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The outbreak of COVID-19 created new application areas for drone services. Drones have been deployed for everything, from monitoring social-distance requirements to delivering medical supplies. Although regulatory policies have proven to be a primary barrier to their large-scale adoption, the outbreak and widespread of COVID-19 and implementation of social distancing guidelines have increased the number of drone delivery initiatives from several companies, including Zipline (US), Flytrex (US), Rouses Markets (US), and Manna Aero (US). In this domain, drones have proved to be a valuable tool in creating more resilient supply chains and offering delivery services by following the guidelines. Companies such as FedEx (US), Wing Aviation Llc (US), Matternet, Inc. (US), and Wingcopter GmbH (Germany) increased their services to limit the spread of the disease and cater to the demand for contactless deliveries.
Drones are used in the logistics industry for warehouse management, infrastructure management, and traffic management. The use of drones for delivery of packages is expected to offer growth opportunities for landing pad manufacturers, Last Mile-as-a-Service (LMaaS) providers, drone battery manufacturers, charging pad manufacturers, and manufacturers of drone safety and alarm systems.
The market for delivery drones in the aerial segment and self-driving vans & trucks in the ground segment is projected to grow with higher CAGR
Based on platform, the market in the aerial segment is divided into Cargo Drone and Delivery Drone and for ground segment the market is divided into Delivery Bots and Self Driving Trucks and Vans. The market for delivery drones in the aerial segment and self-driving vans & trucks in the ground segment is projected to grow with higher CAGR due to the increasing need for autonomous delivery solutions in food and retail sectors and growing need of contact-less healthcare supply deliveries using autonomous ground vehicles /aerial drones owing to COVID-19 pandemic.
Long range segment (>20 Kilometers) is expected to lead both the aerial and ground autonomous last mile delivery markets, with the higher CAGR during the forecast period
Based on range, aerial and ground segments comprise of Short Range (20 Kilometers). Long range segment (>20 Kilometers) is expected to lead both the aerial and ground autonomous last mile delivery markets, with the higher CAGR during the forecast period. This is owing to high portability, increased efficiency, and low operating costs of aerial drone delivery services. Also, the need to curb pollution in big cities and need of long-range autonomous ground robots which could reduce carbon dioxide emissions to pose as the biggest driver for this market segment.
North America is expected to hold the highest market share in 2021.
North America is projected to lead the autonomous last mile delivery market in 2021. In North America, especially the US, ground delivery robots have become commercialized in the last few years. US-based companies like Savioke, Nuro, Robby Technologies, and several others have created autonomous mobile robots that look ready for the streets and are already finding gainful employment in enclosed premises of universities and hotels.
Key Market Players
Winners of autonomous last mile delivery market are Starship Technologies (US), JD.com (China), Nuro (US), Amazon (US), Kiwi Campus (US), Zipline (US), United Parcel Service (US), Wing (US), Flirtey (SkyDrop) and Aerodyne Group (Malaysia). These key players offer drones applicable for various sector and have well-equipped and strong distribution networks across the North American, European, Asia Pacific, Middle East and Latin America and Africa.
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