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Drone Logistics Transportation Market Size

ID: MRFR//7089-HCR | 168 Pages | Author: Swapnil Palwe| June 2024

The drone logistics and transportation market are shaped by several key factors that influence its growth and trajectory. One of the primary drivers of this market is the increasing demand for efficient and cost-effective last-mile delivery solutions. With the rise of e-commerce and online shopping, there is a growing need for rapid delivery of goods to consumers' doorsteps. Drones offer a promising solution for delivering small packages and parcels in congested urban areas, bypassing traffic congestion and reducing delivery times. As businesses seek to streamline their logistics operations and meet rising consumer expectations for fast and convenient delivery, the demand for drone logistics and transportation services continues to grow.

Moreover, advancements in drone technology and regulatory frameworks are driving innovation and adoption in the drone logistics market. Technological advancements have led to the development of drones with increased payload capacity, extended flight ranges, and enhanced autonomous navigation capabilities, making them more suitable for commercial logistics applications. Additionally, regulatory authorities are increasingly issuing permits and regulations to enable the safe and legal operation of drones for commercial purposes, further fueling market growth. As regulations become more favorable and technology continues to improve, businesses are increasingly exploring the use of drones for logistics and transportation tasks.

Furthermore, the COVID-19 pandemic has accelerated the adoption of drone logistics and transportation solutions, particularly for contactless delivery and medical supply transport. During the pandemic, drones were deployed for tasks such as delivering medical supplies, conducting contactless food deliveries, and monitoring public spaces for compliance with health regulations. These applications demonstrated the potential of drones to provide essential services in times of crisis and highlighted their role in enabling resilient and efficient supply chains. As businesses and governments recognize the benefits of drone technology in addressing logistical challenges, the demand for drone logistics solutions is expected to continue growing.

Additionally, the growing focus on sustainability and environmental conservation is driving interest in drone logistics as a greener alternative to traditional delivery methods. Drones produce fewer carbon emissions compared to traditional delivery vehicles, making them more environmentally friendly. As businesses seek to reduce their carbon footprint and adopt sustainable practices, the adoption of drone logistics solutions aligns with their environmental objectives. Moreover, drones can access remote or hard-to-reach areas without the need for additional infrastructure, reducing the environmental impact of transportation and logistics operations.

Moreover, the emergence of urban air mobility (UAM) and the development of drone delivery infrastructure are opening up new opportunities for the drone logistics market. UAM initiatives aim to integrate drones and other aerial vehicles into urban airspace to provide transportation and logistics services. As cities invest in UAM infrastructure such as vertiports, drone corridors, and air traffic management systems, the feasibility and scalability of drone logistics solutions are expected to increase. This creates opportunities for drone service providers and logistics companies to expand their offerings and tap into new markets.

Drone Logistics and Transportation Market Overview 


Drone Logistics and Transportation Market Size Anticipated to reach at a USD 35,170 Million by 2030 at a CAGR of 56% by 2024-2032. 


The drone logistics and transportation industry has been extending quicker with a considerable increment throughout the last couple of years. It is relied upon to observe fast development in the estimated period. Drone Logistics and Transportation Market share is anticipated to develop because of the expanded utilization of drones for an assortment of business and military applications.


The drones in transportation are used for the stock following, food conveyance, clinical stockpile conveyance, line observation, bundle conveyance, and other business and military purposes. Also, the presentation of online business has essentially expanded the size of the Drone Logistics and Transportation Market.


The drone’s logistics and transportation market are exceptionally divided, with a few players taking into account the expanding request. High contest among the business players prompts advancement, which draws in more customers. This, thus, drives market development.


Many vital participants are dispatching conveyance drones intending to offer conveyance administrations to its clients and fortify its situation in the drone logistics and transportation market. For instance, in September 2019, Flirtey dispatched another conveyance drone named Flirtey Eagle for protected and exact conveyance administrations.


The drone is the hardware equipped to make stock in a logistics stockroom, move merchandise via air, or complete security undertakings. Ascend in the use of automated flying vehicles (UAVs) in different business applications for the faster conveyance of items fuel the advancement of the worldwide drone logistics and transportation market.


The flooding pattern of online business exchange is also helping the interest in the drone logistics and transportation market. Basic guidelines regarding the utilization of drones concerning business use also help inspire the development of the drone logistics and transportation market during the figure time frame.


Recent News :


Partnerships and Acquisitions


Established logistics giants like DHL and FedEx are increasingly partnering with drone startups such as Zipline and Matternet to broaden their service offerings and extend their geographical reach. Additionally, the industry is seeing a wave of acquisitions as companies seek to consolidate expertise and strengthen their market positions.


