New Delhi, June 18, 2024 (GLOBE NEWSWIRE) -- The global autonomous last mile delivery market was valued at US$ 24.94 billion in 2023 and is projected to reach US$ 166.17 billion by 2032 at a CAGR of 22.4% during the forecast period 2024–2032.
The global autonomous last mile delivery market is undergoing a significant transformation, driven by rapid technological advancements, shifting consumer expectations, and strategic initiatives by major players. This growth trajectory is largely influenced by the surge in e-commerce, which saw a 30% increase in online sales in the U.S. during the COVID-19 pandemic. Similarly, DHL in Germany experienced a dramatic rise in daily parcel shipments, from 5.3 million to 9.0 million parcels. Technological innovations are at the forefront of this market evolution. The integration of IoT and machine learning in Autonomous Mobile Robots (AMRs) enhances their efficiency and adaptability across various environments. AI-driven optimizations in delivery routes can significantly reduce delivery costs by 10% to 40% in urban areas. Furthermore, the rising adoption of electric and autonomous delivery vehicles is propelled by mounting environmental concerns and stringent emission guidelines, promoting a more sustainable delivery model.
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Autonomous vehicles and drones are expected to lower parcel delivery costs, depending on delivery patterns such as same-day or next-day service. The long-range segment is anticipated to dominate the market during the forecast period. Projections indicate that the Regionally, North America led the market with a 56.9% share in 2023, while the Asia Pacific region is expected to expand at the fastest CAGR 2024 and 2032. This growth is driven by consumer demand for faster and more efficient delivery services, which is accelerating the adoption of autonomous delivery solutions.
Key Initiatives Shaping the Market Growth
Examples of initiatives in the autonomous last mile delivery market illustrate this dynamic growth. In May 2023, Starship Technologies partnered with Co-op and Wakefield Council to provide autonomous grocery delivery to 13,000 residents across 6,500+ households in Wakefield. Similarly, in March 2023, Starship Technologies collaborated with Trafford Council and Co-op to introduce robot food delivery to 24,000 residents across 10,500 households in Sale. Start-ups like Nuro and Eliport are leveraging the Robot as a Service (RaaS) model to offer autonomous delivery solutions, allowing logistics companies to outsource last-mile delivery efficiently.
Key initiatives in 2024 focus on regulatory approvals, technological investments, and pilot projects. Companies are working closely with local governments to obtain necessary approvals and comply with regulations for deploying autonomous delivery solutions. Major tech firms are investing heavily in digital solutions to streamline delivery management processes and enhance operational efficiency. Numerous pilot projects involving drones and small autonomous robots are being launched in cities worldwide to test and refine these technologies, paving the way for broader adoption.
Key Findings in Global Autonomous Last Mile Delivery Market
| Market Forecast (2032) | US$ 166.17 Billion |
| CAGR | 22.4% |
| Largest Region (2023) | North America (56.9) |
| By Component | Hardware (44.1%) |
| By Robot Type | UAV Drones (64.5%) |
| By Payload | 2-10 kgs (35.2%) |
| By Application | Food Delivery (70.6%) |
| By Vehicle Type | Aerial Delivery Drones (48.3%) |
| By Industry | Retail (39.0%) |
| By Location/Destination | Urban Delivery (86.9%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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From Click to Doorstep: How UAVs are Transforming Last Mile Delivery and Capturing Over 64.5% Revenue Share
Unmanned Aerial Vehicles (UAVs), commonly known as drones, are revolutionizing the autonomous last mile delivery market due to several compelling reasons. First and foremost, drones offer significant cost efficiency. By eliminating the need for human labor, companies can save up to 40% on delivery costs. Furthermore, operational expenses are reduced as drones do not require fuel and have lower maintenance costs compared to traditional delivery vehicles. Wherein, speed and efficiency are paramount in the competitive delivery industry. UAVs can reduce delivery times by up to 50%, bypassing traffic and other ground-based obstacles. This capability is vital for same-day or instant delivery services. Additionally, drones can complete up to 30 deliveries per day, significantly higher than the 10-15 deliveries typical of traditional methods. This increased frequency enhances reliability and customer satisfaction, with 80% of customers expressing satisfaction with drone delivery services due to their speed and reliability.
