drone logistics & transportation Market

The global drone logistics & transportation market accounted for US$ 24.58 Mn in 2018 and is expected to grow at a CAGR of 60.6% over the forecast period 2019-2027, to account for US$ 1,626.98 Mn in 2027.

Factors including increasing developments in the e-commerce sector and rising acceptance owing to various benefits offered are significantly driving the global drone logistics & transportation market. However, lack of skilled operators and difficulties in operation are impeding the market growth. Proliferation in rural deliveries is opportunistic for the growth of the market. For instance, in 2017, Tanzanian government announced the partnership with Zipline with an objective to provide emergency on-demand access to medicines, vaccines and blood in the region.

The drone logistics & transportation market is fragmented with the presence of several industries and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the drone logistics & transportation market further. For instance, The Civil Aviation Administration of China (CAAC) permitted SF Holding and JD.com to start sending packages by drone in some of the rural areas. The companies are building network not only for small drones but also for large autonomous fixed-wing planes for final delivery that will take off from small airports to ferry bulk shipments between warehouses. For instance, Ele.me, Alibaba's food delivery arm, gained approval for testing drones in a large industrial zone. These initiatives by CAAC allow the company to serve its parcel delivery services to rural areas and inaccessible places in China. This initiative provides multiple benefits to the Asian robotics companies and thus increasing the growth of drone logistics & transportation market in the region.

On the basis of application, the shipping segment is leading the drone logistics & transportation market. However, the warehousing segment are anticipated to grow at a highest CAGR. The shipping application uses drones for the claims/returns of goods. These have a potential to organize claims/returns of goods in logistics industry. It enables retailers to utilize heavier duty drone to take defective products. It would assist the retailer to eradicate situations like emission and road congestion while delivering better expedient process. Currently, the global players are looking ahead to support logistic industry by using drones as an alternative solution for delivering drones. Drones aims to deliver packages following the last mile logistics concept, which is boosting the market for shipping market.

The overall drone logistics & transportation market size has been derived using both primary and secondary source. The research process begins with an exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the drone logistics & transportation market. It also provides the overview and forecast for the global drone logistics & transportation market based on all the segmentation provided with respect to five major reasons such as North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the vision guided robotics software industry. Some of the players present in drone logistics & transportation market are 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.