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Delivery Drones Global Market Report 2021: COVID-19 Growth And Change

Delivery Drones Global Market Report 2021: COVID-19 Growth And Change

  • March 2021
  • 200 pages
  • ID: 6036651
  • Format: PDF
  • The Business Research Company


Table of Contents

Major players in the delivery drones market are Airbus SE, DJI Technology Co. Ltd, Flirtey, EHANG, Zipline, Uber Technologies Inc., United Parcel Service of America Inc., Alibaba Group Holding Ltd, Deutsche Post AG, Skycart, FedEx Corporation, Amazon, Wing Aviation LLC, Skycatch, Inc, JD.com, Matternet Inc., and The Boeing Company.

The global delivery drone market is expected to grow from $445.75 million in 2020 to $608.24 million in 2021 at a compound annual growth rate (CAGR) of 36.45%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2,238 million in 2025 at a CAGR of 38.50%.

The delivery drones market consists of sales of delivery drones by entities (organizations, sole traders and partnerships) that manufacture delivery drones.Delivery drones are unmanned aerial vehicles (UAVs) capable of carrying lightweight packages.

Delivery drones are functioned independently or remotely, with controllers theoretically monitoring several drones at once.

The main types of delivery drones are fixed wing drones, rotor drones, and hybrid drones.A fixed wing drone is a rigid structure that has a fixed position rather than moving up and down.

The rotor drone is arranged with a tail rotor to control its heading.It is further divided into two types single rotor drone and multi rotor drone, and hybrid drones are a mix of both.

These are used for delivery in e-commerce, quick-service restaurants (QSR), and healthcare sectors.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The high cost of drone deliveries is expected to impede the growth of the delivery drones market over the coming years.Delivery drones or unmanned aerial vehicles are unmanned aircraft delivering items to a specified location.

These are costly because of all the modern technologies that are required to enable them to fly longer, safer and avoid hurdles. For example, the amount United Parcel Service (UPS) charges to customers is $12.92, but the real average price of shipping one product along a path they are already delivering is around $2. Therefore, the high cost of drone deliveries hampers the growth of the delivery drones market.

In June 2020, PDI Software, a US-based software firm that provides ERP, Fuel Pricing, Logistics, and Marketing Cloud solutions for the convenience of retail and petroleum wholesale industries, acquired Zipline for an undisclosed amount.This acquisition strengthens the PDI Marketing Cloud Platform giving businesses everything they need in a loyalty solution, including customer engagement tools, offers, insights, and integrated digital payments.

Zipline is a US-based logistics and supply chain company.

The increasing demand for drone deliveries during COVID-19 contributed to the growth of the delivery drones market.During COVID-19, contactless distribution expanded and drones play a crucial role in ensuring the companies and clients contact as little as needed.

Drones were heading to the sky in massive numbers during the pandemic to bring vital goods and drugs to the population in lockdown.In 2020, Alphabet’s drone delivery company Wing has seen significant growth in demand as individuals comply with social distancing guidelines during the COVID-19 outbreak.

Many individuals have been using the service in recent months as the coronavirus pandemic continues, and Wing found that between February 2020 and April 2020, in Australia, the use of its service increased by 500%. Therefore, the increasing demand for drone deliveries during COVID-19 drives the growth of the delivery drones market.

Growing technological advancements are shaping the delivery drones market.Over the past few years, drones have become extremely prevalent as many individuals and organizations are completely accepting and incorporating this technology into their business models.

For instance, in April 2019, Wing, the drone shipping firm operated by Google’s parent company Alphabet, became the first US organization to receive permission from the Federal Aviation Authority (FAA) to start testing deliveries. It has collaborated with Walgreens that has a store across 78% of the area of the country within 5 miles reach, which means that almost 80% of the US will be in the range of Wing shipments if and when the technology is more extensively deployed.

The countries covered in the delivery drones market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

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