Drone Logistics and Transportation Market: Introduction 

The rising usage of unmanned aerial vehicles (UAVs) in various business applications for quicker delivery of commodities is among the key factors fueling the development of the global drone logistics and transportation market. Surging trend of e-commerce trade is also boosting the demand in the drone logistics and transportation market. Simple regulations regarding the usage of drones with respect to commercial usage is another anticipated factor uplifting the growth of the drone logistics and transportation market in the span of forthcoming years. 

Drone Logistics and Transportation Market 

  • Drone Delivery Canada, among the top drone delivery firms tied-up with Moose Cree First Nation with US$2.5 Mn agreement, to install its drone delivery to provide the communities of Moosonee and Moose Factory. The firm in 2017, got a Compliant Special Flight Operations Certificate (SFOC), which gives a permission for serving drone services beyond visual line-of-sight activities, and regarding particular goal of drone delivery facilities. 
  • A Chinese online business firm, headquartered at Beijing is delivering commercial drones in 4 main regions spread over China from 2016. The firm announced its aim to build 150 drone delivery services in southwestern Sichuan region for UAV delivery by 2020. The firm even plans to launch similar facilities in Japan and Indonesia 
  • Zomato also took over TechEagle, a startup in drone technology to develop a hub-to-hub transportation service supported by hybrid multi-rotor drones.

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The important firms operating in the global drone logistics and transportation market include Uber Technologies Inc., Drone Delivery Canada, Zipline International, Matternet, and Flirtey. The rise in strategies such as mergers and acquisitions and partnership with drone delivery firms with services and products providers is estimated to support them in expanding their global reach and market presence. For example, Boeing HorizonX Ventures partnered with Matternet, a giant in drone delivery. Moreover, integrating service providers vertically by mergers of drone transportation firms would help in keep a check on distribution network. 

Drone Logistics and Transportation Market Dynamics 

Exemptions by Federal Aviation Administration to Contribute in Market Growth 

The leading factor behind the surge in demand in the global drone logistics and transportation market is the increased usage of drones for several commercial and military applications. Major examples of these comprise inventory management, inventory tracking, food delivery, medical supplies delivery, border surveillance, parcel delivery, and so on. Moreover, some of the exceptions by Federal Aviation Administration even enables the usage of drones in several industries that as a result is estimated to pump up the growth of the drone logistics and transportation market all over the world in coming years. Besides, delivery drones are even expected to emerge more popular in the forthcoming years owing to rising investments by various firms for the advancement in technology and to design more innovative drones, for example, Amazon, Walmart, Uber, Google, FedEx, and UPS. 

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North America to Lead due to Increased Usage of Drone in Military Operations 

Based on geography, North America region is foreseen to lead the global drone logistics and transportation market, as per market share in the coming years. The adoption of drones with respect to transportation is getting momentum in the mentioned region, due to rising measures to use the technology in military and commercial sector of Canada and the US. Apart from this, convenient regulations, such as those by Transport Canada for new remotely piloted plane is another factor supporting growth. These regulations intend to contribute in the development of drone logistics and transportation market. Relaxations and regulations like these are foreseen to propel the growth of drone logistics and transportation market in North America region. 

However, the Asia-Pacific region is expected to have the highest growth in the market studied during the forecast period. This is mainly due to the investments by the Chinese and Indian companies into drone delivery technology.

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The regional analysis covers:

  • North America (U.S. and Canada)
  • Latin America (Mexico, Brazil, Peru, Chile, and others)
  • Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
  • Eastern Europe (Poland and Russia)
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  • Middle East and Africa (GCC, Southern Africa, and North Africa)

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