Global Drone Logistics & Transportation Market 2023-2030

Title: Global Drone Logistics & Transportation Market Size, Share & Trends Analysis Report by Sector (Commercial, Military), by Application (Retail & Logistics, Food Delivery, Medical Supply) Forecast Period (2023-2030).

The global drone logistics & transportation market is anticipated to grow at a considerable CAGR of 14.5% during the forecast period. The growing investment in drone startups, increasing demand for drone logistics to reduce traffic jams are some of the key factors driving the global drone logistics & transportation market. In May 2023, the European investment Bank announced to provide a Euro 40 million quasi-equity investment into Wingcopter GmbH, a provider of unmanned delivery drone technology and related services. The growing investment in drone logistics and transportation market is further anticipated to drive the market growth.

For instance, in April 2023, Scandron, the logistic drone manufacturer in India, and CriticaLog India, a technology-driven logistics company, announced a strategic partnership to provide drone-based logistics solutions. Under this partnership, CriticaLog will handle all customer-facing operations and Scandron will manage all drone-related operations. Drone deliveries would be used for both internal logistics and third-party customer requirements. Rising partnership among key market players is further contributing to the market growth.

However, the lack of a UAV traffic management system, differences in logistical operations, payloads, size, and the ongoing public debate over privacy and security concerns are restraining the market growth.

Segmental Outlook

The global drone logistics & transportation market is segmented based on sector and application. Based on sector, the market is segmented into commercial and military. Based on application, the market is sub-segmented into retail & logistics, food delivery, and medical supply.

Retail & Logistics Holds a Considerable Share in the Global Drone logistics & transportation Market

The retail and logistics segment is anticipated to hold a prominent share in the market during the forecast period owing to the amplified demand for drones for delivering packages and parcels from retailers, last-mile delivery companies, e-commerce providers, shore-to-ship drone operations, and postal companies to consumers, and end-users. Local postal authorities and major e-commerce companies are collaborating with local governments to launch drone delivery services for minimizing the efforts to deliver parcels and packages to mountainous areas, remote islands, and cities. For instance, in October 2021, Royal Mail did test of autonomous Unmanned Aerial Vehicle (UAV) with Windracers Ltd. from Kirkwall to North Ronaldsay. The test was a part of the Sustainable Aviation Test Environment (SATE) project situated at Kirkwall Airport.

Regional Outlooks

The global drone logistics & transportation market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, North America is expected to hold a considerable share of the market. The increasing use of drones for package delivery by major companies such as DHL, Amazon, and UPS is a key contributor to the regional market growth. High military expenditure along with rising usage of drones for military application is further driving the regional market growth.

The Asia-Pacific Region is Expected to Exhibit Considerable Growth in the Global Drone Logistics & Transportation Market

Asia-Pacific is anticipated to exhibit considerable growth in the global drone logistics & transportation market. The growing drone logistics in challenging environment of India along with rising government's interest in this market has resulted in their support and special regulations for drone delivery are major factors driving the regional market growth. In 2022, the Indian drone companies initiated various logistical operations, mainly in the north and south of India, delivering pharmaceuticals, lab samples, food, and groceries to remote areas.

The Bharat Drone Mahotsav 2022 held in New Delhi, gave a chance to many drone players to showcase their talent and potential for drone logistics. Skye Air introduced a drone traffic management system in February 2023 called Skye UTM. Before performing drone-based operations, the software will allow operators to plan routes, create flight plans, and evaluate risks. In April 2023, Drone tech startup TSAW Drones, based in New Delhi, announced a strategic partnership with Kanhaiya Life Care Medicine to initiate a first-of-its-kind B2C medicine drone delivery service in Kolkata. The vision behind the collaboration is to provide swift and efficient delivery of medicines to patients at their doorsteps while also cutting down on the delays caused by road traffic.

Market Players Outlook

The major companies serving the global drone logistics & transportation market include: Drone Delivery Canada, Amazon.com, Inc., Matternet, DHL Group, and Zipline International Inc. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2022, Omega Seiki Mobility, a maker of electric vehicles (EVs), has planned to roll out drone-mounted e-trucks as a logistics solution by early 2023. The detachable drones will be electrically powered and made in India.

The Report Covers:

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global drone logistics & transportation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying 'who-stands-where' in the market.