[187 Pages Report] The Last Mile Delivery Market size was estimated at USD 145.37 billion in 2023 and expected to reach USD 158.24 billion in 2024, at a CAGR 9.22% to reach USD 269.62 billion by 2030.
Last-mile delivery is the final step of the logistics chain, involving the movement of goods from a transportation hub to the final delivery destination, typically a personal residence or business. The market for last mile delivery services has been expanding due to the growing eCommerce sector, urbanization, and changes in consumer preferences towards faster delivery options. Last mile delivery services are integral in various sectors, including eCommerce, food and beverages, pharmaceuticals, and retail. The primary end-users are online shoppers, restaurants, medical facilities, and brick-and-mortar stores looking to expand their reach through online services. The market encompasses traditional delivery services, such as parcel delivery and postal services, and innovative approaches like drone delivery, autonomous ground vehicles, and crowd-sourced delivery platforms. Moreover, implementing new delivery technologies often faces regulatory barriers, such as restrictions on drone usage or autonomous vehicle testing. The high costs of adopting new technologies and maintaining delivery fleets can limit market growth. However, the developing trend of autonomous and electric delivery vehicles presents new opportunities for cost reduction and improved service levels. Additionally, integrating advanced technologies such as artificial intelligence, machine learning, and big data analytics can offer predictive insights, optimize delivery operations, and enhance the customer experience.
Hardware solutions in last mile delivery encompass the physical tools and equipment used for the transportation and delivery of goods to their final destination, with a focus on optimization, efficiency, and reliability. Urban and dense areas often prefer electric bikes and scooters for their ability to navigate traffic and reduce environmental impact. However, suburban and rural areas may benefit more from autonomous or semi-autonomous delivery vehicles and drones because of longer distances and less traffic congestion. Service in last mile delivery encompasses the various offerings by companies that handle the physical delivery process, such as courier, express, and parcel (CEP) services, and value-added services, including packaging, installation, and post-delivery customer support. Customers seeking convenience prefer companies offering flexible delivery slots or same-day delivery options. Software solutions for last mile delivery manage the digital aspect of delivery operations, such as route optimization, delivery tracking, customer communication, and data analytics, aiming to reduce delivery times and costs while improving customer satisfaction. Scaling businesses often seek dynamic routing software for real-time adjustments based on traffic, weather, and customer availability.
Aerial delivery drones are highly advantageous in regions where conventional ground delivery is challenged by geographical constraints and traffic congestion. They are preferred for their speed and ability to deliver items in remote or hard-to-reach locations. Additionally, drones play a crucial role in urgent deliveries, such as medical supplies, where time is of the essence. Ground delivery vehicles remain crucial for urban environments and standardized delivery routes due to their greater payload capacity and dependability in diverse weather conditions. They are ideal for planned delivery schedules and are essential for the bulk transport of goods within established supply chains.
Autonomous last mile delivery involves the use of vehicles that operate without direct human intervention, such as drones, self-driving cars, and robots. Autonomous systems can follow pre-programmed routes and instructions with high precision, potentially decreasing the likelihood of mistakes in delivery. Non-autonomous last mile delivery relies on human drivers and traditional delivery methods. Human intervention can be useful for special delivery situations that require customization or adaptability. Non-autonomous systems can be implemented more quickly than autonomous ones, as they require less investment in technology and infrastructure.
The food and beverage segment of the last mile delivery market has surged with the rise of online food ordering platforms and the consumers' need for timely and fresh deliveries. Food and beverage businesses prioritize speed, reliability, and maintenance of food safety standards while opting for last mile delivery services. In the healthcare and pharma sector, last mile delivery often pertains to the distribution of medicines, medical equipment, and supplies. These deliveries are highly time-sensitive and sometimes require specialized transportation conditions, such as controlled temperatures and secure handling, to ensure the integrity of the products. The retail and eCommerce segment has seen exponential growth, largely driven by consumer expectations for quick and efficient delivery of a variety of products. As a response, companies in this sector are constantly innovating their delivery processes, including the use of advanced technologies such as AI and drones. The transportation and logistics sector includes freight transport companies, courier services, and other logistics service providers. This segment is primarily concerned with maximizing route efficiency, reducing costs, and improving customer satisfaction.
The last mile delivery market in the Americas has shown robust growth, largely driven by the surge in eCommerce and increasing customer expectations for faster deliveries. The United States, being a major contributor, has seen significant investments in technological advancements such as drone deliveries, autonomous vehicles, and smart lockers to optimize last mile logistics. Additionally, the growing urbanization and smart city initiatives are further propelling the market forward. In the EMEA region, the last mile delivery market is experiencing significant growth, with Europe at the forefront, supported by advanced infrastructure and a high concentration of logistics companies. The Middle East and parts of Africa are rapidly catching up owing to increased investment in technological infrastructure and the bolstering eCommerce sector. Europe's focus on reducing carbon emissions is contributing to innovative delivery models such as bike couriers and electric delivery vehicles. The Asia-Pacific (APAC) last mile delivery market is witnessing the rapid growth, with rapid urbanization, the rise of the middle class, and the expansion of eCommerce. Countries including China and India are emerging as last mile innovation hubs with significant investments in logistics infrastructure. The increasing adoption of mobile internet has facilitated consumer shift towards online shopping, which in turn boosts demand for efficient last mile delivery services.
