The warehouse robotics market is booming, but so too is the robotic delivery market. According to data from ABI Research, worldwide robotic last-mile delivery revenues will surpass $70 million this year.
But that is just a drop in the bucket compared to the growth expected in the market. The firm’s research found that these tiny sidewalk robots will grow into a $670 million market by 2030, delivering as much as $3.3 billion worth of goods.
The market is being driven by profitability concerns among retailers, restaurants and other delivery providers as more consumers seek out last-mile delivery of online orders directly to their homes.
“As inflation and vehicle costs rise exponentially, these businesses are struggling to raise prices on wary consumers and businesses, while needing to protect margins,” explained Adhish Luitel, senior analyst of supply chain management and logistics at ABI Research. “Key initiatives include reducing labor, vehicle maintenance costs and fuel requirements while scaling to meet demand and customer expectations.”
Robot programs growing
“The use of automation will continue to grow as governments increase regulatory approvals, more companies scale revenue-producing operations and both consumers and businesses find value in low-touch, quick delivery of their items,” Luitel said.
ABI noted that as more programs launch, especially on city streets, the profitability opportunity of robotic delivery will become clearer and communities will adjust strategies, which may also improve profitability.
