Technological Advancements and high investments over R&D is driving the autonomous delivery robots market

In past few years e-commerce businesses have witnessed huge growth across the globe which significantly raised the demand for more efficient and faster warehouse management and delivery services.

According to Goldstein Research, “80% of current warehouses across the globe are manually operated with no supporting automation. These warehouses have dealt with demands for increased productivity and throughput by supporting existing workers with good layout design, mobile material handling equipment, and delivery robots. These factors showcase huge market opportunity for market players to enter the untapped market across the globe which is anticipated to grow at 14.5% CAGR through 2025.”

Developing the next generation of robotics will take a substantial investment to advance the technology significantly. Today, a new wave of research and funding is flooding the market, and it is coming from three sources: government stimulus programs, venture capital investments, and large enterprise players such as Google and Amazon. For instance,

· Starships Technologies, a small self-driving robotic delivery vehicles manufacturer, is building robotic platforms designed to revolutionize the local delivery of goods. Launched in 2014 by Ahti Heinla and Janus Friis, belief is that complex problems can be solved by engineering and creative thinking. Starship Technologies is leading the revolution in local delivery. By introducing smart, friendly robots that travel the sidewalks, Starship is aiming to ultimately make the local delivery of goods free. The company launched its first official pilot in the London area in early Q2, 2016. Company also launched a U.S. pilot in the second half of 2016. The goal is a full consumer launch in 2018. Starship estimates that its robotic deliveries will cost 10 to 15 times less than current last-mile delivery alternatives which is likely to be the major factor for the growth their business.

· Amazon bought a robotics company called Kiva Systems in 2012 for $775 million (£632 million). Kiva’s robots automate the picking and packing process at large warehouses in a way that stands to help Amazon become more efficient. The robots — 16 inches tall and almost 145kg — can run at 5mph and haul packages weighing up to 317kg.

· Fetch Robotics announced a partnership with SAP that incorporates SAP Extended Warehouse Management (SAP EWM) application with the Fetch and Freight robots from Fetch Robotics.

· DHL Supply Chain announced that it will begin a pilot test using a collaborative, autonomous robotics within the life sciences sector at a facility in Tennessee. The robots, called LocusBots from Locus Robotics, will be tested as a picker companion for piece picking order fulfillment in the warehouse.

· China has 36 robots per 100,000 manufacturing workers, versus 292 robots per 100,000 human laborers in Germany, 314 in Japan, and 478 in South Korea. But China is investing heavily to close that gap, buying more factory robots than any other nation over the past several years.

Retailers like Amazon are leading the way, embracing robotics technology by making large investments. Amazon and Google represent today’s third source of funding for the new world of robotics. Equipment providers see this trend and are designing robots into their logistics systems as the cost of the technology drops and capabilities improve.

Such investments resulting in technological developments of robotics might turn out to be a game changer for the logistics and hospitality industry. Robots now are able to perceive, pick, manipulate, and place a wide variety of objects in less and less structured environments. Hospitality industry is expected to contribute a major share to the global autonomous delivery robots market by 2025.Automation is increasingly driving supply chain efficiencies, with 51% of 900 companies surveyed by logistics industry group MHI and Deloitte saying that robotics and other automation tech is the key to disrupting or competing in their industry — up from 39% last year.

This is an edited extract from “Global Autonomous Delivery Robots Market Outlook, 2025” a study undertaken by Goldstein Research. The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. A systematic approach in order to estimate and project the market sizing has been followed keeping in mind all the on-going and upcoming trends of the market. Study is available @

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Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in future.

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