The FPNV Positioning Matrix is pivotal in evaluating the Last Mile Delivery Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Last Mile Delivery Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Yamaha Motor: Last Mile Delivery Company Begins Operation in Tanzania - Expanding Job Creation Efforts Utilizing Mobility in Africa
Yamaha Motor's subsidiary, CourieMate Co., Ltd., has expanded its operations by launching CourieMate Tanzania for enhanced last-mile delivery services in Tanzania. Leveraging the expertise it has gained since 2017 in Uganda, CourieMate has successfully trialed its business model in Tanzania since January 2023 and has officially established the new venture in July 2023. The move aims to alleviate logistical challenges, thereby aiding economic growth and generating employment within the country. [Published On: 2023-12-12]
HelloFresh Launches In-House Fleet Delivery Service
HelloFresh has strategically enhanced its position in the last-mile delivery sector by deploying its own fleet of nearly 500 vans, now servicing 19 key metropolitan areas. This vertical integration enables HelloFresh to optimize delivery times and enhance the overall customer experience. Enhanced software tools allow for real-time communication between customers and drivers, improving the speed and efficacy of customer service responses. The ability to more effectively monitor and address logistics from beginning to end ensures timely delivery of meals and offers agility in responding to fluctuating demand. [Published On: 2023-11-14]
BharatAgri Bags USD 4.3 Mn To Strengthen Last-Mile Delivery, Scale eCommerce Platform
Indian agritech innovator BharatAgri has secured INR 35 crore (approximately USD 4.3 million) in a series A financing round spearheaded by Arkam Ventures with contributions from firms, including Capria Ventures, and support from returning investors such as India Quotient, 021 Capital, and Omnivore. This strategic development is expected to usher in an expansion of their AI-enhanced agricultural e-commerce operations into novel territories, enhancing their last-mile delivery capabilities. [Published On: 2023-10-20]
The report delves into recent significant developments in the Last Mile Delivery Market, highlighting leading vendors and their innovative profiles. These include A.P. Moller - Maersk, a1.express, Amazon.com, Inc., Aramex Group, C.H. Robinson Worldwide, Inc., DHL Group, DPD Group, Drone Delivery Canada, Dropoff, Inc., DSV A/S, FedEx Corporation, Flytrex, Geodis, HelloFresh SE, Hermes Group, Jet Delivery, Inc., Kerry Logistics Network by SF Express Co., Ltd., Matternet, Nippon Express Co., Ltd., Power Link Expedite, Royal Mail Group, Schenker AB, SkyDrop, United Parcel Service of America, Inc., XPO, Inc., and Yamaha Motor Co., Ltd..
This research report categorizes the Last Mile Delivery Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Aerial Delivery Drones
- Ground Delivery Vehicles
- Mode of Operation
- Food & Beverage
- Healthcare & Pharma
- Retail & eCommerce
- Transportation & Logistics
- United States
- New York
- South Korea
- Europe, Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- United Kingdom
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
- What is the market size and forecast of the Last Mile Delivery Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Last Mile Delivery Market?
- What are the technology trends and regulatory frameworks in the Last Mile Delivery Market?
- What is the market share of the leading vendors in the Last Mile Delivery Market?
- Which modes and strategic moves are suitable for entering the Last Mile Delivery Market?
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Last Mile Delivery Market, by Solution
- Last Mile Delivery Market, by Platform
- Last Mile Delivery Market, by Mode of Operation
- Last Mile Delivery Market, by Application
- Americas Last Mile Delivery Market
- Asia-Pacific Last Mile Delivery Market
- Europe, Middle East & Africa Last Mile Delivery Market
- Competitive Landscape
- Competitive Portfolio
- A.P. Moller - Maersk
- Amazon.com, Inc.
- Aramex Group
- C.H. Robinson Worldwide, Inc.
- DHL Group
- DPD Group
- Drone Delivery Canada
- Dropoff, Inc.
- DSV A/S
- FedEx Corporation
- HelloFresh SE
- Hermes Group
- Jet Delivery, Inc.
- Kerry Logistics Network by SF Express Co., Ltd.
- Nippon Express Co., Ltd.
- Power Link Expedite
- Royal Mail Group
- Schenker AB
- United Parcel Service of America, Inc.
- XPO, Inc.
- Yamaha Motor Co., Ltd.