Drones In Supply Chain Market To Reach USD 31,188.7 Million By 2028

The market for drone package delivery was valued at USD 1,522.4 million in 2022 and is projected to reach USD 31,188.7 million in 2028.

Logistics industry innovators are continuously looking for ways to lower shipping costs and boost operational effectiveness. One technology that is taking off in the supply chain is drones. Drones are frequently employed in warehouses to help with inventory management, but their applications are expanding further down the supply chain, even to final-mile delivery. Numerous logistics and transportation companies are making significant investments in the creation of effective delivery infrastructure that will use drones. For businesses, organizations, and medical institutions, drone delivery offers a cutting-edge form of transportation. As a result of its ability to speed up delivery times, boost operational effectiveness, and minimize human involvement across the supply chain, it has emerged as the most sought-after logistical approach in the global supply chain market. Drone use in the supply chain sector offers a compelling return on investment since it may enhance worker safety, customer happiness, and delivery efficiency. The advantages of the drone supply chain sector include the improvement of supply chain tasks such as container yard surveillance, supply chain infrastructure inspection, and inventory cycle counting. Using drones can lower the cost of last-mile delivery. It could be expensive to reach some remote areas with poor delivery rates. Drones take the place of large vehicles that must detour several kilometres to reach people's houses. Despite their high initial cost, delivery drones rapidly offset it with significant fuel and time savings. By making fewer stops along their route, truck drivers may focus on larger goods. An effective delivery process is essential given the constantly growing expectations of consumers. Delivery drones are still in their infancy, but it will be interesting to see how prevalent they become and what advantages they bring to supply networks. On the other hand, drone technology is still in its infancy and is prohibitively expensive. Unmanned aircraft flying hundreds of feet above the earth carrying valuable cargo is not something that businesses are keen about. Furthermore, organizations and corporations are cautious to adopt drones for delivery because the idea has not yet been extensively proven. Moreover, COVID-19 has had an unestimated and catastrophic worldwide impact, with demand for drone delivery services surging across all regions as a result of the pandemic is the prime reason fueling the growth of the market

Key Market Insights:

  • The market is segmented into fixed-wing, rotary-wing, and hybrid drones based on type. The remarkable capabilities of hybrid UAVs for quick vertical takeoffs and landings as well as AI-based collision avoidance detections are likely to drive the hybrid category's fantastic CAGR growth throughout the course of the projected timeframe. Hybrid drones are extensively employed in a range of commercial and industrial applications because of their operational adaptability. Service providers and logistics organizations frequently adopt multi-copter versions because of the increased payload-carrying capacity under their bodies.


  • Based on package size, the market is classified into three groups: less than 2 kg, 2–5 kg, and more than 5 kg. The less than 2 kg category had the majority of the market share in 2022, and it is anticipated that it would do so for the duration of the projection. The development may be attributed to the FAA's speedy approval processes and legislation that aid service providers when it comes to shipping packages up to 2 kg across the US. For food delivery and medical emergency supplies, in particular, these permits are necessary for US parcel service operators.


  • The market is segmented by end-use into the following categories: e-commerce, healthcare, retail logistics & transportation, and others. The healthcare sector is anticipated to have a sizable market share throughout the forecast period because of the rising demand for medicinal products, pathological test samples, immunizations, and medical devices in various countries. Due to the lockdown enforced as a result of the ongoing COVID-19 outbreak, the eCommerce industry has depended on the contactless delivery system to satisfy customer requirements for a variety of items. Ready-to-eat meals and food delivery services are anticipated to rise and fuel market expansion in the restaurant & food supply segment over the projected period as a result of the development of quicker delivery drones and the rising use of online food retail platforms.


  • Geographically, the North American market has a value of USD 372.4 million in 2022. Due to favorable FAA regulations and the growing trend of online shopping on e-commerce platforms, the United States dominates the drone package delivery industry. The area will be able to continue its market share growth over the anticipated period with increased investments from major players like Zipline, FedEx, UPS, Matternet, Volansi, Wing, and others in startup companies to create package delivery platforms in the region.

Market Segmentation


  • Fixed Wing
  • Rotary Wing
  • Hybrid


  • Less Than 2 Kg
  • 2-5 Kg
  • Above 5 Kg


  • Restaurant & Food Supply
  • E-commerce
  • Healthcare
  • Retail Logistics & Transportation
  • Others

By Region

  • North America
  • Europe
  • The Asia Pacific
  • Latin America
  • The Middle East
  • Africa

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