Drone Mail Delivery Market

Drone Mail Delivery Market Outlook (2023 to 2033)

The global drone mail delivery market is poised to reach a market value of US$ 152.1 million in 2023. The market is further expected to grow at a CAGR of 21.7% during the forecast period and will achieve a valuation of US$ 1084.2 million by the end of 2033.

Drone mail delivery accounts for 42% of the total drone delivery market. The market is expected to witness the highest demand growth from East Asia and South East countries.

Report Attributes	Details
Market Size (2022A)	US$ 125.0 Million
Estimated Market Value (2023E)	US$ 152.1 Million
Forecasted Market Value (2033F)	US$ 1084.2 Million
Global Market Growth Rate (2023 to 2033)	21.7% CAGR
North America Market Share (2022)	~43%
East Asia Market Growth Rate (2023 to 2033)	~24.3% CAGR
United States Market Growth Rate (2023 to 2033)	~21.2% CAGR
Key Companies Profiled	Aergility; Aerialoop; Aerit; Antwork; Aviant; Dove Air; Droneup; F-Drones; Flying Basket; Flytrex; Jedsy; Manna; Matternet; Mission Go; Rakuten Drone; SkyDrop; Speed Bird; Spright; Volansi; Zipline

Mail Delivery Services – Changing Landscape

From months to minutes. The mail delivery industry has been evolving since its existence. From motors to trains, and now from airplanes to drones, the industry has drastically improved its turnaround time. In today’s fast-moving world everything needs to be delivered quickly and that too with minimal cost. From essential items like food and medicine to mail, we need all these to be delivered in no time.

Both governments and logistic companies have been trying to integrate drone delivery into their services for a quite long time. However, the market is still in its initial stage as these require clearance from regulatory bodies. Companies like Amazon and UPS have been trying their hands on the adoption of drone mail delivery and for instance, they have been successful in their initiatives.

• Short Term (2023 to 2026): The market is still in its early stage, and many market players are trying to validate the market. The cost associated with the drone plus the feasibility, whether the operation will be profitable in long term or not. All these factors will decide and move the market in the right direction.
• Medium Term (2026 to 2029): The market players will be rolling out the services among the general public to see if there is a demand for the same exists. It is expected that drone delivery services will become more mainstream in comparison to what it is today.
• Long Term (2029 to 2033): Technology advancement along with improved market conditions to facilitate the growth of the drone mail delivery service market. More clear communication from regulatory bodies will shape the future of the drone delivery market.

As per the newly published report by Fact.MR, a market research and competitive intelligence provider, the global drone mail delivery market is expected to grow at a CAGR of 21.7% during the forecast period of 2023 to 2033.

The above image is the representation of the market analysis of the drone mail delivery market based on capacity and region. Under the capacity type, mail weighing up to 5 lbs. accounts for 57% of the total market shares.

Factors Driving the Growth of Drone Mail Delivery

“Rising Traffic Congestion on Roads”

The moment mail deliveries hit the road, it becomes complicated for the delivery agents as traffic congestion is rising beyond imagination, especially in emerging economies, where the infrastructure is still developing. The continuously rising number of vehicles on the road has made life tougher for everyone driving. Almost every day, the mail delivery vehicle gets stuck in traffic and the mail is not being delivered on or before the promised time.

This issue can be resolved by the adoption of drones for mail delivery services. The trend has started and many western countries like the United States, France, and the United Kingdom are practicing this it is expected that soon it will become more mainstream in the Asia Pacific region.

In June 2022, Indian Post in partnership with TechEagle, an Indian drone manufacturing company delivered the first mail with the help of a drone. The drone covered a distance of 46 Km in less than 25 minutes which is far less than the time taken by a motor vehicle.

“Urbanization will Enable Market Growth”

Rapid urbanization across the globe will enable the drone delivery market to grow with proper address and direction management. As urbanization is happening with architectural planning and management, it becomes easy for drones to perform mapping and surveying of the target locality.

Unlike the traditional way of delivering mail and packages where the delivery person has to call before reaching the destination, especially in the such locality where the population is high and houses are developed in a haphazard manner. That is why it is expected that urbanization will help drone mail delivery companies to grow and deliver mail with ease.

Challenges Faced by Drone Mail Delivery Companies

“Stringent Rules and Regulations”

The drone market as a whole is unorganized and needs proper rules and regulations by the authorities to function in an organized way. Across the globe still, so many things are unanswered and the majority of the market players are not aware of which rule to follow and what are certifications required to run drone delivery services.

