AI-Enabled Last Mile Delivery Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the AI-enabled last-mile delivery market was valued at USD 1.4 billion in 2022, and a CAGR of 20.1% is expected during the forecast period. The increasing expansion of the e-commerce industry all over the world is driving the expansion of this market significantly. The growing need among businesses for enhanced service delivery is driving the demand for AI-enabled last-mile delivery significantly.

Increasing demand for last-mile delivery among end-users leads to a high level of customer satisfaction. The growing adoption of artificial intelligence technology and autonomous vehicles for last-mile delivery services is driving growth in the market. Increasing awareness about the benefits of artificial intelligence and information technology is driving significant growth in the market.

Growth Drivers

AI optimizes routes and schedules, reducing delivery times and the cost associated with last-mile logistics. AI predicts demand patterns and optimizes inventory management, reducing stockouts and overstocking issues. Technologies like autonomous vehicles and drones streamline delivery processes, reducing dependency on human labor and increasing efficiency. Rising customer expectations for faster and more transparent deliveries are pushing companies to adopt AI-driven solutions significantly. AI processes vast amounts of data to make real-time decisions, improving delivery accuracy and customer satisfaction. AI optimizes the delivery route to minimize fuel consumption and carbon emissions, aligning with sustainability goals.

Companies leveraging AI in last-mile delivery gain a competitive edge by offering superior service levels and operational efficiency. Businesses all over the world have widely implemented information technology, such as artificial intelligence and machine learning. A dynamic shift in preferences among customers for faster delivery, same-day delivery, next-day delivery, and others, including the ease of customized delivery slots, is driving growth in the market significantly. The growing penetration of artificial intelligence in several business activities is driving significant growth in the market.

Segmentation

By Business Model

·         On-Demand Delivery

·         Others

By End-Users Industry

·         E-Commerce

·         Logistics

·         Healthcare

·         Travel, and Tourism

·         Food and Beverages

·         Others

By Type

·         Hardware

·         Software

·         Services

·         Autonomous Delivery Robots

·         Transportation

·         Planning

·         Vehicle Tracking

·         Proof of Delivery

·         Others

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

AI-Enabled Last Mile Delivery End-User Market

On the basis of the end-user, the AI-enabled last-mile delivery market is segmented into e-commerce, logistics, healthcare, travel and tourism, food and beverages, and others. E-commerce is the leading segment and is expected to grow during the forecast period. E-commerce is the leading segment in the AI-enabled last-mile delivery market because of the increasing consumer preference for online shopping. This growth has led to a substantial increase in parcel volumes, necessitating more efficient and scalable delivery options.

The growing penetration of AI in several business activities is driving significant growth in the market.  Consumers expect faster, more reliable, and more convenient delivery options when shopping online. AI enables e-commerce companies to optimize delivery routes, predict delivery times accurately, and provide real-time tracking, thereby enhancing the overall customer experience. AI-enabled services provide companies with the facilities to deal with all their online operations in a very effective manner. Healthcare is also a leading segment during the forecast period. The food and beverage sector is also developing efficiently during the forecast period. The AI-enabled industry is expected to grow much faster in comparison to the traditional one. Increasing disposable income and increasing awareness about the features of information technology, along with AI, are driving growth in the market.

Regional Outlook

On the basis of the regions, the AI-enabled last-mile delivery market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading segment and is expected to dominate during the forecast period because the region has been at the forefront of developing and adopting advanced technologies, including AI and robotics. North America boasts robust infrastructure, including extensive road networks and robotics, which are crucial for optimizing last-mile logistics. The market for e-commerce and online retail is developing in North America, driving demand for efficient last-mile delivery solutions. There is a significant investment in AI technology, and startups focused on logistics and delivery solutions are fostering innovation and accelerating adoption.

North America generally has a regulatory environment that is conducive to testing and deploying emerging technologies, like autonomous vehicles and drones, which are pivotal in AI-enabled last-mile delivery. Consumers in North America have high expectations for last-mile delivery services, which should be reliable, fast, and transparent. The Asia-Pacific region is increasingly pivotal in the AI-enabled last-mile delivery market. Due to rapid urbanization and e-commerce growth, the countries in this region are leveraging AI to optimize logistics, enhance delivery efficiency, and manage complex supply chains more efficiently. Companies are deploying AI technologies such as route optimization algorithms, predictive analytics, and autonomous vehicles to address the challenges of last-mile delivery, thereby improving customers’ satisfaction.

Europe generally has a well-developed transportation and logistics infrastructure, which provides a robust foundation for implementing AI technologies in delivery operations. AI enables e-commerce companies to trace the delivery roots of goods in an efficient manner. Many European cities have high population densities, which creates significant demand for efficient last-mile delivery solutions. AI technologies help in optimizing delivery routes and schedules in dense urban environments. Europe has a regulatory framework that supports innovations. The growth of e-commerce in European cities has driven the need for faster, more reliable, and cost-effective delivery.

European companies and consumers are often early adopters of new technologies. It includes AI-driven solutions for logistics and delivery, where European companies have been at the forefront of testing and implementing these innovations. The higher involvement of robotics in delivery systems is driving growth in the market significantly. The presence of key players in Asia Pacific, North America, and Europe is driving growth in the market significantly. Increasing growth in key companies after the inclusion of AI features is driving growth in the market significantly.

Key Players

·         NVIDIA Corporation

·         Rapidus Inc.

·         PickPack Inc.

·         Freightos Ltd.

·         Robby Technologies

·         ClearMetal Inc.

·         Detrack Systems Pvt. Ltd.

·         Transmetrics AD

·         Jenny Labs Ltd.

·         Other Players