by The delivery drones market has been gaining traction with increasing adoption of drones for last-mile deliveries of food, packages and medical supplies. Delivery drones offer advantages like contactless delivery and reduced delivery times compared to traditional delivery methods. Key components of delivery drones include airframes, propulsion systems, batteries, navigation systems and cameras.
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 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. These companies are investing in research and development of delivery drones to tap growing opportunities.
There is growing demand for delivery drones from e-commerce, food and logistics industries for last-mile deliveries. Especially during the ongoing pandemic, contactless delivery of essential goods through drones is gaining prominence. Various industries are collaborating with drone manufacturers to test and deploy delivery drone services.
Major drone companies are also expanding globally to set up production and launch delivery drone services in international markets. This will help meet the delivery needs of customers across the world and help companies gain a larger market share in the delivery drones industry.
Market key trends
One of the key trends in the delivery drones market is autonomous delivery. Drone manufacturers are developing autonomous navigation, battery management and safety systems to enable drones to conduct deliveries independently without human intervention. This will help scale up delivery operations and reduce costs. Autonomous drones can access hard to reach locations and expand the coverage of drone delivery networks.
Porter’s Analysis
Threat of new entrants: Drones require expensive technology and expertise to manufacture and operate which poses barriers for new companies. Bargaining power of buyers: Buyers have low bargaining power as there are few alternatives for fast doorstep delivery and this market is still niche. Bargaining power of suppliers: Suppliers of critical components like batteries, sensors etc have some bargaining power as there are few specialized suppliers for this emerging technology. Threat of new substitutes: Traditional manned delivery vehicles and ground couriers pose some threat as substitutes but drones enable quicker doorstep delivery. Competitive rivalry: Competition is intense among the top drone delivery companies who are investing heavily in R&D and partnerships to expand fleets and coverage.
Geographical regions: Currently, North America accounts for the largest share of the delivery drones market in terms of value due to supportive regulations and high demand for fast deliveries from e-commerce firms. Companies are actively testing drones for food, postal and medical deliveries.
The Asia Pacific region is expected to be the fastest growing regional market during the forecast period from 2023 to 2030. Countries like China, Japan and South Korea are proactively working to develop supportive drone regulations and applications across diverse sectors from emergency responses to agriculture. Growing e-commerce demand from large populations will further boost experimental delivery drone routes in densely populated Asia Pacific cities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
