Aerial Delivery Drones Contributed the Highest with Over 61% Market Share of Autonomous Last Mile Delivery Market – Fact.MR Survey


Demand for autonomous last mile delivery has witnessed noteworthy growth in the past few years. Introduction of new platforms in autonomous last mile delivery has supported the operations of the e-Commerce industry including, aerial delivery drones and ground delivery vehicles. Several e-Commerce companies utilize autonomous last mile delivery platforms in order to improve their logistics. Major e-Commerce players such as Amazon procure ground delivery vehicles in order to deliver products in lesser time. Rise in demand for aerial delivery drones has led to growth of the market for autonomous last mile delivery, as these platforms facilitate contactless delivery without any human intervention.

As per a new report published by Fact.MR, the global autonomous last mile delivery market is anticipated to exceed a valuation of around US$ 88 Bn by 2021, and is expected to expand at an impressive CAGR of around 19% over the forecast period of 2021 to 2031.


Key Takeaways from Market Study

  • South Asia is estimated to witness major growth over the forecast period as compared to the historical period, accounting for over 26% growth.
  • In 2020, North America registered the highest market share of around 59%, followed by Europe.
  • In terms of platform, aerial delivery drones held around 61% of overall market share in 2020.
  • Among the solutions, the hardware segment holds higher market share, accounting for around 59% in 2020.
  • In 2020, autonomous last mile delivery with less than 20 kilometres range accounted for the highest market share at over 68%.

“Manufacturers of aerial delivery drones are developing platforms with AI technology to enhance delivery processes. Recently, aerial drones with rotatory wings integrated with software solutions that supports the functionality of AI technology have been launched,” Says a Fact.MR analyst.

Winning Strategy

The autonomous last mile delivery market is dominated by aerial delivery drones, as these account for more than 61% market share. Recent technology advancement in aerial delivery drone provides easy and efficient delivery of the products. Recently, AI technology has been widely used by manufacturers in the aerial drones, offering sensing and accurate algorithms in last mile delivery services. Major manufacturers are offering drones with such technology to get a competitive advantage across the globe. Several innovations and developments have been implemented in autonomous last mile delivery to provide better delivery processes.

In the near future, aerial drones with rotatory wings are anticipated to showcase growth as there is an increasing number of applications that these vehicles cater to. Surge in COVID-19 has increased the usage of last mile delivery services in the healthcare & pharmacy sector to deliver medical services at remote locations through drones.

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