Drones also excel in accessibility, reaching remote or disaster-stricken areas where traditional vehicles struggle. This makes them indispensable for delivering essential supplies in emergencies, reducing response times by 30%. In both urban and rural settings, UAVs provide flexibility, effectively navigating dense populations and sparse areas alike. Technological advancements further bolster their utility, with over 70% of delivery drones equipped with autonomous navigation systems and collision avoidance technology, resulting in a 90% lower accident rate compared to ground vehicles.
From an environmental perspective, UAVs contribute to a reduced carbon footprint, cutting CO2 emissions by up to 60% in urban autonomous last mile delivery market. Their quieter operation also mitigates noise pollution in urban areas. Modern drones boast impressive payload capacities of up to 5 kg and can cover distances of up to 20 km on a single charge, making them suitable for a wide range of delivery needs. Regulatory developments are also facilitating the deployment of UAVs for commercial deliveries, with over 60% of countries establishing supportive regulations. Companies like Amazon Prime Air, Zipline, and UPS Flight Forward are pioneering drone delivery services, showcasing their practical applications in both commercial and healthcare logistics.
Food Delivery Application to Remain at the Center of Autonomous Last Mile Delivery Market by Generating Over 70.6% Market Share
Autonomous last mile delivery is increasingly dominated by food delivery applications due to several compelling factors, supported by numerous statistics. The primary driver is cost efficiency. Autonomous delivery robots can reduce delivery costs by up to 40%, with ARK Invest estimating that robots could deliver food for about 6 cents per mile, a 20-fold cost-saving compared to human delivery. This cost efficiency is crucial for the food delivery sector, where frequent, small deliveries are common. Urban environments and college campuses are particularly suitable for autonomous food delivery. These areas face significant challenges such as traffic congestion and pollution, which autonomous solutions help mitigate. For instance, urban areas have seen a 30% reduction in traffic congestion with the implementation of autonomous delivery robots. Additionally, college campuses have reported a 25% increase in delivery efficiency with these robots. The advanced sensors and AI technology employed by companies like Nuro and Starship Technologies ensure safe navigation, further bolstering their viability.
The surge in e-commerce, growing at an annual rate of 20%, has heightened the need for efficient last mile delivery, giving a significant and meaningful push to the autonomous last mile delivery market. Consumers now expect quick and reliable delivery of goods, including food. The food and beverage segment alone holds an 85% revenue share in the autonomous delivery market, underscoring its dominance. Moreover, autonomous delivery vehicles offer sustainability benefits, reducing carbon emissions by up to 30% and alleviating urban traffic congestion by 20%.
Versatility is another advantage, with autonomous delivery vehicles catering to both short-range (<20 km) and long-range (>20 km) deliveries. Short-range vehicles are expected to grow by 15% annually, while long-range vehicles are projected to see the highest CAGR over the forecast period. The market for aerial delivery drones and ground delivery vehicles is anticipated to grow by 25% annually, with self-driving trucks and vans expected to increase adoption by 20%.
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North America's Leadership in Autonomous Last Mile Delivery Market is Cemented with Over 56.9% Market Share Thanks to Early Adoption and Deployment
North America, particularly the United States, has emerged as a leader in both the consumption and manufacturing of autonomous last mile delivery systems, such as drones and UAVs. This leadership is driven by a confluence of factors including technological advancements, regulatory support, market demand, strategic investments, and the environmental and efficiency benefits these systems offer. Technological advancements have played a crucial role, with the global autonomous last mile delivery market expected to grow at a CAGR of more than 22% from 2023 to 2028. North America is home to leading drone technology companies such as DJI and Harris Aerial, which specialize in advanced UAV solutions. This region's capability in innovation has been a significant driver of growth in this sector.
