Drone Logistics and Transportation Market Opportunities and Challenges in the Delivery of Goods and Services by Autonomous Drones 2023-2028


Posted January 17, 2023 by Urmila01

The Global Drone Logistics and Transportation market size is estimated to reach $27.3 billion by 2026, growing at a CAGR of 16.8% over the forecast period of 2022-2026.

 
The Global Drone Logistics and Transportation market size is estimated to reach $27.3 billion by 2026, growing at a CAGR of 16.8% over the forecast period of 2022-2026.
Drones are devices that can take inventory in a logistics warehouse, transport goods by air, or perform security tasks. The increasing use of unmanned aerial vehicles (UAVs) in various business applications for faster goods delivery is fueling the global market for drone logistics and transport. In addition, the rising trend in e-commerce is also increasing demand in the drone logistics and transport market.
Drones are gaining traction in the logistics industry as they provide various benefits associated with applications such as shipping, warehousing, security monitoring, and disaster recovery. Various supportive initiatives by governments in different countries related to drones' use for logistics fuel the market's sales growth. Drones have immense potential to disrupt ocean freight by streamlining the inspection and verification process. For railways, logistics; Transport drones are likely used to retrieve packages from a train as it approaches a specific destination and delivers the package to the intended recipient.
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Impact of COVID-19:
Increasing supply chain and manufacturing disruptions have limited the sales of drones owing to the COVID-19 outbreak. COVID-19 lockdowns impacted the availability of subcomponents to the assembling companies in a snowball effect. Drones help provide safety and reduce cost per delivery and delivery time, thus increasing profits.

Key Market Players
Key Players in the Global Drone Logistics and Transportation Market consist of Zipline, CANA Advisors, Flirtey, Flytrex Aviation Limited, Hardis Group, Drone Delivery Canada, Workhorse Group PLC, Matternet, PINC Solutions, and Uber Technologies Inc.

Market Dynamics
Driver:
The Increasing demand for drones in last-mile delivery solutions to leverage cost reduction benefits.
Increasing demand for drones in last-mile delivery solutions to leverage cost reduction benefits is crucial, fueling market revenue growth. For example, Prime Air delivery drones Amazon could ship out parcels directly from warehouses to each customer within 30 minutes for a minimal price of USD 1.00. Companies engaged in the last mile and small package delivery are considered the most appropriate logistics business units for the initial deployment of drones, owing to the characteristics and current technological limitations. Thus, rising demand for last-mile delivery by e-Commerce firms and online food delivery services providers like Dominos is driving demand for drone logistics and transportation.
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Challenge:
The issues associated with drone battery backup may hamper revenue growth.
The issues associated with drone battery backup may hamper revenue growth to some extent over the forecast period. Drone flight time capacity is relatively short owing to the need to balance a drone's power and weight ratio. The lithium-polymer battery, which is used in most drones, offers limited backup. Also, short flight time is due to manufacturers' programming of smart batteries to extend battery service life. These smart batteries will discharge themselves till they reach around 30% of the storage capacity. Thus, the drone may not achieve its full flight time due to batteries self-discharging during flight.

Report Coverage and Scope
The report "Global Drone Logistics and Transportation Market" by Research Informatic covers an in-depth detailed analysis for the following segment covered under the scope.
By Solution
Warehousing
Shipping
Infrastructure
Software
By Sector
Military
Commercial
By Geography
North America
Europe
APAC
RoW
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TOC:
Chapter 1 Drone Logistics and Transportation Market Overview
1.1 Product Overview and Scope of Drone Logistics and Transportation
1.2 Drone Logistics and Transportation Market Segmentation By Solution
1.2.1 Warehousing
1.2.2 Shipping
1.2.3 Infrastructure
1.2.4 Software
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Categories Business , Computers , Technology
Tags drone logistics and transportation
Last Updated January 17, 2023