The Role of Middle-Mile Logistics in Cargo Drone DeliveryPosted by Amrut Mahajani on April 18th, 2023  The Cargo Drones Market: Estimated to Reach USD 9.4 Billion by 2030According to a recent report, The Cargo Drone Market is estimated to be worth USD 0.6 billion in 2022 and is projected to reach USD 9.4 billion by 2030, exhibiting a CAGR of 38.6% during the forecast period. The market growth is driven by several factors, such as different value chain levels for vendors and increased use of cargo drones in military operations. Get More Information Request Sample Copy (Get Higher Priority for Corporate email ID): https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=252936360Reducing CO2 Emissions and Carbon Footprint is a Key DriverThe delivery of commercial parcels, food, healthcare, and pharmacy packages through drones helps cut down CO2 emissions and the carbon footprint. This is a significant driver for the cargo drone market, considering that the transportation sector accounts for 31% of greenhouse gas (GHG) emissions in the US. Delivery trucks emit around 415 million metric tons of carbon dioxide each year, accounting for a quarter of all emissions from transportation in the country. Light commercial vehicles generate 3,394 grams of CO2 per 24 hours if they deliver 10 packages per 8-hour shift, whereas drones with a 36-kilometer range would emit around 2,160 grams of CO2. Drones consume less energy per hour as they operate on lithium-ion batteries and leave a smaller carbon footprint. Uncertainty in Regulations is a Major RestraintThe flying of cargo drones in the airspace of different countries primarily depends on obtaining approval from the respective governments and the regulations formulated by them to ensure proper air traffic management, sufficient data support, effective controller training, and social adaptability by the population in those countries. Huge investments are required for the R&D and procurement of drones based on advanced technologies. If the cost incurred in the development of drone infrastructure outweighs the benefits offered by drones, it will become difficult for governments of different countries to make changes in their existing policies to enable the use of drones in various applications. The cost of developing the drone infrastructure, along with political hurdles in obtaining the required approval for the development of drone ecosystems, adds uncertainty to the growth of this market. Increasing B2B Middle-Mile Logistics Offers OpportunitiesFuture drone use in logistics operations is viewed as a huge opportunity by the middle-mile delivery sector. While some businesses focus on last-mile delivery from retailers to customers, middle-mile logistics is often overlooked. Due to the higher payloads of cargo drones, companies are now focusing on middle-mile logistics – those that take place from one business to another, such as from a port to a distribution center or from a distribution center to a store. Middle-mile drone delivery targets with semi-trucks and intermodal freight networks. Drones being developed for middle-mile logistics have larger payload capacities and longer ranges than those used for last-mile delivery. Weather Conditions Pose a ChallengeWeather conditions pose a challenge to drones as they might result in deviations in their predetermined paths. Similar to light aircraft, drones cannot hover in all weather conditions. The capability to resist certain weather conditions is determined by the specifications of cargo drones. In pre-flight planning, it is clear that advanced weather data will play an essential role in ensuring that drones can fly their weather-sensitive missions safely and efficiently to deliver commercial goods. The cargo drone market is expected to grow significantly in the next decade due to various factors such as reduced CO2 emissions and increasing demand for B2B middle-mile logistics. However, the regulatory environment and sudden changes in weather conditions may pose challenges to the growth of this market. 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