The introduction of drones in the delivery service market has rapidly transformed the process deliveries, further leading to a change in consumer behavior. The drones or autonomous unmanned aerial vehicles (UAVs) are a popular option for last-mile deliveries, essentially of parcels, for remote or rural areas with less population density. Since it is expected that instant or same-day delivery will grow in the next ten years, door-to-door delivery has been a major area of research by several firms such as Google, DHL, UPS, and Amazon, among others. Some of these companies are testing drone delivery service since 2005 and are expected to launch their services by 2023.
The drone delivery service market is majorly growing due to the increasing demand of instant deliveries especially in the case of medical supplies and food essentials. Drone regulations and rapid advancements in technologies related to UAVs are also playing an important role in the market growth. The growing need of healthcare deliveries such as blood samples and medicines especially in remote areas or during any global epidemic are also one of the major reasons behind the expected drift from traditional package delivery system to drone delivery services. The major reasons for the largest market share for rotary wing drones are due to their ease of use, VTOL and hover flight capability, long duration of endurance, and the ability to be operated in remote areas. Most of the medical supply related deliveries are in remote areas to connect villages or cities. Such deliveries need long endurance and VTOL capability as well as ease of operation in confined areas, hence, rotary wing drones are expected to have a largest market share.
The strategies employed to gain a significant market share in this growing industry have been varying from service launches and test flights, partnerships and contracts, among other strategies. This segment provides comprehensive insights regarding several development activities that the key players in the industry are adopting to compete directly. To lead the market as well as engage in the process of overall growth, a company needs to introduce new products to the market, improve the existing products’ framework, work in collaboration with the top market leaders or win new contracts, and acquire the relatively weaker companies into its stronghold.
The drone delivery service market has witnessed various forms of market dynamics across different regions of the globe. Moreover, the drone manufacturing companies have recently witnessed a rising demand from countries such as the Japan, U.S., China, Singapore, India, France, Germany, and others. The following figure represents the global market by region. It includes North America, Europe, Asia-Pacific, and Rest-of-the-World. Several companies have started their trials for delivery such Project Wing of Google (Alphabet Inc.) has started its BVLOS drone delivery trials in Virginia area. Also, In March 2019, Flitey started its trials for BVLOS drones in Reno. In Canada, delivery drone is expected to disrupt the market of retail industry by transforming its distribution channel completely. Additionally, Canadian aviation authority is also focusing on air traffic solutions to enhance the safety of public and reliability of their delivery drones when operated urban areas. For instance, In Aug 2018, Transport Canada approves the testing of X1400 cargo delivery drone of the company Drone Delivery Canada.
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The key players of e-commerce market as well as various startups have also opted last-mile delivery services as a unique selling point of their products compared to their competitors. The e-commerce companies such as Amazon, Alibaba, 7Eleven, and JD.com, among others are providing their product deliveries through drones for providing faster deliveries to the consumers. Such last mile deliveries are traditionally done by motor bikes, trucks or any grounded vehicles.