Drone Package Delivery Market

Drone Package Delivery Market Analysis, By Capacity (upto 5 lbs, 6-10 lbs and above 10 lbs), By Customer Type (Retail and Commercial), By End-use Industry (Healthcare, Retail, Food and Logistics), and Region - Global Market Insights 2023-2033

Analysis of Drone Package Delivery Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Drone Package Delivery Market Outlook (2023-2033)

The global drone package delivery market is expected to reach a valuation of US$ 347.2 million in 2023 and is predicted to accelerate at a CAGR of 24.0% to top a market size of US$ 2,983.9 million by 2033.

The drone package delivery market accounts for over 90% of the total drone delivery service market with total revenue of US$ 280 million in 2022.

Report Attributes


Market Size (2022A)

US$ 280.0 Million

Estimated Market Value (2023E)

US$ 347.2 Million

Forecasted Market Value (2033F)

US$ 2,983,9 Million

Global Market Growth Rate (2023-2033)

~24.0% CAGR

North America Market Share (2022)


East Asia Market Growth Rate (2023-2033)

~25.0% CAGR

United States Market Growth Rate (2023-2033)

~24.2% 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

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Technological advancement in drones

Drones are continuously on the way to advancement with the integration of technologies like vertical take-off and landing (VTOL), machine learning, IoT integration, geospatial mapping, etc. This technology has significantly enhanced the operation and performance of drones which can provide delivery autonomously with accuracy. Owing to these factors drone packaging delivery services are growth at a significant pace worldwide. It offers drones the ability to navigate, operate and tackle obstacles efficiently and provides safer delivery to the customer.

AI is a new advancement in technology that will leverage drones to perform several tasks without human intervention from launch & navigation to data management. Additionally, the utility of advanced sensor technology in drones has enhanced the accuracy & safety level of using a drone for package delivery where drones track down obstacles and carry out the delivery efficiently.

  • Short Term (2023 Q1-2026): In Short-terms the market growth is projected to be highly fragmented with the adoption of drone package delivery services from e-commerce companies, online food delivery service providers, and healthcare organizations. Post-COVID, this service gained tremendous demand to maintain social distancing and offer contactless delivery.
  • Medium Term (2026-2029): In the mid-term, the government worldwide is projected to offer leniency on the regulations regarding the utility of drones in package delivery. This factor will essentially stimulate the registration of drones from drone package delivery services.
  • Long Term (2029-2033): In the long-run, the market is expected to seek the advent of investment from government and private organizations to promote the reduction of carbon emissions with the utility of drone package delivery services. Also, consumer preference towards, quick, instance, and safe package delivery will exhibit the market demand in the forthcoming period.

Logistics end use industry to hold leading share of 44.0% in the global drone package delivery market.

Drone package delivery market forecast by Fact.MR

Image represents market bifurcation according to region and end-use industry. Logistics holds more than one-third of market revenue share, followed by retail & healthcare.

Key factors driving the drone package delivery services?

Surging demand for time-efficient delivery services

The consumer inclination towards buying a product from e-commerce platforms is one of the major factors attributing to the demand for drone package delivery services. E-commerce companies are rigorously opting for services that can quickly deliver packages to the customer to enhance the customer experience and client satisfaction. This factor is paying the way towards the adoption of drones which is time efficient solution to deliver products quickly, instantly, and optimally to clients.

These drones are largely used in last-mile delivery services offered by e-commerce companies. The drones are not restricted like the traditional mode of delivery methods such as electric vehicles, diesel cars, and vans, as it has zero barriers regarding high traffic jams, extreme road condition, and others. Owing to these factors, drone packaging delivery services are gaining popularity as time-efficient delivery methods worldwide.

Cost efficiency of drones over the vehicles

Investment in drone technologies for package delivery is cost-efficient for end-use sectors like logistics, retail, food, and others. The traditional method of delivery comprises electric vehicles, diesel-based cars, or vans. While delivering a package, end-use sectors are required to have transportation and a delivery person, the cost of which is included in package delivery.

In this case, drones are found as a cost-efficient solution where the additional cost of fuel, transportation, and delivery guys could be saved. The drones mostly run autonomously, avoiding the risk of traffic delay and vehicle collision. Owing to this property of drones over transportation, it is gaining substantial demand for package deliveries from end-use industries.

More Insights, Lesser Cost (-50% off)

Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR

Factors impeding the drone package delivery services

Stringent regulation on drone utility & certification

According to current rules, drone delivery services must operate inside the operator's line of sight, which makes the use of a ground-based observer necessary. This observer can be on foot or in a car. Flights in the air are constrained by topography and ground infrastructure, therefore drone delivery missions are generally shorter than operators would like them to be.

Also, government authority like Federal Aviation Administration (FAA) has framed strict regulation on the operation of drones in populated areas. Only drones with FAA airworthiness certificates are allowed to be used, and that is also at night. With the association of uncertain risk, the government has framed strict regulations on drone utility which is restraining the market growth in the forthcoming period.

Country-wise Insights

United States to exhibit leading share in the global drone package delivery market

The United States drone package delivery market is highly fragmented with a substantial number of drone utilities in the region. The Federal Aviation Administration (FAA), has registered 870,389 drones in the United States out of which about 331,993 are commercial drones.

Also, the e-commerce industry is growing at a healthy growth rate in the region with the increased popularity of online shopping among people. Drone package delivery services are highly utilized, as these are best suited for last-mile deliveries of the package to offer instant, quick and accurate delivery services to the customer. Moreover, the market growth in the country is highly dependent on food industry, where online food delivery is been initiative by top food channels like Pizza hut, Domino’s and others with the help of drones. Therefore, the country is likely to have leading share in the forthcoming period.

China to rise with fastest CAGR

The Chinese drone packaging delivery market is expected to rise with a CAGR of 26.0% in the forecast period.

The Chinese market for drone package delivery is high potential and is fuelled by the global spread of COVID-19 during 2020. During the COVID pandemic, the food & medical industries have highly utilized drone packaging delivery services to offer contactless deliveries of medicine and food to isolated people to follow social distancing.

With the increasing popularity of online food delivery services in the region, these drones gained immense popularity among the youth population. Government's move towards the adoption of these services to bear the burden of distant rural deliveries coupled with high urban demand pressure has created a lucrative opportunity for market expansion.

Category-wise Insights

Logistics sector to exhibits the leading share in the market

The drones are comprised of VTOL technologies, sensors, machine learning, and advanced cameras to efficiently analyze the environment and act accordingly. In this way, they safely and accurately help in delivering packages to the customer. Owing to this reason, drones are gaining tremendous demand from the logistics sector.

It avoids traffic jams, long queues, or lines of transportation along with adverse road infrastructure to deliver a package. In this case, it is observed as a time & cost-efficient solution for the logistic companies. Cost-cutting strategy is efficiently managed with the utility of drones where excessive resources for handling delivery services are eliminated with the utility of drones which works autonomously and comprises machine learning. With all these features, the logistics sector is highly benefited from drone package delivery services and expected to gain suitable demand from the sector.

Commercial sector to hold largest share in the drone package delivery services

Among segments by customer type, the commercial sector holds the leading share of 71% in the global drone package delivery market. The utility of these drones in the commercial sector simplifies the distribution channel and efficiently eliminates the time consumed by manual operation of cargo, or other heavy products transportation.

It is been supported by a customer base from the commercial sector to promote the environmental sustainability mandated by government regulations. Drones eliminate the utility of fuel-based vehicles and substantially help in the reduction of carbon emissions. Owing to these factors, the commercial sector is projected to exhibit a leading share in the utility of drone package delivery services.

Don't Need a Global Report?

save 40%! on Country & Region specific reports

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 market is highly fragmented with the presence of both small and larger market players. These market players are taking strategic moves like service launches and partnerships to stay competitive in the market.

For instance :

  • In July 2022, Amazon leading e-commerce Company announced the utility of drone packaging delivery services for package delivery in college station, Texas.
  • In September 2022, Jumia, a leading e-commerce Company in pan-Africa partnered with Zipline to offer on-demand drone delivery services in Ghana. With such an initiative the company is also planning to expand this service in Nigeria and Côte d’Ivoire in the forthcoming period.

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

Segmentation of the Drone Package 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

- FAQs -

What will be the future CAGR of the market growth?

The market is expected to grow with the CAGR of 24.0% during the forecast period 2023-2033.

Which region accounts the leading share in global drone package delivery market?

North America holds leading share of 43.0% in the market

What is the growth rate of East Asia in the global drone package delivery market?

East Asia to exhibit highest CAGR of 25.0% in the global drone package delivery market.

Which capacity type segment accounts for leading share in the market?

Drone with capacity of up to 5 lbs holds the largest share with 53.0%% in the market.

Drone Package Delivery Market

Schedule a Call