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Leading Element Driving Change in the Last Mile Delivery Market Outlook in 2025: Impact Of E-Commerce Growth On The Last Mile Delivery Market Outlook Driver
What Is the Estimated Market Size and Growth Rate for the Last Mile Delivery Market?The rapid expansion of the last mile delivery market size in recent years has been notable. It is projected to rise from $178.92 billion in 2024 to $202.01 billion in 2025, with a compound annual growth rate (CAGR) of 12.9%. Factors contributing to the growth during the historic period include the upsurge in e-commerce, the transition to same-day delivery, investment in delivery infrastructure, environmental considerations, and regulatory changes.
The market size of last-mile delivery is anticipated to experience a swift expansion in the coming years, reaching $324.48 billion in 2029 with a cumulative annual growth rate of 12.6%. This upswing during the projected period is due to factors such as the emergence of autonomous delivery technology, increased demand for eco-friendly delivery alternatives, last-mile analytics, and the broadening reach of urban logistics solutions. The forecast period is set to witness trends like on-demand delivery, no-contact delivery alternatives, urban logistics solutions broadening, automation in the last-mile delivery, and data analytics coupled with route optimization.
What Is Driving the Growth Trajectory of the Last Mile Delivery Market?
The surge in e-commerce is predicted to significantly contribute to the expansion of the last mile delivery market. E-commerce, essentially the purchase and sale of goods or services via the internet or other electronic channels, is experiencing an accelerated adoption rate. This is driven by a mix of technological innovation, altering consumer patterns, and the transformation of business models across the globe. The last mile delivery feature in e-commerce ensures the effective, punctual, and cost-friendly delivery of orders right to the customers' doors, representing the final stage of the delivery process. This aspect is crucial to the triumph of e-commerce businesses as it boosts customer satisfaction and encourages brand loyalty. For example, as reported by the United States Census Bureau, a US government entity, the e-commerce sales in the United States skyrocketed to nearly $1,118.7 billion in 2023, recording a 7.6% increase from the previous year. As a result, the last mile delivery market is experiencing growth due to the swift expansion of e-commerce.
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Who Are the Dominant Companies Influencing Last Mile Delivery Market Trends?
Major companies operating in the last mile delivery market are Amazon.com Inc., United Parcel Service Inc., DHL International GmbH, FedEx Corporation, La Poste Group, SF Holding Co. Ltd., Uber Technologies Inc., DB Schenker, Poste Italiane S.p.A., DPD Group, DSV Panalpina AS, Royal Mail plc, Yamato Holdings Co. Ltd., Australia Post, DoorDash Inc., XPO Logistics Inc., Grubhub Inc., Deliveroo, Aramex PJSC, Zomato Pvt. Ltd., Postmates Inc., Correios, TNT Holdings B.V., Gopuff, Deliv Inc.
How Is the Last Mile Delivery Market Evolving?
Large businesses in the last mile delivery market are directing their efforts towards creating technologically-driven cold chain solutions to increase their operational efficiency, particularly when ensuring the safe transit of perishable products. These last-mile cold chain solutions are strategically structured logistics systems and procedures designed to consistently maintain specific temperatures during the transport of perishable items from hubs or distribution centers to their final destination. For example, in September 2022, Celcius Logistics, a firm based in India that offers logistics and supply chain solutions, introduced their innovative smart platform for last mile delivery to solve existing issues related to perishable goods delivery. This novel platform, a tech-powered cold chain solution for last mile delivery, is purposefully developed to detect and assess distribution gaps, apply predictive algorithms to avert potential risks, reduce congestion, quicken estimated times of arrival, and provide an end-to-end transparency for shippers regarding their products. Through this platform, Celcius Logistics is aiming to set up a nation-wide network of last-mile delivery vehicles and storage locations, with the aim of improving the efficiency of both primary and secondary movements and storage of perishable items.
What Are the Different Segmentations in the Last Mile Delivery Market?
The last mile delivery market covered in this report is segmented -
1) By Delivery Mode: Regular Delivery, Same-Day Delivery Or Express Delivery
2) By Technology: Autonomous, Non-autonomous
3) By Service Type: Business-To-Business (B2B), Business-To-Consumer (B2C), Customer-To-Customer (C2C)
4) By Destination: Domestic, International
5) By Application: Food And Beverages, Retail And E-commerce, Healthcare, Other Applications
Subsegments:
1) By Regular Delivery: Standard Delivery, Scheduled Delivery
2) By Same-Day Delivery Or Express Delivery: Morning Delivery, Afternoon Delivery, Or 1-Hour Delivery, 2-Hour Delivery, 3-Hour Delivery
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Which Region Is at the Forefront of the Last Mile Delivery Market?
North America was the largest region in the last mile delivery market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Last Mile Delivery Global Market Report?
- Market Size Analysis: Analyze the Last Mile Delivery Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Last Mile Delivery Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Last Mile Delivery Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Last Mile Delivery Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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