Emerging markets benefit from commercial drone technology. Market saturation and reshaping are using them to overcome logistical challenges and revolutionize supply chains for many goods and services, with the expected benefits of flexible logistics in the so-called last mile. The OilPrice resource writes about the rapid development of the industry, referring to the Oxford Business Group.
While unmanned aerial vehicles (UAVs) are often associated with military use, the commercial use of UAVs has increased dramatically in recent years as e-commerce and logistics companies increasingly turn to drones for enable more efficient delivery of groceries, food and other goods.
Research firm GlobalData predicts that by 2025, commercial drones will eclipse military drones and become the biggest revenue generator in the autonomous aerial vehicle market.
According to a February 2023 report by consulting firm KBV Research, the global commercial drone market is expected to grow at a compound annual growth rate (CAGR) of 34.5% over the next five years and is expected to reach $167 billion. by 2028.
Traditionally, the Asia-Pacific region has been the fastest growing market for this aircraft type, thanks in part to the booming Chinese drone industry and India’s ambition to become the world leader in the manufacture of drones. Between 2023 and 2030, a CAGR of 15% is expected.
In many cases, drone fleets are more cost-effective than existing vehicle-based networks, especially at the end of the delivery process, which accounts for up to 50% of logistics costs. Delivery by small drones can also help eliminate bottlenecks on highways by reducing the number of vehicles on the roads, especially due to the growth of urban populations around the world.
In addition, as the resource writes, small electric drones also represent an important step towards decarbonizing the transport sector, as they can be used in place of internal combustion engine vehicles in the delivery of the vast majority of medical goods and e-Commerce purchases.
