Commercial Last-Mile Drone Delivery Growth Opportunities

Environmental Concerns Regarding Carbon Emissions Propel Drone Technology Adoption in the Logistics Sector

This study explores the innovative use of drones in commercial last-mile deliveries in the global logistics industry. Drones for commercial last-mile deliveries have experienced growth following their use during the COVID-19 pandemic, as part of a large-scale effort to encourage contactless deliveries. Drones for this use-case have also proved that the logistics industry has a cost-effective alternative to reduce carbon emissions for suburban deliveries. While the idea of drone deliveries seems futuristic, many businesses have started daily drone operations to deliver a wide range of products around the world - from medical supplies in Malawi to groceries or fast food in the United States and Australia.

However, despite several factors propelling adoption, global regulatory frameworks are yet to adapt to these new conditions and technological advances, limiting end users from fully leveraging drone technology's benefits. More importantly, high costs challenge the industry as businesses are hesitant to invest in the technology due to a lack of a coherent regulatory framework, restraining widespread adoption. Moreover, global policymakers must coordinate air traffic management systems to accommodate drones in environments with high air traffic.

With 2022 as the base year and 2022-2027 as the study period, the study examines future growth opportunities, including drone-assisted truck deliveries and hybrid vertical take-off and landing (VTOL) fixed-wing drones for commercial last-mile deliveries. The publisher offers recommendations that logistics industry participants can consider to leverage these opportunities and grow.