Market Overview

Global Last Mile Delivery Market size was valued at USD 143.34 Billion in 2023 and is poised to grow from USD 155.41 Billion in 2024 to USD 296.73 Billion by 2032, growing at a CAGR of 8.4% in the forecast period (2024-2032).

The global last mile delivery market is the final stage of the logistics and supply chain process, in which the products are delivered from a transport hub or distribution centre to the end destination, typically the consumer's doorstep. This final mile of the supply chain is now commonly recognized as the most critical and costly part of the delivery cycle because it involves traveling through congested urban infrastructure, managing time-sensitive deliveries, and optimizing the delivery route to meet consumers. Demand for last mile delivery has surged with the surging popularity of internet shopping, fuelled by the growing requirement for faster, more reliable, and more adaptable shipping. Customers now also require fast delivery, at times in the same day or within a few hours since ordering, hence putting pressure on logistics companies to innovate and play catch-up.

Technological advancement has been the main force behind driving last mile delivery. Data analytics, artificial intelligence, and machine learning have become the forces behind routing optimization for delivery, fuel usage reduction, and operating efficiency. New technologies such as self-driving vehicles, unmanned aerial systems, and package robots are also penetrating the market promising to reduce labour costs and transport packages at faster speeds, particularly in dense urban areas. Moreover, the use of real-time tracking and communication technologies has enabled customers to remain informed about their deliveries, enhancing customer satisfaction even further.

The demand for last mile delivery solutions is driven by various factors, including the growth of e-commerce, the need for better customer experiences, and the need for sustainable delivery practices. As more consumers shop online, especially with the growth in mobile commerce, the need for efficient and reliable last mile solutions has become increasingly important. This has led to increasing numbers of logistics companies, third-party vendors, and new entrants seeking to offer last mile services to individual consumers and businesses.

Besides, sustainability is now at the top of everybody's list with most logistics’ players, and organizations are focusing on reducing carbon signatures by the usage of electric, route planning optimization, and environment-friendly packaging. These activities not only arise because of the mandates of regulatory imperatives and those of the clientele but also through the recognition of the fact that sustainable strategies yield cost reductions over the long term.

Key Findings:

• Yango started making last-mile deliveries independently in March 2024. AI and advanced robotics are employed in the solution.
• Starship Technologies under the management of Plural and Iconical raised USD 90 million funding in February 2024. The money was raised to grow initiatives to meet the increasing demand for home delivery services.

Market Drivers

Increasing Consumer Demand for Faster Deliveries

• The increasing need for quick delivery among consumers has emerged as a key trend in the international last mile delivery market. With online shopping gaining momentum, consumers are increasingly seeking quicker turnaround on their online purchases, with some customers asking for next-day or same-day delivery. This is a consumer pull that was initiated by the emergence of front-running e-commerce leaders like Amazon that have set the bar high in terms of the speed of delivery. In response, companies in most industries but some are being forced to deliver faster and more conveniently in an attempt to keep pace. Convenience is what consumers want today, and being able to have products delivered in hours of purchasing them is a huge part of the shopping experience.
• the heightened portability of applications and devices has provided space for customers to track their deliveries in real time, boosting the demand for immediate gratification. Since companies are pressured to transform logistics operations, adopt cutting-edge technologies like automation, and de-bottle-neck the supply chain in an effort to meet heightened consumer demands, the demand for quickness is being experienced. But such requisites of getting are not trouble-free because the companies need to balance speediness with sustainability as well as affordability without any loss in customer satisfaction.

Key Findings:

• Seeking to grow Flipkart's business and upgrade its digital infrastructure to reach customers across India, Google LLC is investing US$ 350 million in Flipkart as part of a nearly US$ 1 billion funding round led by Flipkart's majority owner, Walmart Inc. The two firms also plan to further leverage Flipkart's use of Google's cloud platform.
• On August 25, 2023, two-year-old startup Zepto became India's first 2023 unicorn when it raised $200 million in fundraising and valued at US$1.4 billion.
• Aside from the US$ 2 billion previously invested in its digital arm in the earlier part of the year, the Tata Group announced in October 2023 that it will further invest US$ 1 billion in its super app, Tata Neu.
• Some of the prominent achievements of Amazon India in 2023 include the digitalization of 6.2 million small businesses, the generation of 1.3 million job opportunities, the enablement of US$ 8 billion in exports, and the crossing of a seller base of 14 lakh with three lakh new additions. In addition to inking an MOU with DGFT for MSME capacity-building initiatives, they also committed to further digitalizing 10 million businesses, facilitating US$ 20 billion worth of exports, and creating two million jobs by 2025.

