Drone Logistics and Transportation Market Size, Share, Growth Analysis, By Type(Freight drones, Ambulance drones, Passenger drones), By Application(Shipping, Warehousing, Infrastructure inspection, Security), By Region - Industry Forecast 2024-2031

Drone Logistics and Transportation Market size was valued at USD 543.98 million in 2022 and is poised to grow from USD 844.26 million in 2023 to USD 28418.97 million by 2031, growing at a CAGR of 55.2% during the forecast period (2024-2031).

Global drone logistics and transportation market is highly competitive with the presence of local as well as global companies. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of global market. 'Airbus SE', 'Amazon.com Inc.', 'CANA Advisors', 'Deutsche Post DHL Group', 'DroneScan', 'Drone Delivery Canada', 'FedEx Corporation', 'Flytrex Inc.', 'Hardis Group', 'Infinium Robotics', 'Maternity Inc.', 'PINC Solutions', 'SZ DJI Technology Co., Ltd.', 'United Parcel Service of America Inc.', 'Wing Aviation LLC', 'Workhorse Group', 'Zipline International Inc.', 'In April 2022, Wing, an Alphabet-owned start up, announced the launch of a commercial drone delivery service in Frisco and Little Elm, a pair of cities in the Dallas/Fort Worth metroplex.', 'In August 2022, SEINO HOLDINGS CO., LTD., and NEXT DELIVERY Co. announced a drone delivery prototype experiment in Tsuruga City, Kanegasaki Green and Higashiura areas to develop a new smart logistics system that contributes to solving regional problems. They signed an extensive collaboration agreement to address regional issues such as aging and population by implementing decarbonisation initiatives such as hydrogen, renewable energy, and zero-emission logistics support, which Tsuruga City aims to achieve. They collaborate to develop new logistics business models based on next generation modern techniques', 'In November 2021, TCI Express, an express logistics company, announced its plans to start drone deliveries in 2022. The announcement came after preliminary trials of medicines and another emergency/immediate delivery packages were completed in Ahmedabad.'

Consumers are willing to pay extra to have products delivered on the same day, which indicates an increase in demand for faster and more efficient delivery at cheaper prices, especially in the e-commerce industry. This need will surely increase the use and acceptance of drones in the logistics and transportation market. According to a Clutch survey, 36% of online customers are more likely to place an order if drone delivery is available. Drones are widely used worldwide for logistics and transportation such as postal delivery, healthcare and pharmacy packages such as drugs, blood, and organs and equipment transportation, and retail and food packages such as e-commerce, grocery delivery, and food delivery.

Drone delivery is a disruptive technology that is redefining the traditional shipping/delivery market with great applications in the future for the retail industry. For online retailers, the drone delivery method has proven to be very convenient and inexpensive to provide last mile delivery. So, retailers around the world are investing money in programs that ensure faster product delivery. In May 2022, Skye Air Mobility, a Delhi-based drone delivery logistics provider, unveiled its long-range drone called “Artemis” equipped to carry a 6 kg payload of 100 km. On the other hand, leading logistics service providers are also investing financial resources to integrate drone delivery capabilities into their existing business model.

On the basis of region, global drone logistics and transportation market is divided into North America, Europe, Asia Pacific, Latin America, and MEA. North America dominated the global market share due to the increasing adoption of drones in delivery services in this region. Also, the advancement of military drones, which are widely used in combat operations, will have a significant impact on the growth of the drone logistics and transportation market.