Delivery Drones Market, by Drone Type (Fixed Wing, Rotor Drone, and Hybrid Drones), by Application (E-commerce, Quick-service Restaurants (QSR), and Healthcare), by Component (Airframe, Controller System, Propulsion System, and Others (Sensors/Battery/Camera)), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2019 - 2027

  • Published On : Nov 2019 |
  • Pages : 150 Pages |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Delivery Drones Market

The global delivery drones market was valued at US$ 165.3 million in 2017 and is projected to exhibit a CAGR of 38.5% during the forecast period (2019–2027), reaching US$ 3,802.5 million by 2027. A delivery drone is a type of unmanned aerial vehicle, which is used for distributing packages to customers in any locality. This drone is available in three different types, which include fixed-wing drones, rotor drones, and hybrid drones. These type of drones are mostly designed with 4 to 8 propellers along with rechargeable batteries and can fly at high speed while carrying a parcel. 

Increasing demand for delivery drones in the healthcare sector

Rising demand for delivery drones across the globe is driving growth of the global delivery drones market. For instance, in April 2019, a U.S.-based UAV manufacturer and logistic services provider, Zipline, collaborated with Ghana's Ministry of Health to launch a delivery drone service for medical suppliers in Ghana. In 2017, Zipline received a contract from Tanzania’s government to launch permanent medical facilities in the country.

According to the statistics from the Global Opportunity Explorer, maternal mortality rates declined from 1,300 deaths per 100,000 live births in 1990 to 290 in 2015, owing to timely delivery of required blood to patients with the help of delivery drones in Rwanda. These factors are expected to drive growth of the market.

Technological advancements in delivery drone batteries

Proliferating demand for development of lithium-metal batteries is expected to drive growth of the delivery drones market over the forecast period. A lithium-metal battery helps the drone to cover longer distances in a single charge. Moreover, lithium-metal battery is half the size of a lithium-ion battery and it could hold as much charge as a bigger lithium-ion battery.

Technological advancements play a substantial role in the adoption of lithium-metal battery for delivery drones. For instance, in January 2018, SolidEnergy Systems raised US$ 50 million in investments to fund development of their battery technology from 2012.

As a result of limited production, lithium-metal batteries are of high cost. Companies such as SolidEnergy Systems, a manufacturer of lightest rechargeable cells, are planning to establish their manufacturing units in Asia Pacific, which is expected to reduce production cost of lithium-metal batteries in this region.

On the other side, lack of technical expertise about operating drones and low battery life of delivery drones are major factors that are expected to restrain growth of the delivery drones market.

Figure 1. Global Delivery Drones Market Value Share (%), by Application (2018)

Delivery Drones  | Coherent Market Insights

Source: Coherent Market Insights Analysis, 2018

E-commerce segment holds dominant position in the global delivery drones market

On the basis of application, the global delivery drones market is segmented into e-commerce, quick-service restaurants (QSR), and healthcare. Among all the applications, e-commerce segment held dominant position in the market in 2018, owing to increasing efficiency and less cost of delivery.

Furthermore, the e-commerce industry is continuously developing, and brands and carriers are focusing on developing new ways to make online shopping easier for customers. For instance, in June 2017, China’s retailer, JD.com. Inc. developed a delivery drone that can deliver packages of 1,000 kg or one metric ton. The company’s drone can cover a maximum distance of up to 100 km before recharging.

However, poor infrastructure and fewer orders may affect e-commerce companies that are increasing their customer base in rural areas. Drones have created opportunity to make delivery operations more efficient, as these are fast and flexible, making them a game-changer in the e-commerce industry.

North America holds dominant position in the global delivery drones market

On the basis of geography, the global delivery drones market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East and Africa (LAMEA). Among all these regions, North America delivery drones market generated revenue of US$ 75.5 Mn by 2018 and is expected to reach US$ 1,074.7 Mn by 2027, witnessing a CAGR of 35.2% over the forecast period.

Several key players such as Amazon, UPS, Google, and DHL are offering drone delivery in inaccessible areas in North America region, which has led to an increasing demand for delivery drones.

