Market Research

Europe Drone Logistics & Transportation Market Growing Scope with 61.0% of CAGR by 2027 – Cheetah Logistic Technology, PINC Applications, Workhorse Group, Infinium Robotics

Jul 17, 2020 12:00 PM ET
iCrowd Newswire – Jul 17, 2020

Drone Logistics & Transportation market in Europe is expected to grow from US$ 7.54 Mn in 2018 to US$ 510.87 Mn by the year 2027. This represents a CAGR of 61.0% from the year 2019 to 2027.

France is anticipated to lead the drone logistics & transportation market across the Europe region through the forecast period. France is observing a significant growth in commercialization, resulting in the huge demand of drones in the country. The adoption of drone in France is presently extensively competitive where all the major players including competing in order to gain the customer’s trust. For instance, in France, La Poste is a national post service has tested the robots for months. In addition to this, British startup BIZZBY Sky, La Poste, Google, Amazon, and DHL are investigating and testing on drones for the package delivery. The country witnessed huge demand of drones among various drone manufacturers especially for the purpose of using drone for delivering the parcels. These drones are used exclusively for commercial, military users in Italy. This factor is positively impacting on the growth of the drone logistics & transportation market in Italy during the forecast period.

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Growth in the e-commerce market is fueling dramatic changes in the warehouse which is further enhancing the growth of drone Logistics and Transportation market. Owing to this the entire e-commerce market is gaining a great deal of attraction. However, the time taken to deliver goods and parcels was longer in earlier days, with the emergence of advanced technologies and faster parcel delivery options such as through drones are making the e-commerce industry players simplify the delivery process and at a much lesser time. In the current drone Logistics & Transportation market scenario, drones are majorly deployed by e-commerce companies and several governments and private organizations to deliver time-sensitive goods, medicines and emergency response goods.

Several governmental regulations have restricted the usage of drones for commercial delivery purposes in the earlier years, however, with the amendments of these regulations are helping the e-commerce industry players as well as several parcel delivery companies to use the service. For instance, Europe is among the leading regions for the adoption of advancing technologies that is increasing the adoption rate and growth of drone Logistics & Transportation market. The region has been widely implementing artificial intelligence into its various business functions which also includes drone’s services for several applications to make work more efficient and precise. The companies in Europe are highly dependent upon various rules and regulation for deploying drones for various business operations. All these factors are supporting towards the growth of drone Logistics & Transportation market in the forecast period.

The robust focus of the German Federal Aviation Office (FAO) for flying a drone in Germany, by following certain compliant associated with the drone regulations. Various drone Logistics & transportation market players adhere with the regulations established for the use of drones for other purposes. For instance, ZF Friedrichshafen AG is a first German company which has received a permit to use autonomous drones for the transportation of goods in its premise specifically in plant. Such approvals and initiatives would help the companies to widen the scope of delivery drones. The European drone logistics & transportation market players are innovating with technological advancements. The European Union is continuously focusing towards the development in aviation with a great potential to create new jobs and economic growth of the country as well as drone Logistics & Transportation market. The EU adopted various regulation to safely incorporate remotely piloted drones into the European airspace. The EU regulations sets many civil aviation safety and updates various mandate for the European Aviation Safety Agency (EASA). Despite the exponential growth of delivery drones in European countries, the most problematic scenario for delivery drone could be, to provide its service to the mid-sized buildings with pitched roofs. The delivery drones require an alternative delivery point or kind of collection point of the parcels. In respect to this, an existing DHL Packstation or Paketkasten network would be enhanced to manage shipments of this type. Moreover, DHL has entered into a partnership with Microdrones, a manufacturer of UAV to deliver pharmaceuticals at headquarter of DHL for the employees. These initiatives depict a positive growth for the drones in the logistics and transportation market. In 2018, Flytrex has recently raised $7.5 million in Series B funding. The company is granted with funds Benhamou Global Ventures (BGV) along with additional investment from the btov. With the help of raised finance, it would scale-up the technology, operations of Flytrex in respect to drone delivery in Iceland and North Dakota. Such investment will further fuels the drone logistics & transportation market in the region.

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Keywords:    Drone Logistics & Transportation Market, Drone Logistics & Transportation Market 2020, Drone Logistics & Transportation Market 2027