Autonomous Last Mile Delivery Market

Autonomous Last Mile Delivery Industry Report

The global autonomous last mile delivery market is expected to surge at an impressive CAGR of around 19% over the forecast period of 2021 to 2031, with demand for aerial delivery drones skyrocketing.

Demand for autonomous last mile delivery has been increasing at a rapid pace in the past several years. With advancements in the technology of delivery systems, the market has portrayed noteworthy growth in the last few years. Growth of the market is attributed to increasing adoption of autonomous vehicles for the delivery of products without any human intervention.

Furthermore, expansion of the e-Commerce industry has led to upgraded delivery processes for providing better and efficient delivery of products, which, in turn, is fuelling demand for autonomous last mile delivery.

Foremost objective of the new report by Fact.MR on autonomous last mile delivery is to pitch insights on the purchase growth scenario, demand generators, and development strategies in this space. The report provides a taxonomy elaborating on key segments.

The report also outlines visionary insights on the market dynamics, including the drivers, restraints, opportunities, trends, and pricing analysis, along with key success factors. Demand trends have been tracked in 20+ high-growth countries, pointing towards countries in North America holding bulk of the market share.

Historical Trends Vs Future Market Projections

Historically, from 2016 to 2020, demand for autonomous last mile delivery increased substantially, and the key factor assisting this growth is its advantages over traditional delivery processes. Autonomous last mile delivery services use different platforms for the delivery of products.

For instance, aerial methods allow product delivery without any human interaction by using several types of drones such as fixed wing, rotary wing, and hybrid drones.

The market is forecasted to expand at an impressive CAGR of around 19% over the coming 10 years. Prime factor influencing growth is inclination towards contactless delivery, owing to surge in COVID-19.

Trends

• The robots are likely to continue the competition in autonomous deliveries. The automated trucks are anticipated to transform the shipping and supply chain maintenance for business in the forecast period. Well, that sounds interesting but may not roll out at the expected time. Meanwhile, manufacturers have begun to create robots for doorstep delivery is assumed as an upcoming game changer for this market.

• The Ariel segment of the delivery market is projected to rise as attributed to drone delivery which is projected to create revenue of over USD 4.9 Billion by end of 2030. The drone delivery medium is likely to complement the fastest CAGR for this market.

• Investors have invested more than $8 billion in autonomous delivery start-ups over the past two years. This offers a glimpse into the future and includes driverless vehicles and drones. There are several major participants in the home delivery robot market who have shown they are capable of doing the job.

• Recently, Nuro became the first company to achieve the milestone of completely autonomous operations in three states namely- Arizona, California, and Texas. With the autonomous deployment permit from California company marked the position of one of the top 3 companies that got this grant along with cruise and Waymo.

• FedEx has expanded the pilot program for its Roxo robot and has been testing autonomous robotic deliveries. The business has increased pilots across Texas after developing its home delivery robots to be "same-day delivery bots." Roxo is 5.5 feet tall and weighs roughly 450 pounds.

• The Transporter, a self-driving eclectic delivery van, was unveiled by Udelv at CES 2022. The delivery bot from Udelv is a multi-stop electric delivery vehicle with a modular, swappable, self-contained cargo pod known as the uPod. It can support 2,000 pounds.

Which Region Offers Larger Opportunity for the Autonomous Last Mile Delivery?

North America is the major market for autonomous last mile delivery. North America accounts for around 59% of global sales value. The region is expected to offer US$ 40 Bn absolute dollar opportunity over the forecast period. The reason for this high market share is growing demand for contactless delivery systems in the region.

Lately, there has been an emergence of different autonomous last mile delivery platforms to address the ongoing demand for the contactless delivery so as to avoid spread of COVID-19.

To address this, many manufacturers such as, Starship Technologies, Savioke, Nuro, and others are using drone platforms for different applications such as logistics & transportation, healthcare & pharmacies, and retail & food delivery. However, several companies are introducing ground delivery vehicle technologies for the delivery of products, using bots and self-driven vans.

Why are Aerial Delivery Drones More Preferred?

Among the platforms, the market is bifurcated into two segments - aerial delivery drones and ground delivery vehicles. In 2020, aerial delivery drones contributed the highest with over 61% market share, globally. Furthermore, aerial delivery drones are divided into three sub-segments - fixed-wing, rotary-wing, and hybrid drones. Rotary wing aerial drones captured the highest market share in 2020 at over 40%, globally.

Demand for aerial drones is expected to grow even further over the coming ten years at a CAGR of around 19%, while ground delivery vehicles will experience a CAGR of 18% over the forecast period.

Technology advancements in drones and other ground delivery vehicles have supported market growth for autonomous last mile delivery, owing to faster delivery processes. Several manufacturers are innovating and developing latest drones with artificial intelligence to offer sensing and advanced algorithms in autonomous last mile delivery systems.

How Has COVID-19 Boosted Demand for Autonomous Last Mile Delivery?

COVID-19 has supported market growth for autonomous last mile delivery. Surge in demand for contactless product delivery has been seen during the pandemic, so as to reduce the chances of virus spread due to human involvement. Customers are also ready to accept these devices as they provide fastest delivery combined with other AI features.

In 2020, the market witnessed an absolute dollar opportunity of US$ 88 Bn globally. Contactless delivery has provided a solution to e-Commerce companies in COVID-19 times, as they utilized this opportunity to keep their business afloat, while combatting COVID-19 spread.

Competitive Landscape

Majority of the companies discussed in the report have focused on upgrading their present operational framework. Some of the key developments are:

• In 2021, Amazon invested US$ 2 Bn in electric vehicles to reduce emissions across its operations. Amazon purchased 100,000 electric delivery vehicles, partnering with Mahindra Electric. 
• In 2021, Starship Technologies announced its plans to expand its robotics delivery services to reduce COVID-19 spread. Additionally, the company is expanding to several other countries to facilitate e-Commerce services.

Similarly, recent developments related to companies providing autonomous last mile delivery have been tracked by the team at Fact.MR, which is available in the full report.

Report Scope

Report Attributes	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Europe Latin America South Asia East Asia MEA Oceania
Key Segments Covered	Platform Solution Range Payload Weight Application.
Key Companies Profiled	Starship Technologies Savioke Nuro Jd.Com Amazon Eliport Robby Technologies Kiwicampus Marble Teleretail Postmates Boxbot Robomart Udelv Hugo

Key Market Segments Covered

• By Platform

  • Aerial Delivery Drones for Autonomous Last Mile Delivery
    • Fixed-wing Drones for Autonomous Last Mile Delivery
    • Rotary-wing Drones for Autonomous Last Mile Delivery
    • Hybrid Drones for Autonomous Last Mile Delivery
  • Ground Delivery Vehicles for Autonomous Last Mile Delivery
    • Delivery Bots for Autonomous Last Mile Delivery
    • Self-driving Delivery Vans & Trucks for Autonomous Last Mile Delivery

• By Solution

  • Hardware
  • Infrastructure
  • Software

• By Range

  • <20 Kilometres
  • >20 Kilometres
  • Payload Weight
  • < 5 Kilograms
  • 5-10 Kilograms
  • 10 Kilograms

• By Application

  • Logistics & Transportation
  • Healthcare & Pharmacies
  • Retail & Food

• By Region

  • North America
  • Europe
  • Latin America
  • South Asia
  • East Asia
  • Oceania
  • MEA