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.
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.
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.
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.
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.
Our in-depth analysis of the global AI-enabled last mile delivery market includes the following segments:
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:
FREQUENTLY ASKED QUESTIONS
Growing need amongst business organizations to optimize their last mile delivery processes is one of the major factors driving the market growth.
The market is anticipated to attain a notable CAGR over the forecast period, i.e., 2021-2029.
The high initial deployment cost of AI-enabled technologies is one of the major factors estimated to act as barriers to the growth of the market.
The major companies in the market are Jenny Labs Ltd., TRANSMETRICS AD, ClearMetal Inc., Robby Technologies, Freightos (Tradeos, Ltd.), Detrack Systems Pte. Ltd., and others.
The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market in North America is projected to grow with the largest market share by the end of 2029, primarily on account of the presence of several key players in the region.
The AI-enabled last mile delivery market is segmented by type, business model, end-user industry and by region.
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