Delivery Robots Market - Forecast(2024 - 2030)

The Delivery Robots Market is estimated to grow at a CAGR of 25% during the forecast period 2024-2030 and reach $2.2 billion by 2030, from around $0.5 billion in 2023. This growth is majorly attributed to the rising demand from food delivery services and also the soaring demand from e-commerce. It has also stated that in just the first three months of the pandemic, the UK. and US recorded surges in online sales volumes that exceeded the entire growth of the previous decade. With this, the demand for delivery robots is analysed to grow. A delivery robot is an autonomous robot that provides delivery services. In certain cases, an operator may monitor and take control of the robot remotely where the robot cannot resolve events such as stuck in an obstacle and so on. The market is in early growth rate and is analysed to grow at a significant rate during forecast period owing to the rising adoption of autonomous systems. This skyrocketing demand in e-commerce sector is intensifying pressure on delivery networks, especially in “the last mile” from distribution centre to consumer, thereby contributing to the demand. The delivery robots market is witnessing a significant trend towards the expansion of autonomous delivery solutions. As e-commerce continues to surge and consumer expectations for fast and convenient delivery options rise, businesses are increasingly turning to autonomous delivery robots to streamline last-mile logistics. These robots, equipped with advanced sensors, cameras, and AI algorithms, can navigate sidewalks, crosswalks, and other urban environments safely and efficiently. Companies across various sectors, including retail, food delivery, and logistics, are piloting or deploying fleets of delivery robots to improve delivery speed, reduce costs, and enhance customer satisfaction. With advancements in technology and regulatory support for autonomous vehicles, the adoption of delivery robots is expected to accelerate, leading to widespread deployment in urban and suburban areas globally. Another notable trend in the delivery robots market is the integration of contactless delivery features. In response to the COVID-19 pandemic and the growing demand for contactless services, delivery robot manufacturers are incorporating innovative features such as secure compartments, QR code scanning, and remote authentication capabilities. These features enable customers to receive deliveries without direct interaction with delivery personnel, reducing the risk of virus transmission and enhancing safety for both recipients and delivery providers. Businesses are leveraging contactless delivery robots to offer convenient and hygienic delivery options for groceries, meals, packages, and other goods. As contactless delivery becomes a permanent fixture in consumer preferences, the demand for delivery robots equipped with advanced contactless delivery features is expected to rise, driving further innovation and market growth in the delivery robot segment.

The report: “Delivery Robots Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Delivery Robots industry.

By Component: Hardware, Software

By Load Carrying Capacity: Upto 5kg, 5-10kg, 10-20kg, 20-40kg, 40-60kg Above 60kg

By Number of Wheels: 3 wheels, 4 wheels, 6 wheels

By End User: Food & beverage, Healthcare, Retail, Electronics, Postal, Logistics & Others

By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)

• In majority of the cases, the delivery robots are not directly sold to any customer, instead the required companies such as food delivery firms, retail and so on partner with the robot manufacturers for the services.

• Delivery Robots are the technology of the future, but the current legal system is unprepared to deal with them. The lack of legal precedents regarding how courts set to handle delivery robot liability is a major source of concern for insurers. Existing insurance policy terms and conditions set to be obsolete and insufficient as they do not account for delivery robot risks and exposures. Moreover, if a third-party claims that a delivery robot company caused them financial loss, errors & omissions (E&O) insurance must be present to cover the legal fees.

• Improvement in regulatory approval by R&D institutes and newer formulations are set to enhance the supply chain to serve the industries better.

 

The growing number of companies offering delivering robots for various end-users to carry load of upto 30kg is expected to positively influence its market growth. As a part of this, Connexall Co Ltd offers T1 stand delivery robot, a commercial delivery robot which makes an accurate indoor delivery of dishes, fruits and other items for commercial purposes. In addition, the robot has 3 trays, payload 30kg that be served in 3 place continuously. Apart from this, the emerging number of startups offering load capacity upto 30kg is set to boost its market growth. For instance, QENVI Robotics provides autonomous robot for industrial use. The robot is programmed to follow its user in both the indoor and outdoor environment and carry loads Upto 30Kg. Upto 30kg segment of Delivery Robot Market generated a revenue of $57.59m in 2021 and is projected to reach a revenue of $292.95m by 2030 growing at a CAGR of 32.79% during 2024-2030.

Food and beverage sector dominated the global delivery robot market with a share of 28% in 2023. Starship has stated that the company has 1,000 robots in its fleet and they’re delivering food on 20 U.S. campuses and also stated to add 25 more. The major companies are such as Nuro Inc, Starship, Teleretail, Kiwibot and so on are making significant efforts in expanding their scope from the food delivery to other applications as well which is set to boost the demand for delivery robots in these sectors. Thus, warehouse of food and beverage industry include all the activities such as picking, placing, sorting, storing and retrieving, thereby they enormously rely on robotics automation, creating positive environment for the market to grow. Given the delicate nature and amount of work involved, it has become cost-effective and easy for food companies to employ delivery robots as opposed to humans. Additionally, the food contamination is a major problem which requires the manufacturer’s attention and the process needs to be taken well care of to ensure food safety. Food safety compliances and regulations are other concerns in Food and Beverage industry and thus delivery robots have been adopted to fulfill these demands. The delivery robots can handle these standards more accurately, also control and reduce the contamination due to less human intervention.

North America dominated the Delivery Robots Market with a value share of 44% in 2023, attributing to the significant deployment of the autonomous delivery robots in food delivery applications especially in universities. The growing start-ups in the US and the ease of regulations in US, European Union, Japan, Korea and other countries is also set to boost the demand for the delivery robots during the forecast period 2024-2030. Kiwibot, a robotic sidewalk delivery business, has announced a partnership with Sodexo, a food services and facilities management behemoth, to introduce its robots to college campuses in the United States in 2021. Students and teachers at New Mexico State University, Loyola Marymount University, and Gonzaga University should be able to order fresh meals from Sodexo-served venues on campus starting this month. One of the primary factors driving the growth of the Delivery Robots Market during the forecast period is the increasing investment in technological development for delivery robots in the United States.

Booming E-Commerce Sector Driving New Demand

The booming e-commerce sector has increased the demand of delivery robots owing to the increasing purchasing power of consumers, more inclination of consumers towards online shopping, delivery in time, tracking options and various others is expected to positively influence its market growth. As a part of this, according to IBEF, The Indian E-commerce market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020. By 2030, it is expected to reach US$ 350 billion. For example, according to the International Trade Association, China continues to lead in global ecommerce sales accounting for more than 50% of all retail sales worldwide, with total online sales just over the $3 trillion mark in 2022. Additionally, In Dec 2023, Dematic deploys mobile robots for e-commerce in Netherlands. Hence, the growing e-commerce sector has increased the demand of delivery robots which in turn is expected to drive its market growth in the upcoming years.

The increasing investment by major key players in order to expand its product portfolio and better serve the various end-use industry such as beverages, healthcare, e-commerce and many more is expected to fuel its market growth in the future. As a part of this, in 2022, Starship Technologies picks up €50M from the EU’s investment arm to expand its fleet of autonomous delivery robots. In March 2023, Korean sidewalk delivery robotics company Neubility announced that it has secured a $2.42 million (3 billion won) investment from Samsung Venture Investment. This brings a cumulative total investment raised by the company to date to $24.2M.

Stringent government regulation regarding the use of delivery robot in public areas

Limited rules and regulations or complete barrier for sidewalk delivery robots in U.S. serves as a major setback for the growth of the delivery robot market. The most prominent example is Delivery robots have been banned from some major cities like Toronto, which argued they are a hazard for people with low mobility or vision, as well as seniors and children. Cyclists already gripe about e-scooters in bike lanes and don’t want robots there either. Some places have enacted limited rules for sidewalk delivery robots, such as requiring operators to obtain general liability insurance, limiting the speed or weight of the devices, or requiring operators to retrieve any abandoned equipment.

The Delivery Robots Market is moderately consolidated with key players are adopting strategies such as acquisition, product launches and others with the players and companies prevalent in the market. The top companies present in the market include the below.

• Nuro Inc

• Starship Technologies

• Aethon

• Teleretail

• Kiwi Campus

• NineBot

• Anybotics

• Uber Technologies, Inc.,

• Segway Robotics

• Amazon Robotics

• In September 2023, Starship Technologies Launches Robot Delivery Service On Campus. Starship’s fleet of autonomous, on-demand robots will deliver from eight campus eateries: Chick-fil-A, Panda Express, Pastabilities, Starbucks, Steak n Shake, Subway, Taco Sabroso and The Brisket Burger Co.

• In May 2022, Uber Technologies Inc launched pilot food delivery services with autonomous vehicles in two California cities, and said it was adding electric vehicle charging stations into its global driver app.