Autonomous Drone Delivery Market

Autonomous Drone Delivery Market Outlook (2023-2033)

The global autonomous drone delivery market is valued at US$ 325 million in 2023. The market is expected to expand rapidly at a CAGR of 25.0% and reach a valuation of US$ 3,026.8 million by the end of 2033.

Autonomous drone delivery services account for about 90% of the total drone delivery service market with a valuation of US$ 290.0 million in 2022.

Report Attributes	Details
Market Size (2022A)	US$ 260.0 Million
Estimated Market Value (2023E)	US$ 325.0 Million
Forecasted Market Value (2033F)	US$ 3,026.8 Million
Global Market Growth Rate (2023-2033)	~25.0% CAGR
North America Market Share (2022)	~43.0%
East Asia Market Growth Rate (2023-2033)	~26.0% CAGR
United States Market Growth Rate (2023-2033)	~25.3% CAGR
Key Companies Profiled	Aergility Aerialoop Aerit Antwork Aviant Dove Air Droneup F-Drones Flying Basket Flytrex Jedsy Manna Matternet Mission Go Rakuten Drone SkyDrop Speed Bird Spright Volansi Zipline

Autonomous drone delivery promoting environment sustainability

Autonomous drones are expected to have substantial demand for package delivery in the forecast period. Many organizations like Amazon, Domino's, and others have tested or started autonomous drones to offer faster, more efficient, and more accurate product delivery to the customer.

Apart from customers, the environment is benefited from the adoption of autonomous drones. The usage of autonomous drone delivery services has limited the utility of vans, cars, and others vehicles that runs on fuel. Drones will help avoid traffic congestion and simultaneously impede carbon emissions. It has been discovered that drones can reduce 94% of energy consumption and about 84% of GHG emissions per package delivery by replacing them with electric vans, diesel cars, and others. Owing to these factors, demand for autonomous drone delivery services is projected to rise at a significant pace in the forthcoming period.

• Short Term (2023 Q1-2026): Autonomous drone delivery services are projected to rise at a significant pace post covid pandemic. With the substantial rise in online food delivery and the healthcare industry. The demand for contactless deliveries has stimulated the adoption of the autonomous drone delivery services market.
• Medium Term (2026-2029): The market is projected to seek significant investment in autonomous drone delivery manufacturing from government & private players. Ease in regulation by the government on the utility of drones is a major factor attributing to the market growth.
• Long Term (2029-2033): In long-run, the market is likely to have tremendous growth in the future with the expansion of the e-commerce industry and consumer preference towards faster, instant, and accurate delivery of services.

East Asia is expected to rise with fastest CAGR of 26.0% in the autonomous drone delivery market during the forecast period (2023-2033).

The image illustrate the expected total addressable market value of 325.0 million in the 2023. During the historic period (2018-2022), the market growth rate was 16.0% and projected to rise with a CAGR of 25.0% during the forecast period (2023-2033).

What are the factors driving the demand of autonomous Drone Delivery services?

“Growing demand for fast delivery of packages”

Autonomous drones have a wide range of applications in different industry verticals like construction, agriculture, package delivery, and others. However, it has gained outrageous demand from the e-commerce sector. In the current scenario, consumer inclination toward purchasing the product from online shopping is been observed worldwide. In such a case scenario, the consumer is demanding faster and more efficient delivery of products, which is exhibiting the demand for autonomous drone delivery services.

With the utility of autonomous drones integrated with inbuilt GPS, cameras, sensors, and others, e-commerce companies have provided faster, instant, cost-efficient, and accurate delivery services to the customer. Through this, E-commerce companies are substantially working towards enhancing their consumer base and escalating their experience with drone delivery services. Owing to this factor, the market is expected to drive at a significant pace in the forthcoming period.

“Growing demand from food delivery services”

Demand for autonomous drones has grown for food delivery services. In various developing economies, online food delivery is growing at a significant pace. Customer preference to have food with faster & safe delivery services is rising and exhibiting the demand for autonomous drone delivery services. The utility of a drone is cost-efficient for the food delivery service provider in comparison to using any vehicle. Late delivery due to traffic congestion could be avoided with the use of drones and food quality will be sustained till delivery with the help of drones to maintain a good consumer experience.

• In January 2021, Dragontail Systems Limited, a leading software company working towards having orders online and delivery of them for big brands like Pizza hut, KFC, Domino's, etc. have announced the maneuver of an autonomous drone control and optimization system. The initiative is focused on enhancing the delivery capability of these food chains.

With the significant rise in food delivery services worldwide, autonomous drone delivery services are expected to rise at a significant pace in the forecast period.

Key factors restraining the market growth

“Technical barriers associated with autonomous drones”

Autonomous drones are integrated with several technologies like sensors, cameras, GPS systems, and others. All these technologies are essential to successfully conduct delivery services. Incidents like the loss of GPS signals for any drone could result in hurdles in finding the location of the customer. Complex algorithms utilizing a fusion of sensors, including laser, cameras, and inertial measurement units for localization and mapping, obstacle avoidance, and path planning are needed for autonomous drones flying in GPS-denied locations.

