Cargo Drones Market

Cargo Drones Market Outlook (2023-2033)

The global cargo drones market is set to enjoy a valuation of US$ 10,580.2 million in 2023 and further expand at a CAGR of 14.6% to reach US$ 41,337.1 million by the end of 2033.

In 2023, the global drone market is estimated to have around 7.6 million unit shipments, while the drone market is projected to grow at 15.3% CAGR. Wherein sales of cargo drone accounted for nearly 31% share of the global drone market at the end of 2022.

Report Attributes	Details
Market Size (2022A)	US$ 9,035.5 Million
Estimated Market Value (2023E)	US$ 10,580.2 Million
Forecasted Market Value (2033F)	US$ 41,337.1 Million
Global Market Growth Rate (2023-2033)	14.6% CAGR
North America Market Share (2023)	~ 32.1%
North America Market Value (US$ Mn), 2023	US$ 3,397.3 Million
Europe Market Share (%), 2023	~36.1%
Europe Market Value (US$ Mn), 2023	US$ 3,821.6 Million
China Market Share (%), 2023	~11%
China Market Value (US$ Mn), 2023	US$ 1,118.2 Million
Top 3 country Market Share (%)	~41%
Key Companies Profiled	AgEagle Aerial Systems, Inc. America Robotics DJI Israel Aerospace Industries Microdrones Elroy air Lilium GmbH Textron Inc Volocopter GMBH

Sales Analysis of Cargo Drones Market (2018-2022) Vs Market Forecast Outlook (2023-2033)

The risk of harming people and the environment in the event of an accident is multiplied when dangerous commodities are transported by truck or railroad. Autonomous drones that can transport large loads and safely integrate into the national airspace are being developed by numerous businesses.

These innovations offer the chance to move some types of dangerous cargo by air, which would not only reduce risk but also cost and ground traffic congestion. In order to effectively demonstrate the safety, effectiveness and environmental advantages of this technology, this analysis identified a small number of metropolitan regions where the first cargo drone deployments would be most effective.

Applications for cargo drones are most common in North America. While in other parts of the world, drone use is legal in certain limited circumstances, including forestry, agricultural and commercial horticultural activities.

Cargo drones are changing culture, processes, and methods of delivery. In addition, agriculture and e-commerce can improve delivery systems that can save time and increase long-term success by utilizing drone technology.

• Short Term (2023 Q1 to 2026): Below 15 Km and 15-30 Km drone range by commercial sector to positively impact cargo drones market growth.
• Medium Term (2026-2029): Europe and North America anticipated witnessing the high demand of cargo drones for logistic sector in these regions.
• Long Term (2029-2033): Increase in the use of 30-45 km range of cargo drones will upsurge the market growth.

Over the 2018-2022 historical period, the global cargo drones market registered a CAGR of 9.6%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 14.6% CAGR between 2023 and 2033.

Market share analysis of cargo drones based on range and region is provided concisely in the above image. By range type segment, below 15 Km segment dominates with 34.3% market share in 2023.

What is driving the Growth Demand for Cargo Drones?

“Increasing Parcel Deliveries through Cargo Drones”

Today, a rising number of national governments, led by innovators like Australia, Singapore, Iceland, and Switzerland, have approved licences allowing businesses to test commercial cargo drones. These often entail allowing companies to offer fee-charging freight services at specific periods, followed by surveys of customers to improve the service.

The Civil Aviation Administration of China first granted a commercial licence for last-mile parcel delivery to the China-based logistics firm SF Express in 2018. (CAAC). It has now successfully executed government-approved transports of more than 250km between Indonesian islands, surmounting barriers and distances that were thought unachievable. These types of parcel deliveries are rapidly growing all across the world and led to increasing demand for the cargo drones market.

“Flying Labs in Remote Mountains Will Propel the Market Growth”

A non-profit company called Flying Labs offers communities in need cutting-edge, data-driven solutions. The remote mountain settlement residents have lack frequent access to healthcare services. This is not because paved highways do not connect the villages, community clinics, and regional hospitals. The main barrier, however, is the expense of local transit. This is especially troublesome when neighborhood clinics run out of medications or are unable to do local patient sample testing.

Flying laboratories can be handy for work in this setting. People employ cargo drones for emergencies in many parts of the world. For instance, Pfizer collaborated with WeRobotics and DR Flying Labs to deploy autonomous cargo drones over the course of six weeks in 2019. One of more than 25 Flying Labs across Latin America, Africa, Asia, and Oceania is DR Flying Labs. These increasing flying labs around the world also increased the sales of cargo drones.

