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The drone transportation and logistics market is estimated to grow at a CAGR of 22.11% between 2022 and 2027. The size of the market is forecast to increase by USD 17,046.81 million. The growth of the market depends on several factors, including the rising application of drones, increased use of drones by e-commerce companies, and the use of advanced technologies to improve the efficiency of drone transportation and logistics.
This report extensively covers market segmentation by solution (system, software, and infrastructure), application (transportation and warehousing), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Drone Transportation and Logistics Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The use of advanced technologies to improve the efficiency of drone transportation and logistics is notably driving market growth. Operational procedures are changing significantly across organizations as a result of the development of drone technology. The development of a mobile workforce is being prioritized by various end-user industries in order to function effectively and enhance business operations. They are spending money on workforce automation, which incorporates drones with virtual reality and augmented reality. With the aid of AR, LSPs can access drones from a distance. To increase drone capabilities, drone manufacturers are incorporating mobile, intelligent, and connected sensors into the newest drone models.
These drones also come with cutting-edge technological features like global positioning systems (GPS), range sensors based on ultrasound, hyperspectral and multispectral sensors, inertial and /image sensors, and more. The size and cost of sensors have decreased due to miniaturization, allowing manufacturers to create portable drones. Drone adoption is being aided by technological advancements that lower costs and boost efficiency. During the forecast period, these factors will have a favorable impact on the expansion of the global drone logistics and transportation market.
The growing number of acquisitions and partnerships is an emerging trend in the market. The global market is highly competitive among the market's current vendors. Therefore, vendors collaborate with market participants like software providers, technology providers, hardware suppliers, product designers, and platform providers through strategic partnerships and acquisitions. Vendors can offer cutting-edge products by acquiring technological expertise and increasing the growth of the market through geographic expansion Vendors are also able to increase their revenue through these partnerships by marketing their goods and services to a larger clientele.
A few examples of strategic partnerships and acquisitions include the announcement by Skydio and EagleView in September 2020 on an exclusive property inspection partnership for automated residential roof inspection with drones. Similarly, in September 2020, Zipline partnered with Walmart on commercial drone delivery to bring a first-of-its-kind drone delivery service to the US. Such strategic partnerships and acquisitions between vendors are expected to positively impact the growth of the market during the forecast period.
The high concerns regarding drone hacking are major challenges impeding the market growth. Concerns about the safety and protection of sensitive data from hackers have increased over the past few years as drones have become more widely used commercially. Delivery drones used in e-commerce can be compromised by thieves to steal goods. Hackers have the ability to wirelessly take control of drones, steal them, or manipulate them in order to access the highly sensitive data or information they are carrying. E-retailers' drones can also be stopped before they get to their intended location. Demand for drone delivery is being impacted by growing end-user anxiety over delivery drones that can be compromised to change the delivery of goods.
Vendors competing in the global drone logistics and transportation market face a significant challenge as a result. Stakeholders including drone manufacturers, e-commerce businesses, and LSPs are creating countermeasures for protecting drone delivery to address the aforementioned difficulties. This type of technology requires extensive research and development, which can be expensive. As a result, different stakeholders are constrained from creating such solutions. Numerous steps have been taken, including the use of VPNs and the deployment of IoT devices, which will reduce hacking incidents and boost market sales during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Drone Delivery Canada Corp. - The company is involved in designing, developing and implementing commercially viable, drone-based logistics systems for government, commercial, industrial, and retail customers globally. The key offerings of the company include drone transportation and logistics services for airports, mining, and the oil industry.
Drone Scan - The company provides a revolutionary robotic solution for scanning products and pallets in warehouses. The key offerings of the company include drone transportation and logistics services such as Hummingbird barcode scanners.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market share growth by the system segment will be significant during the forecast period. The segment showed a gradual increase in market share with USD 1,538.75 million in 2017 and continued to grow by 2021. Drones are used in the system segment of the market as an inventory assessment tool to obtain visual /images of leather goods and track the sales of all the products.
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Drone systems can be used in a variety of fields, including the military, business, and healthcare. Various types of drone system aid in the transportation of a wide range of goods relevant to the industry they can be applied to. For example, Deutsche Post AG provides a variety of system services, including visual identification, intelligent flight path planning, and scheduling for logistics solutions for drone transportation. These elements address the transportation needs of drones, and as the number of services rises, so do drone logistics sales. During the anticipated period, these variables are anticipated to support market expansion.
The movement of various products, including e-commerce goods, pharmaceutical products, clinical supplies, disaster relief aid, and military products, with the aid of drones, is the focus of the transportation segment in the global market. Many e-commerce companies, including JD.com, Alibaba, SF Express, Amazon, and Walmart, are turning to drone delivery due to the rising demand for last-mile delivery options supported by the expansion of the global e-commerce market. The first commercial drone delivery service in Africa was introduced in September 2022, offering product delivery to homes throughout Ghana. Another example cites the use of drone transportation in a number of commercial sectors, including the delivery of food, medicine, and clothing. The drone transportation market is being driven by these e-commerce sector initiatives. Furthermore, the global market by the transportation segment is also anticipated to be driven by the demand for drones to deliver packages to remote and challenging terrain areas, such as mountains or hills, and during disaster aid relief operations. Moreover, a growing number of government initiatives in some countries to promote commercial drones are encouraging the use of drones despite the strict laws and policies governing their use. Many governments are developing policies and rules to encourage drone logistics and transportation. Hence, such factors will drive the growth of the market during the forecast period.
North America is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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North America's drone delivery and transportation market is driven by the US's widespread use of drones for commercial and defense purposes. Given that they are dependable, practical, and effective to use, commercial drones are predicted to displace helicopters and other manual delivery services in the market. The expansion of the commercial drone market in the area over the course of the forecast period will support the market.
To stay competitive in the market, e-commerce companies and their LSPs are implementing drones in their supply chain solutions due to an increase in the penetration of commercial drones. The region's e-commerce industry is being driven by the presence of a sizable number of manufacturing and e-commerce businesses made possible by the reviving of the economies of nations like the US, Canada, and Mexico. The largest producer and consumer of drone transportation and logistics, the US, has seen a significant increase in e-commerce retail sales. E-commerce companies are using drones to make quick, dependable, and punctual deliveries as a result of rising online sales. For the foreseeable future, this will positively impact the growth of the market in North America.
In 2020, the COVID-19 pandemic negatively impacted the growth of the market. However, the market has started to recover from 2021 onward due to the rise in the demand for drones in contactless deliveries in the commercial sector. Moreover, many countries like the US announced stimulus packages to revitalize the country's economy which has positively impacted the growth of the market. As this trend is expected to continue, the market is anticipated to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Drone Transportation And Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.11% |
Market growth 2023-2027 |
USD 17,046.81 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.33 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Alphabet Inc., Amazon.com Inc., Avy B.V., Deutsche Post AG, Dronamics, Drone Delivery Canada Corp., Drone Scan, FedEx Corp., Flytrex Inc., HARDIS Groupe, Infinium Robotics, Matternet, Skydrop LLC, SZ DJI Technology Co. Ltd., United Parcel Service Inc., Volocopter GmbH, Wingcopter GmbH, 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, and Market condition analysis for the 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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