Cargo Drones Market by Solution (Platform, Software, Infrastructure), Industry (Retail, Healthcare, Agriculture, Defense and Maritime), Range (Close-Range, Short-Range, Mid-Range, Long-Range), Payload, Type and Region - Global Forecast to 2030
The Cargo Drones Market is estimated to be USD 0.6 Billion in 2022 and is projected to reach USD 9.4 Billion by 2030, at a Compound Annual Growth Rate (CAGR) of 38.6% from 2022 to 2030. The Cargo Drones Industry is driven by factors such as different value chain levels for vendors, increased use of cargo drones in military operations among others.
Cargo Drones Market Forecast to 2030
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Cargo Drones Market Dynamics:
Cargo Drones Industry Drivers: Reduction in CO2 Emissions and Carbon Footprint
The delivery of commercial parcels, food, and healthcare & pharmacy packages through drones helps cut down CO2 emissions and the carbon footprint. According to the US Environmental Protection Agency, in 2021, the US transportation sector accounted for 31% of GHG emissions in the US; delivery trucks emit around 415 million metric tons of carbon dioxide each year, accounting for a quarter of all emissions from transportation in the country. According to a study conducted by Inmarsat and Cranfield University, light commercial vehicles such as trucks generate 3,394 grams of CO2 per 24 hours if they deliver 10 packages per 8-hour shift, whereas drones with a 36-kilometer range would emit around 2,160 grams of CO2. Carefully deployed drones consume less energy per hour as they operate on lithium-ion batteries and leave a smaller carbon footprint.
The GHG emissions associated with cargo drones vary based on whether the delivery is done by a small payload drone or a large payload drone. Cargo drones with small payload capacity have lower emissions in grams of CO2 equivalent per package than electric trucks and larger cargo drones. Major benefits can be achieved by improving the energy efficiency of warehouses and reducing the amount of electricity generated from carbon-intensive fuels. Therefore, with the rising need to lower carbon emissions in transport, the cargo drones’ market is anticipated to grow during the forecast period. In February 2022, Natilus (US), a manufacturer of massive autonomous cargo drones, claimed that it would reduce the cost of air freight by 60% and its carbon emissions by 50%.
Cargo Drones Industry Restraints: Uncertainty in Regulations
The flying of cargo drones in the airspace of different countries primarily depends on obtaining approval from the respective governments and the regulations formulated by them to ensure proper air traffic management, sufficient data support, effective controller training, and social adaptability by the population in those countries. Governments of different countries across the globe are making efforts to enhance their defence capabilities by developing new technologies for drones or carrying out advancements in the existing technologies used in drones. However, these technologies need to comply with country-wise drone regulations and be capable of controlling them in a regulated environment. Thus, huge investments are required for the R&D and procurement of drones based on advanced technologies. Suppose the cost incurred in the development of drone infrastructure outweighs the benefits offered by drones, it will become difficult for governments of different countries to make changes in their existing policies to enable the use of drones in various applications. The cost of developing the drone infrastructure, along with political hurdles in obtaining the required approval for the development of drone ecosystems, adds uncertainty to the growth of this market.
Cargo Drones Industry Opportunities: Increasing B2B Middle-Mile Logistics
Future drone use in logistics operations is viewed as a huge opportunity by the middle-mile delivery sector. While some businesses focus on last-mile delivery from retailers to customers, middle-mile logistics is often overlooked. Due to the higher payloads of cargo drones, companies are now focusing on middle-mile logistics – those that take place from one business to another, such as from a port to a distribution center or from a distribution center to a store. Middle-mile drone delivery targets with semi-trucks and intermodal freight networks. Drones being developed for middle-mile logistics have larger payload capacities and longer ranges than those used for last-mile delivery. For instance, Elroy Air's Chaparral has a 300-mile range and can transport payloads of up to 500 lb. The cost advantages of middle-mile drones over conventional transportation in this area rise with their capacity to transport more cargo over longer distances.
In March 2022, FedEx (US) collaborated with the eVTOL freight drone firm Elroy Air (US) in California to investigate autonomous solutions for its middle-mile delivery operations. In accordance with this agreement, FedEx Express, a FedEx subsidiary, will start testing Elroy Air's Chaparral cargo drones in 2023. In January 2022, Leonardo S.P.A (Italy), an aerospace, defense, and security company, FlyingBasket (Italy), a developer and operator of cargo drones, and Poste Italiane, the Italian postal service provider, worked together on the first round of drone-based delivery experiments in Turin. As a part of the "Sumeri Moderni" trial series, the "middle-mile delivery" trial was focused on delivery from a warehouse or distribution center to retail locations. The deployed aircraft was an electric FB3 VTOL cargo drone from FlyingBasket, which has a carrying capacity of up to 100 kg (220.5 pounds) and uses a cable to discharge its load to enable operation in places without specialized landing infrastructure.
Cargo Drones Industry Challenges: Sudden Changes in Weather Conditions
Weather conditions pose a challenge to drones as they might result in deviations in their predetermined paths. Similar to light aircraft, drones cannot hover in all weather conditions. The capability to resist certain weather conditions is determined by the specifications of cargo drones. In pre-flight planning, it is clear that advanced weather data will play an essential role in ensuring that drones can fly their weathersensitive missions safely and efficiently to deliver commercial goods. During flight operations, weather data affects flight direction, path elevation, operation duration, and other in-flight variables. Wind speeds, in particular, are an essential component for smooth drone-based operations and thus should be factored in the operation planning and deployment phases. In cases of natural, such as tsunamis or hurricanes, or man-made disasters, such as terrorist attacks, weather becomes a tough and cardinal challenge. In such scenarios, drones may fail in their missions as operators lose VLOS.
Weather conditions most likely to prevent drone use are precipitation which can damage electronics; strong winds, which can increase battery usage or even cause drones to lose control; and low temperatures, which greatly reduce battery performance. Extremely hot weather is not advisable because the heat can have some adverse effects on various parts of your drone. Hot air is less dense, making it harder for drone propellers to create lift. The batteries can overheat as they struggle to create lift. As a result, flight time will be shortened. Thus, weather conditions are a major challenge for drones.
Cargo Drones Market Ecosystem
Prominent companies in this market include well-established, financially stable providers of cargo drones for logistics. These companies have been operating in the market for several years and offer a diverse product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Sabrewing Aircraft Company (US), Dronamics (UK), Natilus (US), Silent Arrow (US) and Elroy Air (US).
Based on Industry, the Healthcare Segment is Projected to Grow at the Highest CAGR in the Cargo Drones Market During the Forecast Period
Based on industry, the cargo drones market has been segmented into retail, healthcare, agriculture, defence and maritime. Need to deliver health support to rural areas and to remote places is driving the healthcare segment of cargo drones market.
Based on Range, the Mid-Range Segment is Projected to Grow at the Highest CAGR in the Cargo Drones Market During the Forecast Period
Based on range, the cargo drones market has been segmented into close-range (<50 kilometres), short-range (50 to 149 kilometres), mid-range (150 to 650 kilometres) and long-range (>650 kilometres). The mid-range segment is expected to grow at a higher CAGR during the forecast period. The increasing need to transport cargo to long distances within short time and low cost is driving this segment of the market.
Asia Pacific is Expected to Account for the Highest CAGR in the Forecasted Period and Second Largest Share in 2022
The Asia Pacific is estimated to account for the highest CAGR in forecasted period and second largest share in 2022. The countries in Asia pacific region offers significant opportunities for cargo drone manufacturers as this region has been upgrading its manufacturing capabilities by establishing new developments in the cargo drone field. Increasing cargo drone investments in countries such as India, China and Japan are driving the growth of this region.
Cargo Drones Market by Region
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Cargo Drones Industry Companies: Top Key Market Players
The Cargo Drones Companies are dominated by globally established players such as Phoenix Wings (Germany), Gadfin (Israel), Steadicopter (Israel), Airspace Experience Technologies Inc. (US) and Drone Delivery Canada Corp. (Canada). The report covers various industry trends and new technological innovations in the cargo drones’ market for the period, 2019-2030.
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Report Metric |
Details |
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Estimated Market Size
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USD 0.6 Billion in 2022
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Projected Market Size
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USD 9.4 Billion by 2030
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Growth Rate
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CAGR of 38.6%
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Market Size Available for Years |
2019–2030 |
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Base Year Considered |
2021 |
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Forecast Period |
2022–2030 |
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Forecast Units |
Value (USD billion) |
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Segments Covered |
Solution, Payload, Type, Industry, Range, and Region |
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Geographies Covered |
North America, Europe, Asia Pacific, Middle East, Africa, and Latin America |
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Companies Covered |
Flying Basket (Italy), Natilus (US), ARC Aerosystems (UK), Dronamics (UK), H3 Dynamics (Singapore), Kaman Corporation (US) and Sabrewing Aircraft Company (US). |
Cargo Drones Market Highlights
This research report categorizes the cargo drones market based on solution, payload, type, industry, range, and region.
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Segment |
Subsegment |
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By Solution: |
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By Payload: |
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By Range |
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By Type: |
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By Industry: |
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By Region: |
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Recent Developments
- In January 2023, Ameriflight, a pioneer in freight operations, became the first regional US carrier to sign an Aircraft Purchase Agreement with Natilus. Ameriflight's purchase of 20 Natilus Kona feeder aircraft, valued at USD 134 million, takes the total amount of contracts for the delivery of 460+ aircraft to USD 6.8 billion.
- In January 2023, Vista Global Holding Limited (Vista), the largest private aviation company in the world, successfully completed its invested in Dufour Aerospace in a Series B.
- In November 2022, Cranfield Aerospace Solutions (CAeS), a pioneer in the development of zero-emission solutions for aerospace, and Dronamics, the industry's top middle-mile cargo drone developer and operator, announced that they would be combining their expertise to integrate hydrogen fuel-cell technology into the Black Swan, Dronamics' long-range cargo drone.
- In November 2022, Sabrewing Aircraft Company, Inc. and Arabian Development and Marketing Corporation (ADMC) announced jointly that ADMC ordered 53 of the heavy-lift cargo uncrewed aerial vehicle (UAV) Rhaegal-A "Alpha" aircraft.
- In November 2022, Spright, the drone division of Air Methods, the US's top provider of emergency medical helicopter services, and Dufour Aerospace announced that Spright had purchased 40 Aero2 aircraft with an option to buy a further 100.
Frequently Asked Questions (FAQ):
What is the Current Size of the Cargo Drones Market?
The Cargo Drones Market is projected to grow from an estimated USD 0.6 Billion in 2022 to USD 9.4 Billion by 2030, at a Compound Annual Growth Rate (CAGR) of 38.6% from 2022 to 2030.
Who Are the Winners in the Cargo Drones Market?
Dronamics (UK), Elroy Air (US), Silent Arrow (US), Sabrewing Aircraft Company (US) and Natilus (US) are some of the winners in the Cargo Drones Market.
What Are Some of the Opportunities in the Cargo Drones Market?
Smart city initiatives, different value chain levels for vendors and increased use in military operatios are few of the opportunities of the Cargo Drones Market.
What Are Some of the Technological Advancements in the Cargo Drones Market?
GPS-Denied Systems, Internet of Things, 5G Technology, Wireless Charging and machine learning powered analytics among others.
What Are the Factors Driving the Growth of the Cargo Drones Market?
Need to reduce CO2 emissions and carbon footprint, reduction in prices of drone components are some of the key factors driving the growth in the Cargo Drones Market.
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The research study conducted on the Cargo Drones market involved extensive use of secondary sources, including directories, databases of articles, journals on cargo drones, company newsletters, and information portals such as Hoover’s, Bloomberg, and Factiva to identify and collect information useful for this extensive, technical, market-oriented, and commercial study of the cargo drones market. Primary sources are several industry experts from the core and related industries, alliances, organizations, Original Equipment Manufacturers (OEMs), vendors, suppliers, and technology developers. These sources relate to all segments of the value chain of the cargo drones industry. In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and to assess future prospects of the market.
Secondary Research
In the secondary research process, various secondary sources were referred to identify and collect information for this study on the Cargo Drones market. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers and certified publications; articles from recognized authors; manufacturer's associations; directories; and databases. Secondary research was mainly used to obtain key information about the supply chain of the Cargo Drones industry, the monetary chain of the market, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted to obtain qualitative and quantitative information for this report on the Cargo Drones market. Several primary interviews were conducted with the market experts from both demand- and supply-side across major regions, namely, North America, Europe, Asia Pacific, the Middle East, Latin America, and Africa. Primary sources from the supply-side included industry experts such as business development managers, sales heads, technology and innovation directors, and related key executives from various key companies and organizations operating in the Cargo Drones market.
To know about the assumptions considered for the study, download the pdf brochure
Key Primary Sources
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Company Name |
Designation |
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Unmanned Dynamics India Private Limited |
Design Engineer |
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Volatus Aerospace |
Regional Director |
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Flying Basket |
Supply chain & Procurement Specialist |
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Eva |
Global Account Manager & MD |
Market Size Estimation
The Cargo Drones market is an emerging one due to the growing demand for faster delivery. Both top-down and bottom-up approaches were used to estimate and validate the size of the Cargo Drones market. The research methodology used to estimate the market size also included the following details:
Key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of annual and financial reports of the top market players and extensive interviews of leaders, including CEOs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
Market size estimation methodology: Bottom-Up Approach
Market size estimation methodology: Top Down Approach
Data Triangulation
After arriving at the overall size of the Cargo Drones market from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the estimated sizes of different market segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
A cargo drone is an unmanned aircraft that can transport a load to a location while being ecologically beneficial. Cargo drones are available in small, medium, and big sizes, each with a varied performance capacity. They frequently come with cutting-edge software and strong sensors. Cargo drones have first-mile, middle-mile, and last-mile delivery capabilities.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, segment, and forecast the size of the cargo drones market based on payload, solution, industry, range, type, and region.
- To forecast the size of different segments of the market with respect to various regions, including North America, Europe, Asia Pacific, the Middle East, Latin America, and Africa, along with key countries in each of these regions.
- To identify and analyze key drivers, opportunities, restraints and challenges influencing the growth of the cargo drones market.
- To identify technology trends that are currently prevailing in the cargo drones market.
- To provide an overview of the tariff and regulatory landscape with respect to the cargo drone regulations across regions.
- To analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders by identifying key market trends.
- To profile key market players and comprehensively analyze their market share and core competencies2.
- To analyze the degree of competition in the market by identifying key growth strategies, such as new product launches, contracts, partnerships, collaborations, expansions and agreements, adopted by leading market players.
- To identify detailed financial positions, key products, and unique selling points of leading companies in the market.
- To provide a detailed competitive landscape of the cargo drones market, along with a ranking analysis, market share analysis, and revenue analysis of key players.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Cargo Drones Market