Cargo Drones Market Market to surpass 23.2 billion in 2030, at a CAGR of 46.8% | IMR

There has been exponential growth in the commercial drone market in recent years owing to the rise in popularity and increasing application scope. The ever-evolving automation is leading to a rise in adoption of the drones for commercial and industrial use. The software is used for inspection and monitoring of the drones and the drone companies are investing substantially in automation software recognizing the market's huge potential.

For instance, in January 2024, Advanced Navigation (Australia), an AI navigation systems manufacturer, launched Cloud Ground Control, a SaaS platform enabling users to connect, monitor and control any drone from a web browser. In another instance, in October 2023, Skyports Drone Services and RigiTech launched the Drone Delivery App in South Korea. Thus, the rising adoption of advanced analytics and growing investment in drone analytics solutions is driving the software segment.

Increasing Adoption of Rotary-Wing Drones Drive Market Growth

A single or a group of rotor blades rotate in a rotary-wing drone to produce vertical lift. These drones are equipped with vertical take-off and landing (VTOL) capability. These drones are more maneuverable and offer superior control over the drones while in flight. They are also simple to employ in urban cities because they can fly without the need for a runway or extensive space.

The companies are actively investing in the development of a newer generation of rotary-wing drones. For instance, in October 2023, FlyingBasket (Italy), launched the FB3, a heavy cargo drone for commercial use with 100 kg payload capacity. Thus, it is expected that the rotary-wing drone category will hold a substantial market share in the cargo drones market due to its many advantages.

High Adoption of Cargo Drones in Military and Peacekeeping Operations is Augmenting the Market Growth

There’s an increasing demand for cargo drones for military & peacekeeping operations and key players are actively developing cargo drones for military applications. For instance, in October 2023, the US Air Force and Army awarded contracts to multiple firms to develop heavy-lift vertical takeoff and landing (VTOL) cargo drones.

In December 2023, Silent Arrow was awarded a contract by the US Air Force’s innovation arm, AFWERX, for the development of long-range cargo delivery drones in contested environments. In addition, governments are also increasingly opting for cargo drones for disaster relief, emergency medical services, surveying, and other such applications. As a result, the military & government segment is expected to maintain a substantial share of the cargo drone market.

Rising Investments in Europe is Driving the Market Growth

Europe's cargo drone market is growing significantly due to increasing investment, rising government initiatives, and the presence of key players in the region. For instance, in May 2023, Wingcopter (Germany) received USD 41.1 million in funding from the European Investment Bank (EIB) to scale up services and ramp up production. In November 2022, Dronamics was awarded a USD 2.6 million grant by the European Commission under the European Innovation Council (EIC) Accelerator program. Key players such as Airbus, Dronamics, Dufour Aerospace, Volocopter, Wingcopter, and Manna Drone Delivery, among others, contribute to Europe's cargo drones market growth, positioning the region for significant expansion.

The Key Players are Highly Competitive to Capture the Market Share

The key companies in the cargo drones market are continuously striving to strengthen their portfolio to meet the growing demand. The companies are focused on establishing long-term partnerships with logistics service providers, airport operators, and end-use industries. Some of the key companies in the market are Airbus, Boeing, Dronamics, Dufour Aerospace, Ehang, Elroy Air, Natilus, Sabrewing Aircraft Company, Silent Arrow, and Volocopter.