Autonomous Last-Mile Delivery
- The global ‘Autonomous Last Mile Delivery’ market is expected to reach US$11.9 billion in 2021. Further, it is projected to touch US$84.7 billion by 2030, registering a growth (CAGR) rate of 24.4% during 2021-2030
Drivers
- Increased use of the internet and mobile devices
- Expansion in the e-commerce industry (e-commerce players are seeking innovative and efficient ways to reach customers)
Risks
- Job displacement
- Damage to packages
- Theft of packages along with the vehicle
Challenges
- Strict regulations
- Pre-mature autonomous technology
- Lack of trust in computer systems
- Lack of proper infrastructure – there is no fixed path for ground delivery bots and self-driving vans and a specific route for aerial drones without which the delivery services are not that efficient
Future Growth Opportunities
- Technological advancements in delivery vehicles (development of aerial delivery drones that function smoothly in geographically challenging areas will be a breakthrough and expected to add greater value to the last-mile delivery market)
- Government support to setup required infrastructure & ease of regulations
- A shift of workforce from labour-intensive to more tech-savvy