AUTONOMOUS DELIVERY ROBOTS MARKET ANALYSIS

Market Size and Trends

The autonomous delivery robots market is estimated to be valued at US$ 575.2 Mn in 2024 and is expected to reach US$ 2,971.4 Mn by 2031, growing at a compound annual growth rate (CAGR) of 26.4% from 2024 to 2031.

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The widespread adoption of autonomous delivery robots is expected to revolutionize supply chain operations across industries in the next decade. The market is witnessing significant growth owing to factors such as rising labor costs, growing demand for contactless deliveries amid the COVID-19 pandemic, and increasing investments from leading restaurants chains, retailers, and logistics companies to automate delivery services. The adoption of autonomous delivery robots is expected to optimize logistics operations, reduce delivery times, and improve customer experience for many businesses.

 Growing Demand for Contactless Deliveries

The COVID-19 pandemic has accelerated the demand for contactless deliveries as people aim to minimize human contact. Autonomous delivery robots can fulfill this demand by allowing deliveries to be made without any human involvement from warehouse to doorstep. Customers are now increasingly preferring deliveries be left at their door by robots rather than accepting packages from delivery agents. This ensures safety from infection and allows people to maintain social distancing norms.

Autonomous robots are programmed to safely navigate neighborhoods and traffic without putting themselves or others at risk. They can precisely detect sidewalks and pedestrian paths to follow regular delivery routes. Their cameras and sensors allow live monitoring of the delivery process to confirm packages are left at the right addresses. This removes uncertainties and enables real-time tracking of shipments. The robot's compact size allows it to easily ferry packages to doors of residential buildings, apartments or office spaces without much difficulty. Contactless deliveries are becoming increasingly important for the elderly and high-risk populations who wish to minimize physical interaction during the pandemic.

Market Concentration and Competitive Landscape

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The labor costs associated with manual deliveries have been steadily increasing over the years. Delivery companies have to bear expenses related to employee wages, healthcare benefits, insurance, transportation costs, and overtime payments. At the same time, growing e-commerce demands tighter delivery timelines requiring an expanded fleet and workforce. This has led businesses to increasingly consider autonomous delivery robots as an attractive solution to reduce their spending on last-mile deliveries.

Autonomous robots do not require wages, benefits, or overtime pay which form a major chunk of delivery expenses. They can work around the clock without additional costs like employee shifts or transportation. Their operation is controlled remotely through cloud-based technologies enabling centralized monitoring of multiple robots. This makes it possible for businesses to scale deliveries substantially without a proportional increase in workforce. Moreover, autonomous robots ensure consistent delivery quality, timeliness, and safety without human errors. The cost savings from deploying fleets of robots can be invested in improving other aspects of customer experience like wider product selection or shorter delivery windows. As labor inflation continues, autonomous delivery will become an enticing value proposition for enterprises.

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The technology for navigation still has scope for improvement to handle unforeseen circumstances effectively. The high costs associated with the development of autonomous capabilities and safety mechanisms are barriers for large-scale adoption. Regulatory concerns around autonomous vehicles operating amongst people impede the commercialization progress. Public perception and acceptance of relying on robots for deliveries need to gain more traction.

Market Opportunities: Expansion of services to remote areas

The logistics and e-commerce sectors are growing exponentially with demand for contactless deliveries rising amid pandemic scenarios. Successful demonstrations by pioneer companies have proven the technical and commercial viability. The costs are expected to reduce multi-fold with scaled production. Partnerships between robotics firms, retailers and restaurants are helping advance more practical solutions.

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In terms of type, fully autonomous is expected to contribute 61.4% of the market share in 2024 owing to significant technological advancements in robotics, automation, and artificial intelligence. Fully autonomous delivery robots have high-level capabilities without any human supervision. They utilize advanced navigation technologies like computer vision, GPS, Lidar, and other sensors to safely navigate complex environments and efficiently reach delivery destinations. The rising demand for contactless delivery during the pandemic has further boosted investments in improving autonomous capabilities of robots. Leading companies are focusing on developing fully autonomous robots that can identify obstacles, read street signs, and interact with traffic signals and pedestrians on their own. The delivery efficiency and flexibility offered by full autonomy makes this segment highly attractive for merchants and customers.

Insights By, Carrying Capacity- Expanding Delivery Volumes Fuel the 10.01-50kgs Capacity Segment

In terms of carrying capacity, the 10.01-50kgs segment is expected to contribute 51.3% of the market share in 2024 due to its ability to handle growing delivery volumes efficiently. This capacity range allows robots to carry multiple packages in a single run based on optimal load distribution. They are suitable for delivering packages of varied sizes for food, grocery, retail and pharmacy applications. Their payloads are steady enough to replace complex manual transport over shorter distances. Large merchants are inclined towards this category as it provides higher throughput in inner city and campus deliveries. The standardization in payload range also simplifies integration with warehouse management and order fulfillment systems.

