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GCC AI-Powered Last-Mile Logistics Robotics Market Size, Share & Forecast 2025–2030

The GCC AI-Powered Last-Mile Logistics Robotics Market, valued at USD 1.2 Bn, is growing due to e-commerce surge and tech innovations in delivery robotics.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAB8134

Pages:87

Published On:October 2025

About the Report

Base Year 2024

GCC AI-Powered Last-Mile Logistics Robotics Market Overview

  • The GCC AI-Powered Last-Mile Logistics Robotics Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for efficient delivery solutions, the rise of e-commerce, and advancements in AI and robotics technology. The market is witnessing a surge in investments aimed at enhancing operational efficiency and reducing delivery times, which are critical in the competitive logistics landscape.
  • Key players in this market include the UAE, Saudi Arabia, and Qatar, which dominate due to their robust infrastructure, high internet penetration, and a growing consumer base that increasingly prefers online shopping. The strategic investments in smart city initiatives and logistics hubs in these countries further bolster their position in the market, making them attractive for robotics and automation solutions.
  • In 2023, the UAE government implemented regulations to promote the use of autonomous delivery vehicles, allowing them to operate in designated areas. This initiative aims to enhance the efficiency of last-mile delivery services while ensuring safety and compliance with traffic regulations. The government is also providing incentives for companies that adopt these technologies, fostering innovation in the logistics sector.
GCC AI-Powered Last-Mile Logistics Robotics Market Size

GCC AI-Powered Last-Mile Logistics Robotics Market Segmentation

By Type:The market is segmented into Delivery Robots, Autonomous Drones, Robotic Delivery Vehicles, and Others. Among these, Delivery Robots are leading the market due to their versatility and efficiency in urban environments. They are increasingly adopted by e-commerce and food delivery services, driven by consumer demand for faster and more reliable delivery options. Autonomous Drones are also gaining traction, particularly for remote deliveries, while Robotic Delivery Vehicles are being utilized for larger payloads.

GCC AI-Powered Last-Mile Logistics Robotics Market segmentation by Type.

By End-User:The end-user segmentation includes E-commerce, Retail, Food Delivery Services, and Healthcare. E-commerce is the dominant segment, driven by the rapid growth of online shopping and the need for efficient last-mile delivery solutions. Retailers are increasingly adopting robotics to enhance customer experience and streamline operations. Food delivery services are also leveraging these technologies to meet consumer expectations for quick service, while the healthcare sector is exploring robotics for medical supply deliveries.

GCC AI-Powered Last-Mile Logistics Robotics Market segmentation by End-User.

GCC AI-Powered Last-Mile Logistics Robotics Market Competitive Landscape

The GCC AI-Powered Last-Mile Logistics Robotics Market is characterized by a dynamic mix of regional and international players. Leading participants such as Fetch Robotics, Starship Technologies, Nuro, Robby Technologies, Kiwibot, Amazon Robotics, GreyOrange, Savioke, Zengog, BoxBot, Auro Robotics, Yandex.Rover, RoboDelivery, TUG Robotics, TeleRetail contribute to innovation, geographic expansion, and service delivery in this space.

Fetch Robotics

2014

San Jose, California, USA

Starship Technologies

2014

San Francisco, California, USA

Nuro

2016

Mountain View, California, USA

Robby Technologies

2016

Los Angeles, California, USA

Kiwibot

2017

Berkeley, California, USA

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Market Penetration Rate

Customer Retention Rate

Average Delivery Time

Operational Efficiency Ratio

GCC AI-Powered Last-Mile Logistics Robotics Market Industry Analysis

Growth Drivers

  • Increasing Demand for Efficient Delivery Solutions:The GCC region is witnessing a surge in demand for efficient delivery solutions, driven by a projected 20% increase in e-commerce sales, reaching approximately $30 billion in future. This growth is fueled by consumer expectations for faster delivery times, with 65% of consumers prioritizing same-day delivery options. As logistics companies adapt to these demands, AI-powered robotics are becoming essential for optimizing last-mile delivery efficiency and meeting customer expectations.
  • Advancements in AI and Robotics Technology:The rapid advancements in AI and robotics technology are significantly enhancing the capabilities of last-mile logistics. In future, the global investment in AI technologies is expected to exceed $600 billion, with a substantial portion directed towards logistics automation. Innovations such as machine learning algorithms and autonomous navigation systems are improving delivery accuracy and reducing operational costs, making AI-powered robotics a vital component in the logistics sector.
  • Rising E-commerce Activities in the GCC Region:E-commerce activities in the GCC are projected to grow at an annual rate of 15%, reaching $30 billion in future. This growth is driven by increased internet penetration, which is expected to reach 99% in the region, and a young, tech-savvy population. As online shopping becomes more prevalent, the demand for efficient last-mile logistics solutions powered by robotics is expected to rise, creating a robust market for AI-driven delivery systems.

