Drone Logistics and Transportation Market

Global Drone Logistics & Transportation Market Research Report: By Application (Warehouse & Storage Management and Transportation Management), By Component (Hardware, Software, and Services), By End-Use (Commercial and Military), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.

ICT & Media | September 2023 | Report ID: EMR0093 | Pages: 217

The global market for drone logistics and transportation had a value of USD 0.87 billion in 2022 and is projected to reach approximately USD 13.13 billion by 2031, growing at a CAGR of 35.2% from 2023 to 2031. Drone technology is revolutionizing the transfer of goods and services in the rapidly evolving field of drone logistics and transportation. Unmanned aerial vehicles (UAVs) offer several advantages compared to traditional transportation methods, including speed, cost-effectiveness, and accessibility. Drones can reach remote locations that are often challenging for conventional vehicles to access, and they can navigate through crowded areas with ease. In the logistics industry, drones are being utilized for last-mile deliveries, enabling businesses to enhance efficiency and customer satisfaction. Additionally, drones play a critical role in emergency response scenarios by facilitating the delivery of relief and medical supplies to disaster-affected areas.

 

 

DRONE LOGISTICS & TRANSPORTATION MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2022)

0.87 Bn

Projected Market Value (2031)

13.13 Bn

Base Year

2022

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Component, By Application, By End-Use, & Region

Segments Covered

By Component, By Application, By End-Use, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Drone Logistics & Transportation Market Dynamics

The increasing demand for faster and more efficient delivery services is a significant driver in the growth of the drone logistics industry. Drones offer the advantage of swift and reliable deliveries, particularly for last-mile logistics, resulting in reduced transit times and increased customer satisfaction. Moreover, the need for cost-effective transportation solutions has contributed to the expansion of the industry, as drones require less infrastructure investment compared to traditional forms of transportation. Advancements in drone technology, such as improved payload capacity and longer flight times, have further unlocked the potential of drones for various logistical applications. Additionally, favorable regulatory frameworks and government initiatives supporting the commercial use of drones have facilitated the industry's growth and adoption of drone-based logistics solutions.

 

Global Drone Logistics & Transportation Market Drivers

  • Technological Advancements

Advances in drone technology, including improved battery life, payload capacity, and autonomous navigation systems, have expanded the capabilities of drones for logistics and transportation. These advancements have made drones more reliable, safe, and capable of carrying heavier payloads over longer distances.

  • Efficiency and Cost Reduction

 

Restraints:

  • Limited Payload Capacity

Drones have limitations in terms of the payload they can carry. While small packages and lightweight items can be delivered efficiently, transporting bulky or heavy goods remains a challenge. This restricts the scope of drone logistics to certain industries and limits its overall market potential.

  • Drone Logistics Adoption Requires a High Level of Safety.

 

Opportunities:

  • Healthcare and Emergency Services

Drones have the potential to revolutionize healthcare logistics by enabling the rapid delivery of medical supplies, vaccines, and organs for transplantation. In emergency situations, drones can provide critical support by delivering life-saving equipment and supplies to remote or inaccessible areas.

  • Environmental Sustainability

 

Segment Overview

By Component

Based on the component, the global drone logistics & transportation market is divided into hardware, software, and services. The hardware category dominates the market with the largest revenue share of around 52.5% in 2022. Drone hardware components such as drones, batteries, propulsion systems, sensors, and cameras are required for physical functioning. As drone technology advances, so does the demand for high-quality gear with greater performance and capabilities. Longer flight periods, better cargo capacity, and improved navigation systems are examples of how hardware innovation fosters the development and acceptance of new drone technology.

 

By Application

Based on application, the global drone logistics & transportation market is divided into warehouse & storage management and transportation management. The transportation management dominates the market with the largest revenue share of around 32.5% in 2022. As drone technology is used more widely, there will be a larger demand for effective drone fleet management and coordination. Route optimization, delivery tracking, and regulatory compliance will all be greatly helped by transportation management technologies.

 

By End-Use

Based on end-use, the global drone logistics & transportation market is divided into commercial and military. The military category dominates the market with the largest revenue share of around 62.5% in 2022. Military organizations throughout the world were among the first to use drone technology for a variety of purposes, including surveillance, reconnaissance, and combat operations. The military industry has made enormous investments in the development and deployment of sophisticated drones, propelling it to market domination over the forecast period.

 

Global Drone Logistics & Transportation Market Overview by Region

By Region, the global drone logistics & transportation market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America holds the largest market share, accounting for approximately 43.5% of the global drone logistics & transportation market in 2022. The region boasts numerous influential companies and technological innovators in the drone industry, driving the development and adoption of advanced drone logistics solutions. With a well-established e-commerce ecosystem, there is a high demand for efficient and prompt delivery services in North America. The region also benefits from a robust regulatory framework that enables the integration of drones into commercial operations. Supported by a large consumer base, favorable infrastructure, and strong logistics capabilities, North America provides an ideal environment for the expansion of drone logistics and transportation services. These factors collectively position North America as a prominent market leader in the drone logistics & transportation industry.

 

 

Global Drone Logistics & Transportation Market Competitive Landscape

In the global drone logistics & transportation market, several key players dominate the industry and hold a strong regional presence. These influential companies are dedicated to continuous research and development efforts and actively engage in strategic growth initiatives such as product creation, launches, partnerships, and joint ventures. By pursuing these tactics, they aim to enhance their market position and expand their customer base, securing a significant portion of the market share.

Among the prominent companies operating in the global drone logistics & transportation market are Zipline International Inc., Deutsche Post DHL Group, Workhorse Group Incorporated, Hardis Group, Flytrex Inc., PINC Solutions, FedEx Corporation, Drone Delivery Canada, Amazon.com, Inc., Wing Aviation LLC, United Parcel Service of America, Inc., Wingcopter GmbH, Infinium Robotics, and various other key players.

 

Global Drone Logistics & Transportation Market Recent Developments

In March 2023, Zipline has introduced its latest aircraft, known as the P2 Zip or Platform 2, aimed at making swift airborne deliveries a convenient and commonplace service for consumers throughout the United States, including densely populated urban areas. The P2 Zip drone is designed to transport payloads weighing up to eight pounds, covering distances of up to ten miles, and delivering items to specific destinations, such as a table or porch, even in compact locations.

 

Scope of the Global Drone Logistics & Transportation Market Report

Drone Logistics & Transportation Market Report Segmentation

ATTRIBUTE

DETAILS

By Component

  • Hardware
  • Software
  • Services

 

By Application

  • Warehouse & Storage Management
  • Transportation Management

 

By End-User

  • Commercial
  • Military

 

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

 

  • Global Drone Logistics & Transportation Market Size and Forecast:

To identify and estimate the market size for the global drone logistics & transportation market segmented by component, by application, by end-use, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of Drone Logistics & Transportation between 2019 and 2031.

 

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global drone logistics & transportation market

 

  • Market Influencing Factors:

To find out the factors which are affecting the sales of drone logistics & transportation among consumers

 

  • Impact of COVID-19:

To identify and understand the various factors involved in the global drone logistics & transportation market affected by the pandemic

 

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

 

Intended Audience

  • Drone Logistics & Transportation Manufacturers
  • Raw Material Suppliers
  • Retailers, Wholesalers, and Distributors
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global drone logistics & transportation market forecast period is 2023 - 2031
According to drone logistics & transportation market research, the market is expected to grow at a CAGR of ~35.2% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2023 - 2031
North America held the largest share in 2022
The top players operating in the global drone logistics & transportation market include Zipline International Inc., Deutsche Post DHL Group, Workhorse Group Incorporated, Hardis Group, PINC Solutions, FedEx Corporation, Drone Delivery Canada, Amazon.com, Inc., United Parcel Service of America, Inc., Wingcopter GmbH, Infinium Robotics, and others.