The global autonomous last mile delivery market size was valued at USD 11.90 billion in 2021. It is expected to reach USD 84.90 billion by 2030, growing at a CAGR of 24.4% during the forecast period (2022-2030). Last-mile robots are mobile robots that can quickly and autonomously deliver small packages, mail, or groceries. These devices, also known as Last Mile Delivery (LMD) robots, come in various sizes, forms, and propulsion methods. Autonomous last-mile delivery uses vehicles to deliver the goods or services to the customer's door without human involvement. It guarantees that the product is delivered to the customer within the allotted period without jeopardizing the company's honor and reputation in the marketplace. The acceptance of online shopping is fueled by rising internet usage and the growth of the e-commerce sector, which calls for a more effective method of getting the product to the buyer. As a result, corporations have implemented a variety of product delivery methods, including the use of ground delivery trucks and drones.
The industry for autonomous last-mile delivery is expanding due to increased innovations by the major market participants. For instance, Amazon recently unveiled Scout, a delivery robot that can roll along sidewalks and leave products at a customer's doorstep. Scout resembles a little cooler in terms of size. The market for autonomous last-mile delivery is expanding due to factors including rising consumer demand for quick product delivery and improvements in delivery vehicle technology. However, the lack of the necessary infrastructure to allow autonomous delivery service operations and government regulations are anticipated to impede market expansion.
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Increased Demand for Fast Delivery of Packages and Technological Advancements
The demand for a better and more effective delivery service for the products has developed with the development of online shopping and the client's preference for purchasing goods from an online source. The pandemic outbreak increased customer desire for online delivery of everyday essentials, aiding the expansion of the market for autonomous last-mile delivery. In China, for example, there has been a rise in e-grocery orders due to consumers' preference for online retailers like JD.com, Alibaba Group, and MTDP. This was done to prevent face-to-face interactions between people during the pandemic.
Additionally, JD.com in China set up its autonomous robot delivery technology in Wuhan to take care of groceries and medical package deliveries, which helped to reduce the need to prevent direct interaction with people. In addition, the desire for quick package delivery has raised the use of various delivery methods like drones and autonomous vehicles, helping the autonomous last mile delivery market growth globally.
In addition, the trend toward package delivery by drones and other autonomous vehicles has grown due to technology improvement and the need for quicker package delivery. The pandemic breakout hastened the adoption of technology like artificial intelligence (AI) and sophisticated demand sensing algorithms in last-mile delivery services, giving significant participants in the market a competitive edge. The market growth has been further boosted by inventions and advances by various companies offering drone delivery services to send products over greater distances without the need for human intervention.
Government Regulations to Hinder Market Growth
The government has established several rules for qualified individuals with a license and enough expertise to operate autonomous vehicles. For instance, San Francisco's city government passed laws limiting robot permissions in 2017. A corporation was only allowed to run a maximum of three robots at once, and the city was only allowed to have nine robots operational at any given time. Due to a lack of adequate infrastructure, such rules impede the expansion of the autonomous last-mile delivery business globally. Since autonomous last-mile delivery services are expanding quickly and are viewed by top firms as a superior and more effective delivery method, such government rules may impact their development.
An Efficient Way to Deliver Packages to Spur Market Opportunities
Autonomous last-mile delivery services are considered a cost-effective way to deliver packages in the long term because human intervention will not be needed. Various businesses have made innovations, such as adding artificial intelligence (AI) to ground delivery bots, and supporting market expansion. Furthermore, the market for autonomous last-mile delivery is expanding due to breakthroughs in delivery robots in nations like Germany & Denmark. For example, Daimler AG in Germany delivers packages internally to its Mercedes-Benz facility using robots made by Starship Technologies. As a result, the market for autonomous last-mile delivery is expanding due to the availability of the necessary infrastructure.
The global autonomous last mile delivery market is analyzed based on the application, solution, Range, vehicle type, and region.
As per the application, the fragments are logistics, healthcare & pharmaceuticals, food & beverages, retail, and others.
The retail segment is predicted to expand at a CAGR of 27.4% and hold the largest market share. Delivery of items from retailers to customers' doorsteps has improved significantly in the retail sector, eventually leading to market expansion. Since it is utilized to provide retail products to clients at their doorsteps, the retail industry finds a more significant application for autonomous last-mile delivery services. Numerous advances, such as Amazon's product delivery robot Scout, lead to the emergence of autonomous last-mile delivery in retail.