What Do Cargo Drones Manufacturers Need to Watch Out for?

“Delivery Validation and Cybersecurity Anxieties to Restrain Market Growth”

The main obstacles to the market's expansion include delivery validation and cybersecurity worries, worries about travel and package drop safety, and a lack of competent and trained employees. The use of drones for cargo delivery in military operations and drone transport services in geographically difficult places are creating opportunities as well as challenges for vendors in the worldwide drone logistics and transportation sector.

Such challenges of drone operation due to lack of skilled and trained personnel’s may affect the market growth of drones as well as cargo drones market.

Country-wise Insights

Which Country has Highest Market Share in North America Region?

Due to rising government investment on the creation of smart logistic systems, the industry in North America is anticipated to account for a significant revenue share in the worldwide cargo drone market. Additionally, the existence of many competitors functioning in the nation and the launch of creative solutions in an effort to draw in new clients are anticipated to assist the expansion of the regional market for cargo drones.

United States cargo drones market is estimated at US$ 2,928.8 million 2023. With a CAGR of 11.9% in the forecast period.

Why there is High Demand for Cargo Drones in Japan?

Japan has always stay ahead, when it comes to adopting new technology. The total number of farmers in Japan has fallen from 11 million farmers in 1965 to less than 2 million in 2020. Due to that, government of japan has set a goal to introduce cargo UAVs for more than half of the land area planted with wheat, soy and rice across country to logistic and other purposes by 2022.

Due to these factors, the demand for cargo drones in Japan has increased over the historic period and it will reach the valuation of US$ 544.2 million in 2023.

Category-wise Insights

Which Drone Range Spur the Market Growth of Cargo Drone?

Due to the significant demand for drones for first mile and last mile distributions, the sub-segment below 15 Km is predicted to dominate the cargo drones market. Drones can transport a wide variety of goods, including small packages of foods, medical supplies, and other supplies.

The below 15 Km segment is anticipated to hold the highest market share of 34.3% in the end of 2023, owing to growing investment in the research and development of drones for package delivery.

How Commercial Cargo Drone are Likely to Witness an Accelerated Growth?

According to the sector, it is anticipated that the commercial sector will dominate the market over the projection period. Faster economic growth has led to the expansion of major cities, which calls for new logistics and transportation methods, including the rapid deployment of large-scale drones, in order to meet the rising demand that results from such speedy delivery. Venture capitalists have made significant investments in the delivery drone market in an effort to commercialize the business and take advantage of future development prospects.

Around the globe, cargo drones is widely used for commercial purposes although in recent year’s delivery and recreational use has rapidly increased. This has led to an increase in cargo drones in recent years and this trend is expected to further grow in future. In 2023, commercial cargo drone will reach the valuation of US$ 8,713.8 million with a market share of 82.4% in overall drone market.

Competitive Landscape

Cargo drone manufacturers are volocopter GMBH, Dronmics, Lilium GmbH, Elroy air and Textron Inc.

Top cargo drone producers are putting a lot of effort into continuously improving their product designs to address the issues of component placement in today's tough environments. In the drone accessory industry, prominent players are using a competitive price strategy.

Businesses are forming beneficial alliances and working together with the public sector and end-use industries. Market competitors are increasing the range of products they offer in response to the growing demand for contemporary accessories. Market players are seeking to broaden their geographical reach while concentrating on R&D and allocating their resources accordingly.

For instance :

• In April 2021, AgEagle Aerial Systems Inc, US-based drone technology firm has been working in the business for over past one decade. The company has acquired aerial intelligence solutions company Measure Global Inc that is an award-winning company. Company acquired in a combination stock and cash transaction valued at approximately US$ 45 million.

Fact.MR has provided detailed information about the price points of key manufacturers of cargo drones positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Long range drone Industry Research

• By Payload Capacity :

  • Below 50 Kg
  • 50-100 Kg
  • 100-150 Kg
  • 150-200 Kg
  • Above 200 Kg

• By Range :

  • Below 15 Km
  • 15-30 Km
  • 30-45 Km
  • Above 45 Km

• By Drone Type :

  • Commercial
  • Military & Defense

• By End Use Industry :

  • Healthcare & Pharmaceuticals
  • Food & Beverages
  • Logistics
  • e-Commerce & Retail
  • Consumer Electronics
  • Defense
  • Construction and Mining
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA