Last Mile Delivery Market

Global Last Mile Delivery Market (2023 to 2028)

The global last-mile delivery market is worth USD 157.08 billion in 2023 and is anticipated to reach a valuation of USD 234.68 billion by 2028. It is predicted to register a CAGR of 8.36% from 2023 to 2028.

The last-mile delivery of a package is one of the most significant steps in the tracking process. This is because it's the last step when the package is delivered to the end user. It's also one of the most critical steps as customers want the package delivered fast. Firstly, the product needs to be ordered, which is entered into the centralized system to track it to ensure it is shipped. The second step of the process is ensuring that the order is transferred from the distribution center to the customer within the shortest time possible. In the third step, delivery personnel are assigned a specific route and address depending on the intended recipient. The fourth step is the scanning of the orders before they are loaded onto the delivery vehicles to which they will be delivered.

After this stage, the parcel reaches its destination, which is the point at which it reaches its destination. As soon as the delivery personnel verified and confirmed that the delivery had been successful, they updated the tracking information on the system.  

The various benefits offered such as integrating last mile delivery software to facilitate deliveries with minimal human intervention, automating route planning to arrive at the source of the delivery at minimum time, tracking your parcel at any time, and increasing productivity are driving this market. With the increase in Internet users, it is also expected that the market share of last-mile delivery will continue to rise.

There is a lack of transparency throughout the last-mile delivery process, which remains a significant barrier to market expansion. However, improved visibility can also open new opportunities for market expansion. A high delivery cost is also one of the most significant factors that are preventing the market from growing at a faster pace.

REPORT COVERAGE:

This research report on the global last mine delivery market is segmented and sub-segmented based on the delivery mode, service type, mode of operation, vehicle type, application, destination, and region.

Global Last Mile Delivery Market - By Delivery Mode:

• Regular Delivery
• Same-day delivery or Express Delivery

According to the delivery mode, the same-day delivery or express delivery segment is expected to lead during the forecast period. The various benefits of same-day delivery include better customer satisfaction, lower shipping costs, fewer vehicle expenses, increased efficiency, and the development of loyal customers. Customers who receive same-day delivery increase their business by placing repeat orders and providing positive feedback to others.

Global Last Mile Delivery Market - By Service Type:

• B2B
• B2C
• C2C

Customer-to-customer (C2C) is leading the service type segment and is expected to grow during the forecast period. Online delivery of parcels or any product is increasing from one person to another as it is a quick process and is cost-effective.

Global Last Mile Delivery Market - By Mode of Operation:

• Autonomous
• Non-Autonomous

Based on the mode of operation segment, autonomous is growing and is expected to lead the market for last-mile delivery. Autonomous vehicles have the potential to significantly reduce the cost of home delivery packages. Reduced fuel economy as a result of lower fuel consumption; reduced travel time and increased productivity; and reduced human intervention. These key factors are driving the market to grow at a significant rate.

Global Last Mile Delivery Market - By Vehicle Type:

• Motorcycle
• LCV
• HCV
• Drones

When it comes to last-mile delivery, drones are less expensive to purchase and operate than traditional modes of transportation. Furthermore, since they are battery-powered, there is no need for fuel to operate them. As the actual drone delivery operation is fully autonomous, labor costs can also be reduced as a result of this.

Global Last Mile Delivery Market - By Application:

• E-Commerce
• Retail and FMCG
• Healthcare
• Mails and Packages
• Others

At present, the retail and FMCG segments occupy the largest share of the market and are projected to grow during the forecast period. Following the post-pandemic, retail and FMCG saw a rapid increase in the market. Consumers who had been compelled to stay indoors because of the fear of infection quickly transitioned to online marketplaces offering delivery to their doorsteps.

Global Last Mile Delivery Market - By Destination:

• Domestic
• International

The international sub-segment of the destination segment is leading the market and is expected to grow during the forecast period. International last-mile delivery creates an opportunity for stores to sell to a larger audience. The international segment can increase your business revenue with standard procedures that need to be followed.

Global Last Mile Delivery Market - By Region:

• Latin America
• Europe
• North America
• Asia Pacific
• Middle East & Africa

North America is leading the segment and is expected to grow during the forecast period. In addition to the growing infrastructure in transportation, last-mile delivery companies have taken advantage of the advancement in technology to adapt to the challenging environment in the region.

 In the Asia Pacific market, a high growth rate is expected during the forecast period as a result of the increase in sales demand and the increasing number of internet users in the region. India, China, and Japan are the major markets driving the growth of the last-mile delivery market.

KEY MARKET PLAYERS:

Amazon.com, FedEx, USA Couriers, Matternet, United Parcel Service, Inc., A1 Express Services Inc., Drone Delivery Canada, Aramex, Dropoff Inc., and Werner Enterprises Inc. are some of the major key players involved in the global last-mile delivery market.

RECENT HAPPENINGS IN THE MARKET:

• In March 2022, FedEx announced that it would test electric carts for last-mile delivery in major cities in the United States and Canada, which will help address a major challenge that it faces in every major city it serves a lack of parking.
• In June 2021, FedEx Corporation and Nuro announced a collaboration to test Nuro's next-generation autonomous delivery vehicle within FedEx activities and to investigate various scenarios for on-road autonomous vehicle logistics.
• In June 2022, Drone Delivery Canada announced a collaboration with Edmonton International Airport to transport a diverse range of cargo for the benefit of Ziing Final Mile and Apple Express.
• In June 2022, Drone Delivery Canada Corp. announced a partnership with DSV Air & Sea Inc. Canada and Halton Healthcare Services Corporation will deploy DDC's patented drone delivery solution to provide an additional transportation link for Oakville Hospital.