AI-Enabled Last Mile Delivery Market - Growth Drivers and Challenges
Growth Drivers
- Growing Utilization of Aerial Delivery Drones – in modern times, people prefer online ordering the goods required for daily use such as vegetables, eggs, medicines, and others. Owing to the significant advancement in AI technology, various companies are observed to prefer AI-driven drones to make nearby deliveries. For instance, in 2022, the estimated number of drone deliveries across the globe was anticipated to be around 2000 per day while approximately 1 million drone deliveries took place in a similar year.
- Rising Inclination of People Ordering Food Online – online food delivery system is noticed to boost the demand for AI-enabled last-mile delivery across the globe. Online food is delivered to the nearest areas and restaurants and other food-delivering industries can rely on AI-enabled last mile delivery services. For instance, the number of people using online food delivery services is expected to reach around 200 million by 2025 worldwide.
- Increasing E-Commerce Activities – a surge in e-commerce activities has boosted the demand for AI-enabled last mile delivery to make fast deliveries. For instance, in 2022, retail e-commerce sales were projected to reach around USD 6 trillion across the globe.
- Growing Penetration of Artificial Intelligence (AI) in Several Business Activities – companies and multiple organizations are now being dependent on AI technologies. For instance, globally more than 80% of the company stated that artificial intelligence was the main priority in the business strategies.
Challenges
- High Initial Deployment Cost of AI-Enabled Technologies- Although AI-enabled technologies help to reduce the overall operational cost of business organizations in the long run, the initial cost of deployment of such technologies is significantly high owing to the high cost of the components associated with the deployment of the technology. Hence, such a factor is anticipated to hamper the growth of the market during the forecast period.
- Lack of Multiple Stops with Low Drop Sizes
- Expensive and Time-Consuming Process of AI-Enabled Last Mile Delivery
AI-Enabled Last Mile Delivery Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Year |
2026-2035 |
|
CAGR |
19.8% |
|
Base Year Market Size (2025) |
USD 1.93 billion |
|
Forecast Year Market Size (2035) |
USD 11.75 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of AI-enabled last mile delivery is evaluated at USD 2.27 billion.
The global AI-enabled last mile delivery market size was valued at over USD 1.93 billion in 2025 and is expected to expand at a CAGR of around 19.8%, surpassing USD 11.75 billion revenue by 2035.
By 2035, North America is projected to command the majority revenue share in the AI-enabled last mile delivery market, propelled by rising organizational adoption of AI solutions and a strong base of key technology providers.
Key players in the market include Jenny Labs Ltd., Transmetrics AD, ClearMetal Inc., Robby Technologies, Freightos Limited, Detrack Systems Pte. Ltd., Postmates, LLC, PickPack, Refraction AI, Rapidus, Inc., NVIDIA Corporation.
