The autonomous last mile delivery market size is expected to reach US$ 68.95 billion by 2028 and registering at a CAGR of 3.0% from 2022 to 2028, according to a new research study conducted by The Insight Partners.
Rise in Technological Advancement such as Artificial Intelligence Catalyzes Autonomous Last Mile Delivery Market
Autonomous Last Mile Delivery Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: by Platform (Aerial Delivery Drones and Ground Delivery Vehicle), Payload Weight (Below 5 Kilograms, 5-10 Kilograms, and Above 10 Kilograms), Range [Short Range (Less Than 20 Kilometers) and Long Range (Above 20 Kilometers)], and Geography (North America, Europe, Asia Pacific, and South and Central America)
Autonomous Last Mile Delivery Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis
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Urban last mile delivery is a crucial aspect of the package delivery value chain. It is the end process of a product’s journey, from a transportation hub to the final destination. The last mile delivery infrastructure includes a few of the most labor-intensive steps due to scattered customer distribution and a high frequency of requests. This increases the costs across the wider logistics chain. A significant increase in the number of parcels is one of the major drivers behind the rapid development of the autonomous last mile delivery market.
Technological advancements such as virtual reality and artificial intelligence have increased customer convenience and enabled them to shop online without stepping out of their homes. Walmart, an American multinational retail corporation, is leveraging innovative solutions and strategies across the enterprise to enhance its last mile delivery performance. It has stated that the orders placed by its customers have increased six times from the pre-pandemic levels. Further, other advancements in the autonomous last mile delivery market include ground and aerial vehicles to deliver the product or service to the customer's doorstep. On-demand delivery services such as AI-integrated ground delivery robots are expected to boost commercialization and efficiency in delivering packages. Growing demands for these robots and drones in the retail, food & beverages, logistics, and healthcare industries are further expected to boost the demand for autonomous last mile delivery. High efficiency and design of the ground delivery robots to not only pick up subtle cues provided by pedestrians but also follow street signals while navigating is also a major supporting factor in the growth of the automotive last mile delivery market.
Autonomous last mile delivery robots have a competitive advantage compared to other modes, and the cost benefits of the business model are anticipated to propel the autonomous last mile delivery market growth. AI-integrated autonomous delivery vehicles provide more precise features than traditional delivery; thus, these technologies increase the range and delivery efficiencies. Furthermore, the usage of autonomous last mile delivery vehicles as a mobile locker for product pick up and distribution in remote locations is anticipated to boost the market growth. Components such as Lidar, thermal sensors, stereo HD cameras, and ultrasound sensors provide HD 360-degree vision of the surroundings, such as terrain, weather, distance, road rules, pedestrians, and delivery’s package size and weight. Therefore, engineering innovation, extensive R&D, partnerships, and collaborations with industry experts are bolstering the market growth.
The global autonomous last mile delivery market is segmented into platform, payload weight, and range. Based on platform, the autonomous last mile delivery is bifurcated into aerial delivery drones and ground delivery vehicle. Based on payload weight, the autonomous last mile delivery is segmented into below 5 kilograms, 5-10 kilograms, and above 10 kilograms. Further, based on range, the autonomous last mile delivery is bifurcated into short range (less than 20 kilometers) and long range (above 20 kilometers).
Starship Technologies, JD.com, Nuro, Amazon, Kiwi Campus, Zipline, United Parcel Service, Wing, Flirtey, Aerodyne Group are a few of the key autonomous last mile delivery market players profiled during the study. Several other major companies were studied and analyzed during this research study to get a holistic view of the autonomous last mile delivery market and its ecosystem.
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