Delivery Robots Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Delivery Robots Market Size & Growth

The Delivery Robots Market Size is projected to grow from USD 0.4 Billion in 2023 to USD 1.8 Billion by 2028; growing at a CAGR of 33.7% during the forecast period from 2023 to 2028.

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.

The report aims to define, describe, and forecast the delivery robots industry size based on load-carrying capacity, offering, number of wheels, speed limit, end-user industry, and region.

Delivery Robots Industry Forecast to 2028

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Delivery Robots Market Trends and 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. Previous strategic backers TDK Ventures and Goodyear also participated. The company is currently operating a fleet of 1,700 robots every day and records about 10,000 deliveries daily. The Series B funding will be used to expand the company's footprint and accelerate its operation in US and Europe, and invest in new initiatives.

Restraints: Stringent regulations pertaining to the operations of delivery robots

Most western legal authorities hold the manufacturer responsible for the tort of negligence if the delivery robot causes damage or injury to a user or nearby human. Therefore, the underlying risk and liabilities have slowed down the deployment of autonomous delivery vehicles in cities. Companies also have to comply with privacy and data protection laws, as delivery robots use cameras for recording and collecting consumer data during the delivery process. The federal, state, and local authorities are responsible for regulating the data collection and retention processes. Thereby, delivery robot companies have to be aware of data protection regulations and have to ensure that the collected data is handled in compliance with such regulations

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. Furthermore, technological advancements such as sensor technology, AI, and 5G technology have led to an evolution in the design and operations of delivery robots. For example, 5G networks could pace up the transfer of a large volume of data and responsiveness of devices associated with IoT networks, along with the usage and processing of real-time data and data exchange with GPS or devices with built-in cameras.

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. Concrete efforts are being made by original equipment manufacturers (OEMs) to program robots in such a way that they can deal with humans and varying environmental conditions.

Delivery Robots Market Segmentation

Hardware to witness the highest market demand during the forecast period

Broadly, hardware is categorized into GPS, cameras, radars, ultrasonic/LiDAR sensors, control systems, chassis and motors, and others. The market for control systems is expected to grow at the highest rate as delivery robots companies are complex in their design and function, and more sophisticated microcontrollers will be required to control various functions of robots. A controller or control system is the primary device used in any delivery robot. Every robot must have a control system to operate its drive system, which is used to move the body of a robot. Hence, it is also known as the central processing unit (CPU) or processor, or the brain of the robot. The prime function of the controller is to allow various components of a robot to operate together by processing the information and carrying out several instructions that are given to a robot, such as pick and place an object from one position to another, program run/stop, motor ON/OFF, go home, and start searching destination, depending on the application. Mainly, processors with high processing speed are integrated into delivery robots as they need to make decisions depending on the real-time situation. For instance, Starship Delivery Robot is equipped with the NVIDIA Tegra K1 processor, which has a maximum clock speed of 2.3 GHz

4-wheeled delivery robots is 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.

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.

Load-bearing capacity (> 10 kg) Robots to grow at highest CAGR in 2028

Robots with a load-carrying capacity of up to 10 kg are mainly adopted by local restaurants to deliver food parcels and beverages to consumers. Delivery robots with a load-carrying capacity of up to 10 kg accounted for a market share of ~23%, in terms of volume, in 2022. As these robots weigh around 25 kg, they can carry a limited weight and are adopted to deliver products in a shorter range. Also, their battery life is about 2 hours, and they can traverse 6 to 8 km on a single charge. These robots, with their miniature structure, are a perfect fit to travel on sidewalks causing less interference for pedestrians. The current traffic scenario makes it difficult for robots with larger dimensions to travel easily without harming humans; hence, legal authorities limit the weight, size, and speed of delivery robots.

Delivery Robots Industry Regional Analysis

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.

Delivery Robots Market Statistics by Region

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In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key industry experts in the Delivery Robots market space. The break-up of primary participants for the report has been shown below:

• By Company Type: Tier 1 – 40%, Tier 2 – 30%, and Tier 30%
• By Designation: C-level Executives – 40%, Directors – 40%, and Others – 20%
• By Region: North America –40%, APAC– 30%, Europe – 20%, and RoW – 10%

Top Delivery Robots Companies - Key Market Players

Major vendors in the Delivery Robots Companies include

• Starship Technologies (US),
• JD.com, Inc. (China),
• Panasonic Holdings Corporation (Japan),
• Relay Robotics, Inc. (US),
• Nuro, Inc. (US), among others

The study includes an in-depth competitive analysis of these key players in the Delivery Robot industry with their company profiles, recent developments, and key market strategies.

Delivery Robots Market Report Scope:

Delivery Robots Market Highlights

This report categorizes the Delivery Robots market share based on load-carrying capacity, offering, speed limits, number of wheels, end-user industry, and geography.

Recent Developments in Delivery Robots Industry

• In February 2023, Starship Technologies announced a partnership with Teal to offer unmatched connectivity and reliability for automated delivery robots. This partnership will help the company to gain access to any of the global networks through Teal's single eSIM, which includes a management platform that ensures connectivity in its robots.
• In November 2022, Ottonomy. IO. announced its partnership with Posten Norge AS and Holo to trial its autonomous first-mile delivery robot. Through this partnership, the company will leverage its Ottobots for receiving and delivering goods for the digital marketplace.
• In June 2022, Relay Robotics, Inc. announced the launch of its new delivery robot, "Relay+ Service Robot," for the hospitality industry. The robot can make deliveries in less than 10 minutes and operate at about USD 4 per hour.
• In March 2022, JD.com, Inc., through its logistics arm JD Logistics, introduced autonomous delivery robots in Shanghai to offer contactless last-mile delivery. These robots can load up to 100 kilograms of goods and drive up to 80 kilometers per charge.
• In January 2022, Nuro, Inc. announced the launch of its third-generation autonomous delivery vehicle, "Nuro." The new vehicle is designed to carry more goods and enables more deliveries, which is twice the cargo volume of the company's second-generation vehicle.

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