Industries can be recreated and transformed by new entrants when they find new opportunities by implementing technological innovations.

Did you know that in recent years, hype has developed around drone technologies as it is expected to foster innovations that will existing industries? Yes, it is real and drones are expected to affect the logistics industry in the next 5 years.

So, how can the drone technology evolutionary path be described? In short, it can be affirmed that advances in artificial intelligence, image processing, and robotics have equipped drones with autonomous functions and have stepped up their transformative potential.

The emergence of the drone industry

Drones’ roots date back to World War I when both the U.S. and France worked on developing automatic, unmanned airplanes. However, the last years have been relevant in respect of drone adoption, usage expansion across industries, and global awareness.

Today, drones are used in many ways including delivery of small items, industrial site inspections, infrastructure monitoring, mapping, crop monitoring, emergency response and security surveillance.

The implementation of drones in the logistics sector

Academic research is being conducted on many aspects of drone-based logistics systems that have a direct impact on their future design, planning, and operations.

Since drones are expected to be used as a delivery mode in the near future, it is critical that academic research and industrial align towards achieving aligned goals.

Companies are adopting innovative methods for responsiveness and efficiency in the logistics sector. As a consequence, interest from academicians and practitioners is exponentially growing due to its potential of reducing costs and improving responsiveness. Both parties are working hand-on-hand towards a commercial successfully implementation of drone delivery.

Drones are currently implemented in a growing number of commercial and public sector services. These applications are addressed in the following.

1. Retailing and E-commerce:

2. Postal Services and Mail Delivery:

3. Food and Drink Delivery:

4. Healthcare and Emergency Services:

Advantages and barriers for drone-based models in logistics

Among the several advantages from using drones over conventional vehicles are:

1. A constant and high travel speed
2. No need for physical road infrastructure
3. Directness of travel
4. No exposure to traffic and congestion

As such, Unmanned Aerial Vehicles (UAVs) expected to reduce delivery times and increase the responsiveness of logistics systems. In urban areas, a rapid growth in direct e-commerce deliveries, and increasing density and congestion levels are found.

On one hand and for this scenario, the application of UAV-based delivery turns out to be benefitial. On the other hand, those rural areas usually located in developing countries, with often less developed road infrastructure, have solved problems regarding to medical supplies, rural distribution of packages and emergency services, by implementing drones.

Regarding barriers to drone logistics the following are found:

1. Threat to privacy and security: Drones could potentially discourage people from participating in social events and movements due to the fear of being recorded. Also, they can jeopardise national security if placed in the wrong hands.
2. Regulations: Even if the customer gives consent for the drone to deliver the product, the question of other people’s consent in the community remains. Therefore, a law regarding this is required, which is possible only through government intervention.
3. Public perception and psychological: People also have a perception that drones are only applicable for surveillance and military purposes, and hence they do not want to be in the vicinity of a drone due to the fear of being recorded or attacked.
4. Environmental issues: Drones create a negative physiological impact on animals, generate a buzzing noise and shadows which result in visual and sound pollution, and drones also cause CO2 emissions.
5. Economic aspects: The logistics industry creates employment opportunities for vehicle drivers. However, as the industry incorporates drones into the logistics business, many individuals including truck drivers are either facing a decrease in their paychecks or a job loss.
6. Technical issues: Bad weather conditions may cause a drone to crash which could result in physical injuries and property damage.