Autonomous Last Mile Delivery Market

The global autonomous last mile delivery market size was valued at USD 733.50 Million in 2022 and is projected to reach USD 4.62 Billion by 2031, expanding at a CAGR of around 22.7% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising demand for faster delivery and cost-effective services with the growing e-commerce sector.

Nowadays, the e-commerce and logistics companies are focusing on various ways to be more effective in delivery of goods as well as cost-effective. Therefore, logistics companies are focused on the development of innovative services to reduce the cost and automatic last mile delivery by utilizing drones, mobile robots, and autonomous vehicle technology. Last mile delivery is the most expensive portion of the logistics ecosystem, often represents more than 50% of the overall cost. A drone is an efficacious way to deliver lighter and smaller packages and could replace conventional delivery vehicles that are used currently.

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In light of the increasing evolution of drone delivery and its demand, the Federal Aviation Administration (FAA) has issued rules for the utilization of commercial drones for deliveries. United Parcel Service, Inc. which is one of the key logistics companies, provided with a FAA approval to operate a bunch of drones in specified areas of the U.S. in October 2019. Correspondingly, for Prime Air drone delivery services, Amazon.com, Inc. received a FAA approval. FedEx Corporation, in partnership with Wing Aviation LLC, an Alphabet company, introduced its test project of drone delivery in Christiansburg, Virginia.

The COVID-19 pandemic has forced to start contactless delivery services such as essentials and ordering food in order to stay away from busy restaurants and shops along with imposing social distancing norms. This crisis has put a light on independent robot deliveries that lead many shops, restaurants, and food joints to connect with the pilot projects of delivering groceries and food with the help of autonomous robots. During the pandemic lockdown, Shenzhen Yiqing Innovation Technology Co., Ltd. designed delivery vans for food delivery in Shenzhen, Suzhou Zibo cities. These vans delivered vegetables and essentials. These were also used to disinfect public areas by spraying chemicals. JD.com, Inc. a Chinese e-commerce giant, also used its driving service L4 to provide medical facilities in Wuhan's hospital.

Autonomous Last Mile Delivery Market Trends, Drivers, Restraints, and Opportunities

• Various logistics enterprises focuses on the evolution of innovative solutions to drag down the price and automate last mile delivery by utilizing drones, mobile robots, and autonomous vehicle technology. This is expected to accelerate the market growth during the forecast period.

• Consumer expectations are rapidly changing due to which consumers are now willing to pay more for elite delivery, due to which next day or same day delivery has become usual in the e-commerce sector. This is projected to boost the market expansion.

• A dependable advanced air-traffic management system and framework for drone deliveries entail to be put in place for hassle-free drone operations, which is one of the major factors for the market growth.

• Lack of infrastructure to help autonomous delivery services and strict regulations are expected to hamper the market growth.

• Factors such as robotics venture funding, technological developments, and rising applications of drones in the commercial sector are expected to provide growth opportunities to the market.

Scope of Autonomous Last Mile Delivery Market Report                          

The report on the global autonomous last mile delivery market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Autonomous Last Mile Delivery Market Segment Insights

Ground delivery vehicles segment is anticipated to account for a key market share

Based on platforms, the global autonomous last mile delivery market is bifurcated into ground delivery vehicles and aerial delivery drones. The ground delivery vehicles segment is further segmented into self-driving trucks & vans and delivery bots. The aerial delivery drones segment is further classified into rotary-wing, fixed-wing, and hybrid. The ground delivery vehicles segment is anticipated to account for a key share of the market during the projected period due to the continuous developments in self-driving vans and trucks. However, the aerial delivery drones segment is anticipated to expand at a rapid pace during the forecast period owing to increased power, range, and payload size as compared to their other counterparts.

Software segment is estimated to expand at a robust growth rate

On the basis of solutions, the market is differentiated into software, hardware, and service. The software segment is estimated to expand at a robust growth rate during the projected period as companies are adopting Robot-as-a-Service (RaaS) model. The RaaS model allows medium and small sector companies to leasehold robots without the need of considerable investment. Meanwhile, the hardware segment is expected to exhibit a high growth rate in the coming years due to the development of drone charging stations.

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Short range segment is projected to expand at a considerable CAGR

In terms of ranges, the global autonomous last mile delivery market is bifurcated into long range (>20 kilometers) and short range (<20 kilometers). The short range (<20 kilometers) segment is projected to expand at a considerable CAGR during the forecast period as various testing projects are being run for short distances. On the other hand, the long range (>20 kilometers) segment is projected to account for a key market share in the coming years due to rising demand for quick and cost-effective parcel delivery over long distances.

Food & Beverages segment is attributed to register a high CAGR

On the basis of end-users, the market is classified into retail, food & beverages, healthcare, and others. The food & beverages segment is attributed to register a high CAGR during the forecast period as food delivery robots have already started delivering foods in selected cities and university campuses besides companies are revolutionizing its services for customers to remain sustainable in the market. Moreover, the retail segment is projected to account for a key share of the market in the coming years as increasing e-commerce growth is expected to demand a strong logistics and distribution network.

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North America is anticipated to constitute a key market share

In terms of regions, the global autonomous last mile delivery market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period due to the continuous development in autonomous delivery robots, which has resulted in numerous pilot projects in the region. In August 2019, the company introduced Scout, a last-mile delivery robot in Southern California. Furthermore, various efforts are being taken by retail giants such as Walmart and The Kroger Co. to offer short delivery period. The market of Asia Pacific, on the other hand, is expected to represent a major share of the market in the coming years owing to large investments by various competitors to develop innovative products.

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Segments

The global autonomous last mile delivery market has been segmented on the basis of

Platforms 

• Ground Delivery Vehicles
  • Self-driving Trucks & Vans
  • Delivery Bots
• Aerial Delivery Drones
  • Rotary-Wing
  • Fixed-Wing
  • Hybrid

Solutions

• Software
• Hardware
• Service

Range

• Long Range (>20 Kilometers)
• Short Range (<20 Kilometers)

End-users

• Retail
• Food & Beverages
• Healthcare
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Amazon.com, Inc.
• Alibaba
• Flytrex
• Drone Delivery Canada
• Kiwi Campus (Kiwibot)
• JD.com
• Refraction AI
• Nuro
• Shenzhen Yiqing Innovation Technology Co., Ltd.
• Robby Technologies
• TeleRetail
• Starship Technologies
• Unsupervised AI
• Udelv Inc.
• Wing Aviation LLC

Competitive Landscape

Key players competing in the global autonomous last mile delivery market are Amazon.com, Inc.; Alibaba; Flytrex; Drone Delivery Canada; Kiwi Campus (Kiwibot); JD.com; Refraction AI; Nuro; Shenzhen Yiqing Innovation Technology Co., Ltd.; Robby Technologies; TeleRetail; Starship Technologies; Unsupervised AI; Udelv Inc.; and Wing Aviation LLC. The main market players are continuously engaged in various development activities such as mergers and acquisitions, research and developments, investments for innovative products, and collaborations. In 2019, in Las Vegas Consumer Electric Show (CES), Daimler Trucks introduced various investment plans of over USD 4900 million to purchase automated trucks for the use of logistics operations.