The global market for drone logistics and transportation was valued at US$ 24.58 million in 2018 and is projected to expand at a compound annual growth rate (CAGR) of 60.6% from 2019 to 2027, reaching an estimated US$ 1,626.98 million by 2027.
Several factors are propelling the growth of the global drone logistics and transportation market, including advancements in the e-commerce sector and increasing acceptance due to the numerous advantages that drones provide. Nevertheless, challenges such as a shortage of skilled operators and operational difficulties are hindering market expansion. The rise in rural deliveries presents a significant opportunity for market growth. For example, in 2017, the Tanzanian government partnered with Zipline to facilitate emergency on-demand access to essential medical supplies, including medicines, vaccines, and blood in the region.
The drone logistics and transportation market is characterized by fragmentation, with numerous players involved, and the competitive landscape is anticipated to evolve in the coming years. Additionally, various government initiatives are being implemented to further stimulate the drone logistics and transportation sector. For instance, the Civil Aviation Administration of China (CAAC) has authorized SF Holding and JD.com to commence drone package deliveries in select rural areas. These companies are developing networks not only for small drones but also for larger autonomous fixed-wing aircraft designed for final delivery, which will operate from small airports to transport bulk shipments between warehouses. A notable example is Ele.me, Alibaba's food delivery subsidiary, which received approval to test drones in a large industrial zone. Such initiatives by the CAAC enable companies to extend their parcel delivery services to rural and hard-to-reach areas in China, providing significant advantages to Asian robotics firms and thereby fostering the growth of the drone logistics and transportation market in the region.
In terms of application, the shipping segment currently dominates the drone logistics and transportation market. However, the warehousing segment is expected to experience the highest CAGR. The shipping application utilizes drones for handling claims and returns of goods, which has the potential to streamline the logistics industry. This capability allows retailers to deploy more robust drones for the retrieval of defective products, helping to mitigate issues such as emissions and road congestion while enhancing the efficiency of the delivery process. Presently, global companies are exploring the use of drones as a viable alternative for logistics solutions, particularly in the last mile delivery segment, which is driving growth in the shipping market.
The overall size of the drone logistics and transportation market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the drone logistics and transportation market. This research also provides an overview and forecast for the global market based on various segments across five key regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Furthermore, primary interviews were conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in vision-guided robotics software. Notable players in the drone logistics and transportation market include Cheetah Software Systems, Inc., Drone Delivery Canada Corp., Flirtey, Flytrex Aviation, Ltd., Hardis Group, Infinium Robotics, PINC Solutions, Volocopter GmbH, Workhorse Group Inc., and Zipline, among others.