Insights By, Number of Wheels- Maneuverability Boosts Quadricycle Design

In terms of number of wheels, the 4 wheels segment is expected to register 43.6% of the market share in 2024 owing to better maneuverability relative to tri- and six-wheel variants. Four-wheeled robots have a stable quadricycle or square design for navigating sidewalks, stairs, and other surfaces smoothly during deliveries. Their bidirectional driving and compact turning capability allow effortless movement in crowded areas. The wheels are arranged strategically to lower the center of gravity for improved stability on uneven terrains. Most companies build 4-wheeled robots as they can be easily controlled using a single motor on each axle. The low-speed turning aids last-mile navigation without frequent stops or adjustments. Their agility enables quick response times, higher productivity, and excellent user experience.

Regional Insights

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North America has emerged as the dominant regional market. This region is expected to hold 47.3% of the market share in 2024 for autonomous delivery robots globally. The region has seen rapid adoption of automation technologies across various sectors including logistics & transportation. This is mainly due to heavy investments made by leading U.S.-based technology companies involved in the development of autonomous devices. Most major robotics and automation startups are based out of U.S. which gives the region an edge in terms of technology development and upgrades. Furthermore, countries like the U.S. and Canada have established regulations that allows testing and limited commercial use of autonomous robots on roads and sidewalks. This enables companies to advance their robots through real world pilots and demonstrations. The large e-commerce industry in North America also contributes to the growing need for last-mile delivery solutions, creating more opportunities for autonomous delivery robots.

The Asia Pacific region, on the other hand, is witnessing the fastest growth in the adoption of autonomous delivery robots. This can be attributed to the rapid growth of online shopping and flourishing food delivery sector across countries like China, Japan, India and South Korea. The density of population and challenges of urbanization have increased dependency on cutting-edge technologies for efficient logistics. Local startups as well as global players are therefore actively testing delivery robots customized for Asian roads and lifestyle. Governments of leading Asia Pacific nations are also offering incentives and relaxation in regulations to encourage the development and early commercial use of autonomous robots. This makes Asia Pacific an attractive market for both product trials as well as large scale commercial deployments of delivery robots over the coming years.

Market Report Scope

Key Developments

• In January 2023, Ottonomy is a company that specializes in autonomous delivery robots designed to transport goods and packages over short distances. expanded its autonomous delivery robot operations to Cincinnati/Northern Kentucky, Rome Fiumicino International Airport, and Pittsburgh. Ottonomy's robots are also utilized by Posten Norge in Norway, Oslo, and Goggo in Madrid, Spain, for automating first-mile and last-mile deliveries. Collaborations with industry partners in Canada and Saudi Arabia are underway, with additional launches planned for 2023 in Europe, the U.S., and Asia Pacific.
• In September 2022, Magna, a global mobility technology company, partnered with Cartken, a San Francisco-based autonomous robotics firm, to produce Cartken's fleet of autonomous delivery robots, addressing the increasing demand for last-mile deliveries
• In May 2022, Uber Eats is a food delivery platform operated by Uber Technologies Inc. rolled out two autonomous delivery trials in Los Angeles, U.S. in collaboration with Serve Robotics, a company specializing in robotic sidewalk delivery, and Motional, a leader in autonomous car technology
• In March 2022, Nvidia is a leading technology company known for its graphics processing units (GPUs) and semiconductor products. invested USD 10 million in Serve Robotics, a sidewalk robot delivery company spun off from Uber. This investment aims to boost the market for autonomous delivery services.
• In January 2022, Ottonomy introduced Ottobots, a fleet of fully self-driving delivery robots tailored for the restaurant and retail industries, suitable for both outdoor and indoor settings. The pandemic spurred a series of partnerships that enabled Ottobots to launch fully autonomous delivery services for curbside, indoor, and last-mile deliveries.

*Definition: The autonomous delivery robots market refers to the emerging industry of utilizing self-driving robots for delivering items to customers without human involvement. These robots use technologies like computer vision, sensors, GPS, and autonomy software to navigate environments like sidewalks, crosswalks, and roads for delivering packages, food or other goods from businesses to residential or commercial locations. They are envisioned to make deliveries more efficient, cost-effective, and environment-friendly by reducing dependence on human workforce for delivery jobs.

Market Segmentation

• Type Insights (Revenue, US$ MN, 2019 - 2031)
  • Fully Autonomous
  • Semi-Autonomous
•  Carrying Capacity Insights (Revenue, US$ MN, 2019 - 2031)
  • Up To 10kgs
  • 10.01 - 50kgs
  • More than 50kgs
•  Number of Wheels Insights (Revenue, US$ MN, 2019 - 2031)
  • 3 Wheels
  • 4 Wheels
  • 6 Wheels
•  Verticals Insights (Revenue, US$ MN, 2019 - 2031)
  • Healthcare
  • Food & Beverages
  • Retail
  • Logistics
  • Others (Hospitality)
• Regional Insights (Revenue, US$ MN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players
  • Amazon Robotics
  • Robby Technologies
  • Robomart
  • Boston Dynamics
  • Eliport
  • Starship Technologies
  • Panasonic
  • Com
  • Nuro
  • Savioke
  • Marble
  • Dispatch
  • Piaggio Fast Forward
  • Teleretail