Market Size
Global Last-Mile Delivery Market reached US$ 151.87 billion in 2023 and is expected to reach US$ 311.31 billion by 2031, growing with a CAGR of 9.62% during the forecast period 2024-2031.
The global last-mile delivery market is impacted by technological developments. To improve productivity, optimize delivery routes, and offer visibility throughout the delivery process are utilizing technologies like artificial intelligence, machine learning, route optimization algorithms, and Internet of Things devices. This is propelling global last-mile delivery market growth.
On October 19, 2022, Shadowfax launched its integration with ONDC and its last-mile delivery capabilities for hyperlocal and e-commerce services. This strategic partnership empowers sellers on the platform to access hyperlocal services across approximately 8500 pin codes. This advancement accelerates rapid scale-up opportunities as the ONDC platform continues to evolve.
North America is gaining popularity by increasing the adoption of autonomous delivery drones for last-mile delivery. These factors improve efficiency, reduce costs, and enhance customer satisfaction, boosting innovation in the market. Companies are investing in advanced logistics technologies to meet this demand, creating opportunities for regional growth in the market.
Market Scope
| Metrics | Details |
| CAGR | 9.62% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Service Type, Destination, Mode of Operation, Vehicle Type, Application, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
Growing Demand for E-commerce
The products requiring last-mile delivery e-commerce is growing and packages need to be transported from distribution centers to consumers' doorsteps expanding the last-mile delivery market. The growth of e-commerce contributes to technological innovation in last-mile delivery. Companies are investing in technologies to enhance efficiency and reduce delivery times driving market growth.
For instance, on April 2, 2020, Uber launched a collaboration with bigbasket, focusing on last-mile delivery. This partnership aims to guarantee the dependable delivery of essential supplies to numerous households across Bengaluru, Hyderabad, Chandigarh, and Noida. The joint effort with bigbasket prioritizes compliance with all hygiene and traffic regulations to ensure a safe and efficient delivery experience.
Expansion of Same-Day Delivery
Same-day delivery is attractive in densely populated urban areas is high demand for instant delivery. They stimulate growth in the last-mile delivery sector by investing in urban logistics solutions including micro-fulfillment centers and optimized delivery routes, to facilitate efficient order fulfillment. Drone delivery and autonomous vehicles enable faster and more efficient deliveries as companies invest in technologies, they drive innovation and growth in the last-mile delivery market.
For instance, Toyota Tsusho Corporation launched its enhanced delivery planning service, initiated in November 2022 in partnership with WILLPORT Co., Ltd and Pioneer Corporation. Leveraging the open logistics platform designed for last-mile deliveries, jointly developed by WILLPORT, this collaboration aims to drive digital transformation (DX) within the critical last-mile delivery sector.
High Last-Mile Costs
High last-mile costs are expenses related to labor, fuel, vehicle maintenance, and insurance, which can eat into profit margins for logistics companies operating in the market. Providers are not expanding their last-mile delivery services in low-margin segments constraining and supplying last-mile delivery costs to consumers which is restraining the global last-mile delivery market.
High last-mile costs create problems to entry for new manufacturers looking to enter the last-mile delivery market. Logistics providers cut corners on service quality to control costs leading to slower delivery times, and less reliable service results in customer dissatisfaction and decreased demand for last-mile delivery services, negatively affecting last-mile delivery market growth.
Market Segment Analysis
The global last-mile delivery market is segmented based on service type, destination, mode of operation, vehicle type, application, and region.
Growing Consumer Preferences and High Volume of Local Deliveries in Domestic
The domestic segment holds the largest share of the global last-mile delivery market. Domestic deliveries involve transporting goods within a country or region and constitute a significant portion of the last-mile delivery market. The rising demand for domestic last-mile delivery solutions in urban areas increases as rising urbanization further bolsters the dominance of the domestic segment in the market.
Consumers prefer domestic delivery options for faster delivery times, and familiarity with local delivery providers. Domestic delivery services offer convenience, allowing customers to schedule deliveries further boosting the demand for domestic delivery in the market. Domestic delivery services benefit from well-developed infrastructure facilitating efficient and cost-effective delivery operations.
