Autonomous Last Mile Delivery Market Expected to Reach $144.2 Billion by 2033

According to a new report published by Allied Market Research, titled, “Autonomous Last Mile Delivery Market," The autonomous last mile delivery market size was valued at $18.7 billion in 2023, and is estimated to reach $144.2 billion by 2033, growing at a CAGR of 23.1% from 2024 to 2033.

Autonomous last mile delivery represents a transformative shift in logistics, wherein businesses use driverless technology to transport goods directly to consumers, enhancing efficiency and reducing costs associated with traditional delivery methods. This automation is particularly vital in sectors experiencing rapid growth, such as e-commerce, food delivery, and healthcare logistics. By eliminating the need for human drivers and couriers, companies can address logistical bottlenecks, meet the increasing demand for faster deliveries, and scale operations more effectively.

Various autonomous delivery platforms are currently being adopted across industries. Autonomous ground vehicles (AGVs), such as electric delivery vans and sidewalk robots, handle urban deliveries, while drones are increasingly utilized for remote or hard-to-access locations. Major companies such as Amazon, Walmart, and FedEx have piloted autonomous delivery programs, signaling the growing importance of this technology in mainstream logistics. Further, the autonomous last mile delivery market size is expanding due to increasing demand for contactless deliveries in urban areas. Moreover, healthcare providers are exploring drone delivery services to transport essential medical supplies to rural areas, demonstrating the wide applicability of autonomous last mile delivery beyond retail. Furt

The growth of autonomous last mile delivery (ALMD) is driven by several key factors that reflect the evolving needs of businesses and consumers, as well as advancements in technology. One of the primary drivers is the rapid expansion of e-commerce and online shopping, which has increased the demand for fast, reliable, and cost-effective delivery services. As more consumers expect same-day or next-day delivery, companies are turning to autonomous solutions to streamline their operations and reduce delivery times. The rising cost of labor is another critical factor, prompting businesses to explore automation to cut costs and reduce dependency on human drivers. This is especially important during peak seasons when the demand for delivery services surges.

Technological advancements are also playing a significant role in the development of autonomous delivery solutions. Improvements in artificial intelligence (AI), machine learning, LiDAR, and GPS technologies have enabled vehicles and drones to navigate complex environments with greater accuracy and safety. Enhanced sensor systems and computer vision allow autonomous delivery units to detect obstacles, pedestrians, and other vehicles, ensuring smooth and secure deliveries even in busy urban areas. The integration of 5G networks has further accelerated the adoption of ALMD by enabling faster communication between vehicles and central systems, improving efficiency and reducing latency.

The growing need to reduce costs and improve operational efficiency is a major driver for the adoption of autonomous last mile delivery solutions. Logistics and delivery operations are often labor-intensive and resource-heavy, with the final leg of delivery accounting for a significant portion of overall shipping expenses. By incorporating autonomous technologies, companies can lower labor costs, minimize delivery errors, and streamline processes, ultimately enhancing profitability.

For instance, in September 2024, FedEx announced an investment in Nimble, an AI robotics and autonomous technology company, to enhance its Fulfillment unit that supports small and medium-sized businesses with order fulfillment and inventory management. This investment aligns with FedEx’s broader strategy to increase automation, reduce costs, and improve efficiency, particularly as freight demand remains sluggish. By integrating Nimble's automated third-party logistics solutions, FedEx aims to streamline its supply chain operations across North America.

Moreover, autonomous delivery vehicles and robots can operate continuously, reducing downtime and allowing for faster deliveries without the constraints of driver shifts or labor shortages. This capability is particularly valuable during peak seasons or in high-demand urban areas, where efficient and timely deliveries are essential to customer satisfaction.

As companies seek to scale operations while maintaining cost efficiency, investments in autonomous last mile delivery solutions are expected to rise. By automating key aspects of the supply chain, businesses can achieve higher productivity, lower operational expenses, and better resource allocation, driving sustained growth in the market. As a result, the autonomous last mile delivery market forecast underscores significant growth, driven by continuous technological advancements and the increasing demand for innovative and efficient delivery solutions.

The autonomous last mile delivery industry is segmented on the basis of application, solution, range, vehicle type, and region. By application, the market is categorized into aerial delivery drones, ground delivery vehicles, self-driving trucks & bus, retail, and others. Depending on the solution, it is fragmented into hardware, software, and service. By range, it is bifurcated into short range and long range. Based on vehicle type, the market is divided into aerial delivery drones, ground delivery vehicles, and self-driving trucks & buses. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. A comprehensive autonomous last mile delivery market analysis reveals growing adoption of electric autonomous delivery vehicles across developed regions.

Airbus S.A.S., Flirtey, Drone Delivery Canada, Flytrex, Amazon.com, JD.com, Inc., Marble Robot, Savioke, DHL International GmbH, and United Parcel Service of America, Inc. are some of the leading key players operating in the autonomous last mile delivery industry. The autonomous last mile delivery market share is dominated by companies with advanced drone and robotic delivery solutions.

KEY FINDINGS OF THE STUDY

• By vehicle type, the ground delivery bots segment is anticipated to exhibit significant growth in the autonomous last mile delivery market in the near future.
• By application, the healthcare and pharmaceutical segment is anticipated to exhibit significant growth in the autonomous last mile delivery market in the near future.
• As per range, the long range segment is anticipated to exhibit significant growth in the autonomous last mile delivery market in the near future.
• Depending on solution, the software segment is anticipated to exhibit significant growth in the autonomous last mile delivery market in the near future.