Autonomous Last Mile Delivery Market Size

Autonomous Last Mile Delivery Market Size

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.