Last Mile Delivery Market Research Report Information By Service Type (B2C (Business-To-Consumer), B2B (Business-To-Business), And C2C (Customer-To-Customer)), By Technology (Autonomous Vehicles, Non-Autonomous Vehicles, And Drones), By Application (E-commerce, FMCG (Fast-Moving Consumer Goods), and others), By Delivery Time (Regular and Same-Day Delivery), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Global Last Mile Delivery Market Overview

Last Mile Delivery Market Size was valued at USD 169.8 Billion in 2023. The Last Mile Delivery industry is projected to grow from USD 197.3 Billion in 2024 to USD 564.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.20% during the forecast period (2024 - 2032). E-commerce industry growth and increased trading activities are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Last Mile Delivery Market Trends

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  Growing Popularity of e-Commerce Platforms Improving Delivery Services Drives Market Growth.

  
  

The increasing popularity of e-commerce platforms enhancing delivery services is the main driver of the global market's CAGR for Last-Mile Delivery. People were intrigued about how online shopping portals worked. Therefore, they grew exponentially during the last few years. Later, when consumers were accustomed to the online shopping model through numerous online portals and e-commerce platforms, they needed to be more confident in the delivery of their purchased things. Previously, the delivery period for an internet-ordered product was projected to be at least 7-8 working days. However, as time passed, e-commerce platforms improved the online buying paradigm, bringing anticipated delivery times closer to same-day delivery in some circumstances. Nowadays, the optimal delivery time for a random product purchased on an e-commerce platform is 3-4 working days, which has boosted the number of online shoppers to an all-time high. This resulted in a high demand for speedy delivery services, as delivery time has an impact on client retention on an online selling platform. This is where the last-mile delivery market comes into play since the logistics and shipping departments are critical to the growth of such e-commerce platforms.

Last-mile delivery services are vital for attracting and retaining customers, thereby increasing a company's earnings. Businesses may stand out in the competitive market and meet the growing need for rapid and convenient delivery services by offering same-day or next-day delivery options. In addition to meeting consumer expectations, this better customer experience encourages brand loyalty and trust, resulting in repeat business and long-term relationships with the organization. Effective last-mile delivery services, with same-day or next-day options available, can be strategically used by organizations to improve customer satisfaction and increase sales and revenue. Businesses can acquire a competitive advantage, promote client loyalty, and eventually achieve long-term success by focusing on providing exceptional delivery experiences.

The main trend driving market expansion is a strong focus on providing services to specific end-user categories. As a response to the healthcare industry's expanding issues, logistics service providers have begun to implement innovative logistics supply models for the medical and pharmaceutical sectors. These include rising medical device costs as a result of increased demand from the elderly and active populations. For instance, DHL's supply chain arm has created innovative logistics solutions for the medical industry, which combine field inventory, important medical devices, and quality management systems in a single location to improve traceability and control.

In addition, this model actively lowers the need to maintain and operate a large number of medical devices. All vital gadgets are delivered on the final mile and on a same-day basis. Major medical device manufacturers in North America are already using this supply chain approach, and it is projected to fuel market expansion throughout the projection period. Thus, driving the Last Mile Delivery Market revenue.

Last Mile Delivery Market Segment Insights

Last Mile Delivery Service Type Insights

The Last Mile Delivery Market segmentation, based on Service Type, includes B2C (Business-to-Consumer), B2B (Business-to-Business), and C2C (Customer-to-Customer). The B2C segment dominated the market, accounting for more than 70% of worldwide revenue in 2023. The growth of the B2C (Business-to-Consumer) category can be linked to a substantial shift in consumer behavior towards online buying and the rising popularity of e-commerce platforms.

Figure 1: Last Mile Delivery Market, by Service Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Last Mile Delivery Technology Insights.

The Last Mile Delivery Market segmentation based on technology includes Autonomous Vehicles, Non-Autonomous Vehicles, and drones. The non-autonomous segment led the market in 2023. Several major factors have influenced non-autonomous technology's widespread commercial acceptance. Despite the significant focus on autonomous delivery technology, such as drones and self-driving automobiles, non-automated tactics continue to dominate the last-mile delivery environment. Non-autonomous last-mile solutions are popular because they are cost-effective, adaptable, flexible, and have other advantages.

Last Mile Delivery Application Insights.

The global NGS-based RNA sequencing Market segmentation by application includes E-commerce, FMCG (Fast-Moving Consumer Goods), and others. The e-commerce sector, in particular, is expected to dominate the market due to the convenience of online shopping and customers' growing demand for fast delivery. This segment is the primary driver of this business since the growth of online shopping has increased demand for effective last-mile delivery services. The FMCG sector relies on timely and trustworthy delivery to ensure that perishable items reach clients on time. Others include a variety of additional applications such as mail and packages, food and beverage, and healthcare.

Last Mile Delivery Time Insights.

