Drones are unmanned aerial vehicles that do not have an aircraft, human being, or passengers on board. A drone comprises two components- rechargeable batteries and several propellers. The batteries in a drone offer thrust and attach packages underneath their bodies. Rising demand to transport lightweight products has driven the growth in the drone logistics and transportation market.
Reduced Distribution Costs Could Augment the Growth in Drone Logistics and Transportation Market in Future
The deployment of drones has proven beneficial in reducing distribution costs and helped improve the delivery speed. These advantages could help fuel product demand and assist in the growth of the overall drone logistics and transportation market, in future. Also, drones have shown the ability to reach parts of a facility that are difficult to access and have helped decrease carbon dioxide emissions as well as urban traffic. These product benefits could propel the global drone logistics and transportation market, in the years.
Drones have witnessed increased demand in different supply chain processes, in the last few years. They have proven beneficial in the production, distribution, and warehousing facilities and ensured greater safety and security to products. Drones have been deployed in distribution facilities since they can transport small products quickly, decrease the need for forklifts and have emerged as a suitable alternative for conveyor systems to move boxes to different parts of the facility.
In warehousing, especially, drones have helped monitor the inventory efficiently. These benefits could help increase the drone demand in manufacturing units and contribute to the growth of the global drone logistics and transportation market. Also, drones can be deployed for different purposes at any given point in the day, and thereby, these products could witness higher demand than others, in future. Advancements to existing drones could play a key role in increasing product demand as they could be deployed for a wider range of applications which would propel the drone logistics and transportation market.
COVID-19 Pandemic Bolsters the Drone Logistics and Transportation Market
The outbreak of the COVID-19 pandemic propelled the growth in the global drone logistics and transportation market. Drones have also proven useful in the delivery of medical products to healthcare infrastructure facilities by maintaining safety norms. In a bid to reduce the physical contact among labourers at different facilities, drones were deployed for various applications such as temperature checking in a transport facility. As a result, the global drone logistics and transportation market has witnessed significant growth during the pandemic phase. While drones have been deployed in a number of applications in different industries, there are product drawbacks that could impact product demand in future.
High Costs, Need for Skilled Personnel to Operate Drones Could Dent Market Growth in Future
Drones are expensive products and cannot be purchased by all production units, around the world. As a result, manufacturers will look for suitable alternatives that are cost-effective and perform the same activities as drones, efficiently. The rise in demand for these alternatives could decrease the demand for drones and impact the overall drone logistics and transportation market.
Thus far, drones have only proven beneficial to transport goods over short distances and need highly-skilled professionals to operate them to perform the desired tasks. These aspects could dent product demand and adversely affect market growth, in future. Growth strategies such as novel product launches could help prominent drone logistics and transportation market players, gain a competitive edge over others. A2Z Drone Delivery LLC, in August 2021, launched a new RDSX commercial delivery drone called A2Z Drone Delivery RDSX in collaboration with a prominent logistic provider in a bid to transport dual payloads per flight.
R&D undertakings could be a key growth strategy for leading market players, in the years ahead.