Adoption of Eco-Friendly Delivery Solutions

• Green delivery solutions have seen huge popularity in the last mile delivery business in the world as consumers have become environmentally friendly and companies are compelled to reduce their carbon footprint. As consumers become green, they also expect companies to go green, for example, by offering green delivery solutions. This has prompted different logistics suppliers to look for alternative modes of delivery, such as electric vehicles (EVs), cargo bikes, and using eco-friendly packaging material. Firms are also adopting route optimization software that optimizes fuel consumption and decreases greenhouse gas emissions by eliminating congested roads or using more energy-efficient fleets. Governments and regulators are also fostering this transformation through the imposition of tighter environmental regulations and rewarding sustainable logistics methods.
• Embracing environmentally friendly delivery solutions not only reduces the environmental footprint of transportation but also positions businesses on the path towards sustainability goals, which in turn can positively reflect on their image and gain green-conscious customers. Although transitioning to greener delivery solutions may initially incur expenses, long-term gains are seen through lower operating expenses, customer retention, and regulation compliance, rendering it a financially attractive option for businesses targeting both profitability and sustainability.

Market Opportunities

Development of Smart Packaging Solutions

• The demand to enhance customer satisfaction, product safety, and delivery efficiency is the driving force for the creation of smart packaging solutions as the top opportunity in the global last mile delivery market. For real-time tracking, monitoring, and delivery process communication, smart packaging adds advanced technology such as sensors, RFID tags, QR codes, and Internet of Things-enabled devices to package material. These technologies ensure secure transportation of fragile commodities such as food, medicines, and electronics by providing detailed information regarding the condition of the package, whether it has been exposed to temperature, humidity, and whether it had been tampered with. Intelligent packaging gives online commerce more transparency by providing timely delivery of information straight to the customers' hands, boosting the trust and joy of the customers. Convenience is being delivered via interactive packaging solutions that enable clients to make use of barcodes or mobile apps to show products and shipping details. Waste is lessened by using green technology materials in delivering recyclability and breakdown with a wave of environmental concern as people are looking for earth-friendliness in processes. Smart packaging is a smart business move by companies attempting to remain players in the changing delivery environment, even at the possible expense of some high up-front installation. There is less breakage of product, greater control over logistics, and increased long-term customer retention

Market Restraining Factors

Delivery Delays Due to Weather Conditions

• Weather-related delays in delivery are a significant challenge in the global last mile delivery market since unpredictable and extreme weather can affect logistics operations and the delivery schedule. Hostile weather such as heavy downpour, snowstorms, hurricanes, or floods can make routes impassable, delay flights, and disrupt transportation networks, and shipments get delayed or rerouted. Such interruptions are particularly infuriating for time-sensitive deliveries, such as perishables, medication, or foods, where lateness will lead to spoilage or devaluation. Furthermore, extreme weather conditions are driver and vehicle safety hazards, and so companies implement protocols that can further delay procedures.
• Climate change also increased the strength and frequency of extreme weather phenomena, presenting permanent challenges to the logistics companies. In an attempt to counter delays, companies have been investing in sophisticated technologies such as real-time weather monitoring equipment and route plotting systems to be able to anticipate disruptions and make pre-emptive scheduling plans for delivery times. Even after these measures are taken, nonetheless, weather-induced issues remain in large part unmanageable to humans, thus compelling companies to weigh efficiency and safety in service to customers' needs for speed of delivery.

Segmentation Analysis

The market scope is segmented because of by Service Type, by Technology, by Application.

• By Service Type

Based on the Service Type of the market is segmented into B2C, B2B, C2C.