According to the data from DroneLife in 2018, delivering packages by conventional methods such as trucks result in emission of around 915 grams of greenhouse gases (GHGs) per package. On the other hand, a drone can deliver a same package with just 420 grams of emission, which is expected to create significant demand for delivery drones in the North America region.

Furthermore, Asia Pacific delivery drones market holds second dominant position in the global delivery drones market, followed by North America due to increasing applications of delivery drones in various sectors such as healthcare. For instance, in September 2019, the Government of Maharashtra (India) partnered with Zipline, a drone delivery service company, to deliver emergency medicines across the state via autonomous delivery drone. Additionally, this initiative was supported through a grant from vaccine manufacturer SII (Serum Institute India).

Major players operating in the global delivery drones market include The Boeing Company, Airbus SE, JD.com, SKYCART INC, Drone America, Matternet Inc., and SZ DJI Technology Co. Ltd.

The global delivery drones market was valued at US$ 165.3 million in 2017 and is projected to exhibit a CAGR of 38.5% during the forecast period (2019–2027), reaching US$ 3,802.5 million by 2027.

A delivery drone is a type of unmanned aerial vehicle, which is used for distributing packages to customers in any locality. This drone is available in three different types, which include fixed-wing drones, rotor drones, and hybrid drones. In addition, these type of drones are mostly designed with 4 to 8 propellers along with rechargeable batteries and can fly at high speed while carrying a parcel. 

Market Dynamics

Unmanned aerial vehicles (UAVs) or delivery drones are becoming increasingly popular, as these can avoid traffic congestion and deliver customer packages in a specific time. Companies such as Amazon, Google, Uber, Matternet, and Aria Insights, Inc. are focused on adoption of electric-powered flying machines for package deliveries, especially in remote areas.  For instance, Boeing introduced a new unmanned cargo air vehicle prototype called electric vertical-takeoff-and-landing (eVTOL). This product is designed to transport payloads weighing up to 500 pounds for autonomous cargo delivery, logistics, and other transportation applications.

Furthermore, key players in the market are focused on strategies such as partnerships and collaborations, in order to expand their global presence. For instance, in March 2017, Matternet Inc. partnered with Swiss Post to launch a medical drone delivery network in Switzerland.

In October 2017, Flirtey, a delivery drone service company, collaborated with REMSA Health, an ambulance service provider, to introduce automated external defibrillator (AED) delivery drone service in the U.S.

However, lack of technical expertise about operating drones and low battery life of delivery drones are major factors that are expected to restrain growth of the delivery drones market.

Market Taxonomy

In this report, the global delivery drones market is segmented on the basis of drone type, application, component, and geography. For a comprehensive understanding of market dynamics, the market is analyzed across key geographical regions, namely North America, Europe, Asia Pacific, and Latin America, Middle East and Africa (LAMEA). Each of these regions are analyzed based on the market findings across major countries in these regions for a macro-level understanding of the market.

Key features of the study:

  • This report provides an in-depth analysis of the delivery drones market with market size (US$ Million) and compound annual growth rate (CAGR) (%) for the forecast period: 2019–2027, considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategies adopted by the leading players
  • It profiles leading players in the global delivery drones market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments, and strategies
  • Key companies covered as a part of this study include The Boeing Company, Airbus SE, JD.com, SKYCART INC, Drone America, Matternet Inc., and SZ DJI Technology Co. Ltd.
  • Insights from this report will allow marketers and management authorities of companies to make informed decisions with respect to their future product launch, technology upgrades, market expansion, and marketing tactics
  • Various strategy matrices used in analyzing the delivery drones market would provide stakeholders vital inputs to make strategic decisions accordingly

Detailed Segmentation:

