Drone Package Delivery Market by Type and Geography - Forecast and Analysis 2022-2026

The drone package delivery market share is projected to increase to USD 13.54 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 42.75%.

The report extensively covers drone package delivery market segmentations by the following:

• Type - Hybrid wing, fixed-wing, and rotary-wing
• Geography - North America, Europe, APAC, South America, and Middle East and Africa

The drone package delivery market report offers information on several market vendors, including Airbus SE, Amazon.com Inc., Alphabet Inc., Altitude Angel Ltd., Cheetah Software Systems Inc., Deutsche Post DHL Group, Drone Delivery Canada Corp., EHang Holdings Ltd., FedEx Corp., Flytrex Inc., Manna Drone Ltd., Matternet, Skycart Inc., Skydrop LLC, Swoop Aero, SZ DJI Technology Co. Ltd., Tech Eagle Innovations Pvt. Ltd., Volansi Inc., Workhorse Group Inc., and Zipline International Inc. among others.

This drone package delivery market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.

What will the Drone Package Delivery Market Size be During the Forecast Period?

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Drone Package Delivery Market: Key Drivers, Trends, and Challenges

The increased use of drones by e-commerce companies is notably driving the drone package delivery market growth, although factors such as restrictive laws and regulations governing UAV use may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the drone package delivery industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Drone Package Delivery Market Driver

The increased use of drones by e-commerce companies is one of the key drivers fueling the drone package delivery market growth. Various factors such as rising costs of fuel, fleet service and maintenance, and labor are negatively affecting the revenue of e-commerce companies. Thus, many logistics players in partnership with e-commerce companies are investing in automated logistics solutions, such as drone delivery, to sustain in the highly competitive market, which is expected to replace manual interactions. For instance, in March 2022, EHang collaborated with Aerotree Flight Services Sdn. Bhd. to develop urban air mobility (UAM) business in Malaysia, including MRO and training. As a part of the agreement, AEROTREE has placed a pre-order for 50 EHang EH216 series and 10 VT-30 drones. Hence, an increase in the use of drones by the e-commerce industry will support the growth of the global drone package delivery market during the forecast period.

Key Drone Package Delivery Market Trend

The use of blockchain technology in drone package delivery is one of the key drone package delivery market trends supporting the market growth. Blockchain technology is a digital platform that provides distributed transaction ledger, which helps stakeholders to maintain identical copies of shared data on multiple computer-controlled systems. Blockchain in drone package delivery uses cloud infrastructure and virtualization to provide flexibility and scalability in the supply chain solution. In the delivery of the package, a blockchain-based repository is used to store operational information such as time, resource, location, package route, and delivery date for authenticating the data accessible to the drone. Such advancements are expected to propel the growth of the package delivery market in focus during the forecast period.

Key Drone Package Delivery Market Challenge

Restrictive laws and regulations governing UAV use is one of the key challenges impeding the drone package delivery market growth. Drones have a wider operational range than crewed aircraft, along with other differentiating physical and operational characteristics. Although governments and commercial bodies use unmanned aircraft systems (UASs) and UAVs for a variety of applications, their scope of use is dependent on various laws and regulations enacted by numerous governments across different countries. Such regulations restrict the scope of drone operations and hinder their mass adoption. Such regulatory hurdles will adversely affect the drone package delivery market growth during the forecast period.

This drone package delivery market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Drone Package Delivery Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Airbus SE
• Amazon.com Inc.
• Alphabet Inc.
• Altitude Angel Ltd.
• Cheetah Software Systems Inc.
• Deutsche Post DHL Group
• Drone Delivery Canada Corp.
• EHang Holdings Ltd.
• FedEx Corp.
• Flytrex Inc.
• Manna Drone Ltd.
• Matternet
• Skycart Inc.
• Skydrop LLC
• Swoop Aero
• SZ DJI Technology Co. Ltd.
• Tech Eagle Innovations Pvt. Ltd.
• Volansi Inc.
• Workhorse Group Inc.
• Zipline International Inc.

 

This statistical study of the drone package delivery market encompasses successful business strategies deployed by the key vendors. The drone package delivery market is fragmented and the vendors are deploying growth strategies such as brand, quality, and reliability to compete in the market.

Product Insights and News

• Airbus.com - The company offers drone package delivery services such as Skyways drone for shore-to-ship services.
• Amazon.com - The company offers drone package delivery services such as Prime Air for delivering packages.
• Abc.xyz - The company offers drone package delivery services under the subsidiary Wing.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The drone package delivery market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Which are the Key Regions for Drone Package Delivery Market?

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56% of the market's growth will originate from North America during the forecast period. The US is the key market for the drone package delivery market in North America. Market growth in this region will be faster than the growth of the market in Europe.

The high adoption of drones by the transportation and logistics companies in the US will facilitate the drone package delivery market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 pandemic negatively impacted the growth of the regional market in 2020. However, from H2 2020 onward, the market demand improved due to the rise in the demand for drones for contactless deliveries in the commercial sector. Furthermore, with the initiation of the COVID-19 vaccination drive in 2021, all the regional commercial activities such as transportation and logistics by road, air, rail, and others were resumed. Such factors may hinder the drone package delivery market growth during the forecast period.

What are the Revenue-generating Type Segments in the Drone Package Delivery Market?

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The drone package delivery market share growth by the hybrid wing segment will be significant during the forecast period. Global drone manufacturers are focusing on the development of drones to be used in package delivery within city limits, as well as advancements in drone technology. Furthermore, features like vertical landing and artificial intelligence-based collision avoidance systems have propelled the demand for hybrid drones. Such developments in the hybrid drones will drive the growth of the hybrid wing segment, which will significantly fuel the growth of the global drone package delivery market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the drone package delivery market size and actionable market insights on post COVID-19 impact on each segment.

Parent Market Analysis

Technavio categorizes the global drone package delivery market as a part of the global aerospace and defense market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the drone package delivery market during the forecast period.

Drone Package Delivery Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the drone package delivery market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Drone Package Delivery Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 42.75%
Market growth 2022-2026	$ 13.54 billion
Market structure	Fragmented
YoY growth (%)	36.54
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 56%
Key consumer countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Airbus SE, Amazon.com Inc., Alphabet Inc., Altitude Angel Ltd., Cheetah Software Systems Inc., Deutsche Post DHL Group, Drone Delivery Canada Corp., EHang Holdings Ltd., FedEx Corp., Flytrex Inc., Manna Drone Ltd., Matternet, Skycart Inc., Skydrop LLC, Swoop Aero, SZ DJI Technology Co. Ltd., Tech Eagle Innovations Pvt. Ltd., Volansi Inc., Workhorse Group Inc., and Zipline International Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Drone Package Delivery Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive drone package delivery market growth during the next five years
• Precise estimation of the drone package delivery market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the drone package delivery industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of drone package delivery market vendors

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