Drone Delivery Services Market size in terms of volume and value 2017 – 2027

Last mile delivery is the very inefficient and unproductive part in today’s e-Commerce supply chains. E-Commerce businesses are continuously looking for solutions to cut last mile delivery times and minimize the cost associated with it. E-Commerce giants like Amazon are investing heavily in advanced technologies associated with artificial intelligence, robots, drones etc. The concept of drone delivery services has begun with Amazon announcement in December 2013, delivery system designed to get packages to the customer end in less than 30 minutes using miniature unmanned aerial vehicles (UAV) technology, which is still in prototype phase.

Recently in June 2016, JD.com was one of the two top e-Commerce businesses by online transactions and revenue in China has started the delivery of e-Commerce packages using drones. Many other logistics and e-Commerce businesses are focusing on these delivery options. DHL e-Commerce division has got the clearance for its newly-developed drone “Parcelcopter” by Indian Govt. and soon one may see their drones flying around. The Weather Company, an IBM Business, one of the largest private weather enterprises in the world is joining hand with AirMap to deliver hyperlocal weather data.

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Domino’s Pizzas want to use the DomiCopter to deliver its hot pizzas and Taobao marketplace an online customer to customer and ecommerce platform has trailing tea deliveries in China. As the drone delivery services market expands overtime, it is anticipated that the trend of out sourcing delivery services by e-Commerce businesses to other businesses that own and operates a drone fleet. At present, the drones are developed in house or in association with some research & development organizations. The market is expected to witness entry of many new startups.

Drone Delivery Services: Market Dynamics

At present, the drone delivery services market is in its introduction stage. The operations costs are high due to the fact that it’s a new technology and the limitation on carrying weights. The common weight carried by drones’ ranges between 1 to 12 Kg. The delivery distance ranges up to maximum 12 to 15 kms. The lack of sophisticated battery technology is hampering the drone delivery services market. Drone delivery services players are increasingly focusing on making batteries cheaper and efficient. The immature and complex regulations related to drone delivery services is the other restraint factor hampering the growth of drone delivery services market. Still, some countries have not drafted the regulations and some are on the way.

For e.g., the Government of India is drafting the drone delivery services regulations and it is expected to be ready by year 2018. The main advantage of drone delivery services market is access to a huge untapped e-Commerce market opportunity in rural places. In populous countries like India and China, majority of the population still lives in rural part. Drones provides access to remote areas and cut the operations costs. With the drone delivery services, the customer is not necessarily pre informed and wait for receiving his packages. Drone delivery will improve the instant gratification at consumer end and it will provide a competitive edge for businesses.

Drone Delivery Services: Market Segmentation

The drone delivery services market is segmented on the basis of delivery distance, propellers and end-use. On the basis of delivery distance (range), the global drone delivery services market is segmented into:

  • Close Range Drones
  • Short Range Drones
  • Mid-Range Drones
  • Endurance Drones

Based on the number of propellers, the global drone delivery services market is segmented into:

  • Tricopter
  • Quadcopter
  • Hexacopter
  • Octocopter

Based on the end use, global drone delivery services market is segmented into:

  • E-Commerce
  • Weather Monitoring
  • Emergency Aids
  • Others

p>Drone Delivery Services Market: Regional outlook

Drone delivery services market has been segmented on the basis of region into North America, Latin America, Eastern Europe, Western Europe, Asia Pacific Excluding Japan (APEJ), Middle East & Africa (MEA), and Japan.  North America is expected to dominate the overall global drone delivery services market, followed by Western Europe. This is due to increasing investments, launching of new startups related to drone delivery services market. China, South Korea and India are expected to drive the APEJ drone delivery services market.

Drone Delivery Services Market: Key players

Some of the players associated with the global drone delivery services market are SenseFly Ltd., Airware, Inc., DroneDeploy Inc., Sharper Shape Inc., Sky Futures Ltd., Cyberhawk Innovations Ltd., Aerobo, DroneCloud, Sentera, LLC, Agribotix LLC, Amazon.com, Inc., JD.com, Inc., Deutsche Post DHL and Others.

