Cargo Drones Market
Cargo Drones Market is Segmented By Payload Capacity, By Range, By Drone Type, By End Use Industry & Region - Global Industry Insights 2025 to 2035
Analysis of Cargo Drones Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Cargo Drones Market Forecast and Outlook from 2025 to 2035
The cargo drones market is undergoing a significant transformation, with innovation in technology, regulatory support, and logistics demand converging to propel the sector. Fact.MR analysis forecasts the worldwide cargo drones industry to reach USD 13.90 billion in 2025 while projecting it to grow at a 14.6% CAGR through 2035 until it reaches USD 54.29 billion by 2035. The industry demonstrates strong expansion because investors build delivery infrastructure at the end points and autonomous systems transform traditional freight operations.
Organizations are combining AI, collision avoidance technology, and advanced takeoff capabilities to address supply chain issues, especially in rural or remote areas. Fact.MR opines that global defense spending and e-commerce expansion continue to sustain robust commercial demand for heavy-lift and long-range drone applications.
Among the top drivers, higher need for rapid delivery, wider use in military logistics, and higher battery energy density are reshaping the competitive landscape. Governments also accelerate drone-friendly regulations like trial airways and digital traffic management systems. Nevertheless, the sector still faces major barriers like payload capacity, higher manufacturing costs, and integration into the airspace.
Opportunities arise in healthcare logistics, offshore shipping of oil, and city freight. Threats are cybersecurity risks, public opposition, and unclear insurance policies. Nevertheless, Fact.MR research concluded that increased R&D, regulatory harmonization, and intersectoral collaboration will open up new avenues for growth and transform cargo drones as a cornerstone of the next-gen logistics infrastructure.
Key Metrics
Metric | Value |
---|---|
Industry Size (2025E) | USD 13.90 billion |
Industry Value (2035F) | USD 54.29 billion |
CAGR (2025 to 2035) | 14.6% |
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Key Cargo Drones Industry Dynamics and Outlook
Surging Need for Cost-effective Delivery to Propel Demand
The industry is gaining momentum due to the rising need for faster, cost-effective, and autonomous delivery. Fact.MR analysis predicted that the growth of e-commerce, particularly in remote areas, has accelerated the deployment of drones to set up last-mile connectivity. Additionally, military and humanitarian applications are also fueling robust demand for long-endurance cargo drones.
Technological advancements are assuming a central role in expanding the industry. Integration of AI-driven navigation, extended battery life, vertical takeoff and landing (VTOL), and modular payload systems is helping to fill traditional freight gaps. Fact.MR anticipates that growing investments in smart logistics and drone corridors are also enhancing industry viability.
Regulatory Issues May Hinder Sales
While it enjoys strong growth drivers, the sector suffers from regulatory inconsistency and proper infrastructure shortages. Fragmented drone legislation in places and sluggish certification processes hinder commercial deployments. Unclear frameworks in certain developing nations regarding flight altitudes, no-fly zones, and cross-border drone logistics inhibit rapid scalability.
Another important restriction is range and payload capacity. Current battery technology, while it is advancing, still restricts the operational ranges of drones beyond a point or weight. Fact.MR survey indicates that this makes cargo drones less practical for heavy freight hauls, driving manufacturers to target niche applications instead of wide logistical coverage in the near future.
Rising Public-Private Partnerships to Create Opportunities
There are vast opportunities in time-sensitive verticals such as medical supply delivery, disaster relief in the affected regions, and offshore energy logistics. Government pilots in Africa and Asia are showcasing the capability of drones to bypass infrastructure shortfalls and penetrate underserved areas. Fact.MR is of the opinion that public-private partnerships will be a driving force in unlocking these high-impact segments.
Also, expanding green logistics requires driving the uptake of low-emission alternatives to helicopters and trucking. With the cargo drone, there is a massive environmental win with reduced fuel consumption and diminished noise pollution. With stricter carbon rules on the horizon, businesses are seeking electric aerial solutions as a means for achieving ESG targets.
