DELIVERY DRONES MARKET ANALYSIS

Market Concentration and Competitive Landscape

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Regulatory approvals and advancement of drone technology

While delivery drones seem like a promising solution, stringent regulations around their use were limiting the growth of this industry until recently. However, many countries and local aviation authorities are now slowly easing restrictions and providing more approvals and guidelines for commercial drone operations within their territories. They recognize the benefits that drones can bring for last-mile delivery especially in remote and inaccessible locations. As regulations continue to be relaxed in phases with safety measures, it will help boost the adoption of drones among delivery companies. Moreover, ongoing research and development is helping drone technology to advance rapidly with innovations making drones safer, more reliable and capable of carrying heavier payloads over longer distances.

For instance, in May 2023, Asio Technologies (Israel) a navigation system development company,  successfully completed several demonstrations of its NavGuard optical navigation system for strategic customers in the U.S. These demonstrations, conducted in response to civil customer requests, featured a rotary-wing unmanned aerial vehicle (UAV) performing aerial navigation and automatic point-to-point package deliveries over urban and rural areas without relying on GNSS signals. As the logistics industry evolves, the urgency for solutions like automatic, contactless delivery services in remote islands, mountainous areas, and cities is growing.