Global Drone Package Delivery Market in 2019 was approximately USD 530 million. The market is expected to grow at a CAGR of 42% and is anticipated to reach around USD 6,051 million by 2026.

Drones are is an unmanned aerial vehicle and is 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 in 2019 was approximately USD 530 million. The market is expected to grow at a CAGR of 42% and is anticipated to reach around USD 6,051 million by 2026.

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 logistic companies are working with drone companies to develop drones with long ranges, ensuring delivery to rural areas.

The global drone package delivery market was valued at around USD 530 million in the year 2019 and is estimated to grow at a CAGR of approximately 42% over the projected period and is estimated to be valued at a market value of USD 6,051 million by the end of 2026. One of the key driving factors for the market is the rising use of drones for commercial purposes. Logistic companies are using drones for reducing the time and costs associated with package delivery. Retail and logistic companies are more inclined towards using drones for the delivery of low cost as well as lightweight packages. Further, the development of autonomous drone technology by several companies is expected to create new avenues for the global drone package delivery market. The rise of technologies such as wireless charging, advanced battery technologies, long-range communication technologies, and the use of analytics for drone delivery is anticipated to create avenues for the global drone package delivery market in years ahead. However, complexity and technical barriers associated with operating drones as well as the high cost of UAVs are some of the factors that are restraining the market growth.

Top Market Player

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.

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In terms of solution, the drone package delivery market worldwide is classified into software, infrastructure, service, and platform. Based on solutions, the service segment held the major share in the global drone package delivery market in 2019, accounting for a market share of 35% in 20199. Based on the range, the drone package delivery market is segmented into long-range and short-range. In 2019, the short-range segment held a major share in the global market, however, the long-range segment is expected to record the highest growth over the forecasted period. Based on package size, the global drone package delivery market is bifurcated into less than 2 Kg, between 2-5 Kg, and more than 5 Kg. Based on geography, the market is segmented into North America, Europe, APAC, Latin America, and the Middle East and Africa. North America held a major share in the global drone package delivery market in 2019.