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Artificial Intelligence-Enabled Last Mile Delivery Industry to Achieve $2.65 Billion Growth by 2029

09-09-2025 08:34 AM CET | Logistics & Transport

Press release from: The Business Research Company

Artificial Intelligence-Enabled Last Mile Delivery Market Size

Artificial Intelligence-Enabled Last Mile Delivery Market Size

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How Will the Artificial Intelligence-Enabled Last Mile Delivery Market Grow by 2025 in Terms of Size and Growth?
The market size for artificial intelligence-powered last-mile delivery has seen a noteworthy expansion in recent times. It is projected to escalate from a value of $1.35 billion in 2024 to $1.56 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 15.1%. The growth witnessed in the historical duration can be credited to factors such as rising demand from e-commerce, expanding urbanization, heightened customer expectations, advancements in AI technology, and an increase in data analytics abilities.

What Are the Estimated Growth Rates for the Artificial Intelligence-Enabled Last Mile Delivery Industry Through 2029?
The market size for AI-powered last mile delivery is anticipated to experience a swift expansion in the forthcoming years. It is projected to surge to a value of $2.65 billion by 2029, with a compound annual growth rate (CAGR) of 14.2%. The swell during the predicted period could be due to the growing employment of robotics, the quick rise of e-commerce, IoT networks' proliferation, intensifying competition, and emerging regulatory shifts. Foreseen trends for this period encompass electric vehicles, AI deployment, sustainable delivery practices, fast commerce, and the embrace of contactless delivery.

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What Are the Strategic Drivers Boosting Artificial Intelligence-Enabled Last Mile Delivery Market Performance?
The rise in E-commerce activities is anticipated to fuel the expansion of the artificial intelligence-powered last-mile delivery market. E-commerce activities refer to online transactions such as purchasing, selling, and swapping products and services over the internet. The surge in e-commerce retail can be attributed to a variety of factors, including advancements in internet infrastructure, the convenience of online shopping, shifts in consumer tastes, and the growing use of digital platforms. AI-powered last-mile delivery enhances the effectiveness, reliability, and cost-efficiency of e-commerce activities, leading to higher customer satisfaction and growth. For example, the International Trade Administration, a US governmental agency, projected in November 2023 that e-commerce sales in the UK would increase at an annual growth rate of 12.6% by 2025. Furthermore, as of January 2021, consumer E-commerce made up 36.3% of the UK's retail sector and is expected to rise to $285.60 billion by 2025. As such, the upsurge in E-commerce activities is propelling the expansion of the artificial intelligence-powered last-mile delivery market.

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What Are the Segments in the Artificial Intelligence-Enabled Last Mile Delivery Market?
The artificial intelligence-enabled last mile delivery market covered in this report is segmented -

1) By Type: Hardware, Software, Services, Predictive Analysis, Other Types
2) By Business Model: On-Demand Delivery, Other Business Models
3) By End-User Industry: E-Commerce, Logistics, Healthcare, Travel And Tourism, Food And Beverage, Other End-User Industries

Subsegments:
1) By Hardware: Delivery Drones, Autonomous Delivery Vehicles, GPS And Tracking Devices
2) By Software: Route Optimization Software, Delivery Management Software, Fleet Management Software
3) By Services: AI-Aased Delivery Services, AI Integration Services, AI Consulting Services
4) By Predictive Analysis: Demand Forecasting, Delivery Time Prediction, Customer Behavior Analytics
5) By Other Types: Smart Lockers, Automated Pickup Stations

What Are the Key Adoption Trends in the Artificial Intelligence-Enabled Last Mile Delivery Market?
Key players in the AI-enabled last-mile delivery market are revolutionizing supply chains by introducing AI assistants, aiming to enhance the flow of goods. Such AI assistants provide optimization for logistics and intelligent automation for decision-making. For example, One Network Enterprises, an American supply chain management company, in February 2024 introduced NEO Assistant, an innovative AI solution for supply chain, designed by the same company. It offers real-time, adaptive, and interactive decision-making capabilities coupled with effective prescriptions and visualizations. Built upon a single digital supply chain network, it ensures comprehensive visibility and control from the beginning of the manufacturing process until the final last-mile delivery, using a singular data model and truth. NEO Assistant is fully cognizant of the user's supply chain's real-time status and frequently reassesses its assumptions as per the changes in the state.

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Which Companies Lead the Competitive Landscape of the Artificial Intelligence-Enabled Last Mile Delivery Industry?
Major companies operating in the artificial intelligence-enabled last mile delivery market report are NVIDIA Corporation; DoorDash Inc.; WorkWave LLC; Locus Robotics Corporation; FarEye Technologies Inc.; Bringg Delivery Technologies Ltd.; Ma" "a Corporation; Circuit Logistics Inc.; Shipwell Inc.; LogiNext Solutions Private Limited; Freightos Limited; Wise Systems Inc.; Route4Me Inc.; GetSwift Limited; Onfleet Inc.; Transmetrics AD; ClearMetal Inc.; Boxbot Inc.; Refraction AI Inc.; Robby Technologies Inc.; Rapidus Inc.; OptimoRoute Inc.; Routific Inc.; Detrack Systems Pte. Ltd.; PickPack LLC

Where Are the Key Artificial Intelligence-Enabled Last Mile Delivery Market Opportunities by Region?
North America was the largest region in the artificial intelligence-enabled last mile delivery market in 2024. The regions covered in the artificial intelligence-enabled last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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Americas +1 310-496-7795,
Asia +44 7882 955267 & +91 8897263534,
Europe +44 7882 955267
Email: saumyas@tbrc.info
The Business Research Company - www.thebusinessresearchcompany.com

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