|Status : Upcoming||Report Code : VRAD12003||Industry : Aerospace and Defense||Available Format :|
Drones are used to transfer an extensive range of products, such as small packages, medical supplies and food, and others, due to speedy delivery and its benefits over on-road deliveries. It is increasingly used for border surveillance. Moreover, military forces are also exploiting the usage of drones to resupply soldiers with equipment, spares, food, and ammunition on the battlefield.
Need for quicker delivery of goods, and usage of drones for cargo transport in military operations are the factors driving the growth of the global drone logistics and transportation. Different solutions such as shipping solution, traffic management, software, and warehousing & distribution contributed to the drone logistics and transportation market size. The market has witnessed a high demand for shipping solution segment over the last few years due to mounting investment in the R&D of drones for package delivery.
Insight by Solution
On the basis of the solution, the market is subdivided into shipping solution, traffic management, software, warehousing & distribution, and infrastructure. Of all the solutions, the shipping solution segment is anticipated to grow at the fastest rate in the market due to mounting investment in the R&D of drones for package delivery.
The infrastructure segment is further subdivided into a charging station, use of unmanned aerial vehicles (UAV) control station and vertiports/landing pads. The software segment is further subdivided into inventory management, route planning, and live tracking.
Insight by Sector
On the basis of the sector, the market is subdivided into commercial and military. A large number of deliveries in the logistics industry, and e-commerce sector, and mounting interest in the usage of unmanned aerial vehicles for the delivery of packages such as inventory management, delivery of medical supplies, food delivery, inventory tracking, and parcel delivery are the major factors growing the demand for drones in commercial sector. Among both sectors, the commercial sector accounted the largest share in the drone logistics and transportation market.
Insight by Drones
On the basis of drones, the market is subdivided into freight drones, medical/ ambulance drones, and passenger drones. The freight drones are further subdivided on the basis of cargo weight into less than 10 kg (delivery drones), and more than 10 kg (cargo drones). Among the both, less than 10 kg (delivery drones) segment accounted the largest share in the market due to the elevated need for drones for first mile and last mile deliveries.
Technological advancements such as blockchain, wireless charging, sense and avoid system, automated ground control stations, artificial intelligence, cloud computing, and the Internet of Things (IoT) are the trends in the drone logistics and transportation market.
Need for quicker delivery of goods, the mounting requirement for sophisticated industry-specific analytical solutions, reduction of strict restrictions on the usage of drones for commercial reasons, and escalating investments in the drone delivery market are the primary growth drivers for drone logistics and transportation market.
Opportunities for vendors at different levels of the value chain, usage of drones for cargo delivery in military operations, and drone delivery services in geologically challenging areas are also facilitating the growth for the drone logistics and transportation market.
Concerns of bandwidth and battery life, restrictions on the commercial usage of drones, issues related to delivery authentication and cybersecurity, concerns concerning safety during travel and package drop, and lack of trained and skilled personnel are the major challenges for the growth of drone logistics and transportation market.
Globally, the manufacturing companies trying to enter the drone logistics and transportation market are required to maintain stringent regulatory standards. Moreover, the high level of capital requirement also poses a major barrier to the entry of new players. This offers an edge to the established players in the industry competition.
Geographically, Asia-Pacific accounted the largest share in the market, due to mounting defense expenditure and reduction of strict restrictions on the usage of drones for commercial reasons. North America is observed to witness the fastest growth in the market, due to mounting acceptance of drones for package delivery by companies such as Amazon and Google. In addition, the upsurge in military budgets and high need for UAVs from the commercial and military sectors of countries are also facilitating the growth of the North American market.
Key players in the drone logistics and transportation market are catering to the demand of these devices by investing on technologically advanced products in their product portfolio across the globe. In November 2016, Flirtey and Domino's Pizza Enterprises Ltd began independent distribution of pizzas from Domino's stores to exclusive customer homes. Pinc Solutions, Dronescan, Matternet, Cana Advisors, Flirtey, Infinium Robotics, Zipline, Drone Delivery Canada, Hardis Group, Flytrex, Skycart, and Skysense are the key players offering drone logistics and transportation.