Market Challenges

  • High Initial Investment Costs:One of the significant challenges facing the GCC AI-powered last-mile logistics robotics market is the high initial investment costs associated with deploying advanced robotics systems. The average cost of implementing a fully automated delivery system can exceed $1.2 million, which poses a barrier for many logistics companies, particularly small and medium-sized enterprises. This financial hurdle can slow down the adoption of innovative technologies in the region.
  • Regulatory Compliance Issues:Regulatory compliance remains a critical challenge for the deployment of AI-powered logistics solutions in the GCC. As of future, there are no standardized regulations governing the use of autonomous delivery vehicles, leading to uncertainty among logistics providers. Companies must navigate complex legal frameworks and ensure compliance with safety and operational standards, which can delay the implementation of robotics in last-mile delivery.

GCC AI-Powered Last-Mile Logistics Robotics Market Future Outlook

The future of the GCC AI-powered last-mile logistics robotics market appears promising, driven by technological advancements and increasing consumer expectations. As logistics companies invest in AI and robotics, the integration of autonomous vehicles and drones is expected to enhance delivery efficiency. Furthermore, the collaboration between logistics providers and e-commerce platforms will likely foster innovation, leading to more customized solutions that cater to the evolving needs of consumers in the region.

Market Opportunities

  • Expansion into Emerging Markets:The GCC logistics sector has significant opportunities for expansion into emerging markets, particularly in Africa and South Asia. With a combined population of over 2.5 billion, these regions present a growing demand for efficient delivery solutions, which can be met through AI-powered robotics, enhancing market reach and profitability for logistics companies.
  • Integration with Smart City Initiatives:The integration of AI-powered last-mile logistics with smart city initiatives presents a unique opportunity. As cities in the GCC invest in smart infrastructure, logistics companies can leverage robotics to optimize urban delivery routes, reduce traffic congestion, and improve overall efficiency, aligning with sustainability goals and enhancing urban living conditions.

Scope of the Report

SegmentSub-Segments
By Type

Delivery Robots

Autonomous Drones

Robotic Delivery Vehicles

Others

By End-User

E-commerce

Retail

Food Delivery Services

Healthcare

By Application

Urban Deliveries

Suburban Deliveries

Campus Deliveries

Others

By Distribution Mode

Direct-to-Consumer

Business-to-Business

Third-Party Logistics

Others

By Payload Capacity

Less than 5 kg

kg to 20 kg

More than 20 kg

By Pricing Strategy

Premium Pricing

Competitive Pricing

Value-Based Pricing

By Policy Support

Government Subsidies

Tax Incentives

Grants for Research and Development

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Transport, Ministry of Communications and Information Technology)

Logistics and Supply Chain Companies

Robotics Manufacturers

Technology Providers and Software Developers

Infrastructure Development Agencies

Retail and E-commerce Companies

Telecommunications Companies

Players Mentioned in the Report:

Fetch Robotics

Starship Technologies

Nuro

Robby Technologies

Kiwibot

Amazon Robotics

GreyOrange

Savioke

Zengog

BoxBot

Auro Robotics

Yandex.Rover

RoboDelivery

TUG Robotics

TeleRetail

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. GCC AI-Powered Last-Mile Logistics Robotics Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 GCC AI-Powered Last-Mile Logistics Robotics Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. GCC AI-Powered Last-Mile Logistics Robotics Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Demand for Efficient Delivery Solutions
3.1.2 Advancements in AI and Robotics Technology
3.1.3 Rising E-commerce Activities in the GCC Region
3.1.4 Government Initiatives Supporting Automation

3.2 Market Challenges

3.2.1 High Initial Investment Costs
3.2.2 Regulatory Compliance Issues
3.2.3 Limited Infrastructure in Certain Areas
3.2.4 Resistance to Change from Traditional Logistics

3.3 Market Opportunities

3.3.1 Expansion into Emerging Markets
3.3.2 Integration with Smart City Initiatives
3.3.3 Development of Customizable Robotics Solutions
3.3.4 Partnerships with E-commerce Platforms

3.4 Market Trends

3.4.1 Increased Use of Autonomous Delivery Vehicles
3.4.2 Growth of Last-Mile Delivery Drones
3.4.3 Adoption of AI for Route Optimization
3.4.4 Focus on Sustainability in Logistics Operations

3.5 Government Regulation

3.5.1 Safety Standards for Autonomous Vehicles
3.5.2 Data Privacy Regulations for AI Systems
3.5.3 Incentives for Robotics Research and Development
3.5.4 Import Regulations for Robotics Technology

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. GCC AI-Powered Last-Mile Logistics Robotics Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. GCC AI-Powered Last-Mile Logistics Robotics Market Segmentation

