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Autonomous Last Mile Delivery Market size exceeded USD 500 million in 2021 and is projected to expand at CAGR of over 20% from 2022 to 2030.
Autonomous vehicles (AVs) are emerging as a viable solution to supply chain challenges, logistic disruptions, spiraling costs, and scarce labor. In addition, the e-commerce sector witnessed explosive growth since the emergence of the COVID-19 outbreak. The Annual Retail Trade Survey estimated that e-commerce sales grew by 43% in the first year of the pandemic.
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To keep up with this demand, some logistics providers and retailers are integrating AVs into their fleets. These vehicles offer additional capacity and flexibility in last-mile deliveries. Furthermore, AVs enable the human workforce to focus on high-value tasks such as customer service, sorting, and packing. This allows businesses to upscale their supply chain operations, thereby positively influencing industry dynamics.
Cyberattack-related threats to autonomous delivery vehicles may impede the autonomous last mile delivery market growth. Additionally, it is challenging to determine the optimum delivery paths and package distribution locations for autonomous vehicles and robots. AVs are also placed in a higher cost bracket owing to the usage of advanced sensors, GPS, LiDAR, and cameras. Therefore, the high initial costs of autonomous delivery vehicles will further restrain the market forecast to some extent.
Report Coverage | Details |
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Base Year: | 2021 |
Market Size in 2021: | 500 million (USD) |
Forecast Period: | 2022 to 2030 |
Forecast Period 2022 to 2030 CAGR: | 20% |
2030 Value Projection: | 3 billion (USD) |
Historical Data for: | 2018 to 2021 |
No. of Pages: | 280 |
Tables, Charts & Figures: | 320 |
Segments covered: | Platform, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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Based on the type of platform, the drones segment accounted for more than 50% of the autonomous last mile delivery market share in 2021. Drones have garnered widespread relevance in last-mile delivery due to their shorter delivery times, and lower operational costs. Moreover, the pandemic has highlighted the necessity for contactless, and safe models for the delivery of food. The products can be vital in delivering medicine and consumer goods to remote areas, adding to the scope for autonomous last mile delivery solutions.
In terms of platform, the above 5kg drone payload segment is poised to register over 20% gains between 2022 and 2030. Commercial drones can lift heavy payloads and deliver them at longer distances. In addition, these drones can be used in various industries such as agriculture, telecommunications, and marketing, among others. For instance, Airborne Drones provide long-range drones which can carry packages of up to 8kg for distances of 10km, 20km, and 35km.
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Autonomous last mile delivery market from the healthcare applications is expected to record a growth rate of around 25% through 2030. This growth is attributed to the ability of drones to deliver medicines in disaster-affected areas and remote regions. With the right technology and government support, drones can deliver medicines during disasters and disruptions.
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Europe autonomous last mile delivery market is anticipated to hold a revenue share of nearly 35% by 2030. Many European countries are facing a huge shortage of drivers. According to the Q2 Labour Force Survey for 2020, the estimated shortfall of drivers in the United Kingdom is close to 76,000. This has fostered logistics companies to seek services of autonomous vehicles for last mile deliveries thereby boosting regional market trends. The region is also home to many technology startups and established companies investing in autonomous drones.
Top participants operating in the autonomous last mile delivery market are Amazon.com, Inc., Aurora Innovation, Inc., Alibaba Group, FedEx Corporation, Flirtey (Skydrop), Flytrex, JD.com, Matternet, Nuro, Ottonomy Inc., Refraction AI, Robomart, Teleratail, Skycart, Starship Technologies, Tusimple, Udelv, Waymo, Weride, Wing, Wingcopter, and Zipline. Some of these leaders are raising funds to initiate pilot programs and bolster their presence in the market.
The emergence of the COVID-19 outbreak disrupted the global product and service supply chain across various industry verticals. The impact of the crisis manifested not only in terms of the unavailability of products but also regarding the delivery and transportation of the available goods. Additionally, there was a workforce shortage across sectors. This critical situation increased the demand for autonomous last-minute delivery services to cater to the ever-increasing delivery demand, while minimizing viral transmission risks. These developments have, in consequence, created a favorable environment for the industry.
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Market Insights, By platform
Market Insights, By Application
The above information has been provided for the following regions and countries: