Delivery Robot Market by Load Handling Capacity (Up to 10 KG, 10 KG to 50 KG, and More Than 50 KG), Number of Wheels (3 Wheels, 4 Wheels, and 6 Wheels), End-user (Healthcare, Food & Beverages, Retail, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global Delivery Robot Market Analysis

The delivery robot market size is expected to be $2,405.1 million in the 2021-2028 timeframe, growing from $656.6 million in 2020, at a healthy CAGR of 17.8%.

Market Synopsis

Growing threat of utilization of robotics technology in the e-commerce sector is expected to aid the growth of the delivery robot market size.

However, the high regulatory restrictions and lack of required public infrastructure are predicted to restrict the market growth.

According to the regional analysis of the market, the Asia-Pacific delivery robot market share is anticipated to grow at a CAGR of 18.3%, by generating a revenue of $669.8 million during the review period.

Delivery Robot Overview

Delivery robots are mobile platform robots that are automated delivery directly to more the customer. As with other delivery services, the customer makes purchases through an app with vendors based on customer’s location. The robot reaches to the vendor whether for shopping, food, drinks, or more. The benefits of robot delivery include lower costs for the client and the consumer and decreased traffic congestion. The robots that operate with the help of wheels or conveyor belt will only fall under this category which are used for commercial delivery purpose. The most commonly used delivery robots operate on 6 wheels. The USA based Starship Technologies was one of the first companies to launch delivery robots for commercial number of wheels. North America is the major market in the delivery robot market, while the Asia- Pacific region is the most lucrative.

COVID-19 Impact on Delivery Robot Market

The Covid-19 impact on delivery robot market has been positive. During the pandemic period every country across the world has been addressing the public health crisis. The increased demand for transportation, and food delivery robot in the food industry while maintaining the necessary safety standards for prevention from COVID-19 virus spread has aided the growth of the market during the pandemic.

During this pandemic period, the businesses operating in the delivery robots sub-segment launched new products that can operate during the pandemic for contactless deliveries. For instance, in March 2020, US based firm, ST Engineering, launched mobile robots to help healthcare organizations by delivering supplies, increasing health safety preparedness, and creating more resources amidst the COVID-19 outbreak

Growing Utilization of Robotics in the E-Commerce Sector Anticipated to be a Major Driving Factor for the Growth of this Market

The delivery robot market is anticipated to witness notable growth in the forecast period due to increasing utilization of robotics technology in the e commerce sector. As per the April 2020 press release of the United Nations Conference on Trade and Development, an intergovernmental organization intended to promote the interests of developing states in world trade, the global e-Commerce reached $25.6 trillion. This shows the massive expansion and growth of the e-commerce industry. To fulfill the demand of increasing need for logistics and reduction of delivery cost, e-commerce companies are deploying delivery robots. These factors are expected to aid the growth of this market in the forecast period.

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The High Regulatory Restrictions in Delivery Robot Industry Can Hamper the Market Growth.

The delivery robots utilize public traffic area that is designated to pedestrians and that binds them under the legal and regulatory framework. If any damage occurs to the public property, the manufacturer is held responsible for the damage. The strict regulatory clearances for the delivery robots regarding their speed limits, weight limits, and rules regarding operation can hamper the growth of this market

The Adoption of Artificial Intelligence and Machine Learning is Expected to Create Massive Opportunities for The Market

The adoption of technologies such as artificial intelligence (AI) and machine learning in the delivery robot’s industry is expected to open new opportunities for the delivery robot market in the forecast period. The implementation of artificial intelligence (AI) in the delivery robots can provide natural language processing along with real-time analytics and use of machine learning in the delivery robot can improve motion control capabilities during their operation. These developments are expected to positively impact the market growth in the forecast period.

To know more about global delivery robot market trends, get in touch with our analysts here

Source: Research Dive Analysis

The up to 10 kg sub-segment is predicted to have a dominating share in the global market and register a revenue of $1,105.5 million in 2028, growing from $303.8 million in 2020 during the forecast period.
The increasing scope for delivery of small goods in different sectors such as e-commerce, food, and healthcare is expected to aid the growth of this sub-segment. The facility of food delivery by the food delivery robot through quick service restaurants (QSR) in college campuses, households, commercial business premises, and others especially during the Covid-19 pandemic has supplemented the growth of this sub-segment.

The 10 kg to 50 kg sub-segment is anticipated to have the fastest market growth and generate a revenue of $761.8 million by 2028, growing from $199.7 million in 2020, at a healthy CAGR of 18.4% in the forecast period. The delivery robots that have a weight handling capacity of 10 kg to 50 kgs are considered medium in size and have a larger load handling capacity than the smaller delivery robots. The expansion of the ecommerce sector in different forms such as business to customer (B2C) and business to business (B2B) has increased the demand in the e-commerce sector for the delivery of heavy goods and hence supplementing the growth of this sub-segment.

