Last Mile Delivery Market Size, Share & Trends Analysis Report By Service Type (B2C, B2B, C2C), By Technology (Autonomous, Non-Autonomous), By Application, By Region, And Segment Forecasts, 2023 - 2030

Last Mile Delivery Market Size, Share & Trends Analysis Report By Service Type (B2C, B2B, C2C), By Technology (Autonomous, Non-Autonomous), By Application, By Region, And Segment Forecasts, 2023 - 2030

Last Mile Delivery Market Growth & Trends

The global last mile delivery market size is expected to reach USD 258.68 billion by 2030, expanding at a CAGR of 8.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. Last-mile delivery encompasses the final stage of the logistics process, involving transporting goods from distribution centers or fulfillment hubs to the end destination, typically the customer's doorstep or a retail store. This phase is important as it directly impacts customer satisfaction and loyalty, representing the final interaction between businesses and consumers.

The market growth is primarily propelled by the rapid expansion of e-commerce and the rising demand for swift and convenient delivery options. As online shopping surges, consumers now expect same-day or next-day deliveries, prompting businesses to strive for competitive advantage by meeting these expectations. Consequently, last-mile delivery services have become a pivotal differentiating factor for companies aiming to provide exceptional customer experiences and establish market dominance.

Moreover, technological advancements significantly contribute to market growth. Innovations such as real-time tracking, route optimization, autonomous delivery vehicles, and drones are revolutionizing delivery efficiency and speed, rendering last-mile logistics more cost-effective and dependable. The market for Last Mile Delivery offers substantial opportunities for businesses to capitalize on the burgeoning e-commerce sector and address the evolving preferences of modern consumers.

Successful navigation of last-mile delivery complexities and the adoption of innovative solutions enable companies to secure a stronger foothold in this fiercely competitive landscape. Additionally, optimizing last-mile delivery in densely populated urban areas presents a promising avenue for expansion. Overall, the market for Last Mile Delivery presents promising prospects for businesses to enhance their logistics capabilities and drive customer satisfaction in the fast-paced realm of e-commerce and digital commerce.

The last-mile delivery market is highly competitive. Major players invest in Research & Development (R&D) to drive innovations. Some prominent players in the market include A1 Express Services Inc., Deutsche Post AG (DHL GROUP), Power Link Expedite, and United Parcel Service, Inc. (UPS), among others. These key players are adopting different development strategies such as product launches, and mergers & acquisitions, among others to expand their presence and market share in the last-mile delivery space. Along with key strategies, these players are introducing new features to improve the customer experience.

In June 2023, Amazon announced that it was strategizing to enlist small businesses as part of its initiative to enhance last-mile delivery operations. This project, spanning 23 states in the U.S., involves diverse small businesses such as clothing stores, florists, and bodegas. While the precise compensation details remain undisclosed, Amazon approximates that a small business could earn up to USD 27,000 annually by undertaking delivery responsibilities. The anticipated volume of deliveries for these companies is set at approximately 30 packages per day, which Amazon considers the average. This delivery commitment includes weekends but excludes major holidays, and the estimated earnings for each package delivered amount to approximately USD 2.50.

Last Mile Delivery Market Report Highlights

• Last mile delivery pertains to the final phase of the logistics process, involving the transportation of goods from a distribution center or local hub to the ultimate destination, typically the customer's doorstep or a retail store
• The B2C service type segment dominated the market in the year 2022 with a revenue share of 70.6%
• The autonomous last-mile delivery segment is expected to expand at the highest CAGR of 17.6% from 2023 to 2030
• The food & beverages application segment is projected to advance at the fastest growth rate of 11.0% over the forecast period

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