Press release
Delivery/Shipping Drones Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2017–2025
Shipping drones are unmanned aerial vehicles that are utilized for transportation of various small goods such as food, beverages, medicines, and automotive equipment among many others. Delivery drones market is still in its development phase, is expected to offer major growth potential over the forecast period, primarily owing to its associated cost advantages in relation to reduction of workforce expenditure, and time saving characteristics.Increasing labor costs, specifically in the developed countries are expected to offer high replacement potential through automated shipping technologies
Daily wages of the manual workforce required for transport and shipping of goods has witnessed considerable surge over the last few years. For instance, according to U.S. Bureau of Labor Statistics, average private industry worker salary registered an increase 2.6% over the twelve-month period that ended on March 2017. Increasing wages are expected to present considerable challenge to the business decision makers, which will present considerable demands for automated products. In conjunction with increasing demand for other automated products, delivery drones market will find significant growth over the forecast period.
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Moreover, predominant requirement of transportation and logistics in B2C business segments, such as ecommerce and food & beverages are anticipated to be the primary users of this technology. According to Coherent Market Insights, 15% of the total shipping workforce in these business sectors will be replaced by delivery drones through 2025.
Delivery Shipping Drones Market Taxonomy
On the basis of drone types, the global delivery shipping drones market is classified into:
Fixed wing drones
Rotary blade drones
Hybrid drones
On the basis of end users, the global delivery shipping drones market is classified into:
Food & beverages
Healthcare
Retails & Logistics
Others (Defense, Disaster management, Automotive)
Incorporation of Artificial Intelligence (AI) and other advanced technologies will aid in acceleration in transport times
Artificial Intelligence, along with sensors that can enhance the environment awareness will provide increased usability. Moreover, time spent in road navigation, traffic congestions and other forms of shipping means can be considerably reduced by means of air transport. However, considering the high costs associated with it, it may not be feasible for most small players. This will further enhance its applicability and drive the delivery drones market. Large number of participants, specifically in large shipping industries, are increasingly involved in evaluating the probability of the technology for its utilization and related benefits. For instance, in September 2015, DHL introduced its parcelcopter to deliver medications and urgently needed commodities to remote island, Juist. Moreover, many other companies that include Dominos, FedEx, United Parcel Services (UPS), Amazon and AMP holdings have acknowledged the achievable benefits and have planned strategies for the adoption of delivery drones, over the next few years.
Liability issues in incidence of crashes and regulatory restrictions against the use of commercial drones are expected to hamper the industry growth over the forecast period.
Stringent regulations that restrict the usage of UAVs under certain norms and conditions, such as the Federal Aviation Administration (FAA) in U.S., are expected to hinder the industry growth over the forecast period. It restricts the users through allowing the usage of UAVs only within the line of sight and mandating the usability on only one drone at a time by a user. However, the U.S. government has showcased interests in the development of the technology by allowing Amazon and NASA to perform pilot projects
Integrated cameras and infrareds to enhance the surrounding awareness, has led considerable concerns regarding privacy protocols of the surrounding residents. Additionally, liability issues in case of a crash or damage of any sort, as who is to be held responsible for the incident, is expected to pose a major challenge to the overall regulatory landscape. This is expected to consistently hamper the delivery drones market over the forecast period.
Major players in the shipping drones market participants include Airware, DJI, Skycatch, 3D robotics, senseFly, AeroVironmenment, and Elbit Systems.
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