PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1603745
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1603745
According to Stratistics MRC, the Global Delivery Robots Market is accounted for $0.51 billion in 2024 and is expected to reach $2.67 billion by 2030 growing at a CAGR of 31.7% during the forecast period. Delivery robots are self-driving cars made to deliver groceries, meals, and packages. They use sophisticated navigation systems like GPS, cameras, and sensors to navigate on sidewalks and cross streets and avoid obstructions. These robots can work effectively with the help of AI and IoT developments, which makes them perfect for last-mile delivery, a sector of logistics where cost and speed are crucial. Moreover, in order to maximize delivery operations, businesses like Starship Technologies and Amazon are actively implementing these robots, particularly in regulated settings like campuses and gated communities.
According to the International Trade Administration (ITA), the net retail sale of the e-commerce sector is anticipated to grow by 17.8% from 2022 to 2024.
Growing interest in self-driving delivery services
Autonomous delivery services are in high demand as companies look to improve customer satisfaction and optimize operations. Companies are investing in delivery robots in order to meet the growing demands of consumers for faster delivery options. In industries where quick service is essential, like e-commerce and food delivery, this change is especially noticeable. Delivery times can be optimized and traffic delays reduced by using autonomous delivery robots to navigate low-traffic routes. Additionally, businesses are able to enhance customer experiences and preserve competitive advantages as a result.
Expensive start-up and ongoing expenses
A significant upfront investment is needed for the deployment of delivery robots, especially for sophisticated AI systems, sensors, LIDAR, and navigation software. These expenses are increased even more by the requirement for regular repairs, software upgrades, and maintenance. It may also be necessary to make additional investments in infrastructure upgrades and training in order to integrate robots into current logistics networks. Furthermore, the technology may only be available to large corporations and certain use cases due to the prohibitive costs for small and midsized businesses. Even though costs should go down as technology develops, a large obstacle to widespread adoption is still the high initial cost.
Connectivity to smart city infrastructure
Delivery robots are in a good position to benefit from the global movement toward smart city infrastructure, which aims to increase urban efficiency, lower emissions, and simplify logistics. Robots can use real-time data from traffic management systems, city sensors, and other connected devices to optimize routes, increase safety, and shorten delivery times by integrating IoT networks. Because of this integration, delivery robots can operate in urban settings with ease and join an intelligent transportation network. Moreover, robots can be integrated with city systems to improve operational effectiveness, and companies can test autonomous delivery programs in cities like Singapore and Dubai that are investing in smart city initiatives.
Strong rivalry with other self-driving delivery systems
Due to their perceived versatility and ability to travel greater distances, other last-mile delivery technologies like drones and autonomous delivery vehicles pose a serious threat to the market for delivery robots. Companies like Amazon, for example, are testing drones for quicker aerial deliveries that can completely avoid traffic. In the market, autonomous ground vehicles that are made to travel on roads rather than sidewalks are also competitors, particularly when it comes to carrying larger loads. Additionally, given the substantial R&D expenditures being made on these technologies, delivery robots might find it difficult to increase their market share, especially if other autonomous solutions provide a larger payload capacity or a longer range.
The COVID-19 pandemic had a major effect on the market for delivery robots, both boosting and impeding its expansion. On the one hand, companies wanted to minimize human contact and lower the risk of virus transmission, which increased demand for contactless delivery solutions during the pandemic. For last-mile logistics, this resulted in a greater use of autonomous delivery robots, particularly for the delivery of food and necessities. The increase in demand for touch less delivery services led to the expansion of businesses such as Starship Technologies and Nuro. However, the pandemic's effects on supply chains and economic uncertainty made it difficult to implement delivery robots more widely.
The Upto 3 KPH segment is expected to be the largest during the forecast period
In the market for delivery robots, the Up to 3 KPH segment usually holds the largest share. This category comprises robots made for deliveries that are comparatively slower but extremely effective; they are especially well-suited for last-mile transit in cities. Food delivery, retail, and postal services are among the industries that favor these robots because speed is not as important as other considerations like safety, accuracy, and dependability. Moreover, the use of these robots is expanding quickly since they provide economical and sustainable substitutes for conventional delivery techniques.
The Food & Beverage segment is expected to have the highest CAGR during the forecast period
In the delivery robot market, the food & beverage segment is presently exhibiting the highest CAGR. Demand for last-mile delivery services is rising, particularly in cities where speed and convenience are crucial, which is fueling this expansion. Because they can deliver goods more quickly and contactlessly, increase productivity, and save labor costs, delivery robots are proving especially helpful in the food and beverage sector. Additionally, faster delivery times, the popularity of online meal ordering, and the growing demand for automation in service industries are some of the major drivers of this growth.
North America is a major player in the development and implementation of self-driving delivery robots, and it is projected to hold the largest share of the global delivery robot market. The area benefits from a large number of start-ups concentrating on developing autonomous delivery technology as well as a high concentration of major market vendors. Furthermore, a range of end-user industries, including retail, logistics, and healthcare, widely use delivery robots in North America. North America's dominant position in the market is further cemented by the growing reliance on online shopping, with over 84% of U.S. consumers shopping online. This increases demand for effective delivery solutions.
Over the course of the forecast period, the delivery robot market is anticipated to grow at the highest CAGR in the Asia Pacific region. Numerous factors, such as substantial urbanization, growing internet penetration, and an increase in food delivery applications in nations like China, Japan, India, and South Korea, are responsible for this quick growth. The demand for delivery robots is further increased by the region's thriving e-commerce industry, which is fueled by shifting consumer demographics and preferences for effective delivery options. Moreover, the market is expected to grow significantly as companies in Asia Pacific use autonomous technologies more and more to streamline their logistics processes, making it a primary focus for upcoming investments and innovations.
Key players in the market
Some of the key players in Delivery Robots market include Zebra Technologies, Panasonic Corporation, Amazon Robotics, Starship Technologies, Alibaba Group Holding Ltd, Robby Technologies Inc., Savioke, Inc., Uber Technologies, Inc., Boston Dynamics, Aethon, ST Engineering Aethon, Inc., Deutsche Post (DHL), Relay Robotics, Inc., Flytrex Inc. and Agility Robotics.
In September 2024, Amazon has signed a new commercial agreement with robotics software firm Covariant, including hiring the company's staff, to accelerate automation in its warehouses. Through the new agreement, Amazon will receive a non-exclusive license to Covariant's robotic foundation models.
In July 2024, Panasonic Corporation announced that its Cold Chain Solutions Company has entered into an agreement with Cooling Solutions S.L. to purchase all the shares of its subsidiary Area Cooling Solutions Sp. z.o.o., a Polish refrigeration equipment manufacturer. This transaction is a strategic step for Panasonic to strengthen its condensing unit business in the European market and to accelerate its ongoing global expansion.
In July 2024, Uber Technologies, Inc. and BYD Co. Ltd. announced a multi-year strategic partnership designed to bring 100,000 new BYD electric vehicles onto the Uber platform across key global markets. Beginning first in Europe and Latin America, the partnership is expected to offer drivers access to best-in-class pricing and financing for BYD vehicles on the Uber platform, and will expand to include markets across the Middle East, Canada, Australia, and New Zealand.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.