by The delivery drones market involves products that are used for delivering packages within a defined geographic range using drones or uncrewed aerial vehicles (UAV). Delivery drones have self-piloting features and lift capabilities that allow them to transport packages weighing up to 5 kgs over short distances between pickup and drop points. They can deliver products such as food, medicines, documents, and small parcels within 30 minutes. Delivery drones are witnessing increasing adoption as they provide cost-effective and faster last-mile delivery solutions to e-commerce retailers and logistics companies compared to traditional ground-based transport.
The global delivery drones market is estimated to be valued at US$ 497.5 Mn in 2024 and is expected to exhibit a CAGR of 41.% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the delivery drones market are Airbus SE, Deutsche Post DHL Group, Drones America, EHang, JD.com, Matternet Inc., SKYCART INC., SZ DJI Technology Co. Ltd., The Boeing Company, and Wing Aviation LLC. Key players such as DHL and Wing are rapidly expanding their drone delivery fleets to dozens of new locations across the US and globally.
The demand for delivery drones is growing swiftly owing to the expansion of the e-commerce industry and online shopping trends. Retailers and logistics companies are actively adopting drone deliveries to provide their customers with goods in less than 30 minutes.
Major players like Amazon and JD.com have received approvals to start commercial BVLOS delivery drone operations in several countries. This signals the start of large-scale global expansion of the delivery drone market beyond testing in the coming years.
Market Key Trends
One of the key trends in the delivery drones market is the development of hybrid delivery drones with vertical take-off and landing (VTOL) capabilities. VTOL drones can take off from pickup points, fly fast for delivery over short distances, and land precisely at customer locations without needing runways. This gives delivery companies flexibility to develop widespread last-mile delivery networks using small drones. Key players like EHang are heavily investing in VTOL delivery drone technologies to gain an edge in this emerging market.
Porter’s Analysis
Threat of new entrants: Delivery drone manufacturers require high capital expenditure for research & development which deters new players. Bargaining power of buyers: Large buyers such as e-commerce giants have stronger bargaining power due to high volume orders. Bargaining power of suppliers: Specialized component manufacturers enjoy significant bargaining power as buyers depend on a few vendors for supplies. Threat of new substitutes: Autonomous vehicles can emerge as substitutes however drones have advantages in terms of lower operational costs. Competitive rivalry: Intense competition exists among global players to capture more market share through technological innovations.
Geographical Regions
North America accounts for the largest share of the global delivery drones market in terms of value due to increasing demand for quick deliveries from e-commerce companies.
The delivery drones market is projected to grow fastest in the Asia Pacific region during the forecast period driven by a surge in online shopping, supportive government policies and investments by market players in countries such as India and China.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
