Introduction: The global Logistics and Shipping Industry Research and Market Reports is forecasted to be worth USD 15.5 Trillion by the year 2023 with a CAGR of 7.5% for the period 2015-2024 and is forecasted to grow by volume with a CAGR of 6% for the same period. The introduction of ecommerce and express delivery coupled with the recent explosive growth in online industrial sales has led to a massive growth in the logistics sector. Although logistics is a high cost field, the major factor behind the cost is the cost of last mile delivery. Last mile delivery, on average accounts for 50% of the total cost of delivering a parcel. The last mile delivery is the biggest cost factor when considering the delivery of a parcel owing to high transportation costs leading to a significant amount of goods having a transportation cost higher than manufacturing cost. The increasing need for an effective last mile delivery option has led to the introductory integration of autonomous technology into the logistics sector.
The Technology : The integration of autonomous trucks and automated factories is an evolving trend in the logistics sector with many companies still using a high amount of manual labor for warehousing and logistics services. Although automated logistics is a long term solution which will have a while before implementation the recent trend in the logistics sector is the usage of Drones for last mile delivery. The concept which is driven majorly by an initiative for easier delivery and minimum costs by companies like Amazon, spearheaded by Jeff Bezos himself has been emerging to be the major solution to the high cost of last mile delivery. Approx. 90% of packages that require to be delivered are capable of being delivered via drones and future estimates predict that only 2% of packages will be delivered manually via bike messengers for express delivery. The Amazon prime air initiative expects that the drones would be capable of delivering a parcel 30 min within placement of an order owing to the drones being capable of travelling at speeds of up to 60 mph. A critical bottleneck currently being that the range of the drones is within a radius of 7.5 miles leading to any greater distance not being currently possible but the proximity is expected to improve with time. An increasing number of startups have begun focusing on implementing autonomous cars as well attempting to deliver higher payload packages with minimum effort using specially designed spatial navigation algorithms to help the vehicles track and plan the routes independently. The increasing emergence of the unmanned aerial vehicle segment has led to the Drone and unmanned aerial bot market to grow rapidly with the market for drones to be worth USD 17 billion by the year 2024. The market growth has led to increased participation with major aerospace companies looking to have their own autonomous electric aerial vehicle such as the Boeing CAV Prototype which was made public in January 2018. Aside from implementing UAV’s, As of March 2018, Amazon made public their patent, for integration of Drone technology and Autonomous trucks aiming to showcase the extent to which the e commerce company homes to automate the process of logistics and transportation. Market estimates believe autonomous vehicles will be making 80% of all deliveries by 2025. The impact that Autonomous cars have in this sector is also major with companies like Nuro investing around USD 1.5 million into their self driving cars used for last mile delivery.
Opportunity: The growing need for last mile delivery technology has emerged as the biggest need in the logistics sector as well as one of the major commercial areas for the application of Autonomous vehicles. The competition is virtually nonexistent with heavy research and development costs and high innovation cycles antiquating technology faster than ever before. Companies like Nuro, Amazon Air, Starship technologies and more are working towards pioneering UAV based drone delivery with lower requirement for energy as energy requirements for drones become the biggest challenge towards implementing drone based last mile delivery at scale with the second major obstacle being the network proximity owing to high initial capital costs
Major Markets: Rapid evolution of the market is prominent in the US and in European regions with a majority of focus being in the US. A major growing application area for the implementation of drone delivery has been e commerce in China which is the major factor behind growing demand in the Asia Pacific region expected to have a CAGR of about 7.5% for the period 2017-2021
Key Factors Considered in the Report:
Logistics and Shipping Market Research Reports
Logistics and Shipping Industry Analysis
Market Research Reports for Logistics
Logistic Market Research Report
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Logistics Business Review
Logistics and Shipping Industry Research and Market Reports
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Ankur Gupta, Head Marketing & Communications