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AI-Enabled Last Mile Delivery Market Segmentation by Type [Hardware (Autonomous Delivery Robots, Computing Systems, and Others), Software, and Services {Transportation Planning, Predictive Analysis (Vehicle Tracking, Proof of Delivery, and Others), and Others}]; by Business Model (On-Demand Delivery and Others); and by End-User Industry (E-Commerce, Logistics, Healthcare, Travel & Tourism, Food & Beverage, and Others) – Global Demand Analysis & Opportunity Outlook 2029

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Extensive insights into the Growth of AI-Enabled Last Mile Delivery Market amidst COVID-19

Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.

Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.

We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.

In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months.                                                         Request Insights

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Global AI-Enabled Last Mile Delivery Market Growth Highlights 2020-2029

The global AI-enabled last mile delivery market is anticipated to exhibit a notable CAGR during the forecast period, i.e., 2021-2029. Factors such as the growing need amongst businesses for enhanced service delivery processes, along with the rising awareness amongst logistics companies for the challenges observed in last mile delivery, and the increasing need for last mile delivery solutions amongst the end-user industries for amplified customer satisfactory experiences and revenue generation are anticipated to drive the growth of the market during the forecast period. Moreover, the latest trends observed in the last mile delivery services, coupled with the lucrative last mile delivery business model, which is allowing businesses to invest and adapt last mile delivery technology, growing adoption of artificial intelligence technology and autonomous vehicles for last mile delivery services, and the recent trends for contactless delivery amongst the end consumers on account of the growing concern for COVID-19 pandemic are some of the additional factors anticipated to drive the market growth in the coming years.

Introduction to AI-Enabled Last Mile Delivery

Artificial intelligence (AI) technology is defined as the intelligence capabilities displayed by different types of machines for performing a varied sort of tasks. AI-enabled last mile delivery is referred usually to as the use of artificial intelligence technology by supply chain and logistic companies for delivering goods to the end-users or consumers. The subject in itself is of vast nature and includes a wide range of hardware, solutions, and services that defines the future trends in logistics and supply chain management.

Market Size and Forecast

The global AI-enabled last mile delivery market is anticipated to gain significant market revenue by the end of 2029. The market is thriving on account of the increasing expansion of the e-commerce industry around the globe and the need amongst business organizations for amplified service delivery which in turn would increase their brand reputation and sales. Last mile delivery is considered to be the most important element in any service delivery process. This is owing to the fact that this particular element of the service delivery model directly impacts customer satisfaction and also comprises nearly fifty percent of the overall shipment delivery cost. Recent advancements in technology have raised the expectation of customers from what it was a decade ago. Customers nowadays have accepted doorstep delivery as part of the customer delivery process and businesses have made doorstep delivery a norm rather than an exception. Such factors are therefore anticipated to contribute to the market growth in the coming years. CLICK TO DOWNLOAD SAMPLE REPORT

The market is segmented by end-user industry into e-commerce, logistics, healthcare, travel & tourism, food & beverage, and others. Among these segments, the e-commerce industry segment is projected to grab the largest market share by the end of 2021. The growth of the segment can be attributed primarily to the growing e-commerce industry, backed by the shift in preferences of consumers towards online shopping from the conventional brick and mortar retailing business model, followed by the increasing trends of varied delivery options which helps businesses generate sales. Over the past few years, there has been an increasing development in information technology. Businesses worldwide have widely implemented information technology, such as artificial intelligence and machine learning to their existing business models for the enrichment of their existing service delivery processes. Moreover, a dynamic shift in preferences amongst the customers for faster deliveries, along with the growing trends for same-day delivery, next-day delivery, and others along with the ease for customized delivery slots, are some of the additional factors anticipated to drive the growth of the segment in the coming years. 

AI-Enabled Last Mile Delivery Market Share (in %), Segmentation by End-User Industry

Growth Drivers

Growing Need Amongst Business Organizations to Harness the Benefits of Artificial Intelligence & Machine Learning in the Era of Digital Disruption to Drive the Market Growth

With the latest technological advancements, artificial intelligence (AI) and machine learning (ML) has become a big part of the daily operations of businesses globally. Rising operational costs owing to the numerous challenges faced by businesses during last mile delivery, such as road closures, traffic, accident delays, problematic parking, and multiple delivery attempts during customer unavailability, is raising the need amongst businesses to adopt artificial intelligence and machine learning technologies to optimize their operational costs. Further, operation planning managers are increasingly utilizing AI-enabled last mile delivery tools and techniques to harness the benefits of these digital tools to optimize their vehicle capacity, plan an effective route by considering the time window for each delivery, and enhance workflow effectiveness. Moreover, several companies are increasingly adopting delivery robots for automating their last mile delivery process and to ensure contact-less deliveries. Such factors are anticipated to drive the growth of the market during the forecast period.

Challenges

High Initial Deployment Cost of AI-Enabled Technologies to Hamper Market Growth

Although AI-enabled technologies help to reduce the overall operational cost of business organizations in the long run, yet the initial cost of deployment of such technologies is significantly high owing to the high cost of the components associated with the deployment of the technology. Such a factor is thereby anticipated to hamper the growth of the market in the coming years.

Market Segmentation

Our in-depth analysis of the global AI-enabled last mile delivery market includes the following segments:

By Type

  • Hardware
    • Autonomous Delivery Robots
    • Computing Systems
    • Others
  • Software
  • Services
    • Transportation Planning
    • Predictive Analysis
    • Asset Positioning
      • Vehicle Tracking
      • Proof of Delivery
      • Others
    • Others

By Business Model

  • On-Demand Delivery
  • End-to-End Delivery Solutions
  • Others

By End-User Industry

  • E-Commerce
  • Logistics
  • Healthcare
  • Travel & Tourism
  • Food & Beverage
  • Others

By Region

On the basis of regional analysis, the global AI-enabled last mile delivery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa regions. Among the market in these regions, the market in North America is projected to grow with the largest market share by the end of 2029. The growth of the market in the region can be attributed to the growing awareness amongst business organizations for such technologies, along with the presence of several key players in the region who are offering artificial intelligence solutions.

The global AI-enabled last mile delivery market is further classified on the basis of region as follows:

  • North America (US, Mexico and Canada) Market size, Y-O-Y growth and Opportunity analysis.
  • Europe (Germany, France, Italy, Belgium, Spain, UK, Russia, Netherlands and Other parts of Europe) Market size, Y-O-Y growth and Opportunity analysis.
  • Asia Pacific (Japan, India, China, Malaysia, Australia, Indonesia, Thailand and rest of Asia Pacific) Market size, Y-O-Y growth and Opportunity analysis.
  • Latin America (Argentina, Brazil and rest of Latin America) Market size, Y-O-Y growth and Opportunity analysis.
  • Middle East & Africa (Saudi Arabia, Egypt, United Arab Emirates and South Africa) Market size, Y-O-Y growth and Opportunity analysis.

Top Key Players Dominating the Market

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