Last Mile Drone Delivery Market Expected to Reach $2.8 Billion by 2032

According to a new report published by Allied Market Research, titled, “Last Mile Drone Delivery Market," The last mile drone delivery market was valued at $253.80 million in 2022, and is estimated to reach $2.8 billion by 2032, growing at a CAGR of 27.5% from 2023 to 2032.

Last mile drone delivery industry is the final logistics stage in the order process where the orders are delivered through drones from the final warehouse location to the end user customer. Last mile drone delivery industry takes place after the products have been received, placed in the warehouse, sorted, picked, packed, and shipped to the appropriate distribution centers. Last-mile delivery includes shipping the products from delivery hubs directly to the customer’s door. The involvement of drones to deliver the products has attracted numerous investors to invest for the development of the industry. The inclination of consumers towards quick and timely delivery is expected to promote the growth of the last-mile drone delivery market.

Rise in online and e-commerce sales in developing countries has increased the need for parcel shipment, which is expected to drive the growth of the last mile drone delivery market size. Also, the omnichannel supply chains are boosting the business in the logistics and transportation sector, which further facilitates the growth of the last mile drone delivery market size. Furthermore, same-day delivery is one of the major market drivers, which has grabbed consumer attention, and is expected to support the growth of the last-mile delivery market. For instance, in January 2022, DPD Group collaborated with Asendia USA to provide quick and cost-effective e-commerce package delivery services to Europe from the U.S. enabling exceptional growth potential in the last mile drone delivery market share.

In addition, the last-mile drone delivery market has witnessed significant growth in recent years, owing to the improved customer service, reduction in operating costs, and advancements in the conception of delivery services such as automated delivery and aerial delivery. Furthermore, companies operating in the last mile drone delivery market have adopted partnerships, investments, and business expansions to increase their market share and expand their geographical presence. For instance, in September 2021, Matternet announced its first establishment of the Matternet Station at EOC hospital group in Switzerland, Lugano. The Matternet M2 drone including its cloud platform, as well as the Matternet M2's beyond-visual-line-of-sight (BVLOS) technology, is to be used to enable last mile drone delivery market opportunity

Factors such as development of e-commerce & logistics, development in infrastructure & environmental concerns by reducing carbon emission and increase in demand for fast delivery of packages supplement the growth of the last mile drone delivery market trends. However, strict norms of government about drones, shorter battery life, and susceptible to hacking, theft, and misuse, posing security risks are expected to hamper the last mile drone delivery market analysis.

Further, adoption of drone delivery to reinforce demand, cost cutting, and lead time reduction, owing to adoption of multi-modal system and growth in e-commerce industry, and bridging the connectivity gap between rural & urban areas are expected to create numerous opportunities for growth and expansion of the market.

The future of the last mile drone delivery market looks promising, with continued advancements in technology and supportive regulatory developments. Innovations such as swarm technology, where multiple drones work together to deliver packages, could further enhance efficiency and scalability. The integration of artificial intelligence (AI) and machine learning (ML) in drone operations can improve navigation, obstacle avoidance, and route optimization, making drone deliveries safer and more reliable.

Furthermore, the potential for drones to complement other emerging technologies, such as autonomous vehicles and robotics, opens up new possibilities for integrated delivery solutions. For example, a hybrid system where drones and autonomous ground vehicles work in tandem could offer unparalleled flexibility and efficiency in last mile drone delivery market share.

In addition, the last mile drone delivery market growth represents a paradigm shift in the logistics and transportation industry. Driven by consumer demand for faster delivery, technological advancements, and environmental considerations, drones are set to play a pivotal role in shaping the future of delivery services. While challenges remain, particularly in the regulatory and infrastructure domains, the ongoing innovations and collaborative efforts among industry stakeholders are paving the way for a future where drone deliveries are a common sight. As the market evolves, it will not only transform how goods are delivered but also redefine the boundaries of convenience, efficiency, and sustainability in the modern world.

KEY FINDINGS OF THE STUDY

• By service type, the customer-to-customer (C2C) segment dominated the last mile drone delivery market in terms of growth rate.
• On the basis of mode of operation, the autonomous segment is the highest contributor to the last mile drone delivery market in terms of revenue.
• By delivery mode segment, the same-day delivery or express delivery segment is anticipated to exhibit a remarkable growth during the forecast period.
• By application, the others segment is anticipated to exhibit a remarkable growth during the forecast period.

Global key players profiled in the last mile drone delivery market report include AIRBUS, Deutsche Post AG, United Parcel Service of America, Inc., Boeing, FedEx, Ehang, DJI, STARSHIP TECHNOLOGIES, Amazon.com, Israel Aerospace Industries Ltd.