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Contract Logistics Market Size to Worth Around USD 519.21 BN by 2032

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Tokyo, Dec. 22, 2022 (GLOBE NEWSWIRE) — According to Precedence Research, the global contract logistics market size was valued at USD 264.3 billion in 2022. The collection of procedures from production to distribution at the point-of-sale final can be referred to as contract logistics. Contract logistics is a more comprehensive strategy that combines traditional logistics with supply chain management procedures; it does not just involve transferring products. The outsourcing of resource management functions to a third-party organization is known as contract logistics. These tasks range from developing facilities, transporting and distributing items creating and planning supply chains, and monitoring inventory.

Key Insights:

  • By type, the outsourcing segment has accounted 55% of revenue share in 2022.
  • By services, the warehousing and logistics segment has held had a sizable market share, In 2022.
  • On the basis of the industrial verticals, the retail and e-commerce segments held the largest share.
  • On the basis of geography, the Middle East and Africa are likely to develop at the most significant CAGR from 2023 to 2032.

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Regional Snapshot

In 2021, the North American area held a 45% market share. The United States has seen a sharp rise in warehouse space rental from regional logistics players in recent years. Retailers are increasingly outsourcing more services due to rising service requirements like e-commerce and same-day delivery.

While the US market is the biggest and is progressively expanding, Canada’s e-commerce market is expanding at the fastest pace in the area. The Mexican e-commerce market is expected to grow at a healthy clip over the coming five years despite the country’s comparatively low user penetration of e-commerce. Most e-commerce businesses award contracts to logistics service providers for storage and distribution. Business models for high-velocity e-commerce demand and the deployment of technical tools speed up fulfillment processes.

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North America’s top contract logistics providers include FedEx, UPS, DHL, XPO Logistics, DB Schenker, and Ryder System. However, the North American contract logistics sector is fragmented, with numerous businesses taking part and offering services at different levels. Corporations are following the patterns of consolidation and growth to gain a foothold in the market. For instance, to better serve current and potential clients, DB Schenker built three new contract logistics sites in the United States in 2018 and moved one existing location to a much larger facility. The business will make six or seven more contract logistics facilities by 2020.

In 2021, Europe will likely have the second-largest contract logistics market. Due to the rising demand for flexible solutions, data management, and more integrated services, the contract logistics sector is likely to increase. Contract logistics is becoming the best option for enterprises as the demand for specific operations along the value chain and comprehensive services increases.

More than three-quarters of the market’s revenue comes from Western Europe, with Germany acquiring a significant share. Nevertheless, future growth in Eastern and Central European nations will likely be swift. The retail industry is an important end-user market segment for contract logistics.

Report Highlights

  • By type, the contract logistics market is divided into four types, including Aftermarket Logistics, Distribution, Warehousing, and Transportation. In 2022, warehousing and logistics had a sizable market share. Local businesses, regional businesses, worldwide businesses, and personally controlled markets exist.
  • Outsourcing logistics is a low-cost strategy for expanding a business’s international footprint and profitability. Hiring staff and renting storage is frequently less expensive than hosting activities internally. A contract logistics sector provides significant flexibility advantages over the internal supply chain.
  • By Application, Distribution, Transportation, Warehousing, Aftermarket Logistics, and Others are market segments. Due to cost savings throughout the entire supply chain process, distribution management is a crucial function. It benefits all contract logistics services, including mode network optimization, network analysis, warehousing, and vendor compliance monitoring.
  • The market is divided into vertical industry segments: manufacturing, retail, and e-commerce. Retail and E-commerce held the most significant market shares, with manufacturing and retail holding the second and third positions, respectively. The retail industry is likely to proliferate due to rising urbanization, while e-online shopping is still underdeveloped.
  • By geography, Asia Pacific and Europe dominate the contract logistics market. At the same time, the Middle East and Africa are likely to develop at the most significant CAGR over the forecast period. Most economic gains come from the early adoption of new technology, E-Commerce, infrastructural expansion, industrialization, and digitalization.

Key Developments

  • In 2018, DHL declared its plan to provide the latest technologies by investing USD 300 Mn in 350 of its 450 sites in North America and, thus, providing customers with an end-to-end visibility solution called “MySupplyChain.”

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Scope of the Report

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Report Attributes Details
Market Size in 2023 USD 282.76 Billion
Revenue Forecast by 2030 USD 453.62 Billion
CAGR 6.99% from 2023 to 2032
Base Year 2022
Forecast Year 2023 to 2032
Key Players CEVA, Agility, DHL Supply Chain, DB Schenker, Kuehne + Nagel, DSV, SNCF Logistics/GEODIS, Ryder System, Yusen Logistics, UPS Supply Chain, Hitachi Transport System, GEODIS, Neovia Logistics Services, Penske, XPO Logistics, Inc., Ryder System, Inc. and Others

Market Dynamics for Contract Logistics Market:

Market Driver:

Logistics Software development demand leads to a significant market share.

Technology keeps transforming logistics and supply chain systems. The growing use of IoT and other technologies across industries will aid the application of the contract logistics industry. The use of logistics software enhances operations and removes hassles in the workflow. Businesses that invested in logistics management software experienced notable advancements in processes, delivery, and procedure, which fuelled the expansion of the contract logistics market. The industry will likely utilize mobile, Cloud, and modern technology to alter logistical operations. In 2021, these technical developments will affect supply chains and logistics.

Logistics companies will utilize artificial technology, or Artificial Intelligence, to find patterns in data and provide insights. Operations, including route optimization, intelligent transportation, budget planning, and demand forecasting, will benefit from the advancement. The contract logistics market may be pushed by AI-driven logistics optimization that reduces costs via behavioral coaching and real-time forecasting. The expected incremental value of AI (89%) will be higher than that of Other in the logistics and transportation business.

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Cloud-integrated logistics management software makes it feasible to track and update pricing, inventory, and monitoring in real time. Software for logistics that runs on the Cloud provides real-time accuracy and total system and process control. The lifecycle of a product can be followed from purchasing through distribution, which enables significant cost savings for lost goods and delayed delivery, as well as the capacity to monitor a shipment at any point in its journey and reroute a consignment that was misplaced. All participants in a trade network can connect and share data in real time, make quick choices, and scale to meet the demands of the contract logistics market owing to cloud-based logistics software.

Over the past two decades, innovative logistic robotic companies have worked hard to incorporate AI and machine learning, better sensors and reaction times, and logistics and warehouse management software. The supply chain has recently seen an increase in warehouse automation, and a massive amount of money and investment has been given to the sector. While Google invested $500 million in JD’s automated logistics, Alibaba invested $15 billion in robotic logistics infrastructure. The global market for warehouse robotics in the supply chain is anticipated to reach $22.4 billion by the end of 2021.

Blockchain, commonly referred to as distributed ledger technology, enables the secure and enduring recording of interpersonal transactions. The contract logistics business is driven by eliminating third parties and intermediaries who check records and coordinate transactions in a supply chain owing to blockchain-enabled shared and secure databases. Blockchain enhances the reliability and trustworthiness of shared data, digitizes physical assets like contracts and important papers, streamlines office procedures, lowers costs, and allows for efficient supply chain data audits in the contract logistics sector.

Market Opportunities:

In the market for contract logistics, cloud-based SaaS is paving the way for the future.

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In 2021, a new approach to data processing will be made public as cloud computing gains popularity. The logistics and supply chain processes have evolved due to technological advancements in 2021. In 2021, there will be a shift from on-premise to SaaS solutions due to the increased use of logistics solutions and supply chains.

By 2021 and beyond, a subscription-based SaaS model is expected to rule the supply chain management industry. Adopting a cloud-based supply chain system has benefits for cost, cost-effectiveness, and flexibility. The emergence of free and open-source software has transformed the cloud into the worldwide logistics industry’s preferred alternative, driving the contract logistics sector.

Systems for supply chains that are cloud-based SaaS offer several benefits. It provides a holistic perspective of all logistics activities by increasing transparency and teamwork. Putting in place a cloud infrastructure reduces both the upfront and recurring costs. Additionally, it increases the efficiency of the supply chain in the contract logistics sector and offers the ability to scale up to suit the needs of the business.

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Market Segmentation

By Type

  • Insourcing
  • Outsourcing

By Service

  • Warehousing
  • Transportation
  • Aftermarket Logistics
  • Distribution
  • Others

By Industrial Vertical

  • E-Commerce
  • Retail
  • Manufacturing
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

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Precedence Research is a worldwide market research and consulting organization. We give unmatched nature of offering to our customers present all around the globe across industry verticals. Precedence Research has expertise in giving deep-dive market insight along with market intelligence to our customers spread crosswise over various undertakings. We are obliged to serve our different client base present over the enterprises of medicinal services, healthcare, innovation, next-gen technologies, semi-conductors, chemicals, automotive, and aerospace & defense, among different ventures present globally.

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Artificial Intelligence

Huawei Wen Tong: 6G Needs to Embrace AI for Shaping Future Network

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SHENZHEN, China, Sept. 29, 2024 /PRNewswire/ — At the 6G Conference held in Istanbul, on September 24, 2024, Dr. Wen Tong, Huawei Wireless CTO, delivered a keynote speech on 6G standardization and innovation. With the release of the ITU-R 6G vision framework, the 3GPP will start 6G standardization in 2025. “6G is a new generation of mobile technology, not a simple upgrade of 5G, it should bring new value to users,” said Dr. Tong, “6G is a true intergenerational technological disruption. 6G standard, key technologies, and network architecture should be re-defined based on application scenarios and requirements from 2030 to 2040. 6G should not be another way to implement 5G. Instead, 6G should embrace the AI revolution with a quantum leap and generate new values for the consumers. In this way, 3GPP standards can truly realize the 6G vision and create greater value for the entire industry.”

Centered “6G Standardization Direction” and “6G Innovation Driving Force”, Dr. Tong shared important views on the future architecture, terminal development, and key technologies of 6G.
In terms of architecture design, 6G should go beyond Service-Based Architecture and move towards Application-Driven Network.
5G has already achieved market success and continues to evolve towards 5G-Advanced. 6G will not simply reuse 5G network architecture, without generational and fundamental innovations, which will limit the mobile industry’s aspiration and imagination to dive the innovation in the 6G era. 6G must have obvious cross-generational characteristics and technical breakpoint.
On the core side, reusing the 5G core network will hinder the innovation in AI. We should use Agentic-AI based technology to re-architect 6G Core that goes beyond 5G Service-Based Architecture and support the foundational capabilities of AI, Sensing and NTN , and thus evolve towards the Application Driven Network .
In terms of terminal evolution, 6G user device calls for a breakthrough to lead the success of the entire industry chain.
It is the law of the mobile industry to drive the evolution of the market with the pioneering technology. The 6G networks and 6G terminals must meet the requirements of consumers and vertical industries in the 6G market phase from 2030 to 2040.
Currently, smartphones are evolving to AI terminals to usher in the mobile AI era. In post-MBB era, breakthroughs in terminal technologies will be the key to the evolution of the mobile industry. Therefore, 6G user device calls for a breakthrough towards “Full-AI”, thus to drive 6G network upgrade and the success of the entire industry ecosystem.
In terms of technology development, AI will become a key enabler for 6G with network paradigm shifting.
Twenty years ago, the Internet was the enabler of the technology innovations. Mobile communications embraced the Internet and achieved great business success. Today, AI maybe the disruptive enabler of the latest technology innovations.
6G should embrace the AI revolution with a quantum leap. However, 6G networks should not be limited to generative AI, Artificial General Intelligence (AGI) and Embodiment-AI are the main directions of future AI development. Therefore, AGI should run through the whole process of sensing, reasoning, decision, and action of terminals, wireless networks, and core networks of 6G, to welcome the arrival of a new network paradigm.
At the end, Dr. Tong Wen emphasized the relationship between 5G and 6G: “The global 5G deployment is on the rise and evolving to 5G-Advanced, which not only meets the current requirements of operators, but also protects their investment. Therefore, 6G technologies should not overlap with 5G in technologies and market space. The specifications, technologies, and architecture of 6G must be based on the scenarios and requirements from 2030 to 2040. We should focus on true generational technology disruption, embrace the new opportunities brought by AI, expand the mobile industry in the next generation.”
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Artificial Intelligence

How AIoT shapes the future of mobility: Hikvision at ITS World Congress 2024

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HANGZHOU, China, Sept. 27, 2024 /PRNewswire/ — Hikvision made a significant impact at the ITS World Congress in Dubai with its captivating theme, “Embrace AIoT for safer, smarter, and greener mobility.” Its booth became a hub of innovation, where visitors explored AIoT solutions that are reshaping the transportation landscape, sparking deep conversations on the future of urban mobility.

Road safety revolution: harnessing AIoT for secure transportation
Hikvision’s commitment to road safety was on full display at its booth through the impressive array of AIoT solutions designed to create secure and reliable traffic environments. The company’s technology provides 24/7 traffic monitoring, ensuring continuous oversight of motor vehicles, non-motorized vehicles, pedestrians and environmental factors. This comprehensive, real-time information collection enables traffic managers to prevent accidents and enhance road safety. Among the showcased products was the 20 MP IR ANPR Checkpoint Capture Unit, renowned for its high-definition capture capabilities, bolstering traffic safety measures.
A standout innovation was the integration of advanced radar and camera technologies, ensuring uninterrupted, comprehensive detection even in adverse weather conditions. The Radar-Video Fusion Incident Detection Cameras, featured prominently in the product experience area, enable early detection and warning of potential hazards. They are particularly effective in challenging situations such as curved roads, blind spots at intersections, and obstacles beyond visual range.
Attendees also engaged with onboard monitoring products on the simulated bus, including dome network cameras, which is designed to enhance passenger safety. Driving assistance products, such as the Driver Status Monitor (DSM), were demonstrated to mitigate unsafe driving behaviors and ensure safer journeys.
Urban mobility redefined: smart traffic innovations
In the realm of smarter mobility, Hikvision showcased its multidimensional sensing technology, which integrates visible light sensors, infrared sensors, radar, and sonar. This technology expands perception capabilities, significantly improving traffic management and situational awareness. The use of AI-powered comprehensive sensing elevates incident monitoring and violation detection to unprecedented levels of accuracy and efficiency.
A major attraction was the Radar-Video Fusion TandemVu PTZ Camera, which integrates millimeter-wave radar with high-resolution cameras for extensive traffic detection and data analysis. AI-based algorithms combine these two systems to enhance target information, detecting up to 16 types of incidents. This leads to the development of a large-scale fusion model that merges spatial physical data with image semantic information. The result is ultra-long-range perception, achieving over 95% accuracy in vehicle trajectory detection. This robust system improves traffic violation management and optimizes traffic flow, significantly enhancing road efficiency.
At the simulated bus station, visitors observed how AI-assisted people counting automated the collection of passenger flow statistics at peak stop hours and bus line frequency during busy periods. Paired with smart bus stop digital signage, the solution improves bus service quality, operational efficiency, passenger experience, and overall public transport effectiveness.
Sustainable transportation: leading the charge for greener cities
Hikvision’s commitment to sustainable urban mobility was evident through its innovative green wave technology and eco-friendly checkpoint solutions. Green wave technology efficiently manages traffic flow to reduce congestion and lower carbon emissions, aligning with global sustainability goals. Visitors were particularly impressed by a case study showcasing a green wave solution implemented in Zhoushan, China. Over a stretch of 21 kilometers and 34 intersections, this main road cut travel times by 50%.
The use of DarkFighterX technology in checkpoint cameras also received significant attention. This technology senses both visible and invisible light, resulting in more accurate and realistic images. It enhances traffic violation enforcement efficiency while minimizing the need for high ambient light levels, thus reducing light pollution. The 9M DarkfightX ANPR Checkpoint Camera exemplified this dedication to environmental stewardship.
Frank Zhang, President of Hikvision MEA, remarked, “Hikvision supports sustainable urban planning by empowering traffic departments to address congestion and transportation challenges.” He further emphasized, “Our system’s openness fosters a secure and reliable platform for developing smart and green cities. Additionally, our solar technology is extensively utilized in remote areas, while our smart street lighting solutions reduce energy consumption by 20-30%, promoting intelligent urban transportation and advancing global sustainability objectives.”
Hikvision’s presence at the ITS World Congress in Dubai underscored its leadership in integrating AIoT technologies to drive safer, smarter, and greener mobility solutions. The engaging presentations and advanced product demonstrations captured significant attention from industry partners and customers, reaffirming the company’s role as a pioneer in shaping the future of urban transportation. As the world moves towards more intelligent and sustainable transportation systems, Hikvision remains at the forefront, embracing AIoT to create a safer, smarter, and greener future for all.
To find out more about Hikvision’s advanced traffic and public transport solutions, please explore the Hikvision official website.
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Artificial Intelligence

Anti-Drone Market worth $7.05 billion by 2029 – Exclusive Report by MarketsandMarkets™

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DELRAY BEACH, Fla., Sept. 27, 2024 /PRNewswire/ — The global anti-drone market was valued at USD 2.16 billion in 2024 and is projected to reach USD 7.05 billion by 2029; it is expected to register a CAGR of 26.7% during the forecast period according to a new report by MarketsandMarkets™. Increasing government spending on counter-drone technologies, rising incidence of critical infrastructure security breaches by unauthorized drones, and surge in adoption of aerial remote sensing technologies to safeguard critical infrastructure are attributed to the demand for anti-drone.

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Browse in-depth TOC on “Anti-Drone Market” 178 – Tables61 – Figures253 – Pages
Anti-Drone Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 2.16 billion
Estimated Value by 2029
$ 7.05 billion
Growth Rate
Poised to grow at a CAGR of 26.7%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By System Type, Application, Platform type, Vertical, and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Vulnerability to hacking
Key Market Opportunities
Emphasis on improving unmanned aircraft systems technology
Key Market Drivers
Growing number of illicit activities
By System Type: Hybrid systems to account for the larger market share in the forecasted year.
The hybrid segment accounted for the largest share of the anti-drone market in 2029. The trends of integrating multiple anti-drone technologies are rising since they are most effective in detecting, tracking, and neutralizing drone threats. These systems merge electronic, kinetic, and lasers, providing a comprehensive defense solution against UAVs. Hybrid systems use electronic, kinetic, and laser-based countermeasures to offer optimum protection against drones. These systems are designed to detect, track, identify, categorize, and mitigate drones at operational wide ranges ranging from a few km up to tens of km.
By Platform: The ground-based segment accounted for the largest market share in the forecast year.
The ground-based segment will hold a major share of the anti-drone market in 2029. Many ground-based anti-drone systems use several electronic technologies, such as radar, IR sensors, acoustic systems, and RF & GNSS jammers. MESA radar solutions are used mostly for counter-UAS purposes, protecting critical infrastructure, military camps, and other security-sensitive sites from unauthorized drones. One such solution is EchoGuard, a ground-based airspace management solution that contains a software-defined 3D radar that can be specific to the site. This system can identify single or multiple off-chance drones, including swarms in unauthorized areas. They provide accurate and sustained airspace surveillance for the field of view (FOV) they are configured, and both human and AI-monitored visual checks. The system can be easily transported and integrated directly with the command-and-control centers or another identification sensor for portable use, and multiple units of the system can be combined to cover vast areas or lengths of borders. Major providers of ground-based counter-drone systems include companies like EchoDyne Corporation, DeTect, Meteksan Defense, and WhiteFox Defense. Acoustics-based Discovair G2 utilizes patented microphone arrays. With 128 interconnected microphone elements, the Discovair sensor units can establish azimuth and elevation to the target in real-time using advanced digital signal processing.
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By Region: Americas are expected to hold the largest share of the anti-drone market during the forecast period.
Americas is expected to capture the largest share in the anti-drone industry during the forecast period. The growth can be attributed to protecting crucial infrastructure in the region. Governments, particularly in the US, invest in anti-drone systems for military bases, borders, and critical infrastructure. For Instance, in April 2023, RTX secured a USD 237 million contract from the US Army to provide Ku-band Radio Frequency Sensors (KuRFS) and Coyote effectors. These systems are designed to detect and neutralize unmanned aircraft systems (UAS). The contract includes stationary and mobile systems and a specified quantity of effectors, all aimed at enhancing the Army’s operations within the US Central Command region.
Key Players-
The key companies offering anti-drone companies include RTX (US), Lockheed Martin Corporation (US), Leonardo S.p.A. (Italy), Thales (France), and IAI (Israel).
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Browse Adjacent Market: Semiconductor and Electronics Market Research Reports &Consulting
Related Reports: 
Drone Sensor Market Size, Share, Industry Growth & Trends by Sensor Type, Platform (VTOL Type, Fixed Wing Type, Hybrid Type), Application (Navigation, Collision Detection & Avoidance, Data Acquisition, Motion Detection, Power Monitoring), End Users and Region – Global Forecast to 2029
Smart Agriculture Market Size, Share, Statistics and Industry Growth Analysis Report by Offering (Hardware, Software, Services), Agriculture Type, Farm Size (Large, Medium, Small), Application (Precision Farming, Livestock Monitoring) and Region (America, Europe, Asia Pacific, Row) – Global Forecast to 2028
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact: Mr. Rohan SalgarkarMarketsandMarkets™ INC. 1615 South Congress Ave.Suite 103, Delray Beach, FL 33445USA: +1-888-600-6441Email: [email protected] Our Web Site: https://www.marketsandmarkets.com/Research Insight: https://www.marketsandmarkets.com/ResearchInsight/anti-drone-market.aspContent Source: https://www.marketsandmarkets.com/PressReleases/anti-drone.asp
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