Last-Mile Delivery Market to Hit US$ 311.31 Billion by 2031, Growing at 9.62% CAGR (2024-2031) | Key Players: Amazon.com, Inc., United Parcel Service of America, Inc., FedEx, DHL International GmbH

The global last-mile delivery market reached US$ 151.87 billion in 2023 and is projected to double to US$ 311.31 billion by 2031, posting a CAGR of 9.62% from 2024 to 2031. This rapid growth is driven by exploding e-commerce demand, urbanization, and the widespread adoption of digital logistics and route optimization technologies.

Get a Report Sample of Last-Mile Delivery Market @ https://www.datamintelligence.com/download-sample/last-mile-delivery-market?ophp

Last-mile delivery encompasses the final stage of the supply chain, transporting goods from distribution hubs to their ultimate destinations often directly to consumers' doorsteps. This sector is rapidly evolving as businesses strive for innovation in speed, flexibility, and customer satisfaction. Technologies such as artificial intelligence, machine learning, IoT, delivery drones, and autonomous vehicles are transforming the landscape, enabling service providers to meet the growing expectations for same-day or even instant delivery.

United States: Recent Industry Developments

✅ In July 2025, Amazon introduced autonomous sidewalk delivery robots in California. The robots are designed to enhance delivery efficiency for short distances. Early pilots reduced delivery times by 15%.

✅ In June 2025, FedEx invested $250 million in expanding its EV-powered last-mile fleet. The investment focuses on urban centers like New York and Chicago. It supports the company's commitment to carbon-neutral operations by 2040.

✅ In May 2025, Walmart partnered with DroneUp to expand drone-based last-mile delivery across five states. The service aims to deliver household essentials in under 30 minutes. Initial customer adoption has exceeded expectations.

Japan: Recent Industry Developments

✅ In July 2025, Japan Post launched autonomous delivery vans in Tokyo residential areas. The project integrates AI navigation and smart parcel lockers. It reduces human labor needs while improving delivery speed.

✅ In June 2025, Rakuten partnered with ANA Holdings to scale drone delivery for rural communities. The initiative focuses on essential goods and medical supplies. Operations are expanding across remote islands in Japan.

✅ In May 2025, Yamato Holdings invested in robotics for warehouse-to-doorstep automation. The system streamlines last-mile logistics for e-commerce players. Pilot deployments are underway in Osaka and Nagoya.

Latest Strategic Developments (2023-2024)

• Shadowfax launched its ONDC-powered last-mile delivery services in October 2022, expanding hyperlocal and e-commerce logistics across 8,500 Indian pin codes.
• Uber collaborated with bigbasket to guarantee dependable essential supply deliveries across major Indian cities.
• Amazon introduced a pioneering all-electric last-mile fleet in India (2023), supporting over 300 delivery service partners in customer deliveries with zero tailpipe emissions.
• Celcius Logistics unveiled a smart cold-chain delivery platform for India's fragile supply chains and is building a resilient reefer vehicle network in partnership with automotive and logistics firms.
• Mahindra Logistics launched 'EDel', a green last-mile service focusing on sustainable delivery for e-commerce and FMCG sectors.

Market Players

Major companies driving innovation and competition in last-mile delivery include:

• Amazon.com, Inc.
• United Parcel Service (UPS)
• FedEx
• DHL International GmbH
• Starship Technologies
• Zipline International Inc.
• DPDgroup
• Hermes Europe GmbH
• Continental AG

These players leverage advanced logistics, automation, and sustainability initiatives to expand reach and improve customer experience.

Looking for in-depth insights? Grab the full report: https://www.datamintelligence.com/buy-now-page?report=last-mile-delivery-market

Market Dynamics

Drivers: Surging e-commerce platforms and changing consumer expectations for swift, transparent deliveries are the primary market drivers. The expansion of same-day delivery, particularly in urban areas, is spurring innovation through micro-fulfillment centers and dynamic routing. The rise of autonomous vehicles and delivery drones further boosts last-mile delivery capacity and reliability.

Restraints: High operational costs especially labor, maintenance, and fuel cut into profit margins and pose hurdles for new entrants. Infrastructure limitations and regulatory hurdles for new technologies like drones and robots create additional barriers.

Opportunities: Digital transformation (DX), real-time tracking, route optimization, and personalized delivery options (such as locker drop-offs) provide lucrative growth avenues. Green logistics using electric vehicles (EVs) and renewable energy in the fleet are also in high demand as cities impose emissions regulations.

Challenges: Handling the "final fifty feet" in high-density, congested, or rural areas remains a key challenge, often constraining last-mile efficiency. Ensuring flexibility during supply chain disruptions and sudden demand surges remains critical for resiliency.

Market Segments: Largest and Fastest Growing

By destination, the domestic segment is the largest, driven by rising urbanization, consumer preference for fast delivery, and strong logistics infrastructure. Customers increasingly expect reliable, transparent, and rapid fulfillment for local and regional deliveries, reinforcing the dominance of domestic last-mile solutions.

Same-day and on-demand delivery are the fastest-growing segments, particularly in food, grocery, retail, and healthcare, as customer expectations for immediacy grow.

Regional Analysis

North America dominates global last-mile delivery due to its advanced road and logistics networks, mature e-commerce ecosystems, and high adoption of technologies like drones and autonomous vehicles. Major players continually pilot new digital services and delivery models across the US and Canada; for instance, UPS's residential delivery expansion and high penetration of Amazon's expedited services highlight this leadership.

Asia-Pacific is the fastest-growing region, propelled by rapid urbanization, mobile e-commerce booms, and investments in digital logistics across India, China, and Southeast Asia. The proliferation of electric and autonomous vehicles, along with public and private investment in logistics and infrastructure, is further accelerating regional growth.

Unmet Needs and Conclusion

Key unmet needs include cost containment for low-margin deliveries, last-mile efficiency in rural/remote areas, better coordination across city and regional networks, and balancing technology deployment with regulatory frameworks. The future success of market players will depend on addressing sustainability, customer experience, and operational flexibility.

In summary, the last-mile delivery market is on a trajectory of rapid change and expansion, fuelled by digital innovation and rising consumer demands for ease and speed. Ongoing advances in autonomous delivery, green logistics, and data-driven route optimization will continue to shape the industry in the coming years.

Unlock 360° Market Intelligence with DataM Subscription Services: https://www.datamintelligence.com/reports-subscription?harssh

Power your decisions with real-time competitor tracking, strategic forecasts, and global investment insights-all in one place.

Contact Us -
Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About Us -
DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.
Our research database features countless statistics and in-depth analyses across a wide range of 6300+ reports in 40+ domains creating business solutions for more than 200+ companies across 50+ countries; catering to the key business research needs that influence the growth trajectory of our vast clientele.

This release was published on openPR.