USD 131.5 billion
Last Mile Delivery Market Size, Share, Growth Analysis, By Type(B2B, B2C, and C2C), By Technology(Autonomous and Non-autonomous), By Application(Food & Beverages, Retail & E-Commerce, Healthcare and Others), By Delivery Time(Regular Delivery, and Same Day Delivery), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG20Y2005 |
Region:
Global |
Published Date: July, 2024
Pages:
157
|Tables:
120
|Figures:
77
Last Mile Delivery Market Insights
Last Mile Delivery Market size was valued at USD 144 Billion in 2023 and is poised to grow from USD 156.24 Billion in 2024 to USD 299.85 Billion by 2032, growing at a CAGR of 8.5% during the forecast period (2025-2032).
The demand for last mile delivery is increasing rapidly mainly due to the increasing consumer expectations for same-day or next-day deliveries. The increasing popularity of real-time tracking and visibility, and emergence of on-demand services are also propelling the growth of the market. Last mile delivery refers to the last stage of the logistics procedure, that involves transporting goods from a distribution center or local hub to the destination, frequently at the consumer’s doorstep or a retail store. This last stage is extremely significant as it represents the last communicating point with the customer and has a huge impact on the overall customer experience and satisfaction. Lately, the popularity of the market has massively increased owing to a surge in e-commerce and the rising demand for rapid and dependable services. Furthermore, businesses, retailers, and logistics organizations are investing in smoothening their last mile delivery to make sure they provide punctual and efficient deliveries. This has also given rise to many innovative methods and advanced technologies, progressing the market. These factors are propelling the growth of the last-mile delivery market.
US Last Mile Delivery Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
B2B (Business-To-Business)
Fastest Growth
B2B (Business-To-Business)
Growth Rate
8.13% CAGR
Global Last Mile Delivery Market ($ Bn)
Country Share for North America Region (%)
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Last Mile Delivery Market Segmental Analysis
Global Last Mile Delivery Market is segmented based on Type, Technology, Delivery Time, Application, and region. Based on Type the market is segmented into B2B (Business-To-Business), B2C (Business-To-Consumer), C2C (Customer-To-Customer). Based on Technology the market is segmented into autonomous and non-autonomous. Based on Delivery Time the market is segmented into Regular Delivery, Same-Day Delivery. Based on Application the market is segmented into Food & Beverages, Retail & E-Commerce, Healthcare and Others. Based on region the global market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Analysis by Type
Based on type, the market is segmented into B2C, C2C, and B2B. The B2C segment is dominating the market with the largest market share. This is primarily due to a massive shift in consumer behavior towards online shopping and the rising prevalence of e-commerce platforms. Furthermore, businesses are also understanding the necessity of providing extremely efficient and customer-centric services. These factors are propelling the growth of the B2C segment, ultimately boosting the market growth. This trend will continue to grow as businesses admit the significance of offering smooth, convenient, and customer-based service experiences. To address these changing preferences of modern customers in the digital era, businesses are investing to better their last-mile logistics and strategically using technologies. As companies continue to adopt these approaches the B2C last mile delivery will experience constant growth in these competitive commerce settings. This is also augmenting the development of last mile delivery.
The C2C segment is witnessing the fastest growth in the last mile delivery market. This is because of the increasing trend where consumers are using the services to enable direct deliveries between themselves. In this model, people can easily deliver goods to their friends or families without the intervention of conventional business or retailers. The increase of peer-to-peer marketplaces and online platforms have massively expedited the growth of C2C service type. These platforms serve as intermediaries, connecting people who want to send or receive goods, creating a decentralized network for performing such deliveries. With the increasing popularity of C2C last mile delivery the demand for last mile delivery is increasing exponentially. This model also has many benefits like improved flexibility, cost savings, and better community engagement.
Analysis by Technology
Based on technology the market is segmented into non-autonomous and autonomous. The non-autonomous segment is leading the last mile delivery market. This is mainly because it is cost-efficient, easy to adapt, flexible, and along with other favorable features of non-autonomous last mile delivery. Non-autonomous vehicles and methods are extremely cost-effective, especially for transportation over short distances. Moreover, the initial expense related to implementing autonomous technologies can also be extremely high. These features make non-autonomous options more attractive, especially for small businesses or the ones who have budgetary constraints. Moreover, the lifespan of non-autonomous technology practices is longer. They have already proven their success in implementation and operation, contributing to an increase in trust and reliability in both businesses and customers. This established track record is increasing their appeal, thus augmenting the growth of the segment in the last mile delivery market.
The autonomous segment is experiencing the fastest growth as the logistics sector is going through huge transformation with technological innovations. These developments are paving the way for embracing autonomous solutions like drones and self-driving vehicles. The adoption of such innovations will continue to increase in the last mile delivery market with the continuous improvements in autonomous technologies. These enhancements increase their potential, safety, and dependability, making them perfect for real-world usage in last-mile delivery operations. The constant advancement of this technology is going to shape the future of last mile delivery. It must provide complete and flexible solutions that can meet the changing demands of businesses and customers. As companies and consumers adopt the potential offered by autonomous technologies it can revolutionize the dynamics of last mile delivery. It can improve efficiency, customer experience, and open new opportunities for the progression of the market.
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Last Mile Delivery Market Regional Insights
North America is leading the last mile delivery market. This is mainly due to the region’s dominance in the evolving logistics settings. Lately, North America is witnessing a massive surge in e-commerce activities due to the rising number of people favoring online shopping. This is because it is convenient, and people get to see more varieties of products. This has augmented the demand for last-mile delivery services in the region, propelling the growth of the market. Furthermore, the region’s robust technological structure is also contributing to the growth of the last-mile delivery services. The adoption of innovative logistics technologies like real-time monitoring system, route optimization, and automated delivery solutions improved the efficiency of last mile operations. The combination of these factors is driving the last mile delivery market in the region.
Asia Pacific is witnessing the fastest growth in the market. This is due to the rapid advancement of the region and its transformation into a prominent force in the ever-evolving logistics settings. The market in this region is advancing rapidly due to a rise in middle-class population, increasing usage of smartphones, and growing internet connectivity. These factors have led to a surge in online shopping and increasing the demand for efficient last mile delivery. The amalgamation of these factors has solidified its position in the market, which will continue to grow. Asia Pacific can maintain their leadership role in restructuring the last mile delivery market with its growing e-commerce market and technological innovations.
Global Last Mile Delivery Market By Geography
- Largest
- Fastest
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Last Mile Delivery Market Dynamics
Last Mile Delivery Market Drivers
Growing Focus on Service to Particular End-User Segment
- The emphasis is increasing on providing services to specific end-user segments is one of the main drivers shaping the market growth. Many logistics service organizations have started operating new logistics supply model for the medical and pharmaceutical industry due to the rising difficulties in the healthcare sector. These consist of growing expenses of medical devices due to increasing population and chronic ailments. This type of delivery minimizes the requirement to actively maintain and operate a large stock of medical devices. All vital devices are offered on a last-mile delivery and same-day delivery basis. This supply chain model is already being used by many medical device companies and will boost market growth.
Premiumization of Goods and Merchandize Delivery
- Premiumization in the logistics services refers to the premium prices customers must pay for faster deliveries. The emphasis on premiumization is increasing due to the surge in the number of last mile or same day deliveries. It has been seen that nowadays most of the online retail consumers are ready to pay a premium amount over standard delivery charges for same day or instant deliveries of their purchased products.
Restraints
Risk of Failed Delivery
- The difficulty that most delivery workforce might have to deal with while delivering packages is the problem of last mile delivery. Delivery people mostly drop packages at different places like apartments, P.O. boxes, and homes with massive driveways. This can make the procedure slow and leaves more room for mistakes. Many customers complain about experiencing delivery problems while shopping online, which adversely impacts the shopping experience. Deliveries that are missed, made late, or lost can be expensive for the business as they might have to refund the consumers and reduce their profits margins.
Increased Carbon Emissions
- One of the most carbon-intensive stages of e-commerce delivery fulfilment is the last mile delivery. This is primarily created by constant stoppages, idling, and traffic congestion that reduces fuel efficiency. However, shifting to more eco-friendly modes of transportation such as electric delivery trucks or smaller trucks are gradually becoming popular. But this will directly influence the expense of the final delivery stage hindering the growth of the last mile delivery market.
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Last Mile Delivery Market Competitive Landscape
The last-mile delivery market has a dynamic and intense competitive structure, with several market players providing a wide range of delivery solutions. They fulfil the rising demand of consumers and businesses. This consists of prominent logistics providers, e-commerce leaders, advanced startups, and technology organizations. Many companies are also increasing their market presence by implementing various developmental strategies like product launches and mergers & acquisitions. Moreover, businesses are constantly introducing new features to improve customer experience and increasing the competition in last-mile delivery.
Last Mile Delivery Market Top Player’s Company Profiles
- Amazon Logistics (US)
- DHL Express (Germany)
- FedEx (US)
- UPS (US)
- United States Postal Service (USPS) (US)
- China Post (China)
- JD Logistics (China)
- Alibaba Cainiao (China)
- XPO Logistics (US)
- DPD Group (France)
- SF Express (China)
- Delhivery (India)
- Uber (Postmates) (US)
- Instacart (US)
- Hermes (Germany)
- Blue Dart (India)
- Yodel (UK)
- Gojek (Indonesia)
- Grab (Singapore)
- Lalamove (Hong Kong)
- DoorDash (US)
- ZTO Express (China)
Last Mile Delivery Market Recent Developments
- In March 2024, Yango launched their autonomous last mile delivery. The solution uses cutting-edge AI and advanced robotics.
- In February 2024, Starship Technologies acquired USD 90 Million in Funding, led by Plural and Iconical. The objective of the funds was to boost the expansion of efforts to meet increasing demand for home deliveries.
- In December 2023, Cenntro Electric Growup Limited, delivered more than 250 autonomous vehicles to Zelos Technology Co., Ltd.
Last Mile Delivery Key Market Trends
- Increasing Demand for Quick Delivery: The growing customer demand for quick deliveries is immensely forming the structure of last mile delivery services. Nowadays, customers want quick and efficient delivery choices that meet their requirements. Due to this companies are encouraged to offer speedy delivery services for satisfying the shifting needs and quick deliveries for customers. Furthemore, the compannies who can efficiently offer quick delivery services without raising expenses will be in a better position in the market.
- Rising Demand for Speedy Delivery: The increasing customer demand for rapid deliveries is massively shaping the structure of last mile delivery services. Nowadays, consumers demand quick and efficient delivery choices that fulfil their schedules. Organizations are encouraged to adapt and offer express delivery services to satisfy the consumers' changing requirements and high demand for prompt deliveries. Companies that can efficiently provide fast delivery options without increasing expenses will be in a better position in the market.
- Real-Time Delivery Tracking: Customers can get real-time information about the status of their shipment due to robust retail delivery software. Consumers and store management can monitor the progress of the shipment until it reaches its destination. It increases customer satisfaction as they can see whether their goods will safely reach them or not.
Last Mile Delivery Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global last mile delivery market is witnessing a surge due to the increasing demand of e-commerce. As more people prefer online shopping, the popularity of efficient and punctual last mile delivery increases. Furthermore, consumers are also expecting rapid and convenient delivery options. The growing demand for on-demand services along with same day or next day delivery is encouraging organizations to invest in enhancing their last mile delivery.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 144 Billion |
| Market size value in 2032 | USD 299.85 Billion |
| Growth Rate | 8.5% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Last Mile Delivery Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Last Mile Delivery Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Last Mile Delivery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Last Mile Delivery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Last Mile Delivery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Last Mile Delivery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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