Drone Delivery Industry to Grow at 53% CAGR Between 2020 – 2026
Research firm, Facts and Factors, have published a new research report which forecasts that the drone delivery market will grow at a 53% CAGR from 2020 – 2026.
According to the research report:
“The global Drone Package Delivery Market was estimated at USD 528 Million in 2020 and is expected to reach USD 6,773 Million by 2026. The global Drone Package Delivery Market is expected to grow at a compound annual growth rate (CAGR) of 53% from 2021 to 2026.”*
Top market players in the market are: Airbus S.A.S., Amazon.com. Inc., BIZZBY, Boeing, Cheetah Logistic Technology, Deutsche Post DHL Group, DroneDelivery Canada Corp., Dronescan, Edronic, EHang, FedEx, etc.
Delivery drones are unmanned aerial vehicles (UAVs) that are used to carry packages to consumers. Rotor drones, fixed-wing drones, and hybrid drones are the main types of drone which are typically equipped with four to eight propellers, rechargeable batteries, and can travel at high speeds when transporting a package.
The drone delivery market is growing rapidly as drones prove to be invaluable in distributing vaccines and testing materials to remote areas. In fact, in light of COVID-19, medical drone delivery is expanding very quickly around the world. As the U.S. and global aviation authorities move towards allowing flight beyond visual line of sight (BVLOS), cargo drone delivery becomes a very attractive option for industry.
The factors driving the market forward are the growing demand for rapid delivery and the rising demand to reduce carbon emissions, which requires growing regulatory structure amendments. Therefore, companies in the logistics and transportation, agriculture, retail, and healthcare industries are attempting to incorporate drone delivery into their business models to ensure the seamless and efficient delivery of packages on the same day.
The use of delivery drones is growing in numerous areas, such as e-commerce, the healthcare industry, convenience stores, and fast service restaurants, etc. What makes this possible are the advances in freight transportation and increased investments from logistics and transportation firms. According to Invesp, around 51% of worldwide online retail shoppers prefer same-day delivery, or rapid delivery, over long-duration deliveries that were offered in 2018.
Due to these factors, aerial delivery drones are becoming more common in the global e-commerce industry as retailers are trying to reduce delivery lead times and increase delivery flexibility and speed.
In spite of overall skepticism of the use of drones, according to Virginia Tech and MAAP, recently published research indicates that most people who have access to drone delivery think of it positively.
The U.S. is the Leader in Revenue
This report shows that the U.S. is the leader in drone delivery revenue, which is probably due to companies like UPS, Wing, and the partnership between Flytrex and Causey Aviation, which have been licensed for commercial drone delivery as “Aircraft Carriers.”
The report lists drone delivery in the following segments of the market:
- Food Delivery
- Retail Goods Delivery
- Postal Delivery
- Medical Aids Delivery
- Precision Agriculture Delivery
- Industrial Delivery
- Weapons & Ammunitions Delivery*
Given that one of the major factors in following the market is the growing demand to reduce carbon emissions. The fact that drones are becoming more eco-friendly with a more non-invasive impact on the environment, will likely lead to significant growth in the market.
Due to the affordability, quick delivery, and the growing inclination towards online transactions, we anticipate there will be a tremendous surge in the package delivery market. (CAGR)