Global Drone Package Delivery Market is Growing Due to Soaring Retail and E-Commerce Sector in Urban Areas and Retail Companies Leveraging New Technologies for Rapid Delivering
Drones are unmanned aerial vehicles and are operated with different degrees of autonomy. Drone deliveries are carried out using manually operated or autonomous unmanned aerial vehicles (UAV). Drones can be used for delivering packages, food, and beverages, medical supplies, etc. The drone is used for delivering medicinal and pharmaceutical products, food and beverages, etc. Drones have up to 4-8 propellers and are rechargeable. Drones are used for packaged delivery because these UAV’s can travel through congested streets and make sure that the product is delivered quickly.
According to the research report, the global Drone Package Delivery Market was estimated at USD 530 million in 2019 and is expected to reach USD 6,051 million by 2026. The global Drone Package Delivery Market is expected to grow at a compound annual growth rate (CAGR) of 42% from 2020 to 2027.
Drones were mainly developed for military applications in 2006. However, several federal authorities have allowed the use of drones for business purposes. In 2006, the U.S. Federal Aviation Administration issued the first permit for the use of drones for commercial purposes. Companies operating in industries like retail, logistics, and food and beverages are leveraging the use of drones for package delivery, as drones can travel faster than delivery vans through congested areas. Drones can ensure a quick delivery by flying over buildings and various types of obstacles. Drones are being used by companies for quick delivery in areas where delivery cars and vans are unable to reach. In 2019, Prime Air received permission to fly R&D missions in specific flight areas. Also, United Parcel Service (UPS), in 2020, partnered with Wingcopter to design and develop a delivery drone, which is expected to be used by United Parcel Service (UPS) for logistic purposes. In October 2019, Flight Forward, a subsidiary of United Parcel Service (UPS), was granted permission to operate a drone airline. Logistic and retail companies are looking for drones that can travel for longer durations and deliver packages to real-time locations. Further, many logistics companies are working with drone companies to develop drones with long ranges, ensuring delivery to rural areas.
Top Companies in Drone Package Delivery Market
Major companies operating in the global drone package delivery market are Edronic, FedEx, Zipline, DHL International GmbH, BIZZBY, Flirtey, Flytrex, Drone Delivery Canada Corp., Amazon.com, Inc., Boeing, Matternet, Inc., United Parcel Service of America, Inc., Cheetah Logistics Technology, Altitude Angel, Workhorse Group Inc., Airbus S.A.S., Wing Aviation LLC, DroneScan, Skycart Inc., and Fli Drone. Major companies operating in the global drone package delivery market such as Amazon.com, Inc., United Parcel Service of America, Inc., Wing Aviation LLC, DHL International GmbH, and FedEx accounted for a market share of nearly 30% in the global drone package delivery market in 2019.