The Last Mile Delivery Market segmentation, based on Delivery Time, includes Regular and Same-Day Delivery. During the predicted year, the same-day delivery category will be the dominant mode of last mile delivery. This market is gaining popularity due to its several benefits, including better customer satisfaction, lower shipping costs, fewer transportation charges, increased efficiency, and the expansion of committed clientele. Customers' demand for faster delivery options has led to an increase in the popularity of same-day delivery.

Last Mile Delivery Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America dominated the last-mile delivery industry in 2023. North America has a well-developed transportation infrastructure that includes road networks, highways, airports, and distribution facilities, allowing for efficient last-mile delivery operations. The existence of modern logistics facilities and fulfillment centers allows logistics companies to expedite delivery procedures while meeting client expectations for timely and cost-effective deliveries. The fast expansion of e-commerce and online shopping has increased demand for last mile delivery services in North America. With the growing popularity of online shopping platforms like Amazon, Walmart, and Target, consumers anticipate quick and efficient delivery of their purchases, necessitating the need for dependable last-mile logistics solutions.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.

Figure 2: LAST MILE DELIVERY MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Last Mile Delivery Market accounts for the second-largest market share. The region's e-commerce activities are expanding rapidly, owing to a growing middle-class population, increased smartphone penetration, and improved internet connectivity, increasing online shopping and demand for efficient deliveries.  Further, the German Last Mile Delivery Market held the largest market share, and the UK Last Mile Delivery Market was the fastest-growing market in the European region.

The Asia-Pacific Last Mile Delivery Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the increasing demand for customized workflow, automation, and the simplification of complicated operational processes, all of which have had a significant impact on how businesses operate. Moreover, China’s Last Mile Delivery Market held the largest market share, and the Indian Last Mile Delivery Market was the fastest-growing market in the Asia-Pacific region.

Last Mile Delivery Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Last Mile Delivery Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Last Mile Delivery industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Global Last Mile Delivery industry to benefit clients and increase the market sector. In recent years, the Last Mile Delivery industry has offered some of the most significant advantages to medicine. Major players in the Last Mile Delivery Market, including Accenture Plc, CMA CGM SA Group, Deutsche Post AG, DSV AS, FarEye Technologies Inc., FedEx Corp., FM LOGISTIC CORP, and others, are attempting to increase market demand by investing in research and development operations.

DHL is a German logistics firm that offers courier, package delivery, and rapid mail services, delivering over 1.7 billion parcels annually. DHL Express, a part of the German logistics corporation DHL Group, is one of Europe's leading parcel services providers and Germany's primary courier and parcel delivery service. In April 2021, DHL Express teamed up with Fiat Professional to further electrify last-mile delivery. This is another step towards DHL Express's aim of electrifying 60% of its fleet by 2030.

FedEx Express is a large American freight airline headquartered in Memphis, Tennessee, USA. As of 2023, it is the world's largest cargo airline by fleet size and freight tonnes carried. It is the namesake and major company of FedEx Corporation, delivering goods and packages to over 375 locations in 220 countries across six continents every day. FedEx Express is the world's largest express transportation provider. In March 2019, FedEx paid $129.8 million for P2P Mailing Limited, a provider of global e-commerce shipping solutions, thereby considerably expanding its last-mile network.

Key Companies in the Last Mile Delivery Market include

• Accenture Plc


• CMA CGM SA Group


• Deutsche Post AG


• DSV AS


• FarEye Technologies Inc.


• FedEx Corp.


• FM LOGISTIC CORP.


• Honeywell International Inc


• Infosys Ltd.


• Walmart Inc


• Ryder System Inc


• Target Corporation


• Amazon Inc,


• Seko Logistics


• XPO Logistics

Last Mile Delivery Industry Developments

In June 2023, Amazon announced intentions to enlist small firms in its push to improve last-mile delivery operations. This project, which spans 23 states in the United States, would involve a variety of small companies, including clothes boutiques, florists, and bodegas. Amazon estimates that a small firm can earn up to USD 27,000 per year by taking on delivery obligations. The projected average delivery volume for these companies is roughly 30 items per day. This delivery commitment covers weekends but excludes major holidays, and the projected earnings per box delivered are around USD 2.50.

In February 2019, FedEx Corporation, a significant stakeholder, announced the creation of cutting-edge delivery solutions to meet rapidly changing and newly developing consumer expectations. Furthermore, it debuted the FedEx SameDay Bot, an autonomous delivery gadget designed to assist businesses in making last mile and same-day deliveries to clients.

Last Mile Delivery Market Segmentation

Last Mile Delivery By Service Type Outlook

• B2C (Business-to-Consumer)


• B2B (Business-to-Business)


• C2C (Customer-to-Customer)

 Last Mile Delivery By Technology Outlook

• Autonomous Vehicles


• Non-Autonomous Vehicles


• Drone

Last Mile Delivery By Application Outlook

• E-commerce


• FMCG (Fast-Moving Consumer Goods)


• Others

Last Mile Delivery By Delivery Time Outlook

• Regular Delivery


• Same-Day Delivery

Last Mile Delivery Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America