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The exploitation of drones is already started taking flights in commercial space as retailers and e-commerce businesses are capitalizing on these unmanned aircraft vehicles for product deliveries. Drones are not new as they have been around for years and used for military purposes. However, with increasing consumer expectations, drones are now making its appearance in the commercial world. Already, retail giant Walmart, e-commerce maven Amazon, search engine Google, and courier service provider DHL, among others are betting hard on drone technology to package handling and delivery.
Since the Federal Aviation Administration (FAA) permits companies to apply for certificates that allow them to fly commercial drones for research and development, including for agricultural and real estate purposes, companies are increasingly shifting their focus on drones. Amazon that is working on Prime Air®, a future delivery system, is designed to safely deliver packages to customers in 30 minutes or less using drone delivery.
For the last couple of years, there has been a lot of shake-ups in supply drones. Approval from aviation authorities, insurance and costs, urban delivery, weather and theft, and others are some biggest hindrances for delivery drones. Despite these, drones can be a game-changer and transform the way customers get their deliveries. Let's say, you want to eat pizza or drink coffee, what all you need for this is to just place an order using your smartphone and you will get your order within a matter of minutes. But it is proven that the future of product delivery will be driven by drones. They will bring all necessities to your doorstep. However, this ease of product delivery and speed could certainly introduce problems for brick-and-mortar stores.
It is well understood that harnessing the power of technology will bring transformational changes to all aspects of life and business, whether it is positive or negative. The same goes for the usage of drones in commercial space. Most people, in some cases, may deny the use of drones or not comfortable with it. This is majorly because many drones in use today by the military are controlled by human pilots who sit far miles away and handle these. But what if things will go wrong.
Along with these uncertain concerns, delivering goods, even in most far-flung areas, can instantly be accessible and connected using drone delivery. Drones can become effective alternatives of automobiles, trucks and trains to traverse treacherous terrain.
Companies in diverse industries are taking greater leaps and bounds to take off their drone delivery business. According to the ResearchandMarkets report, the global market of drones is predicted to reach from US$14 billion in 2018 to over US$43 billion in 2024, at a CAGR of 20.5%. The report further divulged that drone delivery will be the fastest-growing application within the market. Statista predicts the global market of drone delivery service will reach US$1.68 billion in 2030.
Here is a look at companies leading the way in the drone delivery market.
Globally established prominence for delicious Pizza, Domino's in 2016 delivered the world's first-ever pizza using a drone. More recently, it was reported that the Pizza delivery chain carried out a successful test flight of a pizza by drone to get the cheese-topped, dough-based sustenance to customers on a beach in Zandvoort on the coast north-west of Amsterdam.
In August 2020, FAA approved Amazon's air deliver drone, Prime Air, marking the company's milestone to expand unmanned package delivery. With its new drone delivery system, Amazon plans to use drones for delivering packages to their customers in half an hour or less. The approval has come after a long time as Amazon announced its Prime Air plans way back in 2013. But hardware limitations, not to mention health and safety regulation and others posed big challenges for the company.
The multinational service delivery company is also showing its interest in using drones for package delivery. To the extent, FedEx and Wing Aviation in October 2019 completed the first scheduled commercial residential drone delivery in the US. The delivery represented the first scheduled e-commerce delivery via a drone delivery trial in the country.
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