Surging demand for quick, instant, same-day delivery and emergency supplies and rising amendments in regulatory frameworks to encourage drone logistics and transportation drive the Drone Logistics and Transportation Market to grow at a CAGR of 55.1% till 2030.
According to a new report by MarketsandMarkets, the market is estimated to be $534 million in 2022 and is projected to reach $17.9 billion by 2030.
The growth of the market across the globe can also be attributed to new technologies such as artificial intelligence, sense & avoid systems, and cloud computing in drones. Besides, the demand for them is expected to increase in various sectors, the report said.
The incorporation of artificial intelligence in UAVs is expected to enhance their abilities to carry out take-off, navigation, data capture, data transmission, and data analysis without human intervention.
Major players in the Drone logistics and transportation market are Alphabet Inc. (US), Hardis Group (France), Zipline (US), Volocopter GmbH (Germany), and Textron Inc. (US). These companies have strong distribution networks in the logistics business across North America, Europe, Asia Pacific and other regions, driving the demand for last-mile deliveries and logistics and transportation drone platforms.
Based on the platform, the freight drone segment is projected to lead the drone logistics and transportation market during the forecast period. The drone logistics and transportation market has been classified into freight drone, passenger drone, and air ambulance drone. Among these, the freight segment registered the highest market share in base year. The freight drone segmnet is further sub-divided into delivery drones and cargo drones. The delivery drones are anticipated to lead the market with a CAGR of 54.6% during the forecast period. Delivery drones have a low payload capacity and are being readily accepted across verticals to deliver parcels, food, and retail goods.
Software Segment
Based on the solution, the drone logistics and transportation market has been segmented into hardware, software, and infrastructure. The software segment is anticipated to grow at the highest compound annual growth rate during the projection period. This growth is attributed to the rising technological developments in commercial and military drones, which are increasing the need for advancements in software technologies.
The Asia Pacific region is projected to be a high-growth potential market for drone logistics and transportation during the forecast period. The report said that the Asia Pacific region is expected to lead the drone logistics and transportation market from 2022 to 2030, followed by North America. The Asia Pacific drone logistics and transportation market is projected to grow at the highest CAGR during the forecast period.
Courtesy: MarketsandMarkets. Photo is representational; courtesy: Volocopter.