BUSINESS ANALYTICS FOR OPTIMIZING DRONE DELIVERY BASED ON DEMAND PATTERNS

Abstract

The transformation of India's logistics ecosystem through drone-powered delivery represents a paradigm shift in addressing traditional transportation constraints and market accessibility challenges. This research investigates the application of advanced business analytics to optimize drone delivery networks by analyzing demand patterns across India's diverse geographical and socio-economic landscape. India's drone delivery sector has witnessed unprecedented growth, particularly in healthcare and parcel logistics, with companies developing distinct operational strategies. While some focus on direct hub-to-hub connectivity models, others construct comprehensive infrastructure solutions featuring automated drone hubs functioning as aerial distribution centers, complemented by ground-based last-mile networks. This hybrid approach demonstrates particular promise for cost reduction in quick commerce operations. The study employs regression modeling and machine learning techniques to analyze delivery patterns across India's urban hierarchy, examining parcel volumes, customer segmentation, and demographic trends. The methodology integrates geospatial analysis, demand forecasting, clustering algorithms, and optimization models to understand demand variability across tiered markets, incorporating urban population changes, income classifications, and purchasing behaviors. Key findings reveal significant potential for addressing urban congestion while bridging connectivity gaps between metropolitan centers and developing Tier 2 and Tier 3 markets. The infrastructure-enabled model achieves 80-85% cost reduction compared to traditional delivery, with operational expenses declining from ₹45-60 per km per kg to ₹3-8 per km per kg through analytics-driven optimization. The research quantifies societal benefits including reduced traffic congestion, improved rural accessibility, and environmental sustainability through carbon footprint reduction. Market analysis indicates substantial commercial viability, with the Indian drone delivery market projected to grow from ₹265 crore in 2024 to ₹860 crore by 2030, representing 21.7% CAGR, driven by healthcare delivery (22.8% CAGR) and e-commerce applications (21.4% CAGR). This study provides actionable frameworks for optimizing drone delivery through predictive analytics and data-driven decision-making, supporting evidence-based strategic planning for scaling infrastructure while maintaining cost-effectiveness across India's varied landscape, ultimately contributing to logistics modernization and digital transformation objectives.