A delivery drone is an unmanned aerial vehicle that is used to deliver packages to consumers. Rotor drones, fixed-wing drones, and hybrid drones are the main types of these drones. These drones are usually equipped with four to eight propellers, rechargeable batteries, and can travel at high speeds when transporting a package. The drone package delivery market consists of sales of drone package delivery services by entities (organizations, sole traders, and potential industry partnerships) that deliver packages through drones.

In recent years, there has been a flourishing interest towards the use of drone technology to deliver packages. McKinsey estimates that autonomous vehicles, including drones, will deliver 80% of all items in the future. This is fuelling investments and innovations in this field, which in turn, is leading to the development of a sizeably profitable market.

For example, in the US alone, drone delivery has grown from USD 40 ​million to a USD 1 billion industry in five years (2012 – 2017). This industry is expected to expand further with NASA projecting that there will also be commercial drones, about 2.6 million drones operating per day in US skies in the near future.

Detailed Segmentation

This Market is Segmented on the basis of – Drone Type, Range, Package Size, and Application.

By Drone Type

• Fixed Wing
• Rotor Drone
• Hybrid Drones

By Range

• Short < 25 Kilometers
• Long > 25 Kilometers

By Package Size

• < 2 Kilograms
• 2 – 5 kilograms
• > 5 Kilograms

By Application

• E-Commerce
• Quick Service Restaurant
• Convenience Stores
• Healthcare
• Other Applications

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

Market Dynamics

The increasing demand for drone deliveries during COVID-19 is expected to propel the revenue growth of the drone package delivery market in the coming years. During the initial phases of this period particularly, contactless distribution increased multifold, and drones subsequently played a crucial role in ensuring that companies and clients communicate with each other as little as need be, in the physical contact sense.

The high cost of drone deliveries is expected to impede the revenue growth of the drone package delivery market in the coming years. Delivery drones are unmanned aircraft delivering items to a specified location. Drones are costly because of the incorporation of modern technologies that enable them to fly longer, safer, and to avoid hurdles as well.

Several countries have laws in place restricting the flight of commercial drones in certain areas. Presently, limited battery technology means that one drone carrying one package to a specific destination can only fly for just over a little more than 2 miles. Unlike delivery trucks, which can carry hundreds of packages at a time, cargo drones typically have a very limited capacity of only 5 kg.

Key players:

Major players analyzed in the global drone package delivery market are:

• America Inc.
• Zipline
• FedEx
• DHL International GmbH
• Boeing
• Matternet Inc.
• Flirtey
• Drone Delivery Canada Corp.
• Flytrex
• Cheetah Logistics Technology
• Wing Aviation LLC
• Airbus S.A.S.
• Skycart Inc.
• DroneScan
• Edronic

Recent Developments

• Amazon introduces an artificial intelligence-controlled drone it is presently using for delivery run tests.
• Drone Delivery Canada Corp. forms an agreement with Air Canada Cargo to offer drone delivery services in Canada.
• Alphabet subsidiary Wing Aviation begins testing drones with FedEx Corp.’s Express division and Walgreens for deliveries.
• FedEx Express works with the Federal Aviation Administration to test drones at Memphis International Airport in Tennessee.
• UPS begins its service of drone-delivered pharmaceuticals from a CVS drugstore in North Carolina.
• UPS works with AmerisourceBergen Corp. to deliver drugs and supplies to hospitals in North Carolina.
• UPS completes delivery tests of blueberries from a Florida-based farm.
• UPS Flight Forward receives what it says was the U.S. government’s first full Part 135 Standard certification to operate a drone aircraft.
• UPS Flight Forward uses a drone delivery service on the campus at WakeMed in North Carolina for medical sample deliveries.
• The German government grants ZF permission to use drones to transport parts between warehouses and other ZF facilities.

For the Drone Package Delivery Market research study, the following years have been considered to estimate the market size: