Global Drone Logistics Market To Register A Revenue Of 53 billion by 2028

19-Nov-2022 | Zion Market Research

The global drone logistics market size was worth around USD 8.25 billion in 2021 and is predicted to grow to around USD 53 billion by 2028 with a compound annual growth rate (CAGR) of roughly 20.75% between 2022 and 2028.

Drones, also known as unmanned aerial vehicles (UAVs) have become a common sight no longer being out of reach for the common man or only exclusive for military purposes. Drones have found applications in various sectors including personal use, and photography. Agriculture, survey, and logistics are one of the fastest-growing sectors across the globe. During the pandemic, drone plates were extremely crucial in various areas where accessibility was highly restricted.

Drone technology was used to survey infected areas, deliver medicines, and first-aid kits and also relay information to necessary authorities during the state's complete lockdown. Many organizations grabbed the opportunity and started using drones to provide consumers with services ranging from the delivery of everyday essentials to medical products.

Since then the interest in drone logistics has grown multifold. As industrial operations across the world increase, a large number of businesses can be witnessed moving toward the adoption of autonomous technologies. Drone logistics refers to the use of drones to deliver customer orders or transport goods from one location to another location depending on the requirement.

The global drone logistics market is projected to grow owing to the rising application of drones in the healthcare sector. With globalization, there has been a growing demand for equal and quality medical care. However, the healthcare industry has been facing major roadblocks in achieving this goal due to various factors like unavailability of resources, fewer funds, and inaccessibility to remote areas, including many other reasons.

With the adoption of advanced non-medical technology, providing healthcare to all has become possible since drones are capable of delivering medical products to consumers without any hassle. In war or natural calamity-affected areas, drones have been used widely to deliver relief packages. For instance, in 2021, Telangana, a state in Maharashtra became one of the few states to adopt drone technology to deliver medicines.

The Indian Council of Medical Research recently laid down guidelines to adopt drones for delivering medical care. The global market may also benefit from the rising pressure on e-commerce in the logistics industry to reduce pollution since these sectors are major air pollutants. The growth in these segments is expected to increase carbon dioxide emissions by 6 million tons in the next few years. Government agencies and international bodies have started holding businesses in the logistics industry accountable for their actions.

However, the global market may face growth restrictions due to the growing concern over the loss of employment as drones are used extensively in the logistics industry. The sector is one of the largest employers in terms of human resources. In 2016, the logistics industry employed more than 22 million people and the number has only grown since then. But with the use of drones, there is a high chance of a rise in unemployment due to high job cuts as drones can perform the function of delivering the product. To operate the system, the global market would require skilled employees but that would still mean that many people will run out of jobs.

The positive outlook toward drone logistics may create more growth opportunities while low payload capacity is expected to challenge the market expansion.

The global market is segmented based on application, component, end-user, and region.

Based on component, the global market divisions are software, hardware, and services. The global market witnesses the highest revenue in the hardware segment with more than 40% of the market share since drones are available in different sizes and shapes. They can also be customized as per requirement.

Based on end-user, the global market is divided into military and commercial with the latter generating the highest revenue as compared to military applications. During the projection period, it may grow at a CAGR of 23%. Military-grade drones are expensive and most developing or under-developed economies may not be able to purchase drones in bulk. However, with the increasing investments witnessed for national security, segmental growth may witness a higher rate.

North America is projected to lead the global drone logistics market owing to the growing e-commerce business. For the US region, drone logistics has one of the most-effective solutions to handle the traffic issues in urban areas while also improving product reach since they can manage to deliver products in areas that are at remote locations and accessibility is highly restricted. Drones used in logistics sectors have built surveillance technology allowing the products to be delivered with the highest safety. Asia-Pacific may also witness high CAGR due to the presence of some of the emerging technology giants that are undertaking strategic steps to increase global reach. The region may grow at a CAGR of 22.49%.

The global drone logistics market is dominated by players like Hardis Group, PINC Solutions, Flytrex Inc., United Parcel Service of America, Inc., Deutsche Post DHL Group, Inc., Zipline International Inc., FedEx Corporation, Workhorse Group Incorporated, Infinium Robotics, Wingcopter GmbH, and Drone Delivery Canada to name a few.

Recent Developments:

  • In October 2022, the Indian market witnessed the signing of a memorandum of understanding (MOU) between KL Tech City, Garuda Aerospace, and Jedsy to push the delivery of Jedy drones for logistical purposes
  • In October 2022, Dronedek announced a new partnership with A2Z Drone Delivery

This review is based on a report by Zion Market Research, titled Drone Logistics Market By Application (Transportation Management, and Warehouse & Storage Management), By Component (Software, Hardware, and Services), By End-User (Military, and Commercial), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028.”- Report at

The global drone logistics market is segmented based as follows:

By Application

  • Transportation Management
  • Warehouse & Storage Management

By Component

  • Software
  • Hardware
  • Services

By End-User

  • Military
  • Commercial

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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