2025 Last Mile Delivery Industry Trends Report: Long-Term Outlook Through 2034

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How Large Will the Last Mile Delivery Market Size By 2025?
The expansion of the last-mile delivery market size has been quite impressive in the recent past. This market is projected to escalate from $178.92 billion in 2024 to $202.01 billion in 2025, marking a compound annual growth rate (CAGR) of 12.9%. Factors that have propelled the growth during the historic period include the surge in e-commerce, the transition towards same-day delivery, investments funnelled into delivery infrastructure, environmental issues, and alterations in regulations.

How Big Is the Last Mile Delivery Market Size Expected to Grow by 2029?
The market size of last mile delivery is anticipated to witness a significant expansion in the coming years, reaching $324.48 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 12.6%. The predicted growth for the forecast period can be related to developments in autonomous delivery, the need for eco-friendly delivery solutions, last-mile analytics, and the proliferation of urban logistics solutions. Key forecasts for the period include on-demand delivery, the implementation of contactless delivery alternatives, enhancing urban logistics solutions, automation in the last-mile, and the use of data analytics for route optimization.

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Which Key Market Drivers Powering Last Mile Delivery Market Expansion and Growth?
The last mile delivery market is predicted to experience significant growth, due in large part to the burgeoning expansion of e-commerce. This term, e-commerce, describes the online purchase and sale of products or services across digital networks. Various factors are contributing to broader adoption of e-commerce, from tech advancements to shifting consumer behaviors and new business models emerging globally. E-commerce relies heavily on efficient last mile delivery, which is the final step of the delivery process, getting products to customers quickly and affordably. This process is crucial for e-commerce success, as it boosts customer satisfaction and encourages brand loyalty. For example, data from the United States Census Bureau, a government agency, reveals that e-commerce sales in the United States in 2023 reached around $1,118.7 billion - a 7.6% rise from the prior year. Accordingly, the swift development of e-commerce is a substantial driver for the growth in the last mile delivery market.

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Which Fast-Growing Trends Are Poised to Disrupt the Last Mile Delivery Market?
Prominent players in the last mile delivery sector are prioritizing the creation of technology-driven cold chain strategies for final-leg deliveries in order to improve operational effectiveness and guarantee the secure transportation of perishable items. The specialized logistical infrastructure and processes involved in cold chain solutions are tailor-made to sustain specific temperature settings during the shipment of perishable products from distribution facilities or base-centers to their end location. For example, in September 2022, Celcius Logistics, a company providing logistics and supply chain solutions based in India, introduced its intelligent final-leg delivery platform to tackle difficulties associated with last-mile delivery of perishable items. The platform constitutes a technology-facilitated cold chain strategy for final-step delivery that has been engineered to identify and analyze distribution gaps, apply anticipatory algorithms to counter potential risk zones, minimize traffic jams, hasten Estimated Time of Arrival(ETAs), and give suppliers an end-to-end track of their goods. By means of this platform, Celcius is endeavoring to set up a countrywide system of last-leg vehicles and storage locations to improve the efficacy of primary and secondary movements and storage of perishable items.

What Are the Emerging Segments 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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Who Are the Global Leaders in the Last Mile Delivery Market?
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.

Which are the Top Profitable Regional Markets for the Last Mile Delivery Industry?
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.

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