Even when the license is granted it is limited to only a few locations, and companies can only function in that location. This creates a problem for companies to put a big amount of money into research and development. As drone delivery is a new concept, government officials are also finding it difficult to analyze the situation/request and make required amendments. With time, it is expected that the overall drone industry will evolve and rules and regulations will become more consumer friendly.

Country-wise Insights

The US Drone Mail Delivery Market to Attract the Largest Market Share

The US drone delivery market is mature in comparison to other major economies of the world. Consumers from the US are also technologically advanced and they do not hesitate to try new things. Many parts of the US already have drone mail delivery services running. Companies like Zipline and UPS are already the market leader in the drone delivery space.

Most of the US localities are well organized and have developed with proper planning and management. It becomes easy for drone mail delivery companies to feed the address so that drones can deliver the mail to the correct address. The US drone mail delivery market is expected to reach a valuation of US$ 58.9 million by the end of 2033. With technologies like mapping, surveying, and imaging becoming more popular and advanced, the drone mail delivery market to witness a new ray of growth in the coming years.

Chinese Drone Mail Delivery Market to Witnesses Fastest Growth

With around 1.3 billion people to serve, China’s drone delivery market is poised to grow significantly in the coming years. Around 37% of the total China population still lives in rural areas. And some part of this population lives in the mountain area, where postal companies find it difficult to distribute the deliveries. The delivery person has to travel by bike or other vehicles to make each delivery possible.

With the adoption of drones in mail delivery services, companies can deliver the mail by feeding the address of the recipient within a quick time. Though the number of deliveries made by drones is low in comparison to the traditional method of mail delivery, it is growing at a phenomenal rate and is expected to become equal in terms of volume.

The Chinese drone mail delivery market is expected to grow at a CAGR of 21.6% over the next 10 years. The government of China has also taken multiple positive initiatives to boost acceptance by the public.

Category-wise Insights

Light Weight Mails to Contribute More to the Overall Market

Currently, with limited hardware advancement in commercial space, the majority of drones carry weight ranging between 2-5 lbs. As these mails are easy to carry and can be delivered with a high speed. Drone mail delivery companies often charge a high amount, if the request is to deliver the mail on an urgent basis.

For people who live near hills and remote areas, drone mail delivery can be an important medium to send/receive mail with ease. Currently, people who do not have access to a good quality transportation system and as a result, they have to wait for days and days to receive their mail, can opt for drone mail delivery services.

From a service provider point of view, this set of people living in a remote corner of the world can become target customers in years to come. The majority of the time, people need to send a mail containing either confidential information or office/professional letters, which are lightweight and can be carried in bulk, which is also profitable from a company’s point of view.

Private Logistic Companies are Leading the Market Share

The adoption of drone delivery services is quite high in private space in comparison to the government or public sector. Private companies do not hesitate to try new technology in their services. Companies like Amazon Air and UPS in the US are a few examples of private logistics companies, that are trying and implementing drone mail delivery in many parts of the country.

As the volume received by these companies for delivery is very high, it becomes hard to deliver all the requested mail/packages in time, so I totally make sense for these companies to opt for drone delivery. Drone deliveries are time-saving and can become affordable also in the future, as more people will opt for the services.

Initially, private companies are luring customers by giving them discounts on their total mail delivery charges, in some instances, companies are delivering the first mail free of cost. It is expected that in coming years, public postal companies will start using drones for mail delivery and given the high presence, soon they will be able to pick up the pace.

Competitive Landscape

The key players associated with drone mail delivery services are AeroDyne, AiriNov, Azur Drones, Bentley Systems, CyberHawk, Deveron UAS, Flirtey, FlyTrex, Hemav, Martek Marine, Matternet, Measure, Raptor Maps, Sharper Shape, Skeye, Sky Futures, SkySpecs, Terra Drone, Texo Drone Services, The Sky Guys, Zipline.

The drone mail delivery services are in their initial stage of operation and have very limited acceptance. Only a few major developed countries have been able to initiate drone mail deliveries, and the rest of the developing economies are yet to try their hands at the same. The drone mail; delivery industry has been continuously growing and has witnessed few notable business transactions and initiatives. For example,

• In May 2022, UK’s Royal Mail announced that the company will open 50+ service routes which will be used to deliver mail and parcel with the help of drones over the next 3 years.
• In August 2021, UPS, one of the largest logistic companies in the world started delivering coronavirus medicines with the help of drones.

Fact.MR has provided detailed information about the providers of drone mail delivery services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Drone Mail Delivery Market

• By Capacity :

  • Up to 5 lbs
  • 6-10 lbs
  • Above 10 lbs

• By Customer Type :

  • Government Postal Institution
  • Private Logistic Companies

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa