Autonomous Delivery Robots Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Autonomous Delivery Robots Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Autonomous Delivery Robots Market is anticipated to register a CAGR of 33.7% during the forecast period. With the recent outbreak of COVID-19, autonomous delivery robots are gaining traction for performing various contactless delivery operations. The market is expected to witness several deployment instances, especially in the healthcare sector, with the ongoing pandemic crisis.

Key Highlights

• In January 2022, Ottonomy launched Ottobots, a fleet of fully autonomous delivery robots for restaurant and retail industries for outdoor and indoor environments. The pandemic has provided Ottobots with a catalyst enabling a series of partnerships that allowed it to launch fully autonomous delivery for curbside, indoor, and last-mile deliveries.
• Autonomous delivery robots (ADR) have revolutionized delivery systems, providing a cheaper and more efficient way of delivery. Though delivery robots did not experience high adoption in the past, they are expected to witness high growth in the future, owing to multiple advantages. The increasing adoption of ADR is mainly driven by the growing affordability and return on investment of a rising variety of infrastructure-light robots, along with persisting needs for flexible and efficient automated fulfillment.
• Last-mile delivery has been one of the main problems in handling the supply chain. Last-mile deliveries are getting increasingly complex in cities, as continued growth in e-commerce and high consumer expectations for faster and regular deliveries are causing traffic congestion and rising carbon pollution.
• Losses of about USD 333 million were incurred due to shipping mishaps, according to the National Retail Federation. Due to such delivery issues, various consumers and retailers have been looking for better and more efficient delivery methods.
• Also, many retailers have discovered that a superior last-mile experience engages and retains consumers. However, at the same time, meeting customers’ delivery expectations does not help in increasing profit margins, as today’s retailers are soaking a part of the cost of last-mile delivery. Therefore, ADR is supporting these companies in achieving efficient last-mile delivery.
• Moreover, the logistics sector consumes many natural resources to sustain multiple operations, such as the delivery of goods. This has also contributed to global warming by disposing large amounts of greenhouse gases into the atmosphere. Autonomous delivery systems are expected to counter such anti-environmental effects by reducing the amount of carbon emissions in the atmosphere.
• Multiple laws are being put in place to control global warming and protect the environment; such initiatives undertaken by governments contribute to the demand growth of ADRs in the market. For instance, the European Commission (EC) has set an objective of decarbonization by 2050, with a few immediate goals in 2020 and 2030.

Key Market TrendsHealthcare Segment is Expected to Register a Significant Growth

• Healthcare applications are one of the most advanced forms of autonomous delivery robots. Unlike outdoor delivery robots, autonomous delivery robots deployed in healthcare applications need to consider several additional parameters, such as sanitation parameters, low noise motors, and smoother travel compared to regular deliveries.
• Traditionally, robots were installed in several medical establishments for therapeutic use for children. But now, they are even used to assist the medical staff in fetching the required resources on demand. For example, consider the case of Aethon, a prominent robotics manufacturer based in the US, which offers TUG Robots for medical applications.
• Also, these robots are being used at Omaha VA Medical Center to fetch and drop medical supplies on demand. They also support the facility by delivering several logistical items and lab samples.
• In July 2021, Sheba Medical Center partnered with Seamless Vision, an Israeli startup, to develop an innovative Autonomous Logistics Infrastructure. The company plans to launch autonomous medication delivery to patients to reduce the pressure on hospital staff.
• According to the Bureau of Labor Statistics, the need for nurses is expected to increase by 16%, reaching 3.2 million in 2024 from 2.7 million in 2014 in the United States. The aging baby boomers who need additional care will drive much of the growth. Moreover, the spending in the healthcare sector is increasing daily, indicating the adoption of autonomous delivery robots. For instance, in 2020, the estimated expenditure on healthcare in India amounted to USD 194 billion and is projected to increase, reaching USD 372 billion in 2022, according to the India Brand Equity Foundation.

North America Accounts For the Largest Market Share

• North America is a significant market for autonomous delivery robots. Many of the major market vendors are based out in the region. The region also has many start-ups and manufacturers working toward the growth of autonomous delivery robotic technology.
• Along with this, the penetration of autonomous delivery robots across several end users in the region is relatively high compared to other parts of the world. The need for these robots is very high in the hospitality, retail, and logistics sectors. Many retail and hospitality vendors collaborate with manufacturers to have a first-hand experience with the prototypes.
• As the region has a high degree of need from the hospitality sector, delivery robots are helping many prime hospitality establishments to gain massive attraction from the media, which is an essential channel in the region that affects tourists’ decision to select a hotel or resort.
• In fact, according to the Ecommerce Foundation, North America has the world's highest social network penetration rate, which is also driving its e-commerce industry. Despite the reduction of labor costs, installing delivery robots also helps hospitality establishments gain popularity on social networks, helping them improve their RevPAR. These developments are expected to keep a constant demand for autonomous delivery robots from the hospitality sector.
• Many end-user companies are adopting autonomous robots, significantly expanding the ADR market's scope in the region. In July 2021, Amazon announced to invest in a new Amazon Scout Development Center in Finland to focus mainly on autonomous package delivery solutions. These advancements also motivate market vendors to increase their studied market investments.

Competitive Landscape

The Autonomous Delivery Robots Market is highly competitive due to the presence of many large and regional players. The market players are adopting strategies like product innovation, partnerships, mergers, and acquisitions to extend their geographic reach and stay ahead of the competitors. Some of the major players in the market are Starship Technologies, Relay Robotics, Ottonomy.IO, Nuro Inc., and Serve Robotics Inc., among others.

• May 2022 - Uber Eats launched two autonomous delivery pilots in Los Angeles in collaboration with Serve Robotics, a robotic sidewalk delivery startup, and Motional, an autonomous vehicle technology company.
• March 2022 - Nvidia invested USD 10 million in Uber spinout, Serve Robotics, a sidewalk robot delivery company. This investment by Nvidia will drive the studied market.

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• The market estimate (ME) sheet in Excel format
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