North America Drone Logistics & Transportation Market Opportunities,
Analysis and Future Threats 2027

Drone Logistics & Transportation market in North America is expected to grow from US$ 10.40 Mn in 2018 to US$ 525.35 Mn by the year 2027. This represents a CAGR of 55.67% from the year 2019 to 2027.

The burgeoning e-commerce sector is significantly reshaping warehouse operations, thereby acting as a major catalyst for the North America Drone Logistics & Transportation Market. This dynamic interplay is drawing substantial attention to the entire e-commerce ecosystem, further propelling the adoption of drone-based logistics and transportation solutions across various regions.

Historically, the delivery of goods and parcels was a time-consuming process. However, the advent of advanced technologies and swift delivery options, particularly leveraging drones, is empowering e-commerce players to streamline their delivery processes and drastically reduce transit times. In the current landscape of North America Drone Logistics & Transportation Market, e-commerce giants, governmental bodies, and private organizations are increasingly deploying drones for the rapid delivery of time-sensitive goods, crucial medicines, and emergency supplies.

While earlier regulations posed limitations on the commercial use of drones for deliveries, recent amendments are proving beneficial for both e-commerce companies and traditional parcel delivery services, paving the way for wider drone adoption. A notable example is the earlier ban imposed by the US Federal Aviation Administration (FAA) on commercial drone deliveries within US airspace. This regulatory shift has spurred significant interest and investment from major e-commerce players and delivery partners such as Amazon, DHL, Walmart, Google, and UPS, among others, who are now actively exploring and implementing drone delivery solutions.

The US government is actively fostering the growth of the North America Drone Logistics & Transportation Market through various initiatives and regulations established by the Federal Aviation Administration (FAA). These efforts encompass facilitating new drone deployments, allocating necessary spectrum, and developing supporting infrastructure. Drones have already demonstrated their versatility and effectiveness in commercial real estate and agriculture, and this high adoption across diverse sectors is now translating into significant momentum within the logistics and transportation industries, catering to the evolving needs of end-users in the North America Drone Logistics & Transportation Market. Consequently, drones are increasingly being utilized for direct-to-consumer deliveries.

Collaborative initiatives between industry players and regulatory bodies aim to accelerate the integration of autonomous drones into U.S. airspace, with close cooperation with drone technology companies. Beyond deployment for deliveries, the Federal Aviation Administration (F.A.A.) and the U.S. Department of Transportation have designated ten regions to participate in an Unmanned Aircraft Systems (U.A.S.) Integration Pilot Program. Over time, these selected areas will conduct a range of drone operation tests, including the delivery of food and medical supplies, agricultural inspections, and border patrol. The F.A.A. received 149 proposals for this pilot program, indicating the growing interest and potential for drone deliveries within the United States market. In 2018, Zipline introduced a high-speed delivery drone with a top speed of 128 kilometers per hour, enabling faster reach to various regions, particularly during emergencies. These collective developments are contributing to a high rate of drone adoption for delivery purposes in the region, and the proactive initiatives by market players are significantly enhancing the growth of the North America Drone Logistics & Transportation Market.

The United States is projected to lead the North America Drone Logistics & Transportation Market throughout the forecast period. The US Army is actively exploring the use of drones to supply field soldiers, a transformative approach recognized as an emerging technology with the potential to revolutionize future household item deliveries. The U.S. Marines have already successfully utilized unmanned KMAX helicopters to deliver two million kilograms of supplies to units in Afghanistan. Notably, the deployment of autonomous air transportation presents unique challenges for adversaries due to its independence from ground-based routes.

Similarly, Canada possesses the potential to be a significant player in the burgeoning commercial drone delivery services sector, contributing to the overall growth of the drone logistics and transportation market. Uruguay is making substantial investments in research and development to foster innovation for sustainable development. As companies in the region become increasingly aware of the capabilities and benefits of North America Drone Logistics & Transportation Market in this area is also experiencing notable growth.

North America Drone Logistics & Transportation Market Segmentation

North America Drone Logistics & Transportation Market By Type

• Freight Drones
• Passenger Drones
• Ambulance Drones

North America Drone Logistics & Transportation Market By End User

• Military
• Commercial

North America Drone Logistics & Transportation Market By Country

• U.S.
• Canada
• Mexico

North America Drone Logistics & Transportation Market Companies Mentioned

• Flytrex
• Zipline
• Drone Delivery Canada Corp.
• Flirtey
• Hardis Groupe, SAS
• Volocopter
• Cheetah Logistic Technology
• PINC Applications Corp.
• Workhorse Group Inc.
• Infinium Robotics

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Business Market Insights is a market research platform that provides subscription service for industry and company reports. Our research team has extensive professional expertise in domains such as Electronics & Semiconductor; Aerospace & Defense; Automotive & Transportation; Energy & Power; Healthcare; Manufacturing & Construction; Food & Beverages; Chemicals & Materials; and Technology, Media, & Telecommunications.

Author’s Bio:

Suryakant Gadekar

Senior Market Research Expert at Business Market Insights