Focus on Specific Applications


Companies are honing in on specific niches within the drone delivery market. For instance, Zipline has become a leader in medical supply delivery across Africa, while companies like Flytrex are making significant strides in urban drone deliveries for restaurants. This targeted approach allows these companies to address unique market needs and build specialized expertise.


COVID-19 Analysis


COVID-19 emergency is an unquestionable requirement for hopeful organizations and their keen chefs looking to observe achievement in the now changing drone administrations market scene.


Increasing store network and assembling disturbances are restricting the deals of drones inferable from the COVID-19 flare-up.


COVID-19 lockdowns are affecting the accessibility of subcomponents to the collecting organizations in a compounding phenomenon.


Drones help give security and decrease cost per conveyance and conveyance time, in this manner expanding benefits. Thus, this results in expanding and developing the business drone market.


In January 2024, DroneUp, a leading drone delivery company, received a significant exemption from the FAA. This exemption allows DroneUp to conduct deliveries beyond the visual line of sight (BVLOS) of the pilot, marking a pivotal step towards the broader adoption of drone delivery services. This regulatory milestone is expected to enhance the efficiency and reach of drone-based logistics, potentially transforming the delivery landscape.


Several companies, including Zipline, Wing, and DroneUp, have announced major advancements in 2024, highlighting their expanding roles within supply chains. These developments indicate that drone delivery is increasingly becoming an integral component of logistics operations, offering faster, more efficient solutions for transporting goods. The growing integration of drones into supply chain operations reflects their potential to revolutionize how goods are delivered, particularly in areas requiring rapid and flexible delivery options.


Drone Logistics and Transportation Market Dynamics


Drivers, Restraints, Opportunities, and Challenges


The critical factors affecting the development of the drone logistics market are expanding utilization of drones in business and military applications and exclusions by government flight organizations to contribute to the market development. In any case, issues identified with battery life and data transmission and the absence of prepared and talented staff may hamper the development of the auto drones logistics market.


Then again, the developing reception of advancements, for example, blockchain and remote charging, gives rewarding development freedoms to drone logistics and transportation players.


Expansion being used of drones in business and military applications


The transportation market analysis depicts the utilization of drones for quite a long time, and military applications have expanded the interest in drones. Significant instances contain stock administration, stock following, food conveyance, clinical supplies conveyance, line observation, and bundle conveyance.


Exclusions by government logistic organizations to contribute to market development


A portion of the special cases by the Federal Aviation Administration empower the use of drones in a few enterprises. Expanding the use of drones brings about siphoning up the development of the drone logistics and transportation market worldwide before very long.


Drone Logistics and Transportation Market Segment 


By Solution


Transportation: The section ruled the market in 2018. The rising reception of drones by online business organizations, for example, Amazon for transportation packages, is relied upon to drive the development of the fragment.


Warehousing: Increasing speculations by logistic organizations in the market to lessen functional expenses are relied upon to drive the development of the section. For instance, in 2018, Amazon documented a patent for an airborne satisfaction community, a distribution center situated at a high height that can keep a stock and convey products to clients through UAVs.


System: The improvement of cutting-edge drone charging cushions and foundation by organizations, for example, Sky sense, Inc., is relied upon to drive the development of the fragment.


Programming: The rising utilization of drone conveyance programming for different exercises, for example, stock administration, continuous bundle following, and course arranging, is relied upon to drive the development of the fragment. Henceforth, the product portion is used to enroll the most noteworthy CAGR during the estimated time frame.


By Drone


Cargo Drones: The portion overwhelmed the drone logistics and transportation market in 2018 and is relied upon to be the quickest developing during the audit time frame. The rising interest for cargo drones for last-mile conveyances is relied upon to drive the development of the fragment.


Travelers Drones: Rising interests in traveler drones, for example, e-VTOLs, are relied upon to drive the development of the portion.


Emergency vehicle Drones: The developing reception of drones for conveying clinical supplies by organizations, for example, Zipline, is driving the development of the section.


By Application


Business: The section overwhelmed the drone logistics and transportation market in 2018 and is relied upon to display a higher development rate during the estimated time of 2019 to 2028. Expanding reception of drones by online business organizations, for example, Amazon for last-mile conveyance, is relied upon to drive the development of the section.


Military: The rising utilization of drones by the US Army for freight conveyance is driving the development of the portion.