Due to sensor limitations, algorithms may fail, which may cause drones to become disoriented or collide. Strong winds can cause drones to drift and crash into immovable objects like trees and into moving objects like birds. Under certain environmental circumstances, sensors can malfunction. Owing to these limitations associated with autonomous drones, they will be less likely to prefer by end-users and therefore, the market growth is expected to be hampered.

Country-wise Insights

Why United States is projected to drive autonomous drone delivery service demand?

The United States is the economy largely impacted by the COVID-19 pandemic. This factor has paved the way for the adoption of autonomous drone delivery services in the region with the utility of these drones for food delivery, medicine delivery, and other things. For instance, In May 2020, Zipline partnered with North Carolina’s Novant Health to deliver gloves, masks, gowns, and other items with the help of a drone from a medical center to a supply storage location.

The government authorities like Federal Aviation Administration (FAA) have also eased the regulations regarding the utility of drones in the region for the delivery of pharmaceutical products, food items, and others. With the substantial investment by government and private players towards the development & deployment of the last-mile delivery solution, the market is expected to grow at a significant rate in the region.

Why Chinese autonomous drone delivery market expected to be highly lucrative?

China is a vast economy with a significant population. With the development of online food delivery and the e-commerce sector, the demand for drone delivery services is projected to be high in the country. Autonomous drones substantially help in delivering products with lesser hurdles too far distances with high accuracy, escalating the demand for autonomous drones for delivery purposes in the region.

• In July 2021, Meituan, a leading food delivery giant has announced the trial of a drone that enables a food delivery network in Shanghai with the substantial utility of its autonomous logistics network.

Additionally, the developing e-commerce industry and preference towards online shopping among youth in China have prominently stimulated market growth. As autonomous drones deliver an ordered product with accuracy and found as a cost-effective solution for the business. Owing to this reason, china has enhanced the utility of drones to resolve the hurdles regarding distant rural deliveries coupled with high urban demand pressure.

Category-wise Insights

Logistics sector is poised to drive the autonomous drone delivery market

The logistics sector is the leading end-user industry for autonomous drone delivery services. The global rise in the trend of online shopping and the demand for faster & instant delivery by the consumer has stimulated the demand for drones worldwide in the logistics sectors. Owing to this factor, drone-making companies are manufacturing autonomous drones for logistics purposes.

• In June 2022, Blueflite announced the introduction of a new drone-based solution for Logistics companies to provide economic & sustainable delivery services in the entire United States.

Additionally, the market is gaining popularity with growing consumer demand for faster, instant, and more accurate from the customer side. As traffic collision is one of the essential factors restricting faster delivery of products, which is been eliminated with the utility of drones. It is a cost & time-efficient solution for consumer and Logistics companies that substantially delivers the advent of client satisfaction & experience towards product delivery.

Why is Commercial consumer type a popular?

Autonomous delivery drones are utilized in commercial sectors like logistics & warehouses, healthcare, and other sectors. In the warehouse & logistics sector, these drones are gaining popularity by reducing the human effort and excessive cost incurred on human resources in this sector. These deliver big parcels, cargos and other efficiently from one location of warehouse to another.

In the commercial sector, it is gaining demand due to its cost-cutting features for labor appointment, and its automation features where products are automatically identified by the drones, path identified and delivery initiated with lower human intervention. Additionally, commercial consumers of these drones are benefited from the ease in the supply chain & distribution channel of products with the utility of autonomous delivery drones.

Competitive Landscape

Key market participants in the Aergility, Aerialoop, Aerit, Antwork, Aviant, Dove Air, Droneup, F-Drones, Flying Basket, Flytrex, Jedsy, Manna, Matternet, Mission Go, Rakuten Drone, SkyDrop, Speed Bird, Spright, Volansi and Zipline.

The autonomous drone delivery market is highly fragmented with the presence of both established and new market players. These market players are taking various initiatives like product launches and expansion to have a competitive edge over the competitors. For instance,

• In April 2022, Agility Corporation announced to introduction its full-scale ATLIS hybrid cargo VTOL UAV. The product is designed to offer long-range, heavy-life deliveries.
• In October 2022, Aerialoop received investment from Kamay Ventures to develop autonomous delivery drones which are rain & windproof. These drones will be expected to have cross-border commercials.

Fact.MR has provided detailed information about the provider of Autonomous Drone Delivery market positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Autonomous Drone Delivery Market

• By Capacity :

  • Upto 5 lbs
  • 6-10 lbs
  • Above 10 lbs

• By Customer Type :

  • Retail
  • Commercial

• By End-use Industry :

  • Healthcare
  • Retail
  • Food
  • Logistics

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa