Will drones take over the world?

New research predicts that the global drone logistics and transportation market size is set to surpass US$31 billion by 2028. While last mile delivery solutions is a key factor driving the industry demand, some unexpected developments are adding to the numbers as well.

Emergen Research reports* that increased use of drones for faster delivery of goods, growth of the e-Commerce sector, increasing investment in research and development, advancements in technology, supportive government regulations, increased demand for last mile delivery solutions, and the emergence of third-party logistics service providers are some key factors driving market revenue growth. It is expected to grow from USD7,53 billion in 2020 to USD31,84 billion in 2028, at a compound annual growth rate of 19,5%.

“The drone logistics and transportation market registered substantial revenue growth during the Covid-19 pandemic, particularly due to lockdowns restrictions, quarantines, and other Covid-19-related safety measures implemented worldwide,” Emergen highlights. “Drones are a suitable option to restrict physical contact for applications such as location or area sanitisation, delivery of goods, and crowd dispersal. The pandemic has significantly impacted the healthcare industry, with issues such as disruption of distribution of drugs and medical supplies to affected zones and transport of test samples to laboratories for diagnostics purposes. Drones have begun to play a more important role in various areas and applications, and the trend is rapidly gaining traction.”

It adds that drones hold immense potential to impact ocean freight by streamlining the process of inspection and review. “In case of railways, logistic and transportation drones may be used to fetch packages from a train as it approaches a specific destination and delivers the package to the intended recipient.”

These units might find their way into mid-mile distribution as well as Leonardo, an Italian multinational that develops various solutions for the aerospace, defence and security sectors, has completed the first phase of its “Sumeri Moderni” drone-based-delivery tests in Turin, focusing on middle mile delivery.

Leonardo’s Sumeri project was launched in 2018. It aims to encourage the development of the advanced air mobility market via technological experimentation in the delivery of operations and services via drones. The recent Sumeri Moderni trials in Turin saw a remotely-piloted drone aircraft safely flying routes of between 15 and 50 km while carrying heavy loads. The aircraft used for the trials was an electric FB3 VTOL (vertical take-off and landing) cargo drone built and operated by Italian start-up FlyingBasket, which can carry up to 100 kg.

A number of the trial’s ground and flight test elements centred on a Poste Italiane sorting centre and saw the drone flying over the Basse di Stura landfill site in Turin which was made available by Amiat, an Iren Group company. These trials focused on the handling of heavy goods, the ability to load and unload the drone in the logistics operator’s hub and evaluating the potential technological and procedural impacts of such flights, as well as acceptance by the public.

The FB3 VTOL drone used in Sumeri Moderni is small, efficient and has a flexible footprint, making it suited for operations at both large logistics hubs and secondary sorting centres. During the trials, it transported a series of significant loads over rivers on the outskirts of Turin. It also demonstrated its ability to release its load via cable, an important feature that gives the drone the ability to connect areas which are difficult to reach or do not have dedicated infrastructure for landings.

But Italy won’t be the only country to benefit from drone deliveries as the German drone delivery pioneer Wingcopter and Continental Drones, a subsidiary of Ghana- and Dubai based Atlantic Trust Holding, have signed a partnership agreement to help establish drone-based delivery networks with thousands of Wingcopter drones across the African continent.

The companies announced in May that Continental Drones has become a Wingcopter authorised partner for all 49 sub-Saharan countries. Over the next five years, the goal of the two partners is to deploy 12 000 Wingcopter 198 drones throughout Africa, making it the largest commercial deployment in the global delivery drone industry to date.

In many African regions, insufficient infrastructure is one of the biggest barriers to universal health coverage and economic development. Setting up large-scale drone delivery networks across African airspace will propel logistics in these countries to a new level and help build an entirely new transport framework – much faster, cheaper, more sustainable, and more efficient than the development of conventional ground-based infrastructure with all its unhealthy and climate-damaging emissions.

Bridging the infrastructure gap through the deployment of large fleets of Wingcopter drones, even in the most remote places, will allow governments and the private sector to leapfrog inefficient infrastructure to climate-neutral, reliable, and fast logistic capabilities. As the Wingcopter 198 is fully electric, it contributes to a more sustainable African logistics sector and helps move economies towards net-zero emissions.

“Together with Wingcopter, we are committed to accelerate the development and economic integration of Africa by enabling the creation of drone-based delivery networks across the continent. With our longstanding business experience on the ground and Wingcopter’s best-in-class drone technology, these networks offer a real chance to fuel economic development and help improve the livelihood of millions. African nations show true leadership by implementing this cutting-edge technology for the betterment of their people and generations to come,” comments Alexander Asiedu, founder of Continental Drones and chairman of Atlantic Trust Holding.

Tom Plümmer, co-founder and CEO of Wingcopter, adds: “This agreement and trustful partnership is a real game-changer, positioning Wingcopter and Continental Drones at the top of the drone delivery industry. Wingcopter is well positioned to execute against the tremendous opportunity of drone delivery in the next decade. We are convinced that our cooperation with Alex and his Continental Drones team will unlock the African drone delivery market on a large scale, allowing us to jointly improve and save millions of lives.”

It seems as if drones will take over the world, or – at least – a large chunk of the logistics and transportation market.

* The report “Drone Logistics and Transportation Market by Type, by Application, by Operation Mode, by End-Use, and by Region – to 2028” was published by Emergen Research, a syndicated research and consulting firm focusing on emerging industries.