Delivery Robots Market Analysis | 2023-2028

Market Insights

The delivery robots market was estimated at USD 219.1 million in 2022 and is likely to grow at a CAGR of 33.12% during 2023-2028 to reach USD 1,245.7 million in 2028.

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Market Dynamics

Introduction

A delivery robot is an automated robot that brings delivery directly to the door. These robots are not walking and talking humanoids but are cute delivery containers that on six wheels, look like giant bugs. The autonomous electric robots are connected with a variety of sensors that cross throughout urban areas or at indoor sites to deliver packages, food, or any other equipment safely and contactless.

These robots are monitored by humans, so if necessary, can be taken control of at any moment. Delivery robots are electric, reduce local delivery's ecological footprint, and free up valuable street space by traveling on sidewalks.

Delivery robots are fixed with GPS, Lidars, navigation cameras, sensors, and deep-learning algorithms. These robots also grab customer attention and create respect for restaurant brands. The technology has positive impacts on the environment by reducing traffic and pollution.

Market Highlights

The expansion of the worldwide delivery robot industry is expected to be primarily fueled by advancements in the e-commerce field and a desire for contactless delivery. The desire for improved and effective product delivery services has grown alongside the rise of online shopping and customers' preference for purchasing items online.

Furthermore, online retailers and grocery stores such as Big Basket, Flipkart, and Amazon are creating delivery robots to handle the last stage of goods delivery. However, the limited range of ground delivery robots and strict regulations governing the operation of delivery robots are significant factors impeding market growth.

The COVID-19 pandemic has caused both short-term disruption and long-term structural changes, leading to significant growth in the e-commerce industry, particularly in the grocery and homecare categories. For example, in the U.S., e-commerce businesses have experienced a sales increase of over 30% due to the pandemic. DHL in Germany has also seen a surge in parcel shipments, with daily deliveries increasing from 5.3 million to 9.0 million, similar to Christmas peak periods.

Furthermore, during the pandemic, people worldwide have preferred to self-isolate and opt for contactless delivery for their daily necessities, creating an opportunity for delivery robots.

The growing adoption of newer last-mile options like curbside pickup, parcel lockers, and delivery is expected to further increase the demand for delivery robots. Additionally, the e-commerce sector has seen a rise in orders, leading companies to form collaborations and partnerships with various delivery robot manufacturers to introduce robots for package delivery during the pandemic.

For example, in September 2020, Ottonomy Inc. partnered with snapdeal, an e-commerce company, to provide automated delivery robots for contactless last-mile deliveries to customers. Snapdeal has successfully tested the Ottonomy automated delivery robot for last-mile delivery using robots in select locations of Delhi-NCR in India. Furthermore, many companies are now utilizing delivery robots, particularly for food and medical door-to-door deliveries, as these robots offer contactless delivery.

For shipping and logistics companies as well as e-commerce businesses, the cost of last-mile delivery has long been a major concern, accounting for over 50% of the total shipping cost. However, the introduction of delivery robots for last-mile deliveries has significantly reduced this cost.

By using delivery robots, companies can save on the salaries paid to delivery drivers, as well as other expenses such as warehousing, fuel, and vehicle maintenance. Although the creation and integration of delivery robots into businesses can be expensive, once they are up and running, robots are generally cheaper than human workers.

In addition to the logistics and e-commerce sectors, the hospitality and food industries are also adopting delivery robots to provide food delivery to customers' doorsteps or room service in hotels. Furthermore, players in the food industry are forming partnerships and collaborations with delivery robot manufacturers to provide food delivery without any human involvement.

For example, in April 2021, Domino's, a multinational pizza restaurant chain, collaborated with Nuro, Inc., an autonomous delivery robot manufacturer, to offer driverless deliveries. Nuro, Inc. is delivering Domino's orders to customers using its autonomous delivery robot under this partnership.

Additionally, in March 2021, the AIN pharmacy began autonomous delivery of medication to patients' homes. Starship Technologies also began delivering food during the pandemic in 2020. Factors such as increased demand for contactless delivery from customers, the growth of the e-commerce sector during pandemics, and partnerships and collaborations between various companies and delivery robot manufacturers are expected to boost market growth.

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Key Players

The major players operating in the global market are:

• Starship Technologies (US)
• JD.com (China)
• Solutions Asia Pacific (Singapore)
• Panasonic System
• Savioke (US)
• Nuro (US)
• Amazon Robotics (US)
• Boston Dynamics (US)
• Robby Technologies (US)
• Robomart (US)
• Eliport (Spain)

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By End User Industry Type

Healthcare segment to witness significant growth during the forecast period. Autonomous delivery robots used in healthcare applications are among the most advanced types of such robots. In contrast to outdoor delivery robots, those deployed in healthcare settings must take into account various additional factors, including sanitation requirements, low-noise motors, and smoother travel, as compared to regular delivery robots.

Historically, robots were installed in various medical facilities for therapeutic purposes for children. Nowadays, however, they are even used to assist medical staff in retrieving necessary resources upon request. For example, Aethon, a prominent US-based robotics manufacturer, offers TUG Robots specifically designed for medical applications.

These robots are currently being utilized at the Omaha VA Medical Center to retrieve and deliver medical supplies as needed. They also provide logistical support by transporting various items and lab samples.

Regional Insights

North America accounts for the largest market share during the forecast period. Autonomous delivery robots are a significant market in North America, with many major vendors based in the region, as well as numerous start-ups and manufacturers dedicated to advancing the technology.

Additionally, compared to other parts of the world, the adoption of autonomous delivery robots among various end-users in the region is relatively high. There is a great demand for these robots in the hospitality, retail, and logistics sectors, and many vendors in these industries collaborate with manufacturers to gain first-hand experience with the prototypes.

Due to the high demand for delivery robots in the hospitality sector, many leading establishments have adopted this technology to attract media attention, which is an important channel for influencing tourists' decisions when selecting a hotel or resort.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s delivery robots market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The delivery robots market is segmented into the following categories.

By Load Carrying Capacity Type

• Up to 10 KG
• More than 10 kg Up to 50 KG
• More than 50.00 KG

By Component Type

• Hardware
• Software

By Number of Wheels Type

• 3 Wheels
• 4 Wheels
• 6 Wheels

By Speed Limit Type

• 3 KPH
• Higher than 3 KPH up to 6 KPH
• Higher than 6 KPH

By End-User Industry Type

• Food and Beverages
• Retail
• Healthcare
• Postal

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com.

Recent Developments

• In October 2022, Grubhub, a prominent marketplace for food ordering and delivery, and Starship Technologies, a leading provider of autonomous delivery services, announced their partnership to offer robot delivery services on university campuses throughout the United States.
• In September 2022, Uber Technologies Inc teamed up with start-up Nuro to trial food delivery using unmanned vehicles in several locations in the US, broadening its collaborations with companies specializing in creating autonomous machines.
• In March 2022, JD Logistics introduced its self-driving delivery robots in Shanghai's Pudong New Area, aiming to offer contactless last-mile delivery to specific locked-down areas, as the recent COVID-19 outbreak in Shanghai continues to spread.