by The last mile delivery market comprises parcel delivery, courier and express services by various mobility platforms. Convenient and seamless doorstep delivery of e-commerce packages, food and other commodities has bolstered adoption. Last mile services leverage IoT-enabled tracking, alternative vehicles such as drones and electric vehicles to enhance efficiency.
The Last Mile Delivery Market Demand offers access to a wide range of logistical services including storage, sorting, transportation and delivery. It caters to needs across industries ranging from retail and e-commerce to shipping, food delivery and more. Customers value swift and reliable delivery, flexible payment options and integrated fulfillment.
The global last mile delivery market is estimated to be valued at US$ 174.62 Bn in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period between 2024 to 2031.
Key Takeaways
Key players operating in the last mile delivery market are Amazon Logistics, DHL Supply Chain, FedEx Corporation, UPS (United Parcel Service), XPO Logistics, Schenker AG, DPD Group, JD Logistics, ZTO Express, Yunda Express, Postmates (Uber), Glovo, DoorDash, Lalamove, and Sendy. Consolidation among major market players has intensified competition.
Growing e-commerce sales and expectations of instant gratification have significantly boosted demand for last mile delivery services. Companies across industries have come to rely on fast, affordable and flexible delivery of goods to end users. The market continues gaining from rapid expansion of the retail and logistics sectors.
Major players are also focusing on international markets through strategic partnerships, mergers and acquisitions. This helps expand delivery networks and capture greater market share. The widespread popularity of online shopping is prompting new entrants as well, thereby escalating the delivery arms race globally.
Market Key Trends
Automation is among the defining trends in the last mile delivery industry. Adoption of robotics, self-driving vehicles, computer vision and AI is enabling higher levels of efficiency, control and performance monitoring. Automated solutions address capacity issues, optimize routes, streamline operations and elevate customer experience. Their widespread integration looks to further accelerate market gains over the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale of existing players make entry difficult for new players. Bargaining power of buyers: Individual buyers have low bargaining power due to fragmented demand whereas large online retailers have high bargaining power. Bargaining power of suppliers: Couriers and delivery service providers have moderate power due to availability of substitutes and dependence of existing players on them. Threat of new substitutes: Threat from substitutes like on-demand transportation and self-driving vehicles is moderately high. Competitive rivalry: Intense competition among existing players to gain market share by improving delivery timelines and expanding service coverage areas.
Geographical regions with high market value
North America accounts for the largest share of the last mile delivery market in terms of value, owing to the presence of major e-commerce players and retailers such as Amazon and Walmart. Growing online purchases of goods and strict timelines for delivery in the region further drives market growth.
Fastest growing geographical region
Asia Pacific region is expected to witness the fastest growth in the last mile delivery market during the forecast period. Rapid growth of the e-commerce industry, young population increasingly adopting online shopping, and investments by global delivery players to expand presence in emerging countries are some key factors boosting the market in the region.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