  • Global Delivery Drones Market, By Drone Type:
    • Fixed Wing
    • Rotor Drone
    • Hybrid Drones
  • Global Delivery Drones Market, By Application:
    • E-commerce
    • Quick-service restaurants (QSR)
    • Healthcare
  • Global Delivery Drones Market, By Component
    • Airframe
    • Controller System
    • Propulsion System
    • Others (Sensors/Battery/Camera)
  • Global Delivery Drones Market, By Geography:
    • North America
      • By Country
        • U.S.
        • Canada
      • By Segmentation
        • By Drone Type
          • Fixed Wing
          • Rotor Drone
          • Hybrid Drones
        • By Application
          • E-commerce
          • Quick-service restaurants (QSR)
          • Healthcare
        • By Component
          • Airframe
          • Controller System
          • Propulsion System
          • Others (Sensors/Battery/Camera)
    • Europe
      • By Country
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
      • By Segmentation
        • By Drone Type
          • Fixed Wing
          • Rotor Drone
          • Hybrid Drones
        • By Application
          • E-commerce
          • Quick-service restaurants (QSR)
          • Healthcare
        • By Component
          • Airframe
          • Controller System
          • Propulsion System
          • Others (Sensors/Battery/Camera)
    • Asia Pacific
      • By Country
        • China
        • India
        • Japan
        • Australia
        • Rest of Asia Pacific
      • By Segmentation
        • By Drone Type
          • Fixed Wing
          • Rotor Drone
          • Hybrid Drones
        • By Application
          • E-commerce
          • Quick-service restaurants (QSR)
          • Healthcare
        • By Component
          • Airframe
          • Controller System
          • Propulsion System
          • Others (Sensors/Battery/Camera)
    • Latin America, Middle East & Africa (LAMEA)
      • By Sub-region
        • Latin America
        • Middle East
        • Africa
      • By Segmentation
        • By Drone Type
          • Fixed Wing
          • Rotor Drone
          • Hybrid Drones
        • By Application
          • E-commerce
          • Quick-service restaurants (QSR)
          • Healthcare
        • By Component
          • Airframe
          • Controller System
          • Propulsion System
          • Others (Sensors/Battery/Camera)
          • Airports
  • Company Profiles
      • Airbus SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Drone America
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • JD.com
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Matternet Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Skycart, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • SZ DJI Technology Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
      • The Boeing Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Drone Type
      • Market Snippet, By Application
      • Market Snippet, By Component
      • Market Snippet, By Geography
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Industry Trend Analysis
      • Product Launch/Merger and Acquisitions/Partnerships/Expansion
  4. Global Delivery Drones Market, By Drone Type, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Fixed Wing
      • Introduction
      • Market Size and Forecast, 2019 – 2027, (US$ Million)
    • Rotor Drone
      • Introduction
      • Market Size and Forecast, 2019 – 2027, (US$ Million)
    • Hybrid Drones
      • Introduction
      • Market Size and Forecast, 2019 – 2027, (US$ Million)
  5. Global Delivery Drones Market, By Application, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • E-commerce
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Quick-service restaurants (QSR)
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Healthcare
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
  6. Global Delivery Drones Market, By Component, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Airframe 
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Controller System
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Propulsion System
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Others (Sensors/Battery/Camera)
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
  7. Global Delivery Drones Market, By Regions, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, For Regions, 2017 - 2027
    • North America
      • By Country
        • U.S.
        • Canada
      • By Segment
        • Market Size and Forecast, By Drone Type, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Component, 2019 - 2027 (US$ Million)
    • Europe
      • By Country
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
      • By Segment
        • Market Size and Forecast, By Drone Type, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Component, 2019 - 2027 (US$ Million)
    • Asia Pacific
      • By Country
        • China
        • India
        • Japan
        • Australia
        • Rest of Asia Pacific
      • By Segment
        • Market Size and Forecast, By Drone Type, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Component, 2019 - 2027 (US$ Million)
    • Latin America, Middle East & Africa (LAMEA)
      • By Sub-region
        • Latin America
        • Middle East
        • Africa
      • By Segment
        • Market Size and Forecast, By Drone Type, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Component, 2019 - 2027 (US$ Million)
  8. Competitive Landscape
    • Company Profiles
      • Airbus SE*
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Drone America
      • JD.com
      • Matternet Inc.
      • Skycart Inc.
      • SZ DJI Technology Co. Ltd.
      • The Boeing Company
    • Note- The parameter covered under the * mark will be covered across each company
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse all the market data tables and figures on "Delivery Drones Market - Global forecast to 2027”.

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