Market Geographical Share
Growing Wide Infrastructure and Logistics Network in North America
North America is dominating the global last-mile delivery market. The region encourages developed transportation infrastructure road networks, advanced logistics facilities, and efficient delivery systems. Market players are developing new services for last-mile delivery operations, thus solidifying their dominance in the market.
For instance, on February 6, 2024, UPS launched an initiative in Canada, becoming the first integrated carrier to provide residential delivery offerings for all customers. This expansion in last-mile delivery options is accessible in the Greater Toronto Area. This move enhances convenience and accessibility for its customers across Canada.
Covid Impact Analysis On Market
The pandemic shifted consumers to e-commerce across demographics, including those previously less inclined to shop online. Increased online shopping as consumers turn to e-commerce platforms for their shopping needs with lockdowns and social distancing measures implemented higher demand for last-mile delivery services, boosting global last-mile delivery market growth.
Last-mile delivery services are implementing contactless delivery protocols, such as doorstep drop-offs and digital signatures, to ensure the safety of both customers and delivery personnel. Companies had to adapt quickly by investing in additional resources, optimizing routes, and hiring more delivery personnel to meet heightened demand and drive market growth.
Russia and Ukraine War Impact Analysis
The conflict disrupted supply chains, particularly in Eastern Europe, causing delays in the delivery of goods to distribution. This led to difficulties for last-mile delivery providers in fulfilling orders promptly and meeting customer expectations. Last-mile delivery providers passed on these higher costs to consumers, prompting shifts in consumer behavior and demand patterns and increased market demand.
Last-mile delivery faced challenges are road closures, security concerns, and disruptions to labor supply in regions directly affected by the conflict hindered the efficient delivery of goods increased operational costs for logistics companies, and led to fluctuations in demand for last-mile delivery services as consumers became more cautious about their purchasing decisions and boosted the market growth.
By Service Type (Business-To-Business (B2B), Business-To-Consumer (B2C), Customer-To-Customer (C2C)) By Destination (Domestic, International) By Mode of Operation (Non-Autonomous, Autonomous) By Vehicle Type (Motorcycle, LCV, HCV, Others) By Application (Food & Beverages, Retail & E-commerce, Healthcare, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 is segmented
Key Developments
- On November 7, 2023, Amazon launched its pioneering last-mile fleet initiative in India, marking a significant milestone as the company introduces a fleet comprised entirely of electric vehicles (EVs), a groundbreaking move on a global scale. This initiative is poised to empower over 300 Delivery Service Partners (DSPs) to conduct customer deliveries while eliminating tailpipe emissions.
- On September 22, 2022, Celcius Logistics, a rapidly expanding cold-chain marketplace startup in India, launched its innovative smart last-mile delivery platform aimed at resolving critical challenges within the country's delicate cold supply chains. In addition to this groundbreaking solution, the company has forged partnerships with vehicle owners and automotive manufacturers to establish a resilient network of reefer vehicles on the ground.
- On January 7, 2021, Mahindra Logistics Ltd. (MLL), a premier integrated third-party logistics (3PL) service provider, introduced its latest offering, the cargo last-mile delivery service, branded as ‘EDel’. Renowned for its exceptional 3PL solutions, MLL is venturing into the realm of sustainable last-mile logistics and fulfillment with the introduction of ‘EDel’, catering to clients across e-commerce, FMCG, and various other sectors.
Market Companies
The major global players in the last-mile delivery market include Amazon.com, Inc., United Parcel Service of America, Inc., FedEx, DHL International GmbH, Contrary Research, Starship Technologies, Zipline International Inc., DPDgroup, Hermes Europe GmbH, and Continental AG.
Why Purchase the Report?
- To visualize the global last-mile delivery market segmentation based on service type, destination, mode of operation, vehicle type, application, and region, as well as understand critical commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous last-mile delivery market-level data points with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of critical products of all the major players.
The global last-mile delivery market report would provide approximately 78 tables, 72 figures, and 213 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