Security Concerns May Pose Barriers
Security concerns remain a persistent challenge to the mass commercialization of drones. The threat of hacking, hijacking of cargo, or use for malicious purposes remains a source of concern for regulators and insurers. Fact.MR analysis found that public perception and trust also play a determining role in the pace at which the industry can commercialize at scale.
Furthermore, the industry also faces stiff competition from autonomous ground vehicles and traditional air cargo. Cost competitiveness, durability in adverse weather, and safe operation will determine what technology will dominate mid-mile and long-haul industries. Having dominant logistics players in the industry requires differentiation and long-term investment for new drone entrants.
Cargo Drones Demand Analysis and Impact
The industry’s value chain comprises an elaborate and interconnected system of stakeholders responsible for fostering innovation, regulation, and capital investment. Among them, the drone manufacturers set course on hardware design, airframe development, and the integration of navigation and communication systems. These organizations, including some of the well-known brand names like Zipline, Elroy Air, and Boeing, dictate the technical performance and size of drone operations. Their battery, AI, and payload innovations have a direct correlation with adoption levels and end-user confidence.
Technology providers build the digital backbone. The providers are engaged in the development of autonomous flight software, remote management systems for fleets, and traffic integration systems. How the providers facilitate instant decision-making as well as secure communication with air traffic controllers ensures large-scale commercial adoption. The synergies between producers and tech builders often determine how rapidly and securely cargo drones are rolled out across disparate geographies.
Investors, ranging from venture capital to defense contractors, are funneling lots of capital into the ecosystem. Their capital finances R&D, pilot projects, and strategic acquisitions. However, their ROI expectations also create commercial tension, creating a demand for scalable, revenue-building business models. As capital grows more discerning, firms with evidence of cross-sector partnerships and regulatory alignment are likely to be rewarded with improved valuations and enduring capital.
National aviation authorities and global regulators have the gatekeeper position of deciding how quickly the sector evolves. Regulators impact operational feasibility through policymaking of airspace policy, licensing, and safety regulations. Fact.MR analysis detected that harmonization of policy across borders creates uncertainty and hinders worldwide logistics networks from implementing drones at scale.
Physical deployment is reliant on infrastructure developers like smart city planners, logistics hubs, and droneport operators. Whether or not they are prepared to add landing zones, charging stations, and maintenance facilities decides how urban and rural locations can enable aerial freight. End-users like e-commerce businesses and humanitarian organizations ultimately dictate demand and provide feedback loops that drive product versions and service models.
Cooperation is both a prerequisite and an impediment. There is constant tension with the speed of innovation or with end-users wanting costs reduced versus the capex-intensive infrastructure needs. The strategic leverage will be found through cross-sector coalitions, public-private partnerships, and pilot initiatives that coordinate regulators', investors', and innovators' objectives for leveraging the complete potential.
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Cargo Drones Industry Analysis by Top Investment Segments
The industry is segmented by payload capacity into below 50 kg, 50-100 kg, 100-150 kg, 150-200 kg, and above 200 kg. By range, it is categorized into below 15 km, 15-30 km, 30-45 km, and above 45 km. The drone type segment includes commercial and military & defense variants. By end use industry, the sector is divided into healthcare & pharmaceuticals, food & beverages, logistics, e-commerce & retail, consumer electronics, defense, construction, mining, and others. Regionally, the industry spans North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.
By Payload Capacity
From 2025 to 2035, the above 200 kg payload capacity industry will be the most lucrative since demand for autonomous heavy-lift logistics grows in defense, construction, and mining applications. Fact.MR analysis opines that high military use, along with industrial shipping of payload applications, will put this payload segment on robust growth at 17.3% CAGR during 2025 to 2035 over all other payload ranges.
The category is being more heavily used since it can replace traditional ground and air cargo in challenging environments, emergency deployments, and over-the-road transport where infrastructure is lacking or nonexistent. Advances in battery technology, VTOL propulsion, and structure design have made it possible to scale up drone payload capacity over 200 kg without compromising flight range or stability.
By Range
Between 2025 and 2035, the above 45 Km range segment will be the most lucrative, led by increasing demand for regional and inter-city drone logistics capable of skipping through jammed roads and reducing turnaround time. Fact.MR opines that the Above 45 Km segment will have a CAGR of 16.8% during the study period due to widespread commercial and defense applications in remote and cross-border regions.
This segment benefits from increasing R&D spending in long-endurance battery technology, solar-powered UAVs, and hybrid propulsion systems. As regulatory authorities around the world begin to legalize Beyond Visual Line of Sight (BVLOS) airways and commercial flight paths for drones, long-range capabilities are becoming ever more essential to scale up operations.
By Drone Type
Over the next decade, from 2025 to 2035, the commercial drone segment is projected to continue to be the most lucrative as e-commerce, retail, and healthcare end-users increasingly aggressively use autonomous aerial logistics for last-mile and mid-mile delivery, as per Fact.MR analysis, the commercial industry is expected to expand at a CAGR of 15.9%, following the development of mature airspace guidelines and a growth in lightweight payload drones entering global service.
Decreased delivery time, lowered cost of operations, and environmental benefits are the major drivers for adoption. Major logistics players are partnering with drone Original Equipment Manufacturers to pilot urban air mobility hubs, and hospitals are using them to bridge rural health gaps.
By End Use Industry
From 2025 through 2035, the healthcare & pharmaceuticals end-use industry will generate the highest profits because the industry demands rapid, secure, and temperature-controlled delivery systems. Fact.MR estimates that this segment will achieve a CAGR of 18.2% during the period 2025 to 2035, and it will be the quickest-growing vertical in this industry.
The delivery of blood along with vital drugs, vaccines, and laboratory samples to remote regions has been made possible through drone-based logistics, particularly during crises and emergencies. This transformation is at a quick pace, based on public health initiatives, government spending, and the establishment of drone company partnerships. Additionally, drone use reduces turnaround time for diagnostic materials in time-sensitive treatment protocols.
Cargo Drones Industry Analysis Across Top Countries
United States
According to Fact.MR research, the industry across the United States, is anticipated to register a 13.7% CAGR from 2025 to 2035 with an aggressive push towards autonomous delivery systems. The country is leading FAA-supported programs for BVLOS testing and commercial pilot certificates that are accelerating national airspace integration for drones.
Logistics behemoths are collaborating with technology startups to dispatch fleets for last-mile delivery in suburban and rural areas. Federal investment in healthcare logistics and defense applications further fuels adoption. Urban air mobility plans in Dallas and Los Angeles show strategic infrastructure preparedness, positioning the U.S. as a critical innovation and deployment center.
India
Fact.MR anticipates that the sector in India will grow at a CAGR of 16.4% over the 2025 to 2035 period, fueled by its expanding e-commerce sector and ambitious government-led drone policies. The country’s ‘Drone Shakti’ initiative and digital air corridor development are catalyzing private sector investment.
Startups are rapidly scaling solutions tailored to rural healthcare, agri-supply chains, and disaster response. Regulatory liberalization has reduced manufacturers' and operators' entry barriers. Furthermore, India's frugal logistics environment supports low-cost, high-volume drone configurations, paving the way for local manufacturing to serve both domestic and export industries.
China
Fact.MR estimates that the industry in China will expand at a 15.8% CAGR from 2025 to 2035, led by extensive government backing and technological self-reliance. China's Civil Aviation Administration (CAAC) has accelerated certification of drone air routes in inland and coastal provinces.
Mass cargo drones are being used by mega-companies in industrial supply chains, and smart city initiatives incorporate aerial logistics into urban planning. Vertically integrated production in China ensures mass domestic output of sensors, batteries, and airframes, making it the world industry leader in export capability and operating volume.
United Kingdom
As per Fact.MR estimates that the landscape in the United Kingdom will expand at a CAGR of 13.2% from 2025 to 2035, with momentum building around NHS drone trials and future air mobility corridors. Government investments in innovation zones in Scotland and Cornwall have spurred early adoption in medical and island logistics.
Strategic collaboration among aviation regulators and drone operators is shaping a policy-supportive climate. The UK's transport targets for a climate-neutral future also render drones an environmentally friendly choice for mid-distance deliveries, especially as urban air traffic deteriorates post-Brexit.
Germany
Fact.MR predicts that the industry in Germany will grow at a CAGR of 14.1% during the 2025 to 2035 forecast period, led by precision engineering, EU-funded green mobility projects, and defense innovation. German firms are focusing on dual-use drone applications in industrial and military sectors.
Integrating unmanned aerial systems into automotive and manufacturing centers' logistics chains is one of the growth drivers. With active trials conducted over Bavarian and North Rhine-Westphalian skies, Germany is also taking the lead in harmonizing EU-wide drone flight rules, providing a legal and technological framework for wider takeup.
South Korea
Fact.MR forecasts that the South Korean industry will expand at a CAGR of 15.5% during the study period, which is spearheaded by the country's hyper-digitalized logistics sector. Government initiatives like K-UAM (Korea Urban Air Mobility) are fueling the construction of droneports and 5 G-linked skyways.
Major technology conglomerates are partnering with cities to roll out pilot projects in Seoul's smart districts. As a result of the nation's high population density and short-haul freight requirements, mid-size VTOL drones are in growing demand. Robust consumer electronics and automotive supply chains are also driving domestic demand for precision logistics solutions.
Japan
Fact.MR anticipates that sales in Japan will record a CAGR of 14.3% between the years 2025 to 2035, based on robust public safety, aging population logistics, and disaster response alignment. Local drone corridors have been encouraged by the Ministry of Land, Infrastructure, Transport and Tourism to meet the supply chain requirements of mountain and coastal regions.
Organizations are integrating unmanned systems into business as usual for drug and perishable logistics. National disaster resilience architecture actively promotes the employment of drones in emergency preparedness, and technological history in robotics technology necessitates ongoing R&D expenditures on autonomous flight systems.
France
Fact.MR predicts that the landscape in France will reach a CAGR of 13.8% from 2025 to 2035, supported by robust aerospace heritage and research grants from the public sector. Experimental airspace channels are being rolled out for uncrewed flight by the Directorate General for Civil Aviation (DGAC).
Cold-chain delivery hybrid drones are being tested through urban logistics programs in cities like Toulouse and Lyon. France's carbon neutrality ambitions by 2050 also act as a driver for drone uptake as part of a holistic ecological logistics strategy. In addition, dual-use applications in agriculture and defense offer diversified sectoral engagement.
Italy
Fact.MR anticipates that the sector in Italy will grow at a CAGR of 13.4% from 2025 to 2035, driven by major advancements in cross-border logistics and heritage site monitoring. Regional logistics operators are employing drones for intermodal access in coastal and mountain areas.
The Italian Civil Aviation Authority is involved in European U-space integration efforts to standardize drone traffic management. Tourism logistics and agriculture logistics are also emerging as niche growth areas, with regional authorities providing grants for high-altitude delivery infrastructure and digital twin infrastructure for preservation of the past.
Australia and New Zealand
Fact.MR analysis expects that the industry in Australia and New Zealand is expected to grow at a CAGR of 15.1% during the forecast period due to vast geographies and inadequate rural infrastructure. Regulators such as CASA (Australia) and CAA (New Zealand) have set up proactive regulatory structures that support long-range autonomous drone use.
Public health delivery networks in remote regions, mining supply chains for Outback operations, and disaster relief across flood zones are ideal drivers of deployment. Local businesspeople and global OEMs are coming together to commercialize region-appropriate solutions that emphasize durability and environmental resilience.
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Competitive landscape highlights only certain players
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Leading Cargo Drones Companies and their Industry Share
In 2024, DJI (28-33% industry share) continued global leadership with its robust Matrice 300 RTK fleet, widely employed for high-precision logistics in Asia and Latin America. Its end-to-end sensor, flight system, and software integration give it an unprecedented cost-efficiency advantage.
AeroVironment, Inc. (20-25%) expands its commercial UAV industry further with the Jump 20 platform at the forefront, now utilized for time-critical medical and military deliveries. Its intimate defense relationships offer secure government contracts.
Israel Aerospace Industries (IAI) (15-20%) takes its position with heavy-lift drones like the Air Hopper and T-Heron, in demand for long-range supply chain applications in adversarial and distant areas of Africa and the Middle East.
AgEagle Aerial Systems, Inc. (10-14%) gains traction in North America with tailored solutions for agri-logistics and compliance-driven data delivery for regulated industries like food and pharma.
Elroy Air (8-12%) soars to the forefront in the VTOL cargo segment with its Chaparral aircraft that can carry autonomously up to 300 lbs for 300 miles, presently in pre-commercial deployment in the western US.
American Robotics (6-10%) utilizes FAA-approved BVLOS technology to swarm autonomous middle-mile lanes in logistics parks and residential delivery areas before more-established drone surveillance firms.
Microdrones (4-6%) enjoys niche industry leadership in high-resolution mapping and aerial survey logistics with integrated payloads for real-time construction, forestry, and mining applications in Europe and Canada.
Company Name | Estimated Industry Share (%) |
---|---|
DJI | 28-33% |
AeroVironment, Inc. | 20-25% |
Israel Aerospace Industries (IAI) | 15-20% |
AgEagle Aerial Systems, Inc. | 10-14% |
Elroy Air | 8-12% |
American Robotics | 6-10% |
Microdrones | 4-6% |
Others Combined | 6-12% |
Key Strategies of Cargo Drones Manufacturers, Suppliers and Distributors
As the industry is saturated with so many manufacturers, product innovation is thus becoming a competitive approach for manufacturers. Some manufacturers like AeroVironment and DJI are working on augmenting their drones' payload, flight range, and autonomy with the advanced integration of sensors and software.
To circumvent challenges posed by regulatory complexities, these producers are also entering into strategic partnerships with strong government and logistics organizations so that their products may evolve alongside changes to drone laws and certification procedures. Furthermore, they are pursuing geographic growth initiatives, emphasizing new industries in Asia and Latin America, where demand for e-commerce and logistics is growing extremely rapidly.
Investors are also aligning investment initiatives with growth geographies in the value chain. Investors are targeting startups that have new technologies such as autonomous flight, AI-driven logistics optimization, and hybrid power systems. As money is flowing into next-gen drones, investors increasingly look towards strategic partnerships among tech companies and logistics giants to hasten industry adoption. This path is being constructed to provide instant scalability and competitive advantage, alongside addressing funding requirements for R&D and regulatory expenses within the industry.
The regulators are coming at industry regulation in a two-pronged way, with the aim of concentrating on safety and bringing drones into the wider world of aviation. They are taking industry players and manufacturers very seriously with the objective of harmonizing certification procedures to enhance operational safety. The regulators are also working with stakeholders to create drone-friendly airspace management solutions. They play a significant part in pushing for regulation to realize innovation without the sacrifice of public safety. Therefore, their tactics remain central to driving the industry scale.
End-users in such industries as healthcare, logistics, and defense utilize cargo drones to cut operational expenses and optimize operations. Healthcare professionals, for instance, are experimenting with using drones to transport medical supplies to far-off areas, while the e-commerce industry is putting them to use for last-mile delivery. Their plans for adoption include adapting drone solutions to meet sector needs, such as payload flexibility and range adaptability, to enable quick, reliable, and secure deliveries.
Technology firms are leading technological innovation with the development of combined hardware and software solutions that maximize drone performance. They focus on AI routing, AI predictive maintenance, and battery technology to increase working hours and reduce delivery times. They seek to become indispensable partners in the logistics supply chain by providing modular and scalable solutions to meet the growing demand for high-efficiency.
Infrastructure companies are setting up cargo drone hubs and charging infrastructure to service the ever-growing fleet. They plan on rolling out scalable distributed networks that can promote the speedy, secure, and all-pervasive deployment of drones, mostly within urban areas and industrial venues, thus adding a further growth layer to the industry.
Key Success Factors Driving The Industry
The sector advances through three main factors that emphasize technological breakthroughs, along with regulatory adjustments and organizational partnerships. Organizations gain competitive advantages from drone technology developments, allowing them to develop efficient, cost-effective, dependable solutions. Industrial expansion demands require drones to become financially feasible through the integration of self-functioning systems and drone fleet management rules.
Concurrently, compliance and regulatory approval will also be at the core of mass adoption. Governments are working hard to develop clear airspace regulations and drone flight safety standards, and organizations that proactively partner with regulators to enforce compliance will be way ahead of the curve in terms of industry growth. Lastly, partnerships with logistics operators, technology entrepreneurs, and infrastructure players enable companies to draw on collective expertise, streamline logistics networks, and accelerate the commercialization, building an ecosystem that can grow quickly and sustainably.
Other Key Players
- AeroVironment, Inc.
- AgEagle Aerial Systems, Inc.
- America Robotics
- DJI
- Israel Aerospace Industries
- Microdrones
- Elroy Air
- Lilium GmbH
- Textron Inc.
- Volocopter GmbH
- Zipline
- Wingcopter
- Drone Delivery Canada
- Matternet
- Skyports
- UPS Flight Forward
- Amazon Prime Air
- Flirtey
Segmentation
-
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
- Middle East & Africa
Table of Content
- Market - Executive Summary
- Market Overview
- Market Background and Foundation Data
- Demand (Units) Analysis 2020 to 2024 and Forecast 2025 to 2035
- Market - Pricing Analysis 2020 to 2024
- Market Value (USD million) Analysis 2020 to 2024 and Forecast 2025 to 2035
- Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Payload Capacity
- Below 50 Kg
- 50-100 Kg
- 100-150 Kg
- 150-200 Kg
- Above 200 Kg
- Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Range
- Below 15 Km
- 15-30 Km
- 30-45 Km
- Above 45 Km
- Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Drones Type
- Commercial
- Military and Defense
- Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By End Use Industry
- Healthcare & Pharmaceuticals
- Food & Beverages
- Logistics
- e-Commerce & Retail
- Consumer Electronics
- Defense
- Construction and Mining
- Others
- Market Analysis 2020 to 2024 and Forecast 2025 to 2035, By Region
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- Middle East & Africa
- North America Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- Latin America Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- Europe Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- East Asia Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- South Asia & Oceania Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- Middle East & Africa Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- Country-level Market Analysis 2020 to 2024 and Forecast 2025 to 2035
- Market Structure Analysis 2020 to 2024
- Competition Analysis 2020 to 2024
- AeroVironment, Inc
- AgEagle Aerial Systems, Inc.
- America Robotics
- DJI
- Israel Aerospace Industries
- Microdrones
- Elroy Air
- Lilium GmbH
- Textron Inc.
- Volocopter GmbH
- Zipline
- Wingcopter
- Drone Delivery Canada
- Matternet
- Skyports
- UPS Flight Forward
- Amazon Prime Air
- Flirtey
- Assumptions & Acronyms Used
- Research Methodology
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- FAQs -
What are the industry trends at present in this landscape?
The industry lands its innovations every day as investment in technologies for autonomous flight, as well as in the regulatory landscape, is increasing.
How big is the cargo drones market?
The industry is poised to reach USD 13.90 billion in 2025.
What are the problems faced by companies in this industry at present?
Regulatory barriers, airspace management, and public acceptance hinder the widespread implementation of cargo drones.
How are the cargo drones being used in various sectors?
Used by healthcare, e-commerce, and logistics sectors for dispensing swift and reliable delivery services over remote areas.
What will the industry size be by 2035 as forecasted?
The industry is forecasted to cross the mark of USD 54.29 billion by 2035, and much hype about its growth revolves around technological advancements coupled with increasing demand for autonomously delivered solutions.