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The Rise of Autonomous Vehicles

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With the development of technology, we have witnessed a rapid growing autonomous car (AV) market. The global AV market demand in 2020 is 6.7 thousand, and this number is expected to grow to 4,223.8 thousand with a CAGR of 63.1%  from 2021 to 2030 (Grand View Research, 2020).

It is believed that supportive regulatory framework, government funding and investment in digital infrastructure played a significant role in the AV market growth (Grand View Research, 2020). With the adoption from human-driven vehicles to autonomous vehicle, we can expect benefits such as decrease of car crashes, increase in the road capacity and reduced paid driver costs. In addition, AV can enable independent mobility for non-drivers and people with certain disabilities. All of these above benefits along with others contribute to the adoption of AV globally (Grand View Research, 2020).

The whole AV market can be roughly divided into two segments, defence and transportation, while the transportation segment can be further categorized into commercial and industrial. The U.S. army has announced in 2019 that they will deploy more autonomous combat trucks to avoid accidents caused by driving (Grand View Research, 2020). In the meantime, the transportation market is expected to grow dramatically as well.

In the transportation segment, the last-mile delivery market is witnessing significant growth as well. The global autonomous last-mile delivery market size is estimated to grow with a CAGR of 24.4% and be valued at USD 84.72 billion in 2030 (Valuates Reports, 2021). The major driving factors behind this growth might be the demand for the fast delivery, rise in technology advancement and development of aerial delivery drones. In fact, North America is expected to have the highest revenue contributor with a CAGR of 26.6% in the following years (Valuates Reports, 2021). Meanwhile, since the COVID-19 pandemic, the sales of e-commerce businesses has been driven noticeably. The whole last-mile delivery market is expected to grow with a CAGR of 18.9% during 2021 – 2027 (All the Research, 2021). This will further contribute to the growth and development of the autonomous last-mile delivery market. Some of the key players in autonomous last-mile delivery market include Amazon, Marble Robot, Airbus S.A.S., Matternet, Drone Delivery Canada, and etc. (Valuates Reports, 2021).

However, despite of all the positive perspectives over the autonomous last-mile delivery market, there are impediments that are hindering the growth of autonomous last-mile delivery. One of the major factors and also the most significant one is the lack of required infrastructure (Valuates Reports, 2021). For example, the autonomous last-mile delivery robots can be categorized into drones, or vehicles driving on the road or on the sidewalks. To settle this problem, government could set specific route for delivery vehicles and a fixed route for delivery drones (Valuates Reports, 2021). Without sufficient support from government on this issue, the full adoption of autonomous delivery vehicles might still be far from us.

All in all, the autonomous last-mile delivery market is still an exciting and rapidly growing market. With the support from all of the technology in autonomous vehicle industry and others, there is no doubt that the autonomous last-mile delivery market will keep growing along with the AV industry. With the issue of required infrastructure settled, we can see a prosperous new industry with the amazing ability to enhance our day-to-day life.


All the Research. (September 2, 2021). Last Mile Delivery Market is Expected to Reach to USD 62.7 Bn with CAGR of 18.9% by 2027. Retrieved from

Grand View Research. (March 2020). Autonomous Vehicle Market Size & Share Report, 2021 – 2030.Retrieved from

Valuates Reports. (January 20, 2021). Autonomous Last-Mile Delivery Market Size is Projected to Reach USD 84.72 Billion by 2030 at CAGR 24.4%. Retrieved from