Drones Take Flight, But Turbulence Remains
Tags: drone, delivery, challenges
Published: 2023-11-20 08:37:03

Drone delivery has emerged as a promising technology to transform goods transportation and delivery by utilizing unmanned aerial vehicles (UAVs). This allows delivery services to cut costs, save time, and reach remote areas. In recent years, drone delivery has gained traction with over [660,000 commercial drone deliveries](https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/future-air-mobility-blog/drone-delivery-more-lift-than-you-think) to customers when excluding test flights for development. Estimates show over [2,000 daily drone deliveries worldwide in early 2022](https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/future-air-mobility-blog/drone-delivery-more-lift-than-you-think). The [growth continued into 2023, with around 500,000 commercial drone deliveries happening globally by mid-year](https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/future-air-mobility-blog/commercial-drone-deliveries-are-demonstrating-continued-momentum-in-2023), putting this technology on track for a record-breaking year of adoption. However, regulatory, technical, and environmental obstacles remain. Despite the challenges, a number of innovative companies and organizations continue to pioneer new drone delivery capabilities.


## Companies Advancing Drone Delivery

A range of organizations are making strides in drone delivery by pushing boundaries across key dimensions. These companies are exploring innovative use cases while optimizing for speed, distance, payload capacity, safety, reliability, and customer experience. Let's examine some of the leading innovators:

- [The Drone Bar](https://thedrone.bar/) startup aims to provide on-demand drone delivery of drinks ordered online to beachgoers and golfers. By offering this convenient service, the company claims it can increase vendor sales and customer satisfaction. Drone Bar utilizes a three-part system called DroneKIT to handle drone charging, landing pad coordination, and online ordering.
- [Amazon Prime Air](https://en.wikipedia.org/wiki/Amazon_Prime_Air) seeks to deliver small packages to customers in 30 minutes or less using drones. After years developing the service and securing FAA airline approval in 2020, Amazon can now significantly expand real-world testing and iteration of the Prime Air technology across the United States.
- Alphabet subsidiary [Wing](https://wing.com/) focuses on drone delivery services, having operated in Australia since 2019 providing food, medicine, and retail items to over 100,000 households. Wing has also tested and launched drone delivery capabilities in Finland and the United States.
- [Zipline](https://www.flyzipline.com/) designs and operates drones to deliver critical medical supplies to hard-to-reach regions, launching services in Africa in 2016 and the United States in 2020. Zipline drone delivery has facilitated over 100,000 blood unit deliveries and saved thousands of lives by providing on-demand service.
- China’s largest online retailer JD.com pioneered goods delivery to rural areas by drone starting in 2016. In 2019, JD.com began the first government-approved and regulated [drone delivery project in Indonesia](https://jdcorporateblog.com/jd-com-launches-first-government-approved-drone-flight-in-indonesia/), serving books and other items to remote village students.
- The pizza chain Domino’s has [tested](https://newsroom.dominos.com.au/media/2022/1/27/ook-up-dominos-drone-delivery-trial-cleared-for-take-off-in-new-zealand) drone delivery in partnership with robotics companies since 2016, touting benefits like faster delivery and reduced traffic and emissions.



Major corporations including UPS, DHL, and Walmart have piloted programs to evaluate the technology's potential. Myriad startups across industries are also innovating new drone capabilities and business models. However, limitations and challenges remain to be addressed before mainstream adoption. We will examine these obstacles next.


## Regulatory Challenges
Operating commercial drones for delivery purposes faces significant regulatory hurdles due to a lack of consistent rules across different countries and jurisdictions. In the United States, the [Federal Aviation Administration](https://www.faa.gov/uas/commercial_operators) (FAA) requires commercial drone operators to obtain a Remote Pilot Certificate, also known as a Part 107 certificate. This involves passing an aeronautical knowledge test and vetting by the TSA. FAA rules restrict Part 107 certificate holders to flying unmanned aircraft under 55 pounds below 400 feet altitude, within visual line of sight, during daylight hours, at speeds under 100 mph, and not over people or moving vehicles.

In the United Kingdom, commercial drone operators must register with the [Civil Aviation Authority](https://register-drones.caa.co.uk/drone-code) (CAA) and follow the Drone Code. This code limits drone flights to 400 feet altitude and requires staying at least 150 feet away from people and property. Pilots must always maintain visual line of sight. No-fly zones exist around airports, prisons, and other sensitive areas.

The Civil Aviation Safety Authority (CASA) in Australia requires a Remote Pilot License (RePL) for commercial drone use. Standard operating conditions apply, including limiting flights to within visual line of sight during daylight hours, giving way to manned aircraft, and staying below 400 feet altitude. There are restrictions on flying over populous areas or in proximity to emergency operations.

China mandates registering drones with the Civil Aviation Administration of China (CAAC) and following [official regulations.](https://drone-laws.com/drone-laws-in-china/) These rules restrict flying drones below 120 meters (400 feet) altitude and require staying within visual line of sight. Flights are prohibited over densely populated areas, near airports, or close to military facilities.

In Indonesia, the Ministry of Transportation requires a permit for foreign commercial drone operations. Drone pilots must follow [regulations](https://drone-laws.com/drone-laws-in-indonesia/) capping flights at 150 meters (500 feet) altitude and requiring visual line of sight. Populated zones and areas near airports or military bases are off limits.

This complex web of inconsistent regulations increases costs, risks, and complexity for drone delivery companies aiming to scale up internationally. Extensive paperwork, delays, and operating limitations pose hurdles across borders. Unified global drone regulations would streamline processes and enable safer, more widely deployable drone delivery services.



## Technical Challenges

Drone delivery faces real-world technical hurdles from operating autonomous flying machines. Drones rely on sensors, algorithms, and communications that are imperfect and encounter problems. For example, buildings, trees, wires, birds, or other drones can obstruct flight paths or interfere with signals. Mechanical defects, software errors, cyberattacks, or human mistakes may also cause drones to malfunction or crash, posing risks. Collisions and improper handling can potentially injure people or damage property.

These challenges show the need for more robust drone technologies. Sensors and algorithms must improve to better detect obstacles, navigate complex environments, and handle unexpected situations. Communications systems need to transmit data securely and reliably while coordinating with air traffic systems. Safety mechanisms like parachutes, nets, hooks, or containers are required for delivering goods without harm. Enhanced capabilities and reliability through technical improvements can reduce the risks and costs of drone delivery services. Advanced drone technologies are necessary to make autonomous delivery drones practical and safe.



## Environmental Challenges

Weather conditions pose additional hurdles for drone delivery operations. Rain can damage drones or cargo, reduce visibility and sensor accuracy, or disrupt communications. Strong winds may blow drones off course, destabilize flight, or limit speed and range. Snow can add weight and drag while reducing battery life. Icing on propellers and wings impairs performance and risks stalls or crashes.

These environmental factors impact the feasibility and quality of drone delivery. More resilient drone designs are needed to withstand diverse conditions. Advanced materials and coatings can better protect against water, dust, ice, and corrosion. Improved batteries and power systems can extend flight time and endurance. With environmental adaptations, drone delivery can achieve greater performance, durability, availability, and reliability. Enhanced drones that handle tough weather environments are essential for reliable autonomous delivery services.


## The Sky's the Limit

Drone delivery shows immense potential to transform logistics, but faces regulatory, technical, and environmental challenges. Addressing these hurdles will enable drones to safely unlock their full potential. The market outlook is positive—a [report by Mordor Intelligence predicts that the global delivery drones market size will grow from USD 1.97 billion in 2023 to USD 11.66 billion by 2028, at a CAGR of 42.65%](https://www.mordorintelligence.com/industry-reports/delivery-drones-market). With concerted efforts to streamline regulations, advance technologies, and improve drone resilience, widespread adoption is achievable. Drones can provide the efficient, rapid, on-demand delivery sought after by consumers and businesses. Overcoming the remaining challenges will allow drone delivery to scale new heights.