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The global Delivery Drones Market is estimated to be valued at US$ 497.5 Mn or Million in 2023 and is expected to exhibit a CAGR of 41.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The delivery drones market involves the use of unmanned aerial vehicles for delivering parcels, food items, medicines and other products. Delivery drones can be an autonomous multi-rotor drones or fixed-wing drones. They enable fast and cost-effective doorstep deliveries, especially for last-mile deliveries in remote locations. Key advantages of delivery drones include reduced delivery time, lower delivery cost compared to traditional vehicles, and ability to reach locations difficult for road vehicles. With the growing e-commerce industry and demand for fast deliveries, delivery drones are emerging as a viable logistics solution.
Market key trends:
One of the key trends in the delivery drones market is the increasing investments by major e-commerce companies to develop autonomous drone delivery fleets. For instance, Amazon is extensively testing drone deliveries through its Prime Air delivery drone service. It has plans to deploy over 1,000 autonomous drones by 2024. Another major trend is the rapid technological advancements in drone hardware, software and navigation capabilities. Lightweight lithium-ion batteries with longer flight times, sense and avoid systems, AI and machine learning for autonomous navigation are enabling drones to cover longer distances and deliver bigger payloads. Regulations are also evolving to allow BVLOS (Beyond Visual Line of Sight) operations of drones, which will further support the widespread adoption of drones for deliveries.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the delivery drones market requires large capital investment for R&D to build innovative drone delivery technology and establishing infrastructure. However, reducing regulations for commercial drone delivery can attract new players in the market.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have various delivery options like physical delivery, online delivery using trucks, etc. Switching costs for buyers are low.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many component suppliers for delivery drones. Suppliers don’t have pricing power over buyers.
Threat of new substitutes: The threat of new substitutes is moderate. Emerging technologies like autonomous vehicles pose a threat but drones have advantages of lower costs and vertical delivery capabilities not replicable by others easily.
Competitive rivalry: The competitive rivalry is high as the market is growing rapidly attracting several new entrants and major players are investing heavily in R&D to gain technology leadership.
Key Takeaways
The global Delivery Drones market is expected to witness high growth, exhibiting CAGR of 41.% over the forecast period, due to increasing demand for faster and more efficient delivery especially for pharmaceuticals, emergency response items as well as increasing investments from major players.
The North America region dominated the delivery drones market in 2023, accounting for around 35% of the global market share. This can be attributed to the growing e-commerce industry and presence of major drone delivery companies in the US. However, the Asia Pacific region is expected to witness the highest growth during the forecast period owing to large population, rising middle class, and government initiatives for commercial drone delivery in countries like China and India.
Key players operating in the delivery drones market are Airbus SE, Deutsche Post DHL Group, Drones America, EHang, JD.com, Matternet Inc., SKYCART INC., SZ DJI Technology Co. Ltd., The Boeing Company, and Wing Aviation LLC. Major players are investing heavily in autonomous drones with larger payloads and longer ranges. For instance, in 2023, Wing launched the delivery trial of drones delivering packages within a 6-minute flight time on average.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
We have leveraged AI tools to mine information and compile it
