Rising penetration, adoption of the latest technology, and strategic M&A to thrust global revenues to $200 billion, predicts Frost & Sullivan.
The online food delivery industry plays a unique role in bringing together several technological advancements, companies and processes to provide convenient, quick and cheap food delivery to end customers. Frost & Sullivan predicts the sector revenues to rise from $82 billion in 2018 to a staggering $200 billion in 2025 at a CAGR of 14% as a result of increasing global penetration, strategic mergers and acquisitions, and adoption of new technologies such as artificial intelligence, AR/VR, drones and autonomous vehicles.
"Automotive OEMs will actively participate in the development of specific autonomous vehicles such as drones and ground bots for the online food delivery industry, either through their own programs or acquisitions," said Viroop Narla, Team Leader, Automotive & Transportation at Frost & Sullivan. "A combination of autonomous aerial and ground delivery methods is expected to make the future of food delivery more efficient and cost-competitive."
North America has the highest concentration of online food delivery companies. Homegrown Uber Eats has the highest presence globally, operating in more than 670 cities. However, in certain countries, local players dominate only their home markets, such as Meituan Dianping in China, Swiggy in India and iFood in Brazil.
Frost & Sullivan's latest research, Future of Global Online Food Delivery Services Market, analyzes the global online food delivery industry and discusses the current market scenario, key trends, innovative strategies, and competitor profiles, and provides a region-wise revenue forecast for the sector through 2025.
For further information on this analysis, please visit: http://frost.ly/3uo
Asia has been the largest market for online food delivery globally, passing $45 billion in revenue in 2018. China contributed over 73% of that share, with India a distant second at 13.2%. The Asian market will surpass $100 billion by 2025. Europe is expected to grow at a CAGR of 14.5% between 2018 and 2025, which is higher than any other region.
"Online food delivery companies will increasingly look at new revenue streams to stay ahead of the competition," noted Narla. "Cloud or dark kitchens are expected to become a very popular setup for these companies to either prepare food or rent space to other food businesses."
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Future of Global Online Food Delivery Services Market is part of Frost & Sullivan's Automotive and Transportation research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.
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