Europe, APAC, Latin America, and the Middle East and Africa. North America held a major share in the global drone package delivery market in 2019.
Frequently Asked Questions
What is Drone Package Delivery?
Drone package delivery is referred to as the delivery of a package using an unmanned aerial vehicle (UAV) or drone. Drone package delivery helps retailers and logistic companies in quick delivery and reducing delivery timing and cost.
What are the key factors responsible for the growth in the drone package delivery market?
The global retail and logistic industries have experienced soaring growth due to the rapid increase in e-commerce shipments around the world. This has influenced companies in adopting new technologies for ensuring fast and safe product delivery, which has been driving the global drone package delivery market.
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Which region is expected to make significant contributions towards drone package delivery market growth globally?
Asia Pacificdrone package delivery market is expected to record the fastest growth in years ahead, owing to rapid growth in the retail sector and adoption of new technologies by logistics companies in China, Japan, and South Korea. Asia Pacific held a share of nearly 28% in the drone package delivery market worldwide in 2019.
Which are the major players operating in the drone package delivery industry worldwide?
Major companies operating in the drone package delivery industry are Edronic, FedEx, Zipline, DHL International GmbH, BIZZBY, Flirtey, Flytrex, Drone Delivery Canada Corp., Amazon.com, Inc., Boeing, Matternet, Inc., United Parcel Service of America, Inc., Cheetah Logistics Technology, Altitude Angel, Workhorse Group Inc., Airbus S.A.S., Wing Aviation LLC, DroneScan, Skycart Inc., and Fli Drone.
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