Autonomous Delivery Vehicles Market Size

Autonomous Delivery Vehicles Market size was valued at USD 1.2 billion in 2023 and is estimated to register a CAGR of over 25% between 2024 and 2032. The growing e-commerce industry across the globe is driving market growth. For instance, the e-commerce sector in India has been expanding rapidly, with the Government e-marketplace (GeM) recording its highest Gross Merchandise Value (GMV) of USD 2,011 billion in FY 2022–2023. Until July 2023, GeM had a cumulative GMV of over 200 billion (since its inception).

Growing technological advancements in autonomous vehicles are another factor boosting market growth. Autonomous vehicles are becoming safer and more efficient due to advancements in technology such as computer vision, Machine Learning (ML), Artificial Intelligence (AI), and sensor capabilities. These developments are enabling cars to safely navigate challenging situations and maneuver around cyclists, pedestrians, and other cars.

For instance, in January 2022, BYD Co. Ltd, partnered with Nuro, an autonomous vehicle company to produce third-generation electric autonomous delivery vehicle. The partnership scaled Nuro’s affordable and convenient services to a wider population. Governments and regulatory agencies are establishing frameworks and rules to encourage the use of autonomous vehicles as people become increasingly aware of their potential benefits.

Creating and executing legislation for autonomous vehicles is difficult. The establishment of legal frameworks is required for liability, safety regulations, licensing, and insurance purposes. For businesses hoping to implement autonomous delivery cars, navigating these rules might be a substantial hurdle. Safety for autonomous delivery trucks must be prioritized. The capacity of these cars to navigate challenging situations, safely interact with cyclists and pedestrians, and efficiently handle unforeseen events remains a concern, despite major developments in sophisticated sensors and algorithms.