summarise this into what drones are and what sort of effect they are having on DHL cargo as in how they are being used: Navigation and Content
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Drones
DRONES
Trend Overview
Impact:
MODERATE
Realization:
5 - 10 YEARS
Focus Areas:
Automation & Efficiency
Customer Experience
Physical & Digital Security
Visibility & Resilience
Trend Clusters:
Robotics
Sectors:
Energy
E-Retail & Fashion
Life Sciences & Healthcare
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The trend of Drones, otherwise known as ‘unmanned aerial vehicles’ (UAVs), refers to the development and utilization of variously shaped aircraft without a human pilot or crew on board. Enabled by embedded sensors and transceivers to navigate, drones are often controlled remotely by a human pilot, but advanced versions can fly autonomously beyond visual line of sight (BVLOS) using software-controlled flight plans.

For almost a decade, drones have been seen as a potential new mode of delivery for logistics organizations. While holding great promise to provide quick, point-to-point shipping, this trend remains far from realization – regulations and technology, as well as economics, have limited drone delivery to only a few isolated operations around the world. However, as this primary use case progressively develops, other applicable areas along the supply chain have been identified, from security to dimensioning. Drone providers are continuously shaping and improving their products and services to meet these needs.

The trend of Drones has moderately high impact on logistics. As a new transport mode, UAVs can enable transportation lanes previously deemed too costly. Beyond transportation, they can help save time for logistics workers undertaking operational tasks. Still, there are only some use cases applicable today which is why the most impactful applications of this trend are beyond 5 years. Both technological advancement and regulatory development are required to bring drones to a standard fit for service at scale.

Companies across industries have ranked ‘saving time’ and ‘improving work safety’ as the 2 most important reasons for adopting drones.

Source: Drone Industry Insights
Relevance to the Future of Logistics
Mid & Last-Mile Delivery
Dimensioning & Inspecting Large Assets
Security & Surveillance
Inventory Management
Mid & Last-Mile Delivery
Delivery by drone is perhaps the most visible use case of this trend in the supply chain. So far, drones typically deliver high-value products like medication and blood. However, progressive technology developments have expanded their potential use in delivery logistics, helping alleviate pressure in the supply chain caused by more e-commerce orders, worsening traffic congestion in cities, and the growing truck driver shortage.

In both mid- and last-mile delivery, regulatory bodies around the world have cautiously permitted limited commercial drone operations. For instance, Bulgarian start-up Dronamics has developed a fixed-wing cargo drone capable of carrying a 350 kg (772 lb) payload, enabling same-day delivery over a distance up to 2,500 km (1,553 mi). In time for its first planned commercial operations, the company recently received an EU license to self-authorize flights, including BVLOS operations. In the US, American-based drone delivery service company Zipline received federal certification in 2022 to operate as a small air carrier, allowing it to expand existing e-commerce and pharmaceutical delivery operations. In addition, South African startup Cloudline was recently granted permission by the Kenyan government to test its autonomous blimp-like airships to deliver 100 kg (220 lb) payloads carbon-free to less accessible regions.

Overall, as land-based supply chains strain further and as governments recognize the potential benefits of drone technology in the face of macroforces, we here at DHL anticipate increased UAV use as a delivery mode within the next decade.

Next use case
in Relevance to the Future of Logistics
Challenges
Different regulations and requirements across countries and regions delay the mass adoption and deployment of drones in logistics.

This trend should be
MODERATELY monitored,
with some use cases applicable today.

Outlook
While the trend of Drones has taken longer to materialize than many initially anticipated, technology development has enabled some logistics use cases. Regulations have shifted the landscape to favor drone operations on private property; for example, security and inventory management use cases. More permissive legislation has recently enabled limited public-facing drone operations, particularly in mid- and last-mile deliveries. Overall, we here at DHL see drones as one part of the future of logistics and anticipate greater adoption in selected operational areas once the drone business case becomes more favorable.