Autonomous Last Mile Delivery Market Growth & Trends

The global autonomous last mile delivery market size is expected to reach USD 84.9 million by 2027, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 32.4% over the forecast period. The need for high-tech and efficient delivery solutions is driving the market growth. Technological advancements in aerial and ground vehicle platforms are expected to provide a new horizon to the last mile delivery services.

Automation in the warehousing and fulfillment centers is growing rapidly. A remarkable subset of this is the use of robots for automating movement-based tasks. This field includes drones and autonomous delivery vehicles, which transfer the goods from the origin to the destination. This technology provides an unmatched level of control to customers over how, where, and when they purchase and receive goods, thereby delivering exceptional customer experience.

With the capability to reach remote and weather intense areas, robots hold enormous potential to improve customer services by providing quick and hassle-free delivery. Robots enhance the vendor’s communication capabilities by providing a high level of accuracy in delivery timings and real-time tracking of parcels. Many industries, including retail, food and beverages, hospitality, and pharmacies, are looking forward to leveraging lucrative opportunities.

Despite the slow momentum on the regulatory front, the startups continue their advancements within the commercial and industrial drone space. There has been a significant improvement in the degree of autonomy for UAVs along with superior battery life. In recent years, the drone hardware has been made available at reasonable prices. All these developments have led to the use of contemporary drones for commercial applications, including parcel delivery.

Asia Pacific continues to exhibit a strong CAGR over the forecast period. China, with e-commerce giants such as and Alibaba, is constantly working on the development of autonomous delivery robots. The testing of indoor delivery robots and contactless delivery initiatives taken by delivery app Meituan Dianping has led to increased use of robots for delivering groceries and food orders in Beijing. Japanese robot companies such as ZMP Inc. are evaluating the potential of autonomous robots that can deliver products from nearby warehouses. The Japanese government is also imparting its contribution to the development of autonomous delivery services to alleviate the labor shortage caused by the aging population and low birth rate.

Autonomous Last Mile Delivery Market Highlights

  • The aerial delivery drones platform segment is expected to expand at a significant CAGR over the forecast period owing to their ease of use and high maneuverability
  • The Robot-as-a-Service (RaaS) model is expected to gain momentum in the coming years, registering a strong CAGR for the service segment
  • The adoption rate of autonomous robots for long-range deliveries is expected to increase over the forecast period on account of the growing demand for providing quick and cost-efficient services
  • Increased investments in R&D activities and venture funding are expected to provide new business opportunities for companies specializing in autonomous last-mile delivery space. New startups are also expected to enter the market, attempting to capture the market share