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Autonomous Delivery Vehicles Market Size Forecasted to Reach Valuation of USD 24.73 Billion by 2027

By Biswas Debanjan

Posted on December 16, 2021

The Autonomous Delivery Vehicles Market is expected to be valued at USD 24.73 Billion in 2027 from USD 1.34 Billion in 2019, registering a CAGR of 43.6% through the forecast period. The autonomous delivery vehicles market is observing an exponential demand due to the existence of favorable initiatives and regulations regarding autonomous technology across the world. The market is primarily propelled by the augmenting demand from the e-commerce and healthcare industry.

The escalating trend of online shopping and the shifting preference of consumers towards online shopping due to the restricted contact with human and to prevent the spread of virus added to an increased requirement for autonomous delivery vehicles. An augmenting need to implement secure and resilient industry standards in the workplace environment and increasing level of productivity due to enhanced supply chain management and processes are projected to propel the industry’s demand in the projected timeframe.

However, certain elements such as high initial costs for the deployment of autonomous vehicles are expected to limit the market growth. However, low-cost labor in developing economies and technological challenges in real-time are projected to generate lucrative growth prospects in the autonomous vehicle delivery market. Prominent players in the industry are collaborating to develop advanced autonomous delivery vehicles to cater to the escalating trend of online shopping. Moreover, the increasing investment and focus on research and development to expand the scope of the technology are driving the market demand.

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Key Highlights from Report:

Autonomous ground vehicles have the capacity for broader travel ranges and the potential for fewer regulations. Large ground delivery vehicles can deliver refrigerated products such as groceries or food items and maintenance items, furniture, and tools in the construction sector.
Autonomous vehicles are underway in pilot studies for their application in the healthcare sector worldwide. These vehicles are used as a complementary tool to the preexisting transportation system to offer advantages over other approaches in certain situations. The autonomous delivery vehicles can deliver certain medical supplies and medicines to patients in home-care or hospital-based settings. Drones can also provide a blood or other fluid samples to the laboratories.
Europe occupied a significant market share in 2019, accounting for a 24.3% share, and is expected to retain its dominant hold on the industry. The growth can majorly be accredited to the United Kingdom’s efforts to have autonomous vehicles on the road from 2021. The increasing investment by the government of Germany to expand the R&D of autonomous technology is further contributing to the market growth.
Major companies in the industry include Starship, FedEx, Amazon, Matternet, Nuro, Alphabet Wing, Postmates Serve, UPS Flight Forward, Zipline, and Aurora, among others.
Walmart, in November 2020, launched an autonomous test in Arizona in association with Cruise. The company is set to introduce the service in Scottsdale in 2021, as part of the partnership with Cruise, a majorly-owned subsidiary of General Motors. This venture will enable customers to place orders at their local Walmart and have them delivered to their houses through these vehicles.

For the purpose of this report, Emergen Research has segmented the Global Autonomous Delivery Vehicle Market on the basis of type, component, application, and region:

Type Outlook (Revenue, USD Billion; 2017-2027)