The Last Mile Delivery Drones Market was valued at about US$2.0 billion in 2020. It is projected to reach US$5.6 billion by 2026. The market is estimated to record a growth of (CAGR) 18.7% in the coming six years (2020-2026).
Giant e-commerce companies and other firms looking for efficient ways to deliver are investing heavily to support R&D in drone technology. In addition, governments, e-commerce companies, and local postal authorities are collaborating to minimize efforts to deliver packages to remote islands, mountainous areas, and cities. Regulators are also reinforcing this by awarding licenses for pilot tests and small-scale adoption. Stakeholders believe drone delivery adds value by reducing costs and time taken.
Job displacement, aerial accidents, damage to packages, or theft are some risks involved in its extensive adoption. Also, the uncertainty associated with managing the threat from obstacles and possible leak of private data that can follow a theft can have unpredictable complications. Other challenges include expensive and evolving technology & batteries used, inability to accurately predict the weather, and authorization of the customer.
On the other hand, factors like implementing drones in emergency medical deliveries, the growing concern of vehicle pollution & traffic on roads, and the need for contactless delivery are facilitating profitable growth opportunities.