Autonomous Last Mile Delivery Market to Reach $144.2 billion, Globally, by 2033 at 23.1% CAGR: Allied Market Research
Autonomous Last Mile Delivery Market to Reach $144.2 billion, Globally, by 2033 at 23.1% CAGR: Allied Market Research
Press Release Date 02-10-2025
Autonomous Last Mile Delivery Market to Reach $144.2 billion, Globally, by 2033 at 23.1% CAGR: Allied Market Research
Wilmington, New Castle, Delaware , Feb. 10, 2025 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, "Autonomous Last Mile Delivery Market by Vehicle Type (Aerial Delivery Drones, Ground Delivery Bots, Self Driving Trucks, and Vans), Range (Short Range and Long Range), Solution (Hardware, Software, and Services), Application (Logistics, Healthcare and Pharmaceutical, Food and Beverage, Retail, and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the autonomous last mile delivery market was valued at $18.7 billion in 2023, and is estimated to reach $144.2 billion by 2033, growing at a CAGR of 23.1% from 2024 to 2033.
Prime determinants of growth
The autonomous last mile delivery market is experiencing rapid growth, driven by rise in e-commerce demand, advancements in AI and robotics, and the need for cost-effective logistics solutions. However, high initial investment and operational costs, as well as limited infrastructure for autonomous vehicle operation, are expected to hamper market growth. Moreover, the integration with smart city infrastructure and collaboration between technology firms and logistics companies are expected to offer lucrative opportunities for the market in the future.
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Report coverage & details:
Report Coverage | Details |
Forecast Period | 2024–2033 |
Base Year | 2023 |
Market Size in 2023 | $18.7 billion |
Market Size in 2033 | $144.2 billion |
CAGR | 23.10% |
No. of Pages in Report | 340 |
Segments Covered | Application, Solution, Range, Vehicle Type, and Region |
Drivers | Rise in e-commerce demand and need for contactless delivery |
Technological advancements in AI, robotics, and sensors | |
Increased need for cost reduction and operational efficiency | |
Opportunities | Integration with smart city infrastructure |
Collaboration between technology firms and logistics companies | |
Restraints | High initial investment and operational costs |
Limited infrastructure for autonomous vehicle operation |
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The aerial delivery drones segment held the highest market share in 2023.
By vehicle type, the ground delivery bots segment held the highest market share in 2023, and the same segment is expected to show the highest CAGR of 24.0% during the forecast period. This is due to advancements in AI and robotics, enabling precise navigation and efficient deliveries. Their cost-effectiveness reduces reliance on human labor, while their electric-powered design supports sustainability goals. Increasing urbanization and demand for contactless deliveries further drive adoption in the autonomous last mile delivery industry.
The short range segment held the highest market share in 2023.
By range, the short range segment accounted for the largest market share and is anticipated to maintain its dominance till 2033, because most last mile deliveries occur within urban or suburban areas, covering short distances from local distribution hubs to customer locations. Autonomous ground robots and drones are ideal for short-range operations, handling food deliveries, medical supplies, and e-commerce orders within city limits. However, the long range segment is expected to portray the highest CAGR of 24% during the forecast period, due to advancements in autonomous truck and drone technology, enabling deliveries over greater distances. As e-commerce expands to rural and semi-urban areas, there is a growing need for long-range delivery solutions.
The hardware segment held the highest market share in 2023.
By solution, the hardware segment accounted for the largest market share as the physical delivery vehicles including drones, robots, and autonomous trucks form the core of autonomous last mile delivery systems. The significant initial investment in developing, testing, and deploying autonomous vehicles drives the dominance of hardware in the market. However, the software segment is expected to portray the highest CAGR of 24.3% during the forecast period as AI, machine learning, and advanced navigation technologies become essential to autonomous delivery operations.
The logistics held the highest market share in 2023.
By application, the retail segment accounted for a dominant market share in 2023, due to the increasing demand for e-commerce and retail deliveries. Autonomous vehicles, such as self-driving trucks, vans, and drones, are transforming supply chains by reducing delivery times and lowering operational costs. However, the logistics segment is expected to portray the highest CAGR of 25.1% during the forecast period driven by the need for rapid and reliable delivery of medical supplies, prescriptions, and lab samples. Autonomous drones and ground robots are increasingly used to transport critical medical goods, especially in remote or urban areas where quick access is essential.
North America held the highest market share in 2023.
By region, North America accounted for the largest market share and is anticipated to maintain its dominance till 2033, driven by high demand for automated solutions, well-established e-commerce infrastructure, and strong investment in logistics innovation. The region is home to major players such as Amazon, UPS, FedEx, and startups like Starship Technologies and Nuro, which are pioneering autonomous delivery systems. However, Asia-Pacific is expected to portray the highest CAGR of 25.1% during the forecast period driven by rapid urbanization, boom in e-commerce, and increase in investments in autonomous technology.
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Leading Market Players: -
- Airbus S.A.S.
- Flirtey
- Drone Delivery Canada
- Flytrex
- Amazon.com
- JD.com, Inc.
- Marble Robot
- Savioke
- DHL International GmbH
- United Parcel Service of America, Inc. (UPS)
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The report provides a detailed analysis of these key players in the global autonomous last mile delivery market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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