By Region


North America: North America overwhelmed the drone logistics and transportation market in 2018 and is projected to stay the biggest local market during the estimated time frame because of noticeable drone transportation and logistics specialist co-ops like FedEx and United Parcel Service of America, Inc.


Europe: The market in Europe is relied upon to develop at a consistent speed during the gauge time frame inferable from expanding joint efforts between drone logistics and transportation specialist organizations and eVTOL producers.


Asia-Pacific: The market in this area is projected to enlist the most noteworthy CAGR during the survey time frame inferable from the developing reception of drones by internet business monsters like Alibaba.


Center East and Africa: Investments by organizations, for example, Zipline, are driving business sector development in the area.


Latin America: The rising utilization of drones by online business organizations, for example, B2W, to offer fast conveyance and upgrade activities is driving business sector development in the district.


Cumulative Analysis


The drone logistics and transportation market is assessed to be esteemed at USD 11.20 Billion out of 2022 and is projected to arrive at USD 29.06 Billion by 2027, at a CAGR of 21.01% during the gauge time frame. This review aims to characterize, depict, portion, and conjecture the drone logistics and transportation market dependent on the arrangement, area, drone, and district.


Drone Logistics and Transportation Market Regional Analysis


The drone logistics company has been fragmented into North America, Europe, Asia Pacific, and the Middle East. The market in North America is relied upon to witness the most noteworthy CAGR during the gauge time frame attributable to the expanding reception of drones for bundle conveyance by organizations like Amazon, DHL, and UPS.


Competitive Analysis



  • United Parcel Service of America, Inc. (US)

  • DHL International GmbH (Germany)

  • FedEx (US)

  • PINC Solutions (US)

  • CANA Advisors (US)

  • Amazon (US)

  • Drone Delivery Canada (Canada)

  • Hardis Group (France)

  • Skysense, Inc. (US)

  • Zipline (US)

  • DroneScan (South Africa)

  • InfiniumDronesics (Singapore)

  • Workhorse (US)

  • SKYCART INC. (US)

  • Matternet (US)

  • Flirtey (US)

  • AIRMAP, INC. (US)

  • Altitude Angel (UK)

  • EHANG (China)

  • Flytrex (Israel)

  • Uber Technologies Inc. (US)

  • Alibaba (China)

  • Volocopter GmbH (Germany)

  • Ironic (Spain)

  • Skyward (US)

  • H3 Dynamics Holdings Pte. Ltd (Singapore)

  • Unifly NV (Belgium)

  • Sensefly (Switzerland)

  • FlytBase, Inc. (US)

  • Airbus SAS (Netherlands)


Recent News:


Zipline International received regulatory approval to deliver vaccines by drone in Rwanda. The approval comes after two years of pilot programs in the country, which have seen Zipline deliver over 20,000 blood units and vaccines to remote areas. (Source: The Verge, January 19, 2024)


Flirtey is partnering with Domino's to deliver pizzas by drone in Raleigh, North Carolina. The trial will see Flirtey deliver pizzas to select customers in the area. (Source: TechCrunch, January 17, 2024)


Drone Delivery Canada is partnering with A&W to deliver food by drone in Calgary, Canada. The trial will see Drone Delivery Canada deliver food to select A&W customers in the area. (Source: BetaKit, January 15, 2024)


Report Overview



  • From a knowledge viewpoint, the drone logistics and drone transportation market report centers around different degrees of examinations industry investigation, piece of the pie investigation of top players, and friends profiles, which together include and talk about essential perspectives on the cutthroat scene; high-development districts and nations and their administrative strategies; and drivers, openings, and difficulties.

  • The drone logistics and drone transportation market report gives experiences on the accompanying pointers:

  • Market Penetration: Information in regards to the cutthroat scene of the drone logistics and drone transportation market

  • Market Sizing: The assessed market size in 2022 and projection of the market from 2022 to 2027

  • Product Development/Innovation: Detailed bits of knowledge on forthcoming advancements, research and improvement exercises, and new item dispatches in the drone logistics and drone transportation market

  • Market Overview: Market elements and ensuing investigation of related patterns just as drivers, openings, and difficulties winning in the drone logistics and drone transportation market

  • Market Development: Comprehensive data about rewarding business sectors – the report investigates the market for drone logistics across different areas

  • Market Diversification: Exhaustive data about new items, undiscovered geologies, late turns of events, and interests in the drone logistics and drone transportation market

  • Regional Analysis: Factors impacting portions of the overall industry of North America, Europe, Asia Pacific, and the Middle East

  • Competitive Assessment: top to the bottom appraisal of systems, items, and assembling capacities of driving business sector players

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