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Last mile delivery is the very inefficient and unproductive part in today’s e-Commerce supply chains. E-Commerce businesses are continuously looking for solutions to cut last mile delivery times and minimize the cost associated with it. E-Commerce giants like Amazon are investing heavily in advanced technologies associated with artificial intelligence, robots, drones etc. The concept of drone delivery services has begun with Amazon announcement in December 2013, delivery system designed to get packages to the customer end in less than 30 minutes using miniature unmanned aerial vehicles (UAV) technology, which is still in prototype phase. Recently in June 2016, JD.com was one of the two top e-Commerce businesses by online transactions and revenue in China has started the delivery of e-Commerce packages using drones.

Many other logistics and e-Commerce businesses are focusing on these delivery options. DHL e-Commerce division has got the clearance for its newly-developed drone “Parcelcopter” by Indian Govt. and soon one may see their drones flying around. The Weather Company, an IBM Business, one of the largest private weather enterprises in the world is joining hand with AirMap to deliver hyperlocal weather data. Domino’s Pizzas want to use the DomiCopter to deliver its hot pizzas and Taobao marketplace an online customer to customer and ecommerce platform has trailing tea deliveries in China. As the drone delivery services market expands overtime, it is anticipated that the trend of out sourcing delivery services by e-Commerce businesses to other businesses that own and operates a drone fleet. At present, the drones are developed in house or in association with some research & development organizations. The market is expected to witness entry of many new startups.

Drone Delivery Services: Market Dynamics

At present, the drone delivery services market is in its introduction stage. The operations costs are high due to the fact that it’s a new technology and the limitation on carrying weights. The common weight carried by drones’ ranges between 1 to 12 Kg. The delivery distance ranges up to maximum 12 to 15 kms. The lack of sophisticated battery technology is hampering the drone delivery services market. Drone delivery services players are increasingly focusing on making batteries cheaper and efficient. The immature and complex regulations related to drone delivery services is the other restraint factor hampering the growth of drone delivery services market. Still, some countries have not drafted the regulations and some are on the way. For e.g., the Government of India is drafting the drone delivery services regulations and it is expected to be ready by year 2018. The main advantage of drone delivery services market is access to a huge untapped e-Commerce market opportunity in rural places. In populous countries like India and China, majority of the population still lives in rural part. Drones provides access to remote areas and cut the operations costs. With the drone delivery services, the customer is not necessarily pre informed and wait for receiving his packages. Drone delivery will improve the instant gratification at consumer end and it will provide a competitive edge for businesses.

Drone Delivery Services: Market Segmentation

The drone delivery services market is segmented on the basis of delivery distance, propellers and end-use. On the basis of delivery distance (range), the global drone delivery services market is segmented into:

  • Close Range Drones
  • Short Range Drones
  • Mid-Range Drones
  • Endurance Drones

Based on the number of propellers, the global drone delivery services market is segmented into:

  • Tricopter
  • Quadcopter
  • Hexacopter
  • Octocopter

Based on the end use, global drone delivery services market is segmented into:

  • E-Commerce
  • Weather Monitoring
  • Emergency Aids
  • Others

Drone Delivery Services Market: Regional outlook

Drone delivery services market has been segmented on the basis of region into North America, Latin America, Eastern Europe, Western Europe, Asia Pacific Excluding Japan (APEJ), Middle East & Africa (MEA), and Japan.  North America is expected to dominate the overall global drone delivery services market, followed by Western Europe. This is due to increasing investments, launching of new startups related to drone delivery services market. China, South Korea and India are expected to drive the APEJ drone delivery services market.

Drone Delivery Services Market: Key players

Some of the players associated with the global drone delivery services market are SenseFly Ltd., Airware, Inc., DroneDeploy Inc., Sharper Shape Inc., Sky Futures Ltd., Cyberhawk Innovations Ltd., Aerobo, DroneCloud, Sentera, LLC, Agribotix LLC, Amazon.com, Inc., JD.com, Inc., Deutsche Post DHL and Others.

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