In 2017, an estimated 3 million drones will ship worldwide, of which 20,000 are set to be registered for commercial use, opening doors for drone delivery. Already worth $3.3 billion, the drone industry is expected to command a staggering $90 billion market by 2025.
Major corporations, including Amazon, Google, Wal-Mart, and FedEx, are all seriously investing in drone technologies for their commercial ventures. For many logistics providers, it’s clear that if drone technology can be properly regulated and controlled, the opportunities to cut costs and hasten transportation are countless.
Here are just some of the reasons why the business world is excited by the possibilities of drone delivery.
Resolving the Last Mile with Drone Delivery
For shipping providers, the “last mile of delivery” between the warehouse and the customer is often the most cost-intensive. Planning labor requirements and routes to ensure as many packages as possible arrive at their destinations quickly can be a logistical nightmare. UPS estimates that if it could reduce all of its delivery routes by just one mile, it would save an additional $50 million annually. In rural areas, drivers often have to travel hundreds of miles just to make a single delivery, and these trips are frequently difficult to track and prone to delays.
How Drone Delivery Provides a Solution
Companies hope that drone delivery can help overcome this hurdle, fostering the kind of significant cost-cutting that UPS anticipates. By combining drone technology with another cutting-edge solution—self-driving trucks—companies envision establishing mobile bases for the delivery of goods. These bases would not be bound to roads or limited by human fatigue. Drones can ensure each delivery is carried out safely, quickly, and accurately, securing high levels of customer satisfaction even as costs are reduced.
Improving the Supply Chain with Drone Delivery
While same-day shipment to almost any location in the world is an exciting possibility, it requires a vast regulatory network to be established before it becomes practically viable. However, the use of drone delivery across the supply chain is already a current reality. Drones are being deployed to deliver raw materials from mining sites to processors. Camera-equipped drones are used for surveillance in company warehouses, while other machines assist with maintenance and repair efforts by transporting tools and parts to remote factory sites or offshore rigs. Over the next five years, the use of drones for inspection, surveillance, and basic logistics tasks is expected to explode, further strengthening the role of drone delivery in global supply chain operations.
Obstacles to Overcome in Drone Delivery
Despite its exciting potential, there are still some major challenges to navigate before drone delivery becomes a central part of business operations.
Limited Flight Capabilities
Currently, drones are relatively lightweight and capable of only short flight durations. Most commercial models can manage 15–30 minute flights while carrying payloads of just 10–15 pounds. This limitation greatly restricts the distances and types of deliveries companies can perform using drone delivery. More powerful drones with stronger charging mechanisms will be necessary before the technology becomes viable for larger-scale logistics operations.
High Investment Costs
Another significant barrier to widespread drone delivery is the cost. While the promise of operational savings is attractive, the reality of dedicating significant capital to lightweight, fragile technologies is daunting for many businesses. Investing heavily in drones for sensitive operations can feel risky, especially without proven large-scale returns.
Complex Logistical Challenges
Managing the air traffic and coordination of hundreds of unmanned drones will require strict guidelines and substantial investment. Ensuring safe drone delivery means developing advanced systems to prevent accidents, manage flight paths, and avoid natural or manmade obstacles, not to mention keeping drones clear of low-flying aircraft. Solving these logistical challenges is critical for drone delivery to become a fully scalable solution.
Drone technology is evolving fast, and businesses that adapt early will lead the way. If you’re ready to discover how drone delivery could transform your logistics operations, now is the time to start. Reach out to our team today to learn more and position your business for the next wave of innovation.
