Rising demand for Delivery drones across the world is driving growth of the worldwide Delivery Drones Market. Technological advancements play a considerable role within the adoption of lithium-metal battery for delivery drones. As an example, in January 2018, SolidEnergy Systems raised $50.0 million in investments to fund development of their battery technology from 2012.
U.S.-based UAV manufacturer and logistic services’ provider, Zipline, collaborated with Ghana’s Ministry of Health to launch a delivery drone service for medical suppliers in Ghana, in April 2019. In 2017, Zipline received a contract from Tanzania’s government to launch permanent medical facilities within the country.
According to the statistics from the worldwide Opportunity Explorer, maternal mortality rates declined from 1,300 deaths per 100,000 live births in 1990 to 290 in 2015, due to timely delivery of required blood to patients with the assistance of delivery drones in Rwanda.
Proliferating demand for the development of lithium-metal batteries are predicted to drive growth of the delivery drones market over the forecast period. A lithium-metal battery helps the drone to hide longer distances during a single charge.
As a result of limited production, lithium-metal batteries are of high cost. Companies like SolidEnergy Systems, a manufacturer of the lightest rechargeable cells, are getting to establish their manufacturing units in Asia Pacific, which is predicted to scale back cost of lithium-metal batteries during this region.
On the opposite side, lack of technical expertise about operating drones, and low battery lifetime of delivery drones are major factors that are expected to restrain growth of the delivery drones market.
Figure. Global Delivery Drones market price Share (%), by Application (2018)
- E-commerce segment holds dominant position within the global delivery drones market
- On the idea of application, the worldwide delivery drones market is segmented into e-commerce, quick-service restaurants (QSR), and healthcare.
- Among all the applications, e-commerce segment held dominant position within the market in 2018, due to increasing efficiency and fewer cost of delivery.
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- The e-commerce industry is continuously developing, and makes and carriers are that specialize in developing new ways to form online shopping easier for patrons. As an example, in June 2017, China’s retailer, JD.com. Inc. developed a delivery drone which will deliver packages of 1,000 kg or 1 MT. The company’s drone can cover a maximum distance of up to 100 km before recharging.
- However, poor infrastructure and fewer orders may affect e-commerce companies that are increasing their customer base in rural areas. Drones have created opportunity to form delivery operations more efficient, as these are fast and versatile, making them a game-changer within the e-commerce industry.
- North America holds dominant position within the global delivery drones market
- On the idea of geography, the worldwide delivery drones market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East and Africa (LAMEA). Among of these regions, North America delivery drones market generated revenue of $75.5 Million by 2018 and is predicted to succeed in $1.07 Billion by 2027, witnessing a CAGR of 35.2% over the forecast period.
- Several key players like Amazon, UPS, Google, and DHL are offering drone delivery in inaccessible areas in North America region, which has led to an increasing demand for delivery drones.
- According to the info from DroneLife in 2018, delivering packages by conventional methods like trucks end in emission of around 915 grams of greenhouse gases (GHGs) per package. On the opposite hand, a drone can deliver a same package with just 420 grams of emission, which is predicted to make significant demand for delivery drones within the North America region.
- Furthermore, Asia Pacific delivery drones market holds second dominant position within the global delivery drones market, followed by North America thanks to increasing applications of delivery drones in various sectors like healthcare. As an example, in September 2019, the government of Maharashtra (India) partnered with Zipline, a drone delivery service company, to deliver emergency medicines across the state via autonomous delivery drone. Additionally, this initiative was supported through a grant from vaccine manufacturer SII (Serum Institute India).
Major players operating within the global Delivery Drones Market include The Boeing Company, Airbus SE, JD.com, SKYCART INC, Drone America, Matternet Inc., and SZ DJI Technology Co. Ltd.$