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Last-mile Delivery Software Market Projected to Peak at US$11,353.4 Mn by 2032 - Persistence Market Research
Last-mile Delivery Software Market
The surge in online shopping, especially during the COVID-19 pandemic, has significantly influenced the market's expansion. As consumer expectations for faster deliveries grow, businesses are increasingly relying on advanced software to streamline operations, reduce costs, and improve delivery accuracy. North America, particularly the United States and Canada, is leading the market with a projected share of 32.8% in 2025, driven by a high demand for effective delivery services and the integration of robotics and automation in logistics processes.
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Key Growth Drivers of the Last-Mile Delivery Software Market
Several factors contribute to the growth of the last-mile delivery software market, including the rise of e-commerce, the need for route optimization, and the increasing demand for environmentally sustainable logistics solutions. As consumers demand faster, more accurate deliveries, companies are turning to last-mile delivery software to enhance the efficiency of their supply chains. This software utilizes artificial intelligence (AI), machine learning, real-time tracking, and optimization algorithms to reduce delivery times, improve operational efficiency, and lower costs.
Additionally, businesses are increasingly focusing on sustainability, using delivery software to optimize routes, reduce emissions, and make use of electric vehicles. This is particularly important as the logistics industry is under increasing pressure to reduce its carbon footprint, with predictions suggesting logistics could account for up to 40% of global CO2 emissions by 2050. As a result, there is a growing trend towards the development of green logistics solutions, such as route optimization and emission-tracking software, to meet both regulatory standards and consumer demand for eco-friendly services.
Key Highlights from the Last-Mile Delivery Software Market
➤ The global last-mile delivery software market is projected to grow at a CAGR of 6.8% from 2025 to 2032.
➤ North America will hold a significant share of 32.8% in 2025 due to rising demand for efficient delivery services.
➤ Cloud-based software is expected to dominate the market with a 50.3% share in 2025, driven by its cost-effectiveness and scalability.
➤ The courier, express, and parcel delivery segment is anticipated to account for 35.4% of the market share in 2025.
➤ The increasing popularity of quick commerce in developing markets like India is expected to drive demand for last-mile delivery software.
➤ The global last-mile delivery software market is forecasted to reach USD 11,353.4 million by 2032.
Market Segmentation
The last-mile delivery software market is segmented based on product type, end-user, and application, allowing for tailored solutions that cater to different business needs.
By Software Type
The market is divided into cloud-based and on-premise solutions. Cloud-based software is gaining traction due to its scalability, flexibility, and cost-effectiveness. It allows businesses to quickly adapt to changing consumer demands and implement real-time tracking, route optimization, and customer communication features. By 2025, cloud-based solutions are expected to hold a 50.3% share of the market. On the other hand, on-premise solutions are preferred by businesses with specific security needs, though they are growing at a slower pace.
By Application
The courier, express, and parcel delivery segment will lead the market in terms of application, contributing to 35.4% of the total market share by 2025. This sector benefits significantly from last-mile delivery software's real-time tracking capabilities, which improve transparency and customer satisfaction. Other notable applications include retail, e-commerce, and transportation, where businesses use last-mile delivery software to improve operational efficiency, reduce costs, and offer a better customer experience.
Regional Insights
North America
North America is anticipated to remain the dominant region in the last-mile delivery software market, with a projected share of 32.8% in 2025. This growth is largely driven by the increasing demand for faster and more efficient delivery services in the U.S. and Canada. Innovations such as autonomous delivery vehicles, which require sophisticated software solutions for smooth operation, are helping to propel the market forward. Additionally, collaborations between retail and delivery companies, like those between DoorDash and Ulta Beauty, are expected to further boost the growth of last-mile delivery software in the region.
Asia Pacific
Asia Pacific is witnessing rapid developments in last-mile delivery, driven by innovations like drone deliveries and the rise of quick commerce in countries like India. Start-ups in the region, such as Zomato and Swiggy, are revolutionizing the delivery landscape with their focus on ultra-fast delivery, often within 10-30 minutes. As the demand for such services grows, businesses are turning to last-mile delivery software to optimize delivery routes and ensure timely deliveries. The region is expected to see an influx of delivery management software to handle the rapid growth in e-commerce and logistics.
Market Drivers
The integration of delivery software solutions with existing systems is one of the key drivers of growth in the last-mile delivery software market. Partnerships between tech companies and retailers, such as the collaboration between IBM Sterling Order Management and Walmart GoLocal in January 2025, are enabling retailers to seamlessly integrate last-mile delivery services into their operations. This allows businesses to provide faster, more efficient delivery services, meeting the rising consumer demand for quick and reliable shipping options.
Another critical driver is the increasing focus on sustainability. Businesses are adopting green logistics practices, such as optimizing routes to reduce fuel consumption and using electric vehicles for deliveries. Last-mile delivery software plays a crucial role in helping companies track emissions, optimize delivery routes, and reduce their carbon footprint, thus addressing environmental concerns while improving operational efficiency.
Market Restraints
Despite its growth, the last-mile delivery software market faces several challenges. Regulatory hurdles, such as congestion pricing in urban areas like New York City, can complicate the deployment of last-mile delivery solutions. Vendors must ensure their software is compliant with these regulations, which requires continuous updates and adaptation to local policies. Additionally, inadequate infrastructure in certain regions can hinder the smooth execution of delivery operations, especially in congested urban areas with limited access for delivery vehicles.
Market Opportunities
The growing demand for route optimization and planning software presents significant opportunities for last-mile delivery software providers. These solutions enable companies to improve delivery speed, reduce fuel consumption, and lower operating costs. In particular, e-commerce businesses, which rely heavily on efficient logistics, are expected to be key adopters of these solutions. Furthermore, innovations in autonomous vehicles and drones could open up new markets for last-mile delivery software, creating additional growth avenues for providers.
Frequently Asked Questions (FAQs)
➤ How big is the last-mile delivery software market?
➤ Who are the key players in the global market for last-mile delivery software?
➤ What is the projected growth rate of the last-mile delivery software market?
➤ What is the market forecast for the last-mile delivery software market by 2032?
➤ Which region is estimated to dominate the last-mile delivery software market through the forecast period?
Company Insights
Key players in the last-mile delivery software market include:
✦ Oracle Corporation
✦ Kahnua
✦ FarEye
✦ Locus Robotics Corp.
✦ DESCARTES
✦ Track-POD
✦ Google LLC
✦ BRINGG Delivery Technologies
✦ Final Mile
✦ Amazon.com, Inc.
✦ Uber Technologies, Inc.
✦ Microsoft Corporation
✦ SAP SE
✦ LogiNext
✦ Zippykind
Conclusion
The last-mile delivery software market is poised for substantial growth as e-commerce continues to thrive, consumer expectations for fast delivery rise, and companies prioritize sustainability. As businesses look to improve the efficiency and cost-effectiveness of their logistics operations, last-mile delivery software will play an increasingly important role in shaping the future of the supply chain. By leveraging innovations such as AI, real-time tracking, and route optimization, companies can not only reduce delivery times but also improve customer satisfaction and meet their sustainability goals. With growing demand from both developed and emerging markets, the last-mile delivery software market is expected to remain dynamic, with numerous opportunities for growth and innovation in the years ahead.
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About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.
Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.
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