Delivery Drones Market Size, Share & Trends Analysis Report By Component (Hardware, Services), By Application (Agriculture, Healthcare), By Drone Type, By Range, By Payload, By Duration, By Operation Mode, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global delivery drones market size was valued at USD 530.2 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 42.6% from 2023 to 2030. The growth of the market is driven by the factors, such as high demand for same-day & faster delivery, the need for sustainable low-carbon emissions, and advancements in drone technology. The COVID-19 pandemic accelerated the adoption of e-commerce and contactless delivery, leading to increased investments in the drone industry. The growing acceptance of online purchases among consumers also contributed to the demand for efficient drone delivery services worldwide. The growing demand for contactless services during the COVID-19 pandemic called on the South Korean government to speed up the trial tests of drones to deliver food across the country.

The Ministry of Land, Infrastructure and Transport held a test in Sejong City, South Korea, showcasing five food delivery drones and other products to people in households two to three kilometers away via a lake and high-rise buildings within 10 minutes. In addition, the state of Telangana in India, along with Niti Ayog, a welfare scheme by the Indian government, and Apollo hospitals, which are a part of the World Economy Forum (WEF) Medicine from the Sky project, planned to conduct trial drug delivery using drones. The growing adoption of online shopping among consumers has increased the demand for advanced transportation options that provide faster delivery services. Time-saving benefits and home delivery service products purchased online are constantly growing in stock drones worldwide.

In recent years, the number of instant parcels has been increasing, and delivering to consumers' doorsteps has driven leading companies to promote the use of drones for faster same-day delivery. The logistics & retail use of delivery drones dominated the market due to increased demand for package and parcel delivery from last-mile delivery companies, retailers, e-commerce providers, and offshore drones on ships and postal companies. Furthermore, in collaboration with local governments, major e-commerce companies and local post offices are introducing drone delivery services to limit the effort of delivering packages and parcels to remote islands, mountainous areas, and cities. For instance, in October 2021, Royal Mail completed autonomous UAV flight testing with Windracers Ltd. between North Ronaldsay and Kirkwall.

The test was part of Kirkwall Airport’s Sustainable Aviation Test Environment (SATE) project, and the flight test was the company's third flight test this year. Similarly, in April 2021, Singapore’s Maritime and Port Authority launched a new program to use drones to transport documents, supplies, and parts for vessels berthed at its port as part of the country's plan to integrate advanced drone technologies for maritime transport applications. Due to the shortage of delivery personnel and the impact of the global pandemic, the need to respond to changes in the logistics industry has become more urgent than ever, and the use of drones helps realize automated, contactless delivery services in remote islands, mountainous areas, regions, and even cities.

The need to reduce carbon footprint is a significant driver of the rising adoption of drones for delivery. Drones can deliver childbirth medicines, blood, vaccines, snakebite serum, and other medical supplies to rural areas within minutes and outreach to patients who require urgent medical attention. Also, the growing demand for timely delivery of products, such as medicine, food, retail goods, and mail, is expected to escalate the demand for delivery drones. The COVID-19 pandemic is expected to provide significant growth opportunities for sellers in this market. However, strict government UAV regulations and security breaches using aerial delivery drones represent the main challenge to the growth of the market.

Component Insights

The hardware segment captured the largest revenue share of over 59% in 2022 owing to the growing adoption of delivery drones across various industries. This demand is due to the rising commercial use of delivery drones while constant innovation in technology related to hardware that can cater to higher payloads for longer periods. The need for a higher-capacity UAV is driving the overall growth of this segment. In addition, technological developments, networking, and connectivity advancements are expected to fuel the demand for delivery drone hardware over the forecasted period.

The services segment is expected to grow at the highest CAGR of around 49% over the forecast period. This growth is driven by manufacturers of delivery drones and related service providers who offer a range of drone-based services. These service providers cater to diverse delivery applications, including retail goods delivery, food delivery, medical device delivery, postal delivery, and more. They operate within different logistics processes, such as fourth-party logistics, third-party logistics, and second-party logistics.

Drone Type Insights

The multi-rotor segment accounted for the highest revenue share of over 72% in 2022. Multi-rotor drones are characterized by having multiple engines, such as tricopters (3 rotors), quadcopters (4 rotors), octocopters (8 rotors), and hexacopters (6 rotors). Among these, quadcopters are particularly popular due to their excellent maneuverability and control, making them well-suited for applications like aerial photography and surveillance. The versatility and agility offered by multi-rotor drones have contributed to their widespread adoption and market dominance.

The hybrid segment is anticipated to grow at the highest CAGR of 47.5% from 2023 to 2030. Hybrid drones are aerospace vehicles that utilize multiple power sources to fuel their flight systems. These drones have gained popularity for their ability to handle long-distance and heavy-duty applications effectively. They are particularly advantageous in crop management and search and rescue (SAR) operations, where their flight time can exceed up to several hours, making them more cost-effective and efficient compared to traditional aircraft.

Range Insights

The less than or equal to 25 km segment accounted for the highest revenue share of over 51% in 2022. This revenue share is due to the demand for a faster delivery system. Drones with a range of less than or equal to 25 km provide service on a single charge, like delivering groceries, other products, and packages after online shopping over distances within 25 km. Major logistics and retail companies worldwide, such as Domino’s & Amazon.com, Inc., use drone package deliveryto seamlessly deliver products to consumers. In addition, major retailers like Walmart, Inc. have started the process of testing drone delivery services and systems to achieve profitable last-mile delivery and provide a better customer experience.

The more than 25 km range segment is anticipated to grow at the highest CAGR of 44.7% from 2023 to 2030. The growth of this segment is majorly due to the frequent use of drones to provide shipping services at more than 25 km of distance. These drones are used in various industries, such as food & beverage, e-commerce, logistics, healthcare, and retail. Since these drones can deliver at a distance of more than 25 km, numerous companies have started to adopt drone services worldwide.

Payload Insights

The less than 2 kg segment captured the highest revenue share of around 45% in 2022. This growth is attributed to the ability of these drones to quickly deliver small packaging of up to 2 kg. This category refers to the provision of small food items, coffee, mail delivery, gifts, health & wellness products, and commercial goods under a specific weight limit. The more than 5 kg segment is expected to grow at the highest CAGR of 48.4% from 2023 to 2030.

The growth of the market is fueled by advancements in drone technology and manufacturing, driven by the increased demand for favorable drone regulations from governments worldwide. Furthermore, the market is witnessing growth due to the capabilities of drones to handle heavy lift operations and facilitate multi-drop cargo deliveries. For instance, in February 2020, Canada Corp Drone launched their new heavy-lifting, long-range delivery drone with an automatic cargo deployment system Robin Xl. The drone has a maximum carrying capacity of 11.3 kg and a range of 60 km.

Duration Insights

The less than 30 minutes segment accounted for the highest revenue share of over 59% in 2022. The growth of the market is fueled by the increasing demand for faster package delivery. Companies are implementing strategies, such as dispatch centers, control rooms on delivery trucks, and road navigation systems, to ensure efficient and timely drone deliveries, even in rural areas. These approaches contribute to the increased efficiency and speed of drone deliveries, propelling the growth of the market.

The over 30 minutes segment is anticipated to grow at the highest CAGR of 45.6% from 2023 to 2030. This is attributed to the increasing demand for the delivery of larger or heavier packages that may require more time for transportation. This includes items, such as bulk orders, medical supplies, or industrial equipment.Furthermore, as technology continues to advance, drones are becoming more capable of flying longer distances and carrying heavier payloads. This enables them to serve the over 30 minutes segment more efficiently, expanding the potential market opportunities.

Operation Mode Insights

The remotely piloted segment accounted for the highest revenue share of around 49% in 2022. This segment's dominance can be attributed to the advantages it offers, including high levels of control, flexibility, precision, and compliance with regulations. Human operators are crucial in ensuring safe and accurate deliveries, particularly in complex or delicate situations. Companies can use drones and other remote-controlled equipment for commercial uses, such as aerial surveillance, aerial photography, and videography for marketing purposes.

The fully autonomous segment is anticipated to grow at the highest CAGR of 49.3% from 2023 to 2030. The advancements in artificial intelligence (AI), machine learning (ML), and sensor technologies have significantly improved the autonomy and decision-making capabilities of drones. These advancements enable drones to navigate complex environments, detect obstacles, and make real-time adjustments to ensure safe and efficient deliveries. In addition, fully autonomous drones offer several advantages. They can operate with greater efficiency, as they do not require human operators and can work around the clock. This can result in cost savings for businesses and faster delivery times for customers.

Application Insights

The retail & e-commerce segment accounted for the highest revenue share of over 30% in 2022, driven by their increasing adoption in the public sector and retail industry. Drones are transforming the storage and delivery processes in e-commerce warehouses, improving operational efficiency and meeting the demand for fast delivery. Their ability to scan barcodes accurately enhances inventory management, making them valuable assets in this sector.

The logistics & transport segment is expected to grow significantly with a CAGR of 44.4% over the forecast period. This growth is attributed to the delivery drones' capability to offer faster delivery of medium and small packages of commercial goods compared to traditional delivery methods. The advantages of high delivery speed and the convenience of home delivery are driving factors in adopting delivery drones in this segment. Moreover, the potential for adoption in rural and semi-rural areas further contributes to the growth prospects of the logistics & transport segment.

Regional Insights

North America accounted for the largest revenue share of over 34% in 2022 and is anticipated to account for a significant market share over the forecast period. The U.S. accounted for the largest share of the regional market. The U.S. is home to several leading technology companies while also being considered an early adopter of new technologies. In addition, the Federal Aviation Administration (FAA) in the U.S. has issued new regulations to provide more consistent guidelines regarding the legal and safe operation of UAVs in commercial areas. Such laws and regulations are expected to reduce barriers to entry and increase regional product availability.

Asia Pacific is expected to grow at the fastest CAGR of around 45.4% from 2023 to 2030. Countries, such as China and India, are gradually emerging as the leaders in the regional market, advancing the implementation of internet-based platforms and catering to a large customer base. The market growth is expected to promote a better regulatory environment, especially in developed countries. Several governments are constantly working to create new rules for the commercial use of drones. In addition, many start-up companies are testing new drone applications for commercial purposes and are working to improve the safety of drones.

Key Companies & Market Share Insights

Market players are forming partnerships and strategic alliances and performing acquisitions & mergers to advance technological developments despite the competition. Advancements in drones and drone technologies have enabled manufacturers to produce a broader range of models in different weights, sizes, and shapes capable of carrying various sensor payloads and making them applicable over a wide application base. For instance, in May 2023, Rigi Technologies SA, a drone delivery solutions provider, partnered with Spright, an unmanned aerial system operator, to expand the company network and ramp up the production line and software infrastructure. Such strategies by key players are expected to fuel market growth over the forecast period. Some of the prominent players operating in the global delivery drones market are:

• Airbus SAS

• Amazon.com, Inc.

• The Boeing Company

• DHL International GmbH

• Drone Delivery Canada Corp.

• Flytrex Inc.

• Skycart Inc.

• Wingcopter GmbH

• Wing Aviation LLC

• Matternet Inc.

• Zipline International Inc.

• Fli Drone

• SZ DJI Technology Co., Ltd.

• United Parcel Service of America, Inc. (UPS)

• FedEx Corp.

Delivery Drones Market Report Scope

Global Delivery Drones Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global delivery drones market report on the basis of component, drone type, range, payload, duration, operation mode, application, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Drone Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Multi-rotor Wing

  • Fixed Wing

  • Hybrid Wing

• Range Outlook (Revenue, USD Million, 2018 - 2030)

  • Less than or Equal to 25 Km

  • More than 25 Km

• Payload Outlook (Revenue, USD Million, 2018 - 2030)

  • Less than 2 Kg

  • 2 Kg to 5 Kg

  • More than 5 Kg

• Duration Outlook (Revenue, USD Million, 2018 - 2030)

  • Less than 30 minutes

  • More than 30 minutes

• Operation Mode Outlook (Revenue, USD Million, 2018 - 2030)

  • Remotely Piloted

  • Partially Autonomous

  • Fully Autonomous

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Retail & E-Commerce

  • Healthcare

  • Logistics & Transportation

  • Food & Beverages

  • Military & Defense

  • Agriculture

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • UAE

    • South Africa