Global Last Mile Delivery Market 2023-2030

Global Last Mile Delivery Market 2023-2030

Global Last Mile Delivery Market Size, Share & Trends Analysis Report Market by Service Type (Business-To-Business (B2B), Business-To-Consumer (B2B), and Customer-To-Customer (C2C)), by Vehicle Type (Motorcycle, Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV), and Drones), and by Application (E-Commerce, Retail and FMCG, Healthcare, Mail and Packages, and Others) Forecast Period (2023-2030)

The global last mile delivery market is anticipated to grow at a CAGR of 8.5% during the forecast period. The growing penetration of mobile computing devices, trade globalization, along with the increase in number of different e-commers vendors is a key factor driving the growth of the global last mile delivery market. According to the Asian Development Bank, Asian cities are growing rapidly, another 1.1 billion people is expected to live in the region's cities by 2028. Additionally, by 2030, more than 55.0% of the population of Asia will be urban. Rapid urbanization is anticipated to propel the consumer goods demand and this growing demand offers the opportunity for businesses to expand their activities in other countries through online channels, thereby encouraging the last mile delivery market.

Last mile services play a very important role in logistics market. The e-commerce companies distribute their products to the customers by their network of supply chain or by taking the support of outsourcing companies such as UPS, FedEx Corp., and BlueDart Express. These companies are using several initiatives to attract a large number of e-commerce companies. FedEx Corp. offers domestic pickup-and-delivery services in many non-US countries, including France, UK, Australia, Brazil, Italy, Canada, Mexico, Poland, India, China, and South Africa. The company further offers flexibility in pickup and delivery options.

To grab a massive market share key players are adopting different growth strategies such as partnership and collaboration. For instance, Amazon is exploring partnerships with small businesses to deliver packages with intent to expand Amazon Hub Delivery program to dense cities like Boston, LA, and Seattle. Strategy aims to decrease dependency on other delivery companies and differentiate Amazon’s services.

Segmental Outlook

The global last mile delivery market is segmented based on service type, vehicle type and application. Based on service type, the market is segmented into B2B, B2B, and C2C. Based on vehicle type, the market is segmented into motorcycle, LCV, HCV, and drones. Based on application, the market is sub-segmented into E-Commerce, retail & FMCG, healthcare, mail & packages, and other.

Motorcycle is Expected to Hold a Considerable Share in the Global Last Mile Delivery Market

Motorcycle is expected to hold a considerable share based on vehicle type. Borzo, a global intra-city delivery service, surveyed 6,000 delivery riders regarding the adoption and perception of EV scooters for performing deliveries. ""The results indicate a significant shift towards embracing EVs as the preferred choice for last mile deliveries."" Even among those who have not yet adopted EVs, over 70.0% expressed readiness to use an EV in the future for delivery operations. The growing adoption of EV scooter for last mile delivery is anticipated to drive the growth of this market segment.

Regional Outlooks

The global last mile delivery market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, North America to hold a considerable share in the global last mile delivery market.

Global Last Mile Delivery Market Growth by Region 2023-2030

Source: OMR Analysis

The Asia-Pacific Region is Anticipated to Exhibit a Considerable Growth in the Global Last Mile Delivery Market

The Asia-Pacific region is anticipated to exhibit a considerable growth in the global last mile delivery market. The growing demand for last mile deliver has driven the growth of this regional market. Emerging economies such as India, with its rapid urbanization and increasing population faces significant challenges in providing efficient and sustainable last-mile transportation solutions. Electric vehicles (EVs) have emerged as a promising alternative, and among them, electric three-wheelers, which occupy more than 28.0% of space in the EV pie of India, are transforming India's last-mile transportation sector. In March 2023, India Post, India’s postal service provider, signed a memorandum of understanding (MoU) with Shiprocket, a logistics aggregator company, to enhance its last-mile delivery services for various e-commerce products. Such developments are further contributing towards the regional market growth.

Market Players Outlook

The major companies serving the global last mile delivery market include Amazon, Inc., Alibaba Group Holding Ltd., eBay Inc., and FedEx, among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in June 2023, a same-day delivery service DODO announced its expansion into the German market. It's a move that reinforces the permanence of same-day last mile delivery. To support players across industries, DODO has built its own software and delivery ecosystem in years of development work, which it also offers as a white-label solution for direct integration into its own IT structure.

Further, in July 2021, FedEx invested $100 million into the Indian Gurgaon-based logistics and supply chain startup Delhivery. As a part of the investment, FedEx Express India and Delhivery will be entering into a long-term commercial agreement leveraging both parties’ strengths.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global last mile delivery market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.