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(I-AutoNewsWire.com, June 21, 2023 ) The Autonomous Last Mile Delivery Market is valued at USD 0.9 billion in 2023 and is projected to reach USD 4.2 billion by 2030, at a CAGR of 22.7%. There is increasing usage of sense and avoid systems in aerial delivery drones BVLOS features and enhanced safety offered by them. These sense and avoidance systems use a combination of cameras, radar, LiDAR, and other systems to detect and avoid obstacles successfully.
Key Market Players:
Winners of the autonomous last mile delivery market are Starship Technologies (US), JD.com (China), Nuro (US), Amazon (US), Kiwibot (US), Zipline (US), United Parcel Service (US), Wing (US), Flirtey (SkyDrop) and Matternet, Inc. (US).
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Moreover, there has been a notable surge in the utilization of autonomous ground delivery vehicles within the food and retail sectors. This trend primarily stems from the challenges posed by urban congestion. The congestion issue leads to difficulties in delivering products to distant and remote areas, as well as encountering instances of invalid or inaccurate address information and hard-to-locate destinations. Additionally, the ongoing labor shortage exacerbates these challenges and contributes to escalated product delivery expenses.
Implementing automated delivery systems has the potential to bring about a transformative impact on the retail industry. It can significantly reduce delivery costs by 80% to 80% when compared to human-operated delivery methods. Furthermore, advancements in technology for autonomous ground delivery vehicles, coupled with increased venture funding dedicated to the development of cutting-edge ground delivery solutions, have greatly contributed to the growth of this market.
Based on Platform, the ALMD market is segregated for both aerial delivery drones and ground delivery vehicles. Since, in recent times, aerial delivery drones and ground delivery vehicles are so much in discussion and undergoing R&D testing and trials across the globe, the market for these two platform modes is likely to grow manifold in the coming years. Factors like minimal human intervention and cheaper delivery rates are boosting the interest in the ALMD market as compared to conventional methods like trucks and airplanes for the delivery of parcels, food, and essential healthcare supplies.
Based on the solution, the aerial delivery and ground delivery market are classified into hardware, software, and infrastructure. The hardware market is projected to lead both the aerial delivery and ground delivery market. This is due to the growing need for instantaneous delivery of food, medicine, and retail goods, and the global growth of the e-commerce industry is propelling the growth of the market. The hardware components of a drone comprise the structural buildup of drones, which houses other components of a drone like the software. Hardware components are made of alloy or composite materials and are sub-categorized as airframe, avionics, propulsion system, and payload. At the same time, the hardware components of a ground delivery vehicle comprise navigation, propulsion, and various other components. They are made of alloy, polymer, or composite materials.
Based on application, the aerial delivery drone market has been segmented into logistics & transportation, healthcare & pharmacy, and retail & food. The logistics & transportation segment has been further segmented into postal delivery and package delivery. The healthcare & pharmacy segment has been classified into medicine supply, blood supply, organ transport, equipment transport, and package delivery. The retail & food segment has been segmented into e-commerce, grocery delivery, and food delivery. The ongoing pandemic has made positive impacts on the drone delivery market.
Based on Region, North America is projected to experience the highest CAGR during the forecast period. This growth can be attributed to the increasing popularity of online shopping through e-commerce platforms and favorable regulations set by the Federal Aviation Administration (FAA) in the United States. Key players in the industry are also making significant investments to support startups in establishing parcel service platforms, which will contribute to the expansion of the North American market. The adoption of drone technology for package delivery is expected to witness substantial growth in the forecast period, driven by the automated delivery operations implemented by the FAA in the United States. Ameriflight, a prominent cargo airline handling 75,000 daily packages, has received FAA approval for its delivery operations. This airline provides feeder services to overnight express carriers and offers on-demand cargo charter services. Although facing occasional resistance, autonomous delivery robots are making progress in urban environments. In North America, particularly in the United States, ground delivery robots have been successfully commercialized in recent years. Companies like Savioke, Nuro, Robby Technologies, and others have developed autonomous mobile robots that are well-suited for street navigation and are already being utilized in enclosed premises such as universities and hotels, demonstrating their practical value.
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