Cargo and Delivery Drone Logistics Market Outlook: Ken Research


Overview: An unmanned aerial vehicle (UAV) commonly known as a drone is an aircraft without a human pilot aboard. Small drones designed to deliver small commodities such as pharmaceuticals to remote hospitals have been around for years but face bans to operate beyond line of sight from world regulatory agencies in the interest of public safety. However, larger more capable machines are being developed.

Evolution: Innovation has led to developments in air travel for people, with reliable cargo aircrafts being modifications of passenger jets. However, things have started to change by the introduction of UAVs in the field of cargo and delivery which have been designed with the view to save time and money. Drones are a result of extensive research and they have even begun modest use with tech giants and e-commerce companies.  Some companies have even started developing their own drone’s .Even renowned aircraft manufacturers like Boeing have begun building drones to cater to the growing demand for air freight.

Recent developments include-

DHL’s Parcel copter

Boeing’s CAV released in January 2018

UPS unveiled a battery powered residential delivery drone in 2017.

Sabrewing Aircraft Co. and are all working on large prototypes that have a long range.

Beijing based Sichuan Tengden Technology is developing a cargo drone which would carry 20 tons of cargo.

California based Natilus is working on cargo drones with a 90 ton capacity.

Market Scenario: The market for air freight is one of the key drivers for growth of the logistics market as indicated by several market research reports for logistics. Despite this the market for drones is still very primitive .Major companies have launched their drone promotion projects for instance Amazon’s Prime Air drone and Google’s Project Wing which was used for deliveries in Australia. Chinese companies such as drone maker Beihang UAS are tapping into interests of delivery drones as suggested by a logistic market research report which estimates the Chinese parcel delivery industry to grow by 25%-30% in the coming years .The 2017 data for global air freight markets showed that the demand had grown by 9% which was more than double the growth recorded in 2016.

Competition: In the interest of research, development and more efficient freight transportation many companies have joined forces.  Microsoft partnered with DJI a Chinese drone manufacturer and Alphabet partnered with Guzman Y Gomez in 2018. In 2016 UPS began testing commercial drones in partnership with drone maker CyPhy Works. China’s largest courier service SF Express Delivery uses drones in partnership with Tengoen Technology to drop cargo pods. Beihang UAS has entered into a strategic partnership with logistics firm Cainiao.

Conclusion: Undoubtedly the drone oriented cargo delivery system has immense potential and with leading players like China who are willing to invest immensely in this sector we can expect drone services being more easily accepted in the future .Ecommerce is also expected to develop and with it the demand for APAC economies, like China, which is expected to further drive the air cargo and delivery industry.

Key Factors Considered in the Report:

Logistics and Shipping Market Research Reports

Logistics and Shipping Industry Analysis

Market Research Reports for Logistics

Logistic Market Research Report

Logistics and Transportation Market Research Reports Consulting

Logistics Business Review

Logistics and Shipping Industry Research and Market Reports

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Ankur Gupta, Head Marketing & Communications