The global last-mile drone delivery market is expected to secure a valuation of US$ 309.74 million in 2023. During the forecast period of 2023-2033, the market for last-mile drone delivery is expected to exhibit a CAGR of 25.4% and reach US$ 2,978.3 million by the end of 2033.
The last-mile drone delivery market is driven by increased consumer demand for quick deliveries and cost & time efficiency offered by drones to the end-user industries. The last-mile deliveries are the most expensive process of the entire supply chain. The traditional approach includes the excessive cost of fuel and repair & maintenance of the vehicles. Also, last-mile deliveries are delayed and disturbed by traffic congestion, adverse road condition, and other environmental factors. To overcome these issues, last-mile drone delivery services are utilized which efficiently provide package deliveries with time & cost efficiency.
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Key Drivers of the Last Mile Drone Delivery Market:
- Speed and Efficiency: One of the primary drivers of the last mile drone delivery market is the need for faster and more efficient delivery services. Drones can navigate through urban environments and congested traffic, reducing delivery times and ensuring timely shipments.
- Cost-Effective Operations: Last mile delivery is often the most expensive phase of the logistics process. Drones offer a cost-effective alternative, minimizing the need for human labor, fuel, and traditional vehicle maintenance. This cost efficiency is especially appealing to e-commerce companies seeking to optimize their delivery operations.
- Rising E-commerce Demands: The exponential growth of the e-commerce sector, accelerated further by the COVID-19 pandemic, has increased the demand for swift and reliable last mile delivery solutions. Drones present an innovative solution to meet the escalating expectations of online shoppers.
- Environmental Sustainability: As businesses strive to reduce their carbon footprint and adopt environmentally sustainable practices, last mile drone delivery emerges as an eco-friendly option. Drones produce fewer emissions compared to traditional delivery vehicles, contributing to a greener and more sustainable logistics ecosystem.
Key Takeaways from Market Study
- During 2023-2033, the market will expand with CAGR of 25.4%
- Among regions, East Asia exhibits fastest growth with CAGR of 26.4%
- Drone with up to 5 lbs capacity holds about 57.0% of share in capacity type segment.
- The global last mile drone delivery services market growth was about 14.7% during 2018-2022.
“Developing e-commerce industry worldwide to create lucrative opportunity for the market growth,” says a Fact.MR analyst.
Competitive Landscape
The business environment for last mile drone delivery services is highly competitive. With continuous moves like acquisition and service launch by market players, the last mile drone delivery services market is expected to be highly fragmented and projected to rise at a significant pace in the forthcoming period. For instance,
- In September 2022, Valqari acquired the IDU group to establish drone infrastructure for last-mile deliveries. The acquisition is aimed to enhance customer experience and companies’ footprint worldwide.
- In June 2022, Amazon introduced Amazon Prime Air drone delivery services in California, United States. Packages upto 5 pounds or less are preferred to deliver with these drones.
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
Potential Future Trends in the Last Mile Drone Delivery Market:
Looking ahead, the last mile drone delivery market is poised to witness several trends:
- Widespread Regulatory Frameworks: The establishment of comprehensive and standardized regulatory frameworks for drone operations is expected to pave the way for broader adoption. Clear guidelines will address safety concerns and facilitate the integration of drones into national airspace.
- Increased Payload Capacities: Advancements in drone technology will likely lead to increases in payload capacities, allowing drones to transport larger and heavier packages. This development will enable the delivery of a wider range of products, expanding the application of drone delivery services.
- Autonomous and AI-Driven Operations: The evolution of autonomous technologies and artificial intelligence will drive the development of drones capable of autonomous flight, navigation, and decision-making. AI-driven systems will enhance route optimization, obstacle avoidance, and overall operational efficiency.
- Hybrid Delivery Models: The emergence of hybrid delivery models combining traditional vehicles and drones is anticipated. Companies may deploy a combination of ground vehicles for bulk deliveries and drones for the final leg of the journey, optimizing both efficiency and cost-effectiveness.
- Enhanced Safety Features: Continuous improvements in safety features, including advanced collision avoidance systems, geofencing, and real-time monitoring, will be integral to ensuring the safety of drone operations in urban and suburban environments.
Segmentation of the Last Mile Drone 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
More Valuable Insights
Fact.MR, in its new offering, presents an unbiased analysis of the global last mile drone delivery market, presenting historical market data (2018-2022) and forecast statistics for the period of 2023-2033.
The study reveals essential insights on the basis of capacity (upto 5 lbs, 6-10 lbs and above 10 lbs), customer type (retail and commercial), end-use industry (healthcare, retail, food and logistics) across major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and the Middle East & Africa).
Key Questions Covered in the Last Mile Drone Delivery Market Report
- What will be the estimated size of the Market in 2023?
- At what rate will the global Last Mile Drone Delivery sales grow until 2033?
- Which are the factors hampering the Last Mile Drone Delivery demand?
- Which region will spearhead the growth in the global industry by 2033?
- Which are the factors driving sales in the Last Mile Drone Delivery Market during the forecast period?
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