Market Trends of Autonomous Delivery Robots Industry
Healthcare Segment is Expected to Register a Significant Growth
- Healthcare applications are one of the considerably advanced forms of autonomous delivery robots. Unlike outdoor delivery robots, autonomous delivery robots deployed in healthcare applications need to consider several other parameters, such as low noise motors, sanitation parameters, and smoother travel compared to regular deliveries.
- Traditionally, robots were installed in several medical establishments for therapeutic use for kids. But now, they are even used to assist the medical staff in fetching the required resources on demand. For example, consider the case of Aethon, a prominent robotics manufacturer based in the US, which offers TUG Robots for medical applications.
- In addition, the TIAGo Delivery and TIAGo Conveyor robots were deployed at the Hospital Municipal of Badalona and Hospital Clínic Barcelona. At the Hospital of Badalona, Sergio Garcia Redondo of the Innovation and Projects Department believes that based on the two use cases they have tested, it's seen a lot of potential, and they will undoubtedly improve the hospital's logistics. And also, the hospital would drastically be able to reduce the necessity to do repetitive tasks with no added value for the patient. Therefore the healthcare staff could concentrate directly on the patient.
- Also, these robots are being utilized at Omaha VA Medical Center to fetch and drop medical supplies on demand. They also sustain the facility by delivering several logistical things and lab samples. In addition, Sheba Medical Center recently partnered with Seamless Vision, an Israeli startup, to create an innovative Autonomous Logistics Infrastructure. The firm plans to launch autonomous medication delivery to patients to ease the pressure on hospital staff in the coming years.
- According to the Bureau of Labor Statistics (BLS), the requirement for nurses is expected to increase by 16%, reaching 3.2mm in 2024 the United States. The aging baby boomers who require additional care will propel much of the growth. Moreover, the spending on healthcare applications is increasing daily, implying the adoption of autonomous delivery robots. For instance, according to IBEF, expenditure on healthcare in India amounted to USD 372 billion in 2022, an increase from the previous year, which was recorded to USD 194 billion.
- Additionally, Aster DM Healthcare declared that it is planning INR 900 crores (USD 120.97 million) capital expenditure over the next three years to enhance its presence in India as it looks at increasing the share of the revenue from the country to 40% of the total earnings by 2025. In addition, in the Union Budget 2023-24, the government allocated USD 10.76 billion to the Ministry of Health and Family Welfare (MoHFW). Such expansion in the healthcare sector in various regions may further propel the studied market demand.
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North America to Experience Significant Market Growth
- North America is a substantial market for autonomous delivery robots. Multiple of the significant market dealers are based out in the region. The region also has many start-ups and manufacturers working toward the growth of autonomous delivery robotic technology.
- Along with this, the enhancement of autonomous delivery robots across several end users in the region is relatively high compared to other parts of the world. The requirement for these robots is enormous in the hospitality, logistics, and retail sectors. Many retail and hospitality vendors collaborate with manufacturers to experience the prototypes first-hand. For instance, Google recently invested in Nuro, which is focused on delivering goods using robotic autonomous vehicles. Overall, the company raised USD 600 million in the fundraising round led by Tiger Global Management.
- According to the E-commerce Foundation, North America has the world's highest social network penetration rate, driving its e-commerce industry. Despite reducing labor costs, installing delivery robots also helps hospitality establishments gain popularity on social networks, helping them improve their RevPAR. These activities are expected to keep a steady need for autonomous delivery robots from the hospitality sector.
- Various end-user industries are adopting autonomous robots, significantly expanding the ADR market's scope in the region. In August 2022, Ottonomy Inc. closed its USD 3.3 million seed funding round and declared Ottobot 2.0 the latest version of its autonomous delivery robot. In addition, the company intends to scale up its deployments of Ottobot in airports, retail stores, and restaurants.
- Furthermore, North American countries act as one of the significant forces catalyzing the growth of the logistics market in the region. As a result of extending trade volumes in the countries across the region, the need for goods in the region noticed a steep rise. In 2022, the region's logistics market grew by 5.31% on a YoY basis. In addition, the total commercial warehousing space witnessed a YoY increase of 9.77% in 2022, driven by growth in e-commerce and other factors. The need for cold chain facilities will witness robust growth during the forecast period. Such expansion in the region's logistic sector may further propel the studied market growth in the forecasted period.
- In October 2022, the US Department of Transportation invested around USD 31 million to expand cargo infrastructure and strengthen the supply chain. To modernize and upgrade rail infrastructure, the US government announced a funding amount of USD 1.4 billion in 2022. The Government of Mexico initiated a USD-44-billion plan for 2020-2024, focusing on transportation infrastructure under the National Private Sector Infrastructure Investment Agreement framework. The Government of Canada also invested over USD 2.3 billion in the National Trade Corridors Fund to enhance freight transportation.
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