The Last Mile Delivery Market is estimated to be valued at US$ 312.04 Billion in 2031

A newly published report by Coherent Market Insights reveals a sustainable growth opportunity in the last mile delivery market. Coherent Market Insights’ analyst projected the last mile delivery market to be valued at US$ 312.04 Bn in 2031. It is expected to exhibit a CAGR of 8.6% over the forecast period 2024-2031.

The last-mile technologies and growth of the e-commerce industry drive market growth. Technological advancements, including drones, robots, and self-driving vehicles, help companies to provide faster delivery at a lower cost. The use of such technologies helps automate the sorting and delivery of packages, which prominent players are increasingly adopting in order to streamline their operations and satisfy the need of the consumers for speed and convenience.

For example, Starship Technologies uses autonomous vehicles to deliver food and packages to customers within 10-15 minutes. On the other hand, the exponential growth of the e-commerce industry has increased the number of low-value and time-sensitive deliveries, fuelling the need for efficient last-mile delivery solutions.

Key market trends include Crowdsourcing Models: The increasing use of crowdsourcing models is a key trend driving market growth. Crowdsourcing delivery models such as Amazon Flex and Instacart involve recruiting independent contractors to handle deliveries during their free time using their personal vehicles. This reduces costs and improves pickup and drop-off flexibility for delivery companies.

Expansion Of Delivery Services Beyond Merchandise Delivery: The scope of last-mile delivery is no longer just limited to the delivery of merchandise, as logistics companies and companies specializing in food delivery have expanded their services for mail/packet and pharmaceutical delivery. For example, FedEx, in partnership with U.S. Postal Service, provides last-mile delivery of mail and parcels within the U.S.

Last Mile Delivery Market Opportunities: The B2C segment accounts for the majority of last mile delivery as most goods and packages are delivered directly to consumers. This includes online retail purchases delivered to homes as well as food delivery services. As e-commerce continues to grow rapidly and more consumers choose online shopping and food delivery options.

While B2C makes up a large portion of last mile deliveries, the B2B segment also plays an important role in getting supplies and goods to commercial businesses. As more companies adapt mobile workforce solutions and require faster delivery of parts, components and supplies, the B2B portion of the last mile delivery market is anticipated to see substantial growth. Efficient delivery to businesses will remain critical for supply chain management.

Road transport leads the different delivery modes as the majority of last mile deliveries currently happen using trucks and vans on roads. Its cost effectiveness makes road transportation highly prevalent for delivering packages and goods to consumers and businesses. The road delivery mode is expected to dominate the overall last mile delivery market over the coming years.

Key Market Takeaways: The global last mile delivery market is anticipated to witness a CAGR of 8.6% during the forecast period 2024-2031, owing to rapid growth of e-commerce and increasing demand for faster delivery options.

On the basis of service type, the B2C segment is expected to hold a dominant position over the forecast period, driven by increased adoption of online shopping.

On the basis of delivery mode, the road transportation segment is expected to hold the largest market share due to its cost effectiveness.

Regionally, North America is expected to hold a dominant position over the forecast period due to widespread e-commerce adoption and reliable delivery infrastructure in the region.

Competitor Insights:  Key players operating in the last mile delivery market include Amazon Logistics, DHL Supply Chain, FedEx Corporation, UPS, XPO Logistics, Schenker AG, DPD Group, JD Logistics, ZTO Express, Yunda Express, Postmates, Glovo, DoorDash, Lalamove, and Sendy.

Recent Developments: In November 2023, Shipyaari, a major SaaS-based logistics solutions provider, announced a strategic partnership with India Post, a postal service provider, to transform last-mile delivery in India. This landmark arrangement is likely to substantially change the last-mile operational landscape, allowing Shipyaari to expand its reach into even the most remote corners of the nation. More information in full report