According to the report published by Virtue Market Research in The Global Last-Mile AV and Drones Market was valued at USD 18.03 billion in 2025 and is projected to reach USD 61.24 billion by 2030 with a CAGR 27.7%, expanding at a strong growth trajectory throughout the forecast period. The market is witnessing rapid expansion driven by increasing e-commerce penetration, rising demand for ultra-fast delivery services, and advancements in autonomous mobility technologies.
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A major long-term driver of this market is the transformation of global logistics networks toward autonomous and contactless delivery systems. Retailers, logistics providers, and postal services are increasingly adopting autonomous vehicles and delivery drones to improve delivery speed, reduce labor dependency, and lower operational costs. The ability to deliver goods to remote and congested urban locations is further strengthening market demand.
The COVID-19 pandemic accelerated the adoption of contactless delivery technologies, especially in healthcare, food delivery, and essential supply distribution. The need for safe and efficient delivery solutions during lockdowns significantly increased investment in autonomous last-mile delivery technologies.
In the short to medium term, supportive regulatory frameworks, advancements in battery technologies, and development of AI-based navigation systems are accelerating commercialization. A major industry trend is the integration of autonomous ground vehicles with aerial drone delivery networks to create hybrid last-mile delivery ecosystems.
Market Segmentation
By Solution: Hardware, Software, Services
Hardware represents the most dominant segment in the global last-mile AV and drones market. Hardware components including propulsion systems, sensors, cameras, and navigation systems form the backbone of autonomous delivery infrastructure. Growing adoption of hybrid-electric propulsion systems in delivery drones is supporting segment dominance.
Software is the fastest-growing segment. Drone software enables flight control, mission planning, fleet management, route optimization, and real-time analytics. Increasing use of AI-driven navigation, obstacle detection, and autonomous decision-making is accelerating software demand.
By Range: Long Range (>20 km), Short Range (<20 km)
Short Range Delivery Drones represent the most dominant segment. Early commercialization of drone delivery solutions is primarily focused on short-distance urban and suburban deliveries. Growing adoption in food delivery, retail delivery, and local logistics is supporting strong demand.
Long Range Delivery Drones represent the fastest-growing segment. Increasing research and regulatory progress is enabling longer-distance drone delivery for rural, remote, and industrial applications.
By Application: Logistics, Food & Beverage, Healthcare & Pharmaceutical, Retail, Others
Logistics and Retail represent the most dominant application segments. Growing demand for fast parcel delivery, increasing online shopping activity, and rising collaboration between logistics providers and drone technology companies are driving segment growth.
Healthcare and Pharmaceutical represent the fastest-growing application segment. Drones are increasingly being used to transport medical supplies, vaccines, blood samples, and emergency medical equipment, especially in remote and underserved regions.
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Regional Analysis
North America dominates the global last-mile AV and drones market. Strong investment in autonomous mobility technologies, supportive regulatory initiatives, and high e-commerce penetration support regional leadership.
Europe represents a strong growth market driven by increasing development of autonomous delivery solutions and pilot deployment programs.
Asia-Pacific is the fastest-growing regional market. Strong government support, rapid growth in e-commerce logistics, and expanding commercial drone operations in countries such as China and India are driving market expansion.
Middle East, Latin America, and Africa are witnessing increasing adoption of drone delivery solutions, particularly for healthcare supply distribution and remote area logistics. Countries such as Rwanda, Ghana, and Malawi have successfully deployed drones for medical supply delivery.
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Latest Industry Developments
- Expansion of Hybrid Autonomous Delivery Ecosystems
Companies are developing integrated delivery networks combining ground-based autonomous vehicles and aerial drones. - Advancements in AI-Based Autonomous Navigation Systems
AI-enabled systems are improving obstacle detection, route optimization, and autonomous decision-making capabilities. - Growth of Commercial Drone Delivery Pilot Programs Worldwide
Governments and logistics companies are increasing investments in commercial drone delivery testing and deployment programs.
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