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

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.