Artificial Intelligence-Enabled Last Mile Delivery Global Market Report 2024

The artificial intelligence-enabled last mile delivery market size has grown rapidly in recent years. It will grow from $1.17 billion in 2023 to $1.35 billion in 2024 at a compound annual growth rate (CAGR) of 15.5%. The expansion observed in the historic period can be attributed to several key factors, including the increasing demand for e-commerce services, the ongoing trend of urbanization, rising customer expectations for efficient delivery, growing advancements in AI technologies, and the increasing capabilities of data analytics.

The artificial intelligence-enabled last mile delivery market size is expected to see rapid growth in the next few years. It will grow to $2.43 billion in 2028 at a compound annual growth rate (CAGR) of 15.7%. The projected growth in the forecast period is expected to be fueled by several key factors, including the increased integration of robotics into delivery processes, the rapid expansion of e-commerce platforms, the proliferation of IoT networks facilitating connectivity and data exchange, growing competitive pressures within the industry, and rising regulatory changes impacting delivery operations. These factors are anticipated to drive innovation and transformation in last mile delivery services, enabling providers to meet the evolving demands of consumers and businesses. Furthermore, major trends expected to shape the landscape in the forecast period include the adoption of electric vehicles for environmentally friendly transportation, the integration of AI technologies to optimize delivery routes and operations, the emphasis on sustainable delivery practices to minimize environmental impact, the emergence of quick commerce models for faster order fulfillment, and the adoption of contactless delivery methods to address health and safety concerns.

The rise in e-commerce activities is poised to drive significant growth in the artificial intelligence-enabled last-mile delivery market moving forward. E-commerce activities encompass a wide range of online transactions, including purchasing, selling, and exchanging products and services over the Internet. This growth is fueled by various factors such as improved internet infrastructure, the convenience of online shopping, evolving consumer preferences, and the widespread adoption of digital platforms. AI-enabled last-mile delivery solutions play a crucial role in enhancing the efficiency, reliability, and cost-effectiveness of e-commerce operations, leading to increased customer satisfaction and market expansion. For example, the International Trade Administration reported in November 2023 that e-commerce sales in the UK are expected to grow annually by 12.6% by 2025. Additionally, as of January 2021, consumer e-commerce accounted for 36.3% of the UK's retail sector and is projected to reach $285.6 billion by 2025. These statistics highlight the significant impact of e-commerce growth on the demand for efficient last-mile delivery solutions.

Key players in the artificial intelligence-enabled last-mile delivery market are actively developing supply chain AI assistants to optimize the flow of goods in the logistics chain. These AI assistants leverage intelligent automation to improve decision-making processes and streamline logistics operations. For instance, One Network Enterprises, a US-based supply chain management company, introduced NEO Assistant in February 2024. NEO Assistant is an innovative supply chain artificial intelligence tool designed to enhance decision-making by providing real-time actionable insights, adaptive workflows, intelligent recommendations, and interactive visualizations. It operates on One Network's digital supply chain network, offering end-to-end visibility and control from raw material procurement to last-mile delivery. NEO Assistant continuously monitors the real-time status of the supply chain, adapting its recommendations as the situation evolves.

In May 2022, United Parcel Services Inc. (UPS), a leading provider of package delivery and supply chain management solutions, acquired Delivery Solutions to strengthen its customer-centric approach and position itself as a digital leader. Delivery Solutions, a US-based retail e-commerce company, specializes in last-mile SaaS delivery services, aligning well with UPS's goal of enhancing its capabilities in the rapidly growing e-commerce delivery segment.

Major companies operating in the artificial intelligence-enabled last mile delivery market are NVIDIA Corporation, DoorDash Inc., WorkWave LLC, Locus Robotics Corporation, FarEye Technologies Inc., Bringg Delivery Technologies Ltd., Magaya Corporation, Circuit Logistics Inc., Shipwell Inc., LogiNext Solutions Private Limited, Freightos Limited, Wise Systems Inc., Route4Me Inc., GetSwift Limited, Onfleet Inc., Transmetrics AD, ClearMetal Inc., Boxbot Inc., Refraction AI Inc., Robby Technologies Inc., Rapidus Inc., OptimoRoute Inc., Routific Inc., Detrack Systems Pte. Ltd., PickPack LLC.

North America was the largest region in the artificial intelligence-enabled last mile delivery market in 2023. The regions covered in the artificial intelligence-enabled last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence-enabled last mile delivery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence-enabled last mile delivery entails incorporating AI technologies into the final phase of the delivery process, focusing on efficiently transporting goods from distribution centers to customers' doorsteps. It leverages AI algorithms for route optimization, predictive analytics, and real-time tracking to streamline delivery operations and enhance efficiency.

The primary types of artificial intelligence-enabled last mile delivery include hardware, software, services, predictive analysis, and others. Hardware encompasses the physical components or devices utilized in these systems, such as drones, robots, and sensors, which enable automation and enhance delivery efficiency. Additionally, various business models, including on-demand delivery, cater to different end-user industries such as e-commerce, logistics, healthcare, travel and tourism, food and beverage, among others.

The artificial intelligence-enabled last mile delivery market research report is one of a series of new reports that provides artificial intelligence-enabled last mile delivery market statistics, including artificial intelligence-enabled last mile delivery industry global market size, regional shares, competitors with an artificial intelligence-enabled last mile delivery market share, detailed artificial intelligence-enabled last mile delivery market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence-enabled last mile delivery industry. This artificial intelligence-enabled last mile delivery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence-enabled last-mile delivery market consists of revenues earned by entities by providing services such as dynamic routing, real-time tracking, and contactless delivery. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence-enabled last-mile delivery market also includes sales of drone delivery systems, fleet management systems, and predictive analytics tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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