Introduction of the Drone Package Delivery Market Report

A drone package delivery is a type of unmanned aerial vehicle (UAV) used for delivering packages to customers during the last mile delivery process. These types of drones generally have 4-8 propellers, rechargeable batteries, and the capacity to carry lightweight containers. They can be operated autonomously using AI technology or remotely, with distribution centers and operators overseeing the flight.

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Market Dynamic

Key Drivers and Emerging Trends

The major factors fueling the Drone Packaging Delivery Market includes the expansion of e-commerce industry and the growing demand for faster delivery of goods. In addition, increasing adoption of drone packaging delivery across medical centers and commercial businesses, owing to their faster delivery speed, minimum human interference, and high accuracy is forecast to expand the market growth. Accelerating penetration of automated delivery solutions and rising concerns towards traffic congestion leading to delayed delivery has bolstered the need for delivery drones, thereby, driving the market growth. Increasing incorporation of drone package delivery systems with night-vision devices, sensors, and collision control equipment will offer enormous opportunities to market. Additionally, the increasing prominence of quick-service restaurants and the inclination towards fast delivery of farm-fresh food items are also predicted to expand the demand for drone package delivery. With the growing demand for drone delivery services, various nations have facilitated the norms to support the operation of drones in aerospace industry, which is expected to strengthen the adoption of drones to offer new delivery routes for distant areas over the forecast period. However, the high operational cost and limited operability in serious weather conditions are expected to impede the market growth.

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Type – Segment Analysis

Based on the Type, the Hybrid segment is expected to grow at a higher CAGR during the forecast period. Drone manufacturers all over the globe are emphasizing the development of drones for use in the delivery of products within the city limits and on the advancements of drone technologies. Features like vertical landing and AI-based collision avoidance will increase the market for hybrid drones. For example, in 2019, Amazon.com, Inc. announced its Prime Air delivery drone, a hybrid drone capable of delivering products weighing up to 3 kilograms within 30 minutes to consumers residing within a 25-kilometer range.

End Use – Segment Analysis

Based on the End Use, the Medical Aids Delivery segment is expected to grow at a higher CAGR during the forecast period. The medical and healthcare segments have adopted drones to deliver medicines and medicinal equipment effectively within and outside the hospital premises. These drones are serving its application for pharmacy and laboratory pickups and deliveries, thereby optimizing labor productivity in hospitals. In addition, the COVID-19 outbreak has put increased pressure on healthcare systems across the world. The virus has caused surged demand for laboratory testing and an urgent need for PPE kits and equipments to enable remote monitoring of patients with milder symptoms. Drone delivery has significantly proved to be a useful solution in the wake of the COVID-19 outbreak by providing contactless deliveries and driving the market for the medical aids delivery segment.

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Regional – Segment Analysis:

Based on the region, the North-America region is projected to dominate the market during the forecast period. The growth of this region can be attributed to the rising trend of online shopping on e-commerce platforms and suitable FAA regulations in the US. In addition, the rise in investments from key players to encourage start-up companies to initiate parcel service platforms in the North-America will contribute towards the growth of the drone package delivery market size during the forecast period.

Top Market Players

Various notable players operating in the market include Amazon.com, Inc., Deutsche Post AG, United Parcel Service of America, Inc., Zipline, Matternet Inc., Airbus S.A.S., FedEx, EHang, Wing Aviation LLC, Boeing, among others. 

Key Developments:

