The drone delivery systems market is projected to experience remarkable growth, with an anticipated CAGR of 14.4% during the forecast period from 2023 to 2033, and cross US$ 6.6 billion by the end of 2023.

Many cargo and logistics companies have invested in the development of efficient infrastructure for delivering parcels by drones. Drones are an innovative and agile means of any company delivering goods, medicinal supplies, and packages. It fabricates items in the shortest possible time with a high level of accuracy and gives less scope for human intervention.

Companies such as United Parcel Service of America, popularly known as UPS, Zipline, and many others, provide additional features such as robust build, compact design, motion detection, and position tracking. Nowadays, the extensive usage is seen with modern technologies like Internet of Things and artificial intelligence in making drones that can carry packages fast and efficiently.

Modern industry and living are based on the flow of machine parts, pharmaceuticals, and consumer goods. Expedited logistics enhance the productivity and quality of life of the citizens and communities they serve.

Key Takeaways from Study

The global drone delivery system market is likely to grow at a stellar pace, pegged at a compound annual growth rate of 14.4% and projected to reach a value of US$ 25.5 Bn by the end of 2033. Rotary wing sub-segment will continue maintaining its lion's share of 53.7% in the market by 2023. Vaccine and drug delivery on the application front are expected to hold immense potential as they would contribute approximately 23.1 per cent in revenue share and have a value of US$ 1.5 billion in the year 2023.

By load capacity, drones having a capacity of 2-5 kg are expected to occupy around a 32.5% share in the aftermarket sub-segment by 2023. By geography, South Asia & Oceania is likely to expand at a CAGR of 11.1% during the projected period and will be valued at US$ 737.5 million by the end of 2023. This may be attributed to rising installations of drone delivery systems in various industries, thereby depicting the nascent opportunities in this region and its contribution to the overall growth of the global drone delivery system market.

Key Companies Profiled

Airbus
Amazon
Boeing
DHL
Elroy Air
Flytrex Inc
Matternet
Swoop Aero
United Parcel Service of America, Inc
Others

Increasing Role of Drones in Logistics Industry to Augment Growth of Drone Delivery Services

The logistics industry, which forms an important part in the economy of any nation, was severely impacted when COVID-19 came as a blow in March 2020. This proved to be devastating for supply chains worldwide and affected the delivery services of the last mile. The pressure on retailers is increasing due to the fast delivery of goods, and this impetus is forcing many logistics companies to divert their attention to drone technology as a potential solution. Drones offer low operational cost, avoid traffic congestions, and have less vehicle emission while satisfying the customer needs for instant and on-demand deliveries. Their small size, low cost of operation, high speed, and minimal effect on the environment make them just right for last mile delivery. Equally, Amazon and Walmart are utilizing drones to an extent in order to reach out to rural and remote areas. Besides, worldwide drone delivery of medicines, vaccines, food, and groceries is taking place, and this potential of drones in last mile delivery is increasing toward a positive impact on the Logistics and Drone Parcel Delivery Industries.

Competitive Landscape

The major players include technology-based companies with strong product portfolios, having the best distribution networks across mature and developing countries. Key players are forecasted to dominate the market during the forecast period, such as UPS and Zipline International.

One of the main variables driving the market is the uptake of low-cost services and accurate, secure transport. A reason to collaborate with retailers, distributors, and IT firms would be due to attracting new competitors.

Zipline International has been working with the U.S. FAA since May 2020 on the concept of drone delivery only in the case of small pilot projects. The company made use of autonomous drones to deliver cargo of about 1.8 kg pounds at a range of 80 Km. The package was dropped with the help of a parachute for stable and safe landing of the packet.

What is the market for delivery drones?

The drone delivery system market is estimated to be valued at $6.6 billion in 2023 and is expected to reach $25.5 billion by 2033, growing at a CAGR of around 14.4% from 2023 to 2033. The global drone market itself is valued at approximately $33.9 billion in 2023 and is projected to grow at a CAGR of 17.6%.

Is drone delivery the future?

Yes, drone delivery is gaining popularity due to its quick response delivery for essential items like medicines, vaccines, and other vital cargo. It offers significant advantages such as lower operating costs, reduced environmental impact, and faster delivery times, which are driving its adoption in logistics and e-commerce industries. The demand for drone delivery systems is expected to continue growing rapidly.

Do Amazon use drones?

Yes, Amazon is one of the industry giants that have implemented drone delivery services. They are actively using drone technology to provide faster and more efficient delivery solutions, particularly aiming to infiltrate rural and remote areas with their drone deliveries.