The Autonomous Delivery Robots Market was valued at USD 0.35 million in 2020, and it is expected to reach a value of USD 3.82 million by 2026, at a CAGR of 49.01% over the forecast period 2021-2026. The advent of autonomous delivery robots (ADR) is expected to revolutionize the last mile delivery systems, providing a cheaper and efficient way of delivery. Though delivery robots have not had high adoption, they are expected to have high growth in the future, owing to various advantages.

- The growing adoption of ADR is mainly driven by the increasing affordability and return on investment of an increasing variety of infrastructure-light robots, along with continuing needs for flexible and efficient automated fulfillment.
- Last-mile delivery has been one of the primary problems in handling the supply chain. Last-mile deliveries are getting more and more complex in cities, as continued growth in e-commerce and high consumer expectations for faster and frequent deliveries are causing traffic congestion and increased carbon pollution. According to the National Retail Federation, losses of about USD 333 million were incurred due to shipping mishaps. Owing to such issues in delivery, various consumers and retailers have been looking for better and efficient methods of delivery.
- Also, many retailers have realized that a superior last-mile experience engages and retains consumers. However, at the same time, meeting customers’ deliveries expectations does not help in increasing profit margins, as today’s retailers are absorbing a part of the cost of last-mile delivery. Therefore, ADR is helping these companies in achieving efficient last-mile delivery. It is expected that, by 2025, 85% of last-mile deliveries will mainly be done using autonomous vehicles.
- Various laws are being put in place to control global warming, and protecting the environment aid in the growth of ADRs. European Commission (EC) has set an objective of decarbonization by 2050, with a few immediate goals in 2020 and 2030. A general shift has been ongoing toward autonomous delivery systems. Companies, such as Google, had partnered with Uber for providing one-day deliveries to their subscribers.
- Most of the market vendors are mainly banking on similar predictions that restaurants and grocers will increase their dependence on convenience-driven digital technologies to meet consumers’ changing needs. Many companies have been investing in the growth of delivery robots. Recently, Amazon filed for a patent with the US patent office for ‘autonomous ground vehicles
- With the outbreak of COVID-19, the demand for contactless delivery has expanded exponentially, where many autonomous delivery robot companies are seeing a massive opportunity to grow amid the coronavirus outbreak that has millions of people staying home. In April 2020, Venezia’s New York Style Pizza in Phoenix, Arizona, is delivering the pies by first sanitizing the inside and outside of a Starship robot and placing the robot inside. The robot then travels to customers within a half-mile radius and can even hop curbs and operate in snowy conditions.
- However, the uncertainty in recovery time of the market from the pandemic, economic impacts on several parts of the world are further expected to provide significant challenges to the growth of semiconductor market, directly effecting the availability of key raw materials required for manufacturing of autonomous delivery robots globally.

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Key Market Trends

Retail and Logistics Segment is Expected to Register a Significant Growth

- Retail and logistics is the largest end-user for autonomous delivery robots, globally. The Increasing presence of e-commerce players and omnichannel retailers worldwide are the primary factors driving the demand for autonomous delivery robots, especially for last-mile delivery.
- Although there are several initiatives for airborne delivery systems, such as Amazon Prime Air, they are not efficient enough to bridge the gaps in last-mile delivery and logistics. However, in the case of autonomous delivery robots, they can serve more customers at more economic costs, traveling more distances in a much safer manner.
- In the current market scenario, most of the pilot programs and innovations made in the autonomous delivery robots are targeted to address the last-mile delivery problems. In many countries, they are even functional in several cities. Countries, like the United States, Japan, China, and several other European countries, have a considerable number of services that are already using autonomous delivery robots for last-mile deliveries.
- FedEx has been using delivery bots, in order to help increase the efficiency of its employees since 2016. Reportedly, the company has been using autonomous delivery robots at its equipment repair center in Collierville, Tennessee, to help its technicians retrieve, move, or pick up various parts and tools they need from the inventory room without having to leave their workstations. Recently, in March 2019, the company launched FedEx SameDay Bot, an autonomous delivery robot designed to help retailers make same-day and last-mile deliveries. The robot was made in collaboration with DEKA Development & Research Corp.
- According to the National Retail Federation, losses of about USD 333 million were incurred due to shipping mishaps. Owing to such issues in delivery, various consumers and retailers have been looking for better and efficient methods of delivery. Also, many retailers have realized that a superior last-mile experience engages and retains consumers. However, at the same time, meeting customers’ deliveries expectations does not help in increasing profit margins, as today’s retailers are absorbing a part of the cost of last-mile delivery.

Competitive Landscape

The autonomous delivery robots market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with the prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and profitability. The companies operating in the market are also acquiring start-ups working on autonomous delivery robot technologies to strengthen their product capabilities.

- December 2019 - Nuro partnered with Walmart to test the delivery of groceries from Walmart outlet to the customer’s home using the delivery robot. Nuro’s vehicles will deliver grocery orders of Walmart online to a select group of customers who use the service in Houston. Nuro has been developing a self-driving stack and combining it with a custom unmanned vehicle designed for last-mile delivery of local goods and services.
- March 2020 - Aethon's mobile robots are being used by healthcare organizations to cope with the COVID-19 crisis. The company's robots are carrying out their mission of delivering medications, lab specimens, and meals along with handling larger loads such as linens and trash. The hospitals continue to perform over 5 million deliveries per year with Aethon's delivery robots and are even providing the hospital staff relief from miles of walking every day.

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