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Drone Package Delivery Market by Solution, Type, Range, Package Size, Duration, End Use, Operation Mode, Region

Drone Package Delivery Market by Solution, Type, Range, Package Size, Duration, End Use, Operation Mode, Region

  • May 2022
  • 301 pages
  • ID: 5832194
  • Format: PDF
  • MarketsandMarkets


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The drone package delivery market is projected to grow from USD 228 million in 2022 to USD 5,556 million by 2030, at a CAGR of 49.0% from 2022 to 2030. Increasing private investments in drones andIncrease in e-commerce sales and demand for contactless delivery post-pandemic are some of the factors fueling the growth of the market.
During the COVID-19 pandemic, various countries have realized the potential of drone technologies and have provided relaxation in terms of their regulation. In addition, the hardware, technology, and services being cost-efficient and easy to access compared to traditional methods have led to the emergence of drone startups and drone delivery service providers in the aviation industry.

Based on operation mode, the partial autonomous segment is projected to lead the drone package delivery market during the forecast period.
Based on operation mode,the drone package delivery market has been segmented into remotely piloted, partially autonomous, and fully autonomous.With the success of remotely piloted drones, the industry started moving to partially autonomous drones wherein the pilot controls only critical operations.

All the functions and working are similar to that of an autonomous drone, but during the flight, it will be under constant or periodic observation by an operator at the ground station.In December 2021, in Palghar (Maharashtra), India, a batch of 300 vaccines was transported from Jawhar to Zaap village, a remote village situated in rugged terrain.

The task, which would have otherwise taken more than 40 minutes, was completed in just a little over nine minutes. The delivery was done using an autonomous drone, but an operator was periodically monitoring the drone during its flight in the rugged terrain.

Based on duration, the short duration segment is projected to lead the drone package delivery market during the forecast period.
Based on duration, the drone package delivery market has been segmented into short duration (<30 minutes) and long duration (>30 minutes).Duration refers to the time taken by drones to deliver packages to customers. According to Flexport, Inc., ecommerce giants such as Amazon.com, Inc. are anticipated to charge a higher service price for drone deliveries within 30 minutes than that for more than 30 minutes. Major delivery drone OEMs, such as Boeing (US) and Wingcopter (Germany), are focusing on the development of drones that can operate for more than 30 minutes on a single charge. Demand for instant delivery of intercity packages is anticipated to drive the growth of the long duration (>30 minutes) segment.

The North American and Asia Pacific regions are projected to be high growth potential markets for the drone package delivery during the forecast period.
The drone package delivery market in the North American region is expected to witness substantial growth and register the highest CAGR during the forecast period.Rules regarding drone flights in the US have been liberal, paving the way for legal use of drones for delivery in the country’s civil & commercial airspace. Many US companies are working to commercialize drone package delivery for food items, pharmaceutical products, logistics, and retail applications. Google-parent Alphabet’s Wing is a drone delivery service in partnership with FedEx (US) and Walgreens (US). It delivers select FedEx packages as well as health and wellness products, like over-the-counter medicines, from Walgreens. Wing’s drones deliver packages that weigh between two and three pounds right to customers’ doorsteps while taking advantage of Wing’s ability to improve speed and cut costs
The market in Asia Pacific is expected to exhibit highest market share due to the increasing demand for online shopping among the huge population. Major players such as JD.com and Alibaba are investing heavily in this space. Over the past two years, Meituan, one of China’s largest internet companies, has flown 19,000 meals to 8,000 customers across Shenzhen, a city with close to 20 million people.

The break-up of the profiles of primary participants in thedrone package delivery market isas follows:
• By Company Type: Tier 1–35%; Tier 2–45%; and Tier 3–20%
• By Designation: CLevel Executives–35%; Directors–25%;and Others–40%
• By Region: North America–42%; Europe–18%; AsiaPacific–21%;and Rest of the World¬–19%
Major players in the drone package delivery market are Alphabet Inc. (US), DHL International GmbH (Germany), Zipline (US), United Parcel Service of America, Inc. (US), FedEx (US), Matternet Inc., (US), Airbus S.A.S. (Netherlands) EHang (China), and The Boeing Company (US). These companies have strong distribution networks in the logistics business across North America, Europe, Asia Pacific and other regions in turn driving the demand for last mile deliveries and drone package deliveries.

Research Coverage
This research report categorizes the drone package delivery market on the basis of solution (platform, software, infrastructure, and service), type (fixed-wing, multirotor, and hybrid), range (short range (<25 kilometers) and long range (>25 kilometers), package size (<2 kilograms, 2–5 kilograms, and >5 kilograms), duration short duration (<30 minutes) and long duration (>30 minutes), and end-use (food delivery, retail goods delivery, postal delivery, medical aids delivery, precision agriculture delivery, industrial delivery, weapon & ammunition delivery, and maritime delivery).operation mode, remotely piloted, partially autonomous, and fully autonomous.These segments have been mapped across major regions, namely, North America, Europe, Asia Pacific, Middle East,Latin America, and Africa.
The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the drone package delivery market.A detailed analysis of the key industry players has been done to provide insights into their business overviews; solutions and services; key strategies; contracts, joint ventures, partnerships & agreements, acquisitions, and new product launches associated with the drone package delivery market.

Competitive analysis of upcoming startups in the drone package delivery market ecosystem is covered in this report.

Reasons to Buy this Report
This report is expected to help market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall drone package delivery market and its segments.This study is also expected to provide regionwise information aboutthe end-use industrial sectors, wherein drone package delivery is used.

This report aims at helping the stakeholders understand the competitive landscape of the market, gain insights to improve the position of their businesses, and plan suitable go-to-market strategies. This report is also expected to help them understand the pulse of the market and provide them with information on key drivers, restraints, challenges, and opportunities influencing the growth of the market.

The report provides insights on the following pointers:
• Market Penetration: Comprehensive information on drone package delivery offered by the top players in the market
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the drone package delivery market
• Market Development: Comprehensive information about lucrative markets – the report analyzes the drone package delivery market across varied regions
• Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the drone package delivery market
• Competitive Assessment: In-depth assessment of market shares, growth strategies, products, and manufacturing capabilities of leading players in the drone package delivery market

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