• • In 2022, EHang collaborated with Aerotree Flight Services Sdn. Bhd., a subsidiary of Malaysia’s AEROTREE Group, to establish urban air mobility (UAM) business, including MRO and training, in Malaysia. Pursuant to the partnership, AEROTREE has placed a pre-order for EHang’s 50 units of the EH216 series, as well as 10 units of the VT-30.
  • In 2022, ITOCHU Corporation collaborated with Wingcopter to distribute and lease Wingcopter 198 in Japan. The Japanese conglomerate also invested in Wingcopter.
  • In 2022, Zipline and Kisumu County, entered into an agreement to store and deliver COVID-19 vaccines, blood products, and other medical commodities to health facilities within the Kisumu County.
  • In 2022, Wing Aviation LLC collaborated with Kentucky Fried Chicken (KFC) (Australia) to offer a range of hot and fresh menu items direct to homes and workplaces in Logan, Queensland.
  • In 2021, Zipline signed a service level agreement with the Kaduna State Government to deploy drones in the health supply chain system. The delivery will include daily medical supplies, like blood pints and medicines and planned COVID-19 vaccines.
  • In 2020, Matternet Inc. announced a medical drone delivery network through a delivery pilot at Labor Berlin Charité Vivantes, Germany. The company claims it to be the first urban beyond-visual-line-of-sight (BVLOS) drone delivery network for medical systems, with the capacity to serve millions of patients each year.
  • In 2020, Amazon.com received approval from the US Federal Aviation Administration (FAA) to perform its Prime Air drone delivery fleet. This approval has permitted the company to expand its unmanned package delivery and given broad privileges for Amazon to efficiently and safely deliver packages to customers.

Segments covered in the Report:

The global Drone Package Delivery market has been segmented on the basis of Type, Range, Package Size, Duration, End Use and regions. Based on Type, the market is segmented into Fixed-wing, Multirotor, and Hybrid. Based on Range, the market is segmented into Short-Range (<25 Kms) and Long-Range (>25 Kms). Based on Package Size, the market is segmented into <2 Kgs, 2-5 Kgs and >5 Kgs. Based on Duration the market is segmented into Short Duration (<30 Mins) and Long Duration (>30 Mins). Based on End Use, the market is segmented into Food Delivery, Retail Goods Delivery, Postal Delivery, Medical Aids Delivery, Precision Agriculture Delivery, Industrial Delivery, and Weapon & Ammunition Delivery. 

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Key questions answered in this research report:

• • At what pace is global Drone Package Delivery market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Drone Package Delivery market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Drone Package Delivery market?
  • Which Type generated maximum revenues in 2020 and identify the most promising Type during the forecast period?
  • What are the various Range areas of global Drone Package Delivery market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2020
Market Forecast Period	2021-2028
Market Revenues Currency	USD Million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Type, By Range, By Package Size, By Duration, By End Use, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Amazon.com, Inc., Deutsche Post AG, United Parcel Service of America, Inc., Zipline, Matternet Inc., Airbus S.A.S., FedEx, EHang, Wing Aviation LLC, Boeing, among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Drone Package Delivery Market by Type

• • Fixed-wing
  • Multirotor
  • Hybrid

Global Drone Package Delivery Market by Range

• • Short-Range (<25 Kms)
  • Long-Range (>25 Kms)

Global Drone Package Delivery Market by Package Size

• • <2 Kgs
  • 2-5 Kgs
  • >5 Kgs

Global Drone Package Delivery Market by Duration

• • Short Duration (<30 Mins)
  • Long Duration (>30 Mins)

Global Drone Package Delivery Market by End Use

• • Food Delivery
  • Retail Goods Delivery
  • Postal Delivery
  • Medical Aids Delivery
  • Precision Agriculture Delivery
  • Industrial Delivery
  • Weapon & Ammunition Delivery

Global Drone Package Delivery Market by Region

• • North America Drone Package Delivery Market (Option 1: As a part of the free 25% customization)
    • By Type
    • By Range
    • By Package Size
    • By Duration
    • By End Use
    • US Market All-Up
    • Canada Market All-Up
  • Europe Drone Package Delivery Market (Option 2: As a part of the free 25% customization)
    • By Type
    • By Range
    • By Package Size
    • By Duration
    • By End Use
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Drone Package Delivery Market (Option 3: As a part of the free 25% customization)
    • By Type
    • By Range
    • By Package Size
    • By Duration
    • By End Use
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Drone Package Delivery Market (Option 4: As a part of the free 25% customization)
    • By Type
    • By Range
    • By Package Size
    • By Duration
    • By End Use
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Drone Package Delivery (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • com, Inc.
  • Deutsche Post AG
  • United Parcel Service of America, Inc.
  • Zipline
  • Matternet Inc.
  • Airbus S.A.S.
  • FedEx
  • EHang
  • Wing Aviation LLC
  • Boeing