The global retail consumer drone market is expected to reach USD 142.9 million by 2025. The increasing adoption in the retail sector for delivering products to consumers effectively and reduce logistics expenses is expected to drive the demand in the coming years. Over the past few years, many retailers including Amazon, Walmart, and Alibaba have invested in retail UAVs. Also, the increasing preference for same-day delivery service by consumers is expected to spur retailers to invest in retail UAVs in the near future.
Regulatory policies play a key role in the market, as an operating license is needed to run drone delivery services. While the U.S. has prominent retailers looking to deploy retail UAVs, in China, SF Express’ subsidiary Jiangxi Fengyu Shuntu received the domestic drone operator license. More license grants in the coming years are expected to benefit the retail consumer drone market as it will spur adoption of retail UAVs in last mile deliveries.
Investment in drones with a payload capacity of less than 5 pounds is expected to be relatively high compared to retail UAVs with a payload capacity of more than 5 pounds. The small payload drones are apt for delivery in urban areas where the frequency and volume of retail purchases are relatively high.
In the retail industry, UAVs are used in the warehouse for expediting inventory checks and tracking the movement of material handling systems. The rising importance of ensuring shorter delivery services is projected to promote the utility of GPS-enabled drones over the forecast period. In July 2015, U.S.-based Amazon proposed new airspace over a range of 200 feet to 400 feet for the deployment of aerial drones for product delivery services.
Over the past few years, many retailers have conducted drone delivery trials. In July 2015, 7-Eleven partnered with independent drone delivery service Flirtey and the Nevada Institute for Autonomous Systems (NIAS) to complete its first delivery service in the U.S.
Asia Pacific is expected to be the fasted growing region with a CAGR of more than 19.0% during 2017-2025. Large consumer markets such as India and China are expected to present a considerable growth opportunity in the coming years. Regulatory frameworks are expected to play a key role in the growth of the market in the near future.
In August 2018, the Ministry of Aviation Affairs of India allowed the flying of commercial drones up to a height of 400 feet. The initiative allows companies to fly drones having a payload capacity in the range of 250 grams to 150 kilograms. Companies such as Amazon and Flipkart are expected to leverage the service in the near future.
Some of the key companies in the market include Parrot Drones SAS, Yuneec, and Power Vision. Stringent regulations aimed at restricting the traffic of commercial drones is expected to pose a major market barrier for new entrants over the next eight years. Companies including Amazon, Alibaba, DHL, and UPS are increasing spending on leveraging drone delivery services.
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Hexa Research has segmented the global retail consumer drone market report based on type, distribution channel and region: -
Segmentation by capacity
• Less than 5 pounds
• More than 5 pounds
Segmentation by region
• North America
• Europe
• Asia Pacific
• Rest of the World
Key countries analyzed
• U.S.
• Germany
• UK
• China
• Japan
Key players analyzed
• Parrot Drones SAS
• Yuneec
• Power Vision
• Drone Delivery Canada.
• X DEVELOPMENT LLC.
• Hubsan
• SZ DJI Technology Co., Ltd.