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Autonomous Last Mile Delivery Market Size

Report ID: GMI5366
Published Date: May 2024
Report Format: PDF

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Autonomous Last Mile Delivery Market Size

Autonomous Last Mile Delivery Market size was valued at USD 956.8 million in 2023 and is estimated to register a CAGR of over 22% between 2024 and 2032. Market growth is fueled by advancements in AI, robotics, sensor technology, and connectivity. These innovations enable the development of more efficient and reliable delivery systems, meeting the increasing demand for fast and flexible last-mile solutions. As consumers expect quicker deliveries, businesses are turning to autonomous technologies to optimize their logistics operations, thus driving the expansion of the market, and reshaping the future of last-mile delivery.

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For instance, in December 2022, LOXO introduced an autonomous vehicle for last-mile deliveries in Europe, featuring a compact, electric design with sensor-equipped compartments for packages, ensuring self-driving capabilities on public roads.

Autonomous Last Mile Delivery Market Report Attributes
Report Attribute	Details
Base Year:	2023
Autonomous Last Mile Delivery Market Size in 2023:	USD 956.8 Million
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	22%
2032 Value Projection:	USD 5.6 Billion
Historical Data for:	2021 - 2023
No. of Pages:	240
Tables, Charts & Figures:	350
Segments covered:	Vehicle Type, Delivery mode, Application
Growth Drivers:	Rapidly growing e-commerce industry Increasing investment in autonomous last mile delivery industry Supportive government norms and regulations related to autonomous vehicles Growing demand for same day delivery Rapid technological advancements in the automotive sector
Pitfalls & Challenges:	Safety and security related threats High initial investment in autonomous delivery trucks

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The surge in e-commerce and urbanization is fueling the expansion of the autonomous last mile delivery market. With more consumers shopping online and residing in urban areas, there is a heightened demand for efficient and timely delivery solutions. Autonomous last mile delivery systems offer the scalability and flexibility needed to navigate densely populated cities and fulfill the increasing volume of online orders, driving market growth to meet evolving consumer expectations.

For instance, in September 2022, Magna introduced an autonomous, on-road last-mile delivery solution, piloting its robot with a pizza restaurant. Their robot travels at up to 20 mph, guided by a comprehensive autonomous driving system.

Though regulatory hurdles and high upfront costs create challenges to the development of the market, they serve as catalysts for innovation and industry maturation. By fostering stringent safety standards and investment transparency, regulations ensure the development of reliable, consumer-friendly solutions. Similarly, while initial investments may seem substantial, they spur technological advancements and drive economies of scale, ultimately paving the way for sustainable growth and widespread adoption of autonomous delivery solutions.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of autonomous last mile delivery surpassed USD 956.8 million in 2023 and may record more than 22% CAGR between 2024 and 2032, owing to advancements in AI, robotics, sensor technology, and the rising demand for efficient and cost-effective delivery solutions.

The robot segment will record over 45% share revenue by 2032, primarily due to the versatility and agility of robots in navigating urban environments and delivering packages efficiently.

North America market size was USD 355.1 million in 2023, driven by strong technological infrastructure, extensive adoption of e-commerce, and robust consumer demand.

Prominent players, including Alibaba, Amazon, DHL, FedEx, JD.com, Kiwibot, Starship Technologies, UPS, Yandex, and Zipline are operating in the industry.