Source: Research Dive Analysis

The 6 wheels sub-segment is estimated to have a dominating market share in the global market and register a revenue of $1,137.4 million in year 2028 during the forecast period. 
In the developed markets such as North America and Europe, local governments are encouraging the utilization of new technology in the delivery industry, supplementing the growth of this sub-segment. In recent developments, for instance, the Covid-19 pandemic has enforced major e-commerce companies such as Alibaba and JD.com to deploy delivery robots as the pandemic fuels demand for contactless delivery services. These factors are expected to aid the growth of this sub-segment.

The 4 wheels sub-segment is anticipated to have the fastest market growth and generate a revenue of $922.2 million by 2028, growing from $242.7 million in 2020, at a healthy CAGR of 18.4% in the forecast period. 
The benefits such as better vehicle balance, lower amount of torque to move on from stationary, high maneuverability for movement, and simple modular structure are expected to aid the growth of 4-wheel delivery robots in the forecast period. The last mile delivery represents over 50% of the total cost of the shipping. The implementation of 4-wheel delivery robots for last mile delivery by most companies such as Amazon for reduction of delivery cost is one of the positive developments. These developments are expected to aid the growth of this sub-segment. 

Source: Research Dive Analysis

The retail sub-segment is anticipated to be the dominating sub-segment in the global market and surpass $835.3 million by 2028, with an increase from $234.0 million in 2020. The growth in the e-commerce industry across the world has surged the demand for delivery services in the logistics industry. The utilization of delivery robots to transport retail goods such as grocery, apparels, and others is aiding the growth of this sub-segment in the forecast period. The advantages of deployment of delivery robots in the retail industry, such as reduced cost in the last mile delivery services and minimal delivery failures as delivery robots can have embedded GPS systems to locate a hard-to-find address. are supplementing the demand in the retail sub-segment.

The healthcare sub-segment is anticipated to be the fastest growing sub-segment in the global market and surpass $539.6 million by 2028, with an increase from $139.8 million in 2020. The increasing necessity for contactless delivery of medicines and other medical goods due to increasing importance of personal hygiene and safety of patients during the medical treatment process in the healthcare sector is expected to aid the growth of this sub-segment in the forecast period.

Source: Research Dive Analysis

The Market for Delivery Robot in North America to be the Most Dominant

The share of North- America delivery robot market is estimated to grow at a CAGR of 17.9%, by registering a revenue of $811.0 million by 2028. The North American region is the hub of most developed public infrastructure required for the successful deployment of delivery robots. Along with this, the majority of research and development in the delivery robot’s industry is being done in this region. Major companies in the delivery robot manufacturing such as Amazon Robotics, ST Engineering Aethon, and others operate from North America. In recent developments, for instance, in July 2020, Amazon, deployed its delivery robots "Scout" to work during the pandemic and is now expanding its fleet to cities in the South parts of the USA. These factors are expected to aid the growth of the delivery robot market in the North America region.

The Market for Delivery Robot in Asia-Pacific to be the Fastest Growing

The Asia-Pacific delivery robot market generated $177.0 million in 2020 and is projected to register a revenue of $669.8 million by 2028. The growing e-commerce and logistics industry to cater the demands of the large population with increasing precipitate income in the Asia-Pacific region is aiding the growth of delivery robot’s market. Major e-commerce and logistics firms in the region such as Alibaba and JD logistics are deploying delivery robots. In recent developments, for instance, in August 2021, major Chinese e-commerce firm, Alibaba.com, announced to deploy 1000 delivery robots in this year in China. These factors are promoting the growth of the delivery robot market in the Asia-Pacific region.

Competitive Scenario in the Global Delivery Robot Market

Agreement and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading delivery robot market players are Boston Dynamics, Inc., JD.com, Postmates Inc., Panasonic Corporation, Amazon.com, Inc., Starship Technologies, Aethon., Cleveron, Nuro, Inc., and Savioke, Inc.

Porter’s Five Forces Analysis for the Global Delivery Robot Market:

• Bargaining Power of Suppliers: The suppliers in the delivery robot market industry are moderate in number. Several companies are working on new methodologies such as heavy load lifting delivery robots to gain the major market share. Thus, there is moderate threat from the suppliers.
  Thus, the bargaining power of suppliers is moderate.
• Bargaining Power of Buyers: Buyers have moderate bargaining power; the demand and utilization of delivery robots is growing in the different sectors such as healthcare and retail. But the companies who have large scale production of delivery robots are not much in number.
  Thus, the bargaining power of buyers is moderate 
• Threat of New Entrants: As the delivery robot market is new and is in the growth stage, large number of companies are expected to enter the market in the forecast period.
  Thus, the threat of the new entrants is high.
• Threat of Substitutes: There are alternatives such as conventional form of delivery by autonomous vehicles.
  Thus, the threat of substitutes is moderate
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the companies such as, Boston Dynamics, Inc., Starship Technologies, and Aethon. Companies in the delivery robot industry do acquisitions to gain major market share. 
  Therefore, competitive rivalry in the market is high.