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Drone Package Delivery Market to Surge at 41.8% CAGR till 2027; Growing Deployment of Drones to Deliver Healthcare Goods and Supplies to Accelerate Market Expansion

January 11, 2021 | Aerospace & Defense

The global drone package delivery market size is projected to reach USD 7,388.2 million by 2027 owing to the increasing adoption of rotary-wing unmanned aerial vehicles (UAVs) by drone service providers, shares Fortune Business Insights™ in its report, titled “Drone Package Delivery Market Size, Share & COVID-19 Impact Analysis, By Type (Fixed Wing and Rotary Wing), By Package Size (Less Than 2 Kg, 2-5 Kg, and above 5 Kg), By End Use (Restaurant & Food Supply, E-commerce, Healthcare, Retail Logistics & Transportation and others), and Regional Forecast, 2020-2027”. As per the report, the global market value stood at USD 642.2 million in 2019 and the market is anticipated to display an impressive CAGR of 41.8% from 2020 to 2027.

The COVID-19 pandemic has generated a slew of opportunities for players in this market as several countries are extensively utilizing drone delivery systems to provide essential food and medical supplies to their citizens, thereby fueling the drone package delivery market growth.

Walmart Partners with Flytrex to Deliver Goods via Drones to Shoppers

In September 2020, as the COVID-19 pandemic swept across the globe, the retail giant Walmart collaborated with the Israel-based Flytrex to deliver goods to shoppers in North Carolina using aerial delivery drones. Customers will need to place their orders through a mobile app, which will feature around 200 items ranging from toothpaste to diapers. Once an order is received and confirmed, the automated Flytrex drones will take off from the nearest Walmart outlet and will be able to traverse a distance of up to three miles, carrying packages with weights up to 6.6 pounds. Upon reaching the destination, the drones will drop the packages in the customers’ backyards from a height of 80 feet. The drones are operated through a smart and efficient dashboard, which will also help both companies gain insights into the overall customer experience and cater to the increasing demand for faster delivery of packages.

To get a detailed report summary and research scope of this market, click here:


Rising Demand for Commercial-scale Drone Operations to Boost Growth

The vast potential of UAV technologies has spurred the demand for drones and the commercialization of drone operations worldwide. In response, government agencies are implementing regulations to enable the safe deployment of drones in civilian airspace. For example, in October 2020, Iris Automation’s detect-and-avoid drone solution received approval from Transport Canada in the form of a Special Flight Operations Certificate. This approval will allow Iris to conduct commercial drone operations in diverse fields such as agriculture, mining, and package deliveries across Quebec. In China, the e-commerce giant, Alibaba, used drones for carrying food delivery packages across a water body in 2017, when the company flew fruit boxes from the Fujian Province to the nearby Meizhou Island. Another example is AgEagle Aerial Systems, the agricultural drone company, which partnered with the Chicago-based drone startup, Valqari, to produce the latter’s Drone Delivery Station. The broadening commercial-scale utilization of drone delivery platforms and services is likely to generate unprecedented opportunities in this market.

Key Companies to Leverage Easing of Aviation Norms to Gain Competitive Edge

Amid the COVID-19 pandemic and in light of the supply chain disruptions triggered by it, regulatory bodies are relaxing flight operation norms to facilitate speedy and efficient delivery of critical goods to end-users. Key players in this market are exploring ways to tap this unique opportunity by developing innovative drone solutions and cementing their place in the market. Most of the UAV products of drone companies are being utilized by entities in the e-commerce and logistics industries, creating lucrative prospects for players in this market.

Industry Development:

  • June 2020: India’s Directorate General of Civil Aviation (DGCA) allowed 10 consortia of foodservice companies, including Zomato and Swiggy, to fly test drone deliveries in India. The DGCA granted permission to these groups to start testing beyond visual line of sight (BVLOS) drone flights. 

List of Key Players Covered in the Drone Package Delivery Market Research Report:

  • Wing Aviation LLC (US)

  • Workhorse Group Inc. (US)

  • Drone Delivery Canada Corp. (Canada)

  • Zipline (US)

  • DHL International GmbH (Germany)

  • United Parcel Service of America, Inc. (US)

  • FedEx (US)

  • DroneScan  (South Africa)

  • Cheetah Logistics Technology (US)

  • Flytrex (Israel)

  • Flirtey (US)

  • Matternet, Inc. (US)

  • Boeing (US)

  • Amazon Inc. (US)

Further Report Findings:

  • The fixed-wing segment is expected to register the highest CAGR in the market on account of the increasing applicability of fixed-wing drones in aerial photography and analysis. The segment’s share in 2019 stood at 29.7%.

  • Supportive flight regulations by the US Federal Aviation Administration (FAA) will allow North America to dominate the drone package delivery market share during the forecasted period. In 2019, the North America market size was USD 237.7 million.

Table of Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD million)


By Type

  • Fixed Wing

  • Rotary Wing

By Package Size

  • Less Than 2 Kg

  • 2-5 Kg

  • Above 5 Kg

By End-use

  • Restaurant & Food Supply 

  • E-commerce

  • Healthcare

  • Retail Logistics & Transportation 

  • Others

By Geography

  • North America (By Type, Package Size, End Use and Country)

    • The U.S. (End Use)

    • Canada (End Use)

  • Europe (By Type, Package Size, End Use and Country)

    • The U.K. (End Use)

    • Germany (End Use)

    • France (End Use)

    • Italy (End Use)

    • Spain (End Use)

    • Russia (End Use)

    • Rest of Europe (End Use)

  • Asia Pacific (By Type, Package Size, End Use and Country)

    • Japan (End Use)

    • China (End Use)

    • India (End Use)

    • Australia (End Use)

    • Southeast Asia (End Use)

    • Rest of Asia Pacific (End Use)

  • Rest of World (By Type, Package Size, End Use and Country)

    • Latin America (End Use)

    • Middle East & Africa (End Use)

Global Drone Package Delivery Market
  • PDF
  • 2019
  • 2016-2018
  • 200


  • 4850

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