First and Last-Mile Delivery Market Forecast to Reach USD 2.05 Billion by 2034

The First and Last-Mile Delivery Market is a rapidly expanding sector within logistics and transportation, presenting significant opportunities amidst evolving global trade dynamics. Valued at USD 1.14 Billion in 2023, the market is projected to reach USD 2.05 Billion by 2034, demonstrating a robust Compound Annual Growth Rate (CAGR) of 6.21%. This growth is primarily fueled by the booming e-commerce sector and increasing consumer demand for expedited and convenient deliveries.

Download the full report now to discover market trends, opportunities, and strategies for success.
https://evolvebi.com/report/global-first-and-last-mile-delivery-market-analysis/

High Opportunity in a Growing Market
The robust growth trajectory of the First and Last-mile Delivery Market stems from several key opportunities:
• Delivery-as-a-Service (DaaS) Platforms: The rise of DaaS platforms allows businesses to efficiently outsource their logistics operations, enhancing flexibility and scalability.
• Smart Lockers and Pickup Points: The implementation of smart lockers and designated pickup points significantly boosts customer convenience and helps reduce instances of failed deliveries, streamlining the delivery process.
• Technological Advancements: Continuous innovation in areas such as GPS tracking, route optimization software, and the development of drones and autonomous vehicles are pivotal in improving efficiency and lowering operational costs. These technologies offer solutions for quicker, more reliable, and cost-effective deliveries.
Problems Faced
Despite the promising opportunities, the First and Last-mile Delivery Market grapples with several persistent challenges:
• High Delivery Costs: Last-mile deliveries, in particular, are notoriously expensive due to factors such as