Among the B2C (Business-to-Consumer), B2B (Business-to-Business), and C2C (Consumer-to-Consumer) service types segments one segment of B2C has been leading the world's last mile delivery market. The foremost reason for the same is that there has been a tremendous boost in e-commerce at an exponential rate, thus transforming the purchasing pattern of customers to a high extent. With increased online shopping platforms like Amazon, Alibaba, and Walmart, businesses have placed extremely high value on end-to-end delivery of products to customers' doorsteps. This has caused record-breaking growth in the need for fast, flexible, and economical last mile delivery since consumers are interested in fast delivery, real-time monitoring, and doorstep delivery.

In the B2C sector, leadership also comes through extensive utilisation of payment technologies and mobile commerce, leading to increased convenience and ease of access to online shopping. Companies are also embracing new technologies such as AI-based route optimisation, drone delivery, and autonomous trucks in order to deliver increasing expectations on day-one or same-day shipping. The pandemic of COVID-19 has, in turn, accelerated B2C delivery growth further, as lockdowns and social distancing also drove consumers to buy more online, including groceries and essentials.

• By Technology

Based on the Technology of the market is segmented into Autonomous, Non-autonomous.

The non-autonomous portion currently dominates the world's last mile delivery market in technology segments. This dominance is largely due to extensive reliance on conventional delivery methods, including human-driven vehicles, bikes, and hand-courier services, that are cheaper and easier to install compared to autonomous technologies. The non-autonomous segment benefits from existing infrastructure, labour availability, and pre-existing logistics networks, allowing firms to achieve last mile delivery with no significant technological or regulatory hurdles. For the majority of firms, especially small and medium-sized enterprises (SMEs), investing in non-autonomous delivery solutions remains the most feasible option due to less capital outlay and convenience.

Although autonomous technology like drones, delivery robots, and autonomous vehicles are future-critical for the upcoming periods, their implementation is yet in its infancy stage with several hindrances arising in the process of development. Challenges which have hindered them from sweeping applications in various industries are issues with regard to regulations, safety concerns, the outrageously costly nature of developments, and the requirement of robust infrastructure support for autonomous systems. Autonomous technology also faces challenges in operation in metropolitan areas within large cities and complex delivery environments where human responsiveness and judgment remain invaluable.

• Regional Snapshots

North America is the world's leading market in the last mile delivery industry today, spurred primarily by its established e-commerce market, highly developed logistics network, and high penetration of technology. Its largest e-commerce companies, including Amazon, Walmart, and eBay, are based here, and they have set new standards for speed, efficiency, and customer satisfaction in delivery. The firms are still investing heavily in next-generation delivery technologies such as route optimization, real-time visibility, and autonomous vehicle and drone pilot programs. In addition, the well-established road infrastructure, heavy urbanization, and high consumer demand for same-day and next-day deliveries have further cemented North America as the ideal market for last mile delivery.

Also, the receptiveness of the region to the use of new technologies and eco-friendly methods such as electric delivery vans and smart warehouses allows the logistics firms to address environmental concerns and optimize efficiency. Quicker and more agile delivery requirements by the consumers also continue investments pouring into the sector. The presence of a number of start-ups and tech-savvy logistics firms is also supporting the dominance of North America in the market.

List of Companies Profiled

• A1 Express Services Inc.
• Deutsche Post AG (DHL GROUP)
• Power Link Expedite
• United Parcel Service, Inc. (UPS)
• FedEx
• XPO Logistics, Inc.
• com
• Kerry Logistics Network Limited
• Drone Delivery Canada Corp.
• A2Z Drone Delivery, LLC

Key Industry Developments

• Cenntro Electric Growup Limited shipped over 250 self-driving cars to Zelos Technology Co., Ltd. in December 2023.
• UPS announced in November 2023 that it had successfully completed the acquisition of MNX Global Logistics (MNX), an international time-sensitive logistics provider. On November 2, 2023, the transaction completed after it had received all requisite regulatory approvals.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Last Mile Delivery Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Last Mile Delivery Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Last Mile Delivery market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Last Mile Delivery. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Last Mile Delivery companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Last Mile Delivery Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Last Mile Delivery Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase

• To gain insightful analyses of the Last Mile Delivery market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Last Mile Delivery market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Last Mile Delivery market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Last Mile Delivery Market

• Historic year: 2019-2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million

Last Mile Delivery Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: