Delivery Robots Market by Offering (Hardware, Software), Load Carrying Capacity, Number of Wheels (3 wheels, 4 wheels, 6 wheels), Speed Limit, End-user Industry (Food & Beverage, Retail, Healthcare, Postal) and Region - Global Forecast to 2028
Updated on : April 26, 2023
[238 Pages Report] The Delivery Robots Market is projected to grow from USD 0.4 Billion in 2023 to USD 1.8 Billion by 2028; it is expected to grow at a CAGR of 33.7% during the forecast period.
A rise in venture funding will drive the Delivery Robots market growth in the coming years. Cost reduction achieved in last-mile delivery through delivery robots has accelerated the development of delivery robots, further strengthening the market growth. Deploying autonomous delivery robots companies for product delivery will reduce labor costs significantly, constituting only 20–25% of the total delivery cost.
The report aims to define, describe, and forecast the delivery robots industry size based on load-carrying capacity, offering, number of wheels, speed limit, end-user industry, and region.
Delivery Robots Industry Forecast to 2028
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Delivery Robots Market Dynamics
Drivers: Increase in venture funding
Autonomous delivery robots are primarily used by the food & beverage, retail, hospitality, and healthcare industries. These robots are highly efficient and energy-saving compared to traditional electric vehicles. Hence, several venture firms are offering funds to companies developing delivery robots. In March 2022, Starship Technologies, one of the prominent players in the autonomous delivery robots marketspace, raised another round of funding just after 30 days after its last financial infusion. The company has picked USD 42 million in equity, which raised the total valuation of the company to over USD 100 million. This latest Series B all-equity round was co-led by NordicNinja and Taavet+Sten. Previous strategic backers TDK Ventures and Goodyear also participated. The company is currently operating a fleet of 1,700 robots every day and records about 10,000 deliveries daily. The Series B funding will be used to expand the company's footprint and accelerate its operation in US and Europe, and invest in new initiatives.
Restraints: Stringent regulations pertaining to the operations of delivery robots
Most western legal authorities hold the manufacturer responsible for the tort of negligence if the delivery robot causes damage or injury to a user or nearby human. Therefore, the underlying risk and liabilities have slowed down the deployment of autonomous delivery vehicles in cities. Companies also have to comply with privacy and data protection laws, as delivery robots use cameras for recording and collecting consumer data during the delivery process. The federal, state, and local authorities are responsible for regulating the data collection and retention processes. Thereby, delivery robot companies have to be aware of data protection regulations and have to ensure that the collected data is handled in compliance with such regulations
Opportunity: Advancements in features of autonomous delivery robots
Autonomous delivery robots feature advanced electronics to ensure safe, reliable, and efficient operations. Several technological advancements are taking place in delivery vehicles regarding improved power sources, data gathering, and processing technologies. Lithion-ion batteries are predominantly used in delivery vehicles. However, hydrogen fuel cell batteries are expected to be used in autonomous delivery vehicles in the future due to their excellent endurance and low weight. Moreover, manufacturers of delivery robots companies are also making efforts to incorporate sense and obstacle-avoidance systems in their vehicles. Furthermore, technological advancements such as sensor technology, AI, and 5G technology have led to an evolution in the design and operations of delivery robots. For example, 5G networks could pace up the transfer of a large volume of data and responsiveness of devices associated with IoT networks, along with the usage and processing of real-time data and data exchange with GPS or devices with built-in cameras.
Challenge: Safety issues associated with operations of delivery robots in populated areas
With escalating cost of traditional delivery methods, rapid technological advancements, and increased adoption of artificial intelligence (AI) and integrated technology, the adoption of delivery robots has increased significantly, mainly for the delivery of groceries, food items, postal parcels, and medicines, as well as in the hospitality sector to provide room services to customers. They are also used for carrying luggage and follow the user wherever they go. However, making delivery robots industry safe for routine interaction with humans and smooth operations in high-density traffic areas is among the major technological challenges faced by the industry. For robots to interact closely and safely with humans, the hardware and software of robots should be safe, and there should not be any potential risk of malfunctioning of delivery robots market. Concrete efforts are being made by original equipment manufacturers (OEMs) to program robots in such a way that they can deal with humans and varying environmental conditions.
Hardware to witness the highest market demand during the forecast period
Broadly, hardware is categorized into GPS, cameras, radars, ultrasonic/LiDAR sensors, control systems, chassis and motors, and others. The market for control systems is expected to grow at the highest rate as delivery robots companies are complex in their design and function, and more sophisticated microcontrollers will be required to control various functions of robots. A controller or control system is the primary device used in any delivery robot. Every robot must have a control system to operate its drive system, which is used to move the body of a robot. Hence, it is also known as the central processing unit (CPU) or processor, or the brain of the robot. The prime function of the controller is to allow various components of a robot to operate together by processing the information and carrying out several instructions that are given to a robot, such as pick and place an object from one position to another, program run/stop, motor ON/OFF, go home, and start searching destination, depending on the application. Mainly, processors with high processing speed are integrated into delivery robots as they need to make decisions depending on the real-time situation. For instance, Starship Delivery Robot is equipped with the NVIDIA Tegra K1 processor, which has a maximum clock speed of 2.3 GHz
4-wheeled delivery robots is expected to hold the majority market share during the forecast period
The 4-wheeled will account for a majority of the share in the delivery robots market in 2022. Reducing the distance between the front and rear wheels will result in better zero-radius turning in any desired direction with 4-wheeled robots. Hence, most robotics companies worldwide offer delivery robots with 4 wheels, which are more efficient in rotating in place. Just Eat, a delivery firm in the UK, has also employed robots to deliver food to customers even in the event of snow and severe weather by switching from 6 wheels to 4 wheels for navigating in tough snowy conditions. In May 2022, Uber Eats announced plans to launch two new test programs to deliver Uber Eats in Los Angeles. This will include four-wheeled delivery robots on the sidewalk for short trips and self-driving cars for long distances.
Food &Beverage industry to boost market growth during the forecast period
Delivery robots have been extensively used in the food & beverage industry to deliver food items and beverages from restaurants. In terms of volume, the food & beverage industry constituted ~56% share of the delivery robots market in 2022. In the past few years, the industry has witnessed gradual growth due to the introduction of various ventures offering food parcels from restaurants at the consumer's doorstep. In December 2022, Uber Eats partnered with Cartken to deliver Uber Eats orders through autonomous, sidewalk-trotting robots in Miami. Through this new service, the customers will be alerted of the food order and will be instructed to meet the remotely supervised robots on the sidewalk. Consumers expect the minimum cost, along with less time for delivery. The delivery robot is a low-cost delivery option that helps in time optimization. Starship Technologies (US) and Segway Robotics (US) are examples of some of the companies engaged in the manufacturing and development of delivery robots companies for the food & beverage industry.
Load-bearing capacity (> 10 kg) Robots to grow at highest CAGR in 2028
Robots with a load-carrying capacity of up to 10 kg are mainly adopted by local restaurants to deliver food parcels and beverages to consumers. Delivery robots with a load-carrying capacity of up to 10 kg accounted for a market share of ~23%, in terms of volume, in 2022. As these robots weigh around 25 kg, they can carry a limited weight and are adopted to deliver products in a shorter range. Also, their battery life is about 2 hours, and they can traverse 6 to 8 km on a single charge. These robots, with their miniature structure, are a perfect fit to travel on sidewalks causing less interference for pedestrians. The current traffic scenario makes it difficult for robots with larger dimensions to travel easily without harming humans; hence, legal authorities limit the weight, size, and speed of delivery robots.
Delivery Robots market to witness the highest demand in the North American region
The market in North America was valued at USD 147.8 million in 2022 and is expected to reach USD 830.7 million by 2028, at a CAGR of 32.7% during the forecast period. North America has been home to many delivery robots manufacturing companies, such as Nuro Inc (US) and BoxBot (US). Sophisticated and adequate street infrastructure, such as proper design and sufficient width of sidewalks and footpaths, helps companies test and operate delivery robots in this region. In North America, especially in the US, ground delivery robots companies have become commercialized in the last few years. The US is leading the robotics market as the US government supports various innovative robotics research programs by investing millions of dollars; most of them are defense-related projects.
Delivery Robots Market by Region
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In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key industry experts in the Delivery Robots market space. The break-up of primary participants for the report has been shown below:
- By Company Type: Tier 1 – 40%, Tier 2 – 30%, and Tier 30%
- By Designation: C-level Executives – 40%, Directors – 40%, and Others – 20%
- By Region: North America –40%, APAC– 30%, Europe – 20%, and RoW – 10%
Top Delivery Robots Companies - Key Market Players
Major vendors in the Delivery Robots Companies include Starship Technologies (US), JD.com, Inc. (China), Panasonic Holdings Corporation (Japan), Relay Robotics, Inc. (US), and Nuro, Inc. (US), among others. The study includes an in-depth competitive analysis of these key players in the Delivery Robot industry with their company profiles, recent developments, and key market strategies.
Delivery Robots Market Report Scope:
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Report Metric |
Details |
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Estimated Market Size in 2023 |
USD 0.4 Billion |
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Projected Market Size in 2028 |
USD 1.8 Billion |
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Growth Rate |
CAGR of 33.7% |
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Market size available for years |
2019—2028 |
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Base year |
2022 |
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Forecast period |
2023—2028 |
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Units |
Value (USD Million/USD Billion), Volume (Thousand Units) |
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Segments Covered |
Load Carrying Capacity, Offering, Speed Limits, Number of Wheels, End-user Industry, and Geography |
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Geographic regions covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
Starship Technologies (US), JD.com, Inc. (China), Panasonic Holdings Corporation (Japan), Relay Robotics, Inc. (US), Nuro, Inc. (US), Boston Dynamics (US), Eliport (Spain), Kiwibot (US), Alibaba Group Holding Limited (China), Ottonomy.IO (US) are the major players in the market. |
Delivery Robots Market Highlights
This report categorizes the Delivery Robots market based on load-carrying capacity, offering, speed limits, number of wheels, end-user industry, and geography.
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Delivery Robots Market Size, by Load Carrying Capacity: |
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Delivery Robots Market, by Offering: |
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Delivery Robots Market, by Speed Limit: |
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Delivery Robots Market, by Number of Wheels: |
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Delivery Robots Market, by End-user Industry: |
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Delivery Robots Market, by Region: |
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Recent Developments
- In February 2023, Starship Technologies announced a partnership with Teal to offer unmatched connectivity and reliability for automated delivery robots. This partnership will help the company to gain access to any of the global networks through Teal's single eSIM, which includes a management platform that ensures connectivity in its robots.
- In November 2022, Ottonomy. IO. announced its partnership with Posten Norge AS and Holo to trial its autonomous first-mile delivery robot. Through this partnership, the company will leverage its Ottobots for receiving and delivering goods for the digital marketplace.
- In June 2022, Relay Robotics, Inc. announced the launch of its new delivery robot, "Relay+ Service Robot," for the hospitality industry. The robot can make deliveries in less than 10 minutes and operate at about USD 4 per hour.
- In March 2022, JD.com, Inc., through its logistics arm JD Logistics, introduced autonomous delivery robots in Shanghai to offer contactless last-mile delivery. These robots can load up to 100 kilograms of goods and drive up to 80 kilometers per charge.
- In January 2022, Nuro, Inc. announced the launch of its third-generation autonomous delivery vehicle, "Nuro." The new vehicle is designed to carry more goods and enables more deliveries, which is twice the cargo volume of the company's second-generation vehicle.
Frequently Asked Questions (FAQ):
Which are the major companies in the Delivery Robots market? What are their major strategies to strengthen their market presence?
Starship Technologies (US), JD.com, Inc. (China), Panasonic Holdings Corporation (Japan), Relay Robotics, Inc. (US), and Nuro, Inc. (US) are the top players in the market. The delivery robots market is highly competitive with several global market players. Product launches and developments, acquisitions, collaborations, and expansions were among the major strategies adopted by these players to compete in the market.
Which is the potential market for the Delivery Robots market in terms of the region?
Asia Pacific will grow at the fastest rate in the Delivery Robots market in the forecast timeline. The growing awareness regarding the benefits of using delivery robots and the rapid inclusion of robotics in academic and educational institutions are expected to drive market growth. Apart from this, the absence of any regulations or regulatory bodies in Asia Pacific countries for operating delivery robots is also fueling the market growth.
What are the opportunities for new market entrants
The growing awareness regarding the benefits of using delivery robots and the rapid inclusion of robotics in academic and educational institutions are expected to drive market growth. Apart from this, the absence of regulations or regulatory bodies in Asia Pacific countries for operating delivery robots is also fueling market growth.
Which applications are expected to drive the market's growth in the next six years
Retail is one of the prominent applications and is expected to drive the market's growth in the forecast timeline. Adopting delivery robots for the delivery of groceries not only assures delivery of quality products but also at a minimum price.
Which are the major factors driving the demand for delivery robots in the forecast timeline
Reduction in the delivery cost in last-mile deliveries and increase in venture funding are a few factors driving the market for delivery robots.
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The research process for this study included the systematic gathering, recording, and analysis of data about customers and companies operating in the delivery robots market. This research study involved the extensive use of secondary sources, directories, and databases (Factiva, Oanda, and OneSource) for identifying and collecting valuable information for this extensive technical, market-oriented, and commercial study of the delivery robots industry. In-depth interviews have been conducted with various primary respondents, including experts from core and related industries and preferred manufacturers, to obtain and verify critical qualitative and quantitative information, as well as to assess growth prospects. Key players in the delivery robots market analysis have been identified through secondary research, and their market rankings have been determined through primary and secondary research. This research included studying annual reports of top players and interviewing key industry experts, such as CEOs, directors, and marketing executives.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information pertinent to this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers, certified publications, and articles by recognized authors; directories; and databases. Secondary research has been mainly carried out to obtain key information about the supply chain of the delivery robots industry, the value chain of the market, the total pool of the key players, market classification, and segmentation according to the industry trends to the bottom-most level, geographic markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from the supply and demand sides have been interviewed to obtain qualitative and quantitative information for this report. Primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and key executives from major companies and organizations operating in the delivery robots market.
After going through the entire market engineering (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research has been conducted to gather information and verify and validate the obtained critical numbers. Primary research has been conducted to identify segmentation types, industry trends, key players, competitive landscape, and key market dynamics such as drivers, restraints, opportunities, and challenges, along with the key strategies adopted by players operating in the market.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been used, along with several data triangulation methods, to estimate and forecast the size of the market and its segments and subsegments listed in the report. Extensive qualitative and quantitative analyses have been carried out on the complete market engineering process to list the key information/insights pertaining to the delivery robots market.
The key players in the market have been identified through secondary research, and their rankings in the respective regions have been determined through primary and secondary research. This entire procedure involved the study of the annual and financial reports of top players, as well as interviews with industry experts such as chief executive officers, vice presidents, directors, and marketing executives for both quantitative and qualitative key insights. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Delivery Robots Market: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Report Objectives
- To describe and forecast the delivery robots market size in terms of value, segmented based on load carrying capacity, offering, end-user industry, number of wheels, speed limit, and region
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To describe and forecast the market in terms of volume based on
load carrying capacity, end-user industry, number of wheels, and speed limit - To describe important safety components of delivery robots
- To describe and forecast the market size, in terms of value, for various segments with regard to 4 main regions: North America, Europe, Asia Pacific, and RoW
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To provide a detailed overview of the value chain of the delivery robots ecosystem, along with the supply chain analysis; key industry trends; technology, patent, trade, Porter’s five forces, and average selling price analyses; and tariffs and regulations
- To strategically analyze micromarkets1 for individual growth trends, prospects, and contributions to the total market
- To analyze opportunities in the market for various stakeholders by identifying high-growth segments of the delivery robots market
- To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies2, along with detailing the competitive landscape for market leaders
- To provide a detailed impact of the recession on market, its segments, and market players
- To analyze the competitive developments, such as joint ventures, collaborations, agreements, contracts, partnerships, mergers & acquisitions, new product developments, and research and development (R&D), in the delivery robots market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Detailed analysis and profiling of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Delivery Robots Market
I work for a retail cluster and we are involved in a European project about last mile delivery and we are very interested in your report. Can you share a brochure of the report so that we can review it and think about allocating the budget for it.
We would like to analyze the business opportunities of entering the exterior lighting business for delivery robots.
We would specifically like to look into the projected volume forecasts of the market, as well as the newly developing technologies within the delivery robot field.
Of course the demand for robots with larger load capacity and the faster speed would be more in the future, but for technological realization the larger load capacity and faster speed means more complicated system and higher costing. In few situations, we need to compromise on load capacity or speed. So, in which cases we need to do trade-off and on which parameter?
What is a Delivery robot, quadruped robot market in China and RoA?
Wanted to Analyze the market for food delivery robots.
I am interested in South Korea Market and Indoor delivery (food/office building etc.) .
Hi, We are a teleoperation company interested in your report. What does the 34 million represent? Robots on the road, revenue or what?