8.1 By Type

8.1.1 Delivery Robots
8.1.2 Autonomous Drones
8.1.3 Robotic Delivery Vehicles
8.1.4 Others

8.2 By End-User

8.2.1 E-commerce
8.2.2 Retail
8.2.3 Food Delivery Services
8.2.4 Healthcare

8.3 By Application

8.3.1 Urban Deliveries
8.3.2 Suburban Deliveries
8.3.3 Campus Deliveries
8.3.4 Others

8.4 By Distribution Mode

8.4.1 Direct-to-Consumer
8.4.2 Business-to-Business
8.4.3 Third-Party Logistics
8.4.4 Others

8.5 By Payload Capacity

8.5.1 Less than 5 kg
8.5.2 5 kg to 20 kg
8.5.3 More than 20 kg

8.6 By Pricing Strategy

8.6.1 Premium Pricing
8.6.2 Competitive Pricing
8.6.3 Value-Based Pricing

8.7 By Policy Support

8.7.1 Government Subsidies
8.7.2 Tax Incentives
8.7.3 Grants for Research and Development
8.7.4 Others

9. GCC AI-Powered Last-Mile Logistics Robotics Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Market Penetration Rate
9.2.5 Customer Retention Rate
9.2.6 Average Delivery Time
9.2.7 Operational Efficiency Ratio
9.2.8 Pricing Strategy
9.2.9 Innovation Rate
9.2.10 Customer Satisfaction Score

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Fetch Robotics
9.5.2 Starship Technologies
9.5.3 Nuro
9.5.4 Robby Technologies
9.5.5 Kiwibot
9.5.6 Amazon Robotics
9.5.7 GreyOrange
9.5.8 Savioke
9.5.9 Zengog
9.5.10 BoxBot
9.5.11 Auro Robotics
9.5.12 Yandex.Rover
9.5.13 RoboDelivery
9.5.14 TUG Robotics
9.5.15 TeleRetail

10. GCC AI-Powered Last-Mile Logistics Robotics Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government Contracts for Robotics
10.1.2 Budget Allocations for Technology Upgrades
10.1.3 Evaluation Criteria for Robotics Solutions

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Last-Mile Delivery Infrastructure
10.2.2 Budget for Robotics Integration
10.2.3 Spending on Maintenance and Upgrades

10.3 Pain Point Analysis by End-User Category

10.3.1 Delivery Delays
10.3.2 High Operational Costs
10.3.3 Limited Delivery Coverage

10.4 User Readiness for Adoption

10.4.1 Awareness of Robotics Solutions
10.4.2 Training Needs for Staff
10.4.3 Infrastructure Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Cost Savings
10.5.2 Expansion into New Delivery Areas
10.5.3 User Feedback for Continuous Improvement

11. GCC AI-Powered Last-Mile Logistics Robotics Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Solutions

9.2 Export Entry Strategy

9.2.1 Target Countries Identification
9.2.2 Compliance Roadmap Development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership Considerations

12.2 Partnerships Evaluation


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability Strategies


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Industry reports from logistics and robotics associations in the GCC region
  • Market analysis publications focusing on AI and robotics in logistics
  • Government publications and white papers on last-mile delivery initiatives

Primary Research

  • Interviews with logistics executives from major e-commerce platforms
  • Surveys targeting technology adoption specialists in logistics firms
  • Field interviews with last-mile delivery service providers and robotics manufacturers

Validation & Triangulation

  • Cross-validation of findings through multiple industry expert interviews
  • Triangulation of data from market reports, expert opinions, and field surveys
  • Sanity checks through feedback from a panel of logistics and AI experts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Analysis of overall logistics market size in the GCC and its growth rate
  • Segmentation of the market by industry verticals utilizing last-mile robotics
  • Incorporation of regional economic indicators and urbanization trends

Bottom-up Modeling

  • Data collection on unit sales and deployment rates of last-mile robotics
  • Cost analysis based on operational efficiencies and service pricing models
  • Volume estimates derived from logistics service providers' operational data

Forecasting & Scenario Analysis

  • Multi-variable forecasting using AI adoption rates and consumer behavior trends
  • Scenario modeling based on regulatory changes and technological advancements
  • Development of baseline, optimistic, and pessimistic market growth scenarios through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
GCC E-commerce Last-Mile Delivery150Logistics Managers, E-commerce Operations Heads
Retail Robotics Implementation100Supply Chain Directors, Technology Officers
Food and Beverage Delivery Robotics80Operations Managers, Delivery Coordinators
Healthcare Logistics Automation70Pharmacy Managers, Logistics Compliance Officers
Urban Mobility Solutions90City Planners, Transportation Analysts

Frequently Asked Questions

What is the current value of the GCC AI-Powered Last-Mile Logistics Robotics Market?

The GCC AI-Powered Last-Mile Logistics Robotics Market is valued at approximately USD 1.2 billion, driven by the increasing demand for efficient delivery solutions, the rise of e-commerce, and advancements in AI and robotics technology.

Which countries are leading in the GCC AI-Powered Last-Mile Logistics Robotics Market?

What are the main types of robotics used in last-mile logistics?

How is the e-commerce sector influencing the logistics robotics market in the GCC?

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