Market Size of Drone Logistics Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR (2024 - 2029) | 4.00 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Drone Logistics Market Analysis
The Global Drone Logistics Market is expected to register a CAGR of greater than 4% during the forecast period.
- Key drivers of market revenue growth include the rising adoption of drones for expedited deliveries, bolstered by the expanding e-commerce landscape, heightened R&D investments in drone technology, and broader technological advancements. Once exclusive to military applications, drones now play a pivotal role in global logistics and transportation.
- Unmanned aerial vehicles (UAVs) are swiftly becoming a norm for consumer package deliveries, often completing trips in mere minutes, especially in select regions. In 2022, over ten drone operators managed over 5,000 commercial deliveries, with a leading player boasting hundreds of thousands of successful shipments. The global drone delivery count surged by over 80% from 2021 to 2022, nearing 875,000 deliveries. Notably, June 2023 alone witnessed 500,000 commercial drone deliveries.
- Highlighting the trend, the UK government is spearheading the concept of 'drone corridors' to streamline and expedite goods delivery. In a significant move in mid-2022, it greenlit 'Project Skyway,' paving the way for a 265 km UAV corridor. PwC's 'Skies Without Limits v2.0' report projects that such UAV adoption could yield a net cost saving of EUR 22 billion by 2030, slash carbon emissions by 2.4 million tonnes, and generate 650,000 jobs in the United Kingdom.
- The most significant impact of drone deliveries is evident in the last-mile segment. Amazon, a frontrunner in logistics, introduced its 'Prime Air' drones in 2020. These drones can whisk packages from the warehouse to the customer in just 30 minutes at a mere USD 1 cost. Beyond deliveries, operational efficiencies are also on the horizon. By bypassing the traditional steps of warehousing, truck loading, and customer deliveries, drones promise significant time savings.
Drone Logistics Industry Segmentation
Drone logistics is the use of drones to transport packages from a base location to a customer's site. Drones are small or medium-sized unmanned aerial vehicles (UAVs) that can drive remotely and autonomously. They can receive remote commands from a pilot or rely on software for autonomous flight.
The drone logistics market is segmented by component (software, hardware, and services), by application (warehouse and storage management, and transportation management), by end-user (commercial, military, and others), by geography (North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America). The report offers market sizes and forecasts in USD for the above-mentioned segments.
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Software | |
Hardware | |
Services |
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Warehouse and Storage Management | |
Transportation Management |
By End-user | |
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Military |
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Drone Logistics Market Size Summary
The drone logistics market is experiencing significant growth, driven by the increasing adoption of drones for rapid deliveries and advancements in drone technology. Originally used for military purposes, drones have now become integral to global logistics and transportation, particularly in the e-commerce sector. The market is witnessing a surge in commercial drone deliveries, with major players like Amazon and Walmart leading the charge by integrating drone delivery systems into their operations. These unmanned aerial vehicles are revolutionizing last-mile deliveries, offering substantial time and cost savings by bypassing traditional logistics steps. The development of drone corridors, such as the UK's 'Project Skyway,' further underscores the growing acceptance and implementation of drone logistics solutions.
Regulatory frameworks are evolving to support the expansion of drone logistics, with initiatives like the US FAA's Beyond the Visual Line of Sight Advisory and Rulemaking Committees paving the way for more extensive drone operations. The market is highly fragmented, with numerous international players like Wingcopter GmbH, Amazon.com, and Infinium Robotics competing for market share through strategic partnerships and technological innovations. Investments in drone technology are on the rise, with significant funding and government incentives, particularly in regions like India, enhancing the industry's growth prospects. As drones continue to prove their efficiency and eco-friendliness, they are poised to become a mainstream solution for logistics challenges worldwide.
Drone Logistics Market Size - Table of Contents
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1. Market Insights
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1.1 Current Market Scenario
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1.2 Government Regulations and Initiatives
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1.3 Technological Trends and Automation Insights
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1.4 Impact of the COVID-19 Pandemic on the Market
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2. Market Segmentation
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2.1 By Component
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2.1.1 Software
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2.1.2 Hardware
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2.1.3 Services
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2.2 By Application
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2.2.1 Warehouse and Storage Management
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2.2.2 Transportation Management
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2.3 By End-user
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2.3.1 Commercial
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2.3.2 Military
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2.4 By Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 France
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2.4.2.3 Italy
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2.4.2.4 United Kingdom
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2.4.2.5 Spain
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2.4.2.6 Rest of Europe
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2.4.3 Asia Pacific
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2.4.3.1 China
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2.4.3.2 India
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2.4.3.3 Japan
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2.4.3.4 Australia
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2.4.3.5 Singapore
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2.4.3.6 Indonesia
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2.4.3.7 South Korea
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2.4.3.8 Malaysia
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2.4.3.9 Rest of Asia-Pacific
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2.4.4 Middle East and Africa
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2.4.4.1 Saudi Arabia
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2.4.4.2 Qatar
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2.4.4.3 Oman
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2.4.4.4 Rest of Middle East and Africa
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2.4.5 Latin America
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2.4.5.1 Brazil
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2.4.5.2 Argentina
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2.4.5.3 Chile
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2.4.5.4 Rest of Latin America
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Drone Logistics Market Size FAQs
What is the current Drone Logistics Market size?
The Drone Logistics Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Drone Logistics Market?
Wingcopter GmbH, Amazon.com, Infinium Robotics and Drone Delivery Canada are the major companies operating in the Drone Logistics Market.