Chicago, July 11, 2024 (GLOBE NEWSWIRE) -- The Delivery Robots Market Size is projected to grow from USD 0.4 Billion in 2023 to USD 1.8 Billion by 2028; it is expected to grow at a CAGR of 33.7% during the forecast period.
A rise in venture funding will drive the Delivery Robots market growth in the coming years. Cost reduction achieved in last-mile delivery through delivery robots has accelerated the development of delivery robots, further strengthening the market growth. Deploying autonomous delivery robots companies for product delivery will reduce labor costs significantly, constituting only 20–25% of the total delivery cost.
To know about the assumptions considered for the study
Major Delivery Robots Companies Include:
- Starship Technologies (US),
- JD.com, Inc. (China),
- Panasonic Holdings Corporation (Japan),
- Relay Robotics, Inc. (US), and
- Nuro, Inc. (US).
Delivery Robots Market Dynamics
Drivers: Increase in venture funding
Autonomous delivery robots are primarily used by the food & beverage, retail, hospitality, and healthcare industries. These robots are highly efficient and energy-saving compared to traditional electric vehicles. Hence, several venture firms are offering funds to companies developing delivery robots. In March 2022, Starship Technologies, one of the prominent players in the autonomous delivery robots marketspace, raised another round of funding just after 30 days after its last financial infusion. The company has picked USD 42 million in equity, which raised the total valuation of the company to over USD 100 million. This latest Series B all-equity round was co-led by NordicNinja and Taavet+Sten.
Opportunity: Advancements in features of autonomous delivery robots
Autonomous delivery robots feature advanced electronics to ensure safe, reliable, and efficient operations. Several technological advancements are taking place in delivery vehicles regarding improved power sources, data gathering, and processing technologies. Lithion-ion batteries are predominantly used in delivery vehicles. However, hydrogen fuel cell batteries are expected to be used in autonomous delivery vehicles in the future due to their excellent endurance and low weight. Moreover, manufacturers of delivery robots companies are also making efforts to incorporate sense and obstacle-avoidance systems in their vehicles.
Challenge: Safety issues associated with operations of delivery robots in populated areas
With escalating cost of traditional delivery methods, rapid technological advancements, and increased adoption of artificial intelligence (AI) and integrated technology, the adoption of delivery robots has increased significantly, mainly for the delivery of groceries, food items, postal parcels, and medicines, as well as in the hospitality sector to provide room services to customers. They are also used for carrying luggage and follow the user wherever they go. However, making delivery robots industry safe for routine interaction with humans and smooth operations in high-density traffic areas is among the major technological challenges faced by the industry. For robots to interact closely and safely with humans, the hardware and software of robots should be safe, and there should not be any potential risk of malfunctioning of delivery robots market.
By Number of Wheels Segments:
4-wheeled delivery robots are expected to hold the majority market share during the forecast period
The 4-wheeled will account for a majority of the share in the delivery robots market in 2022. Reducing the distance between the front and rear wheels will result in better zero-radius turning in any desired direction with 4-wheeled robots. Hence, most robotics companies worldwide offer delivery robots with 4 wheels, which are more efficient in rotating in place. Just Eat, a delivery firm in the UK, has also employed robots to deliver food to customers even in the event of snow and severe weather by switching from 6 wheels to 4 wheels for navigating in tough snowy conditions. In May 2022, Uber Eats announced plans to launch two new test programs to deliver Uber Eats in Los Angeles. This will include four-wheeled delivery robots on the sidewalk for short trips and self-driving cars for long distances.
By End-user Industry:
Food & Beverage industry to boost market growth during the forecast period
Delivery robots have been extensively used in the food & beverage industry to deliver food items and beverages from restaurants. In terms of volume, the food & beverage industry constituted ~56% share of the delivery robots market in 2022. In the past few years, the industry has witnessed gradual growth due to the introduction of various ventures offering food parcels from restaurants at the consumer's doorstep. In December 2022, Uber Eats partnered with Cartken to deliver Uber Eats orders through autonomous, sidewalk-trotting robots in Miami. Through this new service, the customers will be alerted of the food order and will be instructed to meet the remotely supervised robots on the sidewalk. Consumers expect the minimum cost, along with less time for delivery. The delivery robot is a low-cost delivery option that helps in time optimization. Starship Technologies (US) and Segway Robotics (US) are examples of some of the companies engaged in the manufacturing and development of delivery robots companies for the food & beverage industry.
By Regional Growth:
Delivery Robots market to witness the highest demand in the North American region
The market in North America was valued at USD 147.8 million in 2022 and is expected to reach USD 830.7 million by 2028, at a CAGR of 32.7% during the forecast period. North America has been home to many delivery robots manufacturing companies, such as Nuro Inc (US) and BoxBot (US). Sophisticated and adequate street infrastructure, such as proper design and sufficient width of sidewalks and footpaths, helps companies test and operate delivery robots in this region. In North America, especially in the US, ground delivery robots companies have become commercialized in the last few years. The US is leading the robotics market as the US government supports various innovative robotics research programs by investing millions of dollars; most of them are defense-related projects.