Regulatory support has also been pivotal. The U.S. Federal Aviation Administration (FAA) has been proactive in creating regulations that facilitate the commercial use of drones, allowing them to integrate into the national airspace. By early 2024, more than 2,000 commercial drone deliveries were occurring daily worldwide, with a significant portion in North America due to favorable regulations. This regulatory environment has enabled companies to innovate and deploy drone technology more freely.
Market demand, spurred by the rise of e-commerce, has increased the need for efficient last-mile delivery options. North America accounted for the largest market share in the autonomous last mile delivery market in 2023. The region's consumers are increasingly expecting faster delivery times, pushing companies to adopt drone technology to meet these demands. Strategic investments from both government organizations and private players have further bolstered the sector. Companies like Amazon and Walmart have heavily invested in drone delivery systems to enhance their logistics capabilities. The cost efficiency of drones is notable, with the cost per delivery using drones approximately $1.23 compared to $5.33 for a four-mile distance by electric van.
Environmental and efficiency benefits also make drones an attractive option. Drones significantly reduce labor costs and decrease life-cycle pollutant emissions compared to traditional delivery vehicles. This not only aligns with sustainability goals but also offers economic advantages. Examples of leading companies and initiatives include Amazon Prime Air, aiming to deliver packages in 30 minutes or less using UAVs, and Wing, a subsidiary of Alphabet, conducting drone delivery trials in various U.S. cities. UPS Flight Forward has received FAA approval to operate a drone airline, focused on delivering medical samples and other critical supplies. Zipline, known for medical supply deliveries in remote areas, has expanded its operations to the U.S., partnering with health organizations in the North America autonomous last mile delivery market. Refraction AI's REV-1 delivery robot showcases the integration of ground-based autonomous delivery systems.
Global Autonomous Last Mile Delivery Market Key Players
- Airbus S.A.S.
- Alibaba
- Altitude Angel
- Amazon.com, Inc. (Amazon Prime Air)
- BIZZBY
- Boeing
- Cheetah Logistics Technology
- DHL International GmbH
- DoorDash Inc.
- Kiwibot
- DroneScan
- Edronic
- FedEx
- Fli Drone
- Flirtey delivery drone
- Flytrex
- JD.com, Inc.
- Matternet Inc.
- Meituan-Dianping
- Parrot Drone SAS
- Pudu Technology Inc
- Rakuten Inc.
- Skycart Inc.
- SZ DJI Technology Co., Ltd
- Terra Drone Corporation
- United Parcel Service of America, Inc.
- UVL Robotics
- Wing Aviation LLC
- Workhorse Group Inc.
- Yuneec International
- Zipline autonomous
- Other Prominent Players
Key Segmentation:
By Component
- Hardware
- GPS
- Cameras
- Radars
- Ultrasonic/LiDAR Sensors
- Control Systems
- Chassis and Motors
- Batteries
- Others
- Software
- Robotic Operating System
- Cyber Security Solutions
- Services
- Integration
- Maintenance & Support
- Consulting and Training
By Robot Type
- UAV/ Drones
- Fixed Wing
- Rotary Wing
- Hybrid
- UGV
- 2 Wheel
- 3 Wheel
- 4 Wheel
By Vehicle Type
- Aerial Delivery Drones
- Self-Driving Vehicles
- Trucks
- Vans
- Others
- Ground Delivery Bots
By Payload
- < 0.5 Kgs
- 0.5 – 2 kgs
- 2-10 Kgs
- 10-50 Kgs
- 50-100 Kgs
- 100 Kgs
By Application
- Food Delivery
- Cargo Delivery
- Medical Delivery
- Postal Delivery
- Emergency Response
By Industry
- Retail
- E-commerce
- Hospitality
- Healthcare
- Logistics
- Postal Services
- Others
By Location
- Urban Delivery
- Rural delivery
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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