The food & beverage section will hold the second-largest share. The food & beverage industry utilizes last mile delivery services to complete orders on time and efficiently without much human effort or error. The drone delivery service has undergone advancements from several businesses to deliver food goods to clients effectively. For instance, the Icelandic company AHA and the North Carolina company Flytrex debuted a drone delivery service in 2017 and were working to increase their food delivery services in Raleigh.
The fragments are hardware, software, and services per the solution.
The hardware section is predicted to expand at a CAGR of 21.6% and hold the largest market share. Numerous hardware components include airframes, the global positioning and navigation system, sensors, batteries, radars, and cameras. The use of different hardware components in autonomous last-mile delivery systems is much more widespread and plays a vital function in the operation of these services. During the projection period, the need for autonomous last-mile delivery services will expand, supporting the expansion of such hardware components.
The services segment will hold the second-largest share. The autonomous last-mile delivery services encompass a variety of services, including food delivery, grocery delivery, retail delivery, logistics and equipment delivery, and several others. This includes autonomous trucks and vans, drones, and robots that can complete last-mile deliveries.
As per Range, the fragments are short-range (< 20 km) and long-range (> 20 km).
The short-range segment is predicted to expand at a CAGR of 22.9% and hold the largest share. Manufacturers of autonomous drones and vehicles have introduced short-range delivery drones due to the launch and expansion phases of the autonomous last-mile delivery service. Additionally, this enables the makers to conduct various tests, which is anticipated to fuel the global growth of short-range last-mile delivery drones.
The long-range segment will hold the second-largest share. Ground delivery bots, self-driving trucks, and vans are long-range delivery drones that provide last-mile delivery services to customers' doorsteps. Companies have also made a lot of advancements in last-mile delivery services, which are anticipated to support the segment's growth.
As per the vehicle type, the categories include aerial drone vehicles, ground delivery bots, and self-driving trucks & vans.
The ground delivery segment is predicted to advance at a CAGR of 25.5% and hold the largest share. Ground delivery bots, like Amazon's Scout, which can roll across pavements and carry products to customers' doorsteps, have undergone several improvements in the last-mile delivery sector. During the forecast period, similar advancements made worldwide are anticipated to fuel the autonomous last mile delivery market growth.
The aerial delivery segment will hold the second-largest share. Aerial delivery drones are more widely used in autonomous last-mile delivery services since they travel by air and avoid traffic jams and other problems that could interfere with product delivery. During the projection period, this is anticipated to increase the use of aerial delivery drones in the last-mile autonomous delivery market.
The region-wise segmentation of the global autonomous last mile delivery market includes North America, Europe, Asia-Pacific, and LAMEA.
North America and Europe are Most Likely to Lead the Regional Market
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North America will likely command the market while expanding at a CAGR of 26.6%. Numerous businesses have been able to innovate due to the region's increased use of automation in last mile delivery services, which supports the expansion of the autonomous last mile delivery market share there. Customers are increasingly attracted to shop online for everyday necessities like groceries and medicines as a precautionary strategy to avoid human-to-human connection or contact due to the pandemic's adverse effects across North America. Shop owners and other businesses have entered into partnerships and agreements with regional and global drone and ground delivery bot manufacturers to provide their products to fulfill requests.
For instance, the last mile delivery robot REV-1 from Refraction AI has been used to deliver customers' lunch orders from businesses. The autonomous last-mile delivery business across North America is augmented by these advances, partnerships, and agreements. The American e-commerce behemoth Amazon has been working on an "Amazon Prime Air" project that uses drones to deliver parcels within 30 mins. Additionally, the business submitted a patent for a device called a "beehive" in 2017, a depot used to dispatch drones. Companies have also begun growing their operations in the United States to meet the demand for quick deliveries and online purchase orders. All these elements are fueling the regional autonomous last mile delivery market demand.
Europe is envisaged to hold USD 27,286 million, growing at a CAGR of 25.1%. To promote the autonomous last-mile delivery industry throughout the region, the major players in the European autonomous last mile delivery market share, including Airbus, Savioke, Starship Technologies, and others, are developing a variety of autonomous last-mile delivery vehicles, including drones, ground delivery bots, and self-driving trucks & vans. Additionally, in response to the pandemic, last-mile delivery firms with operations in Europe, including Amazon, UPS, DHL, and others, have partnered with various manufacturing firms to use autonomous last-mile delivery systems to protect customers from human contact. Additionally, a lot of firms with operations in Europe, such Airbus and Flytrex, have been working on developments for autonomous last-mile delivery services. Therefore, it is projected that each of these elements will substantially impact the development of the European autonomous last-mile delivery business.
List of key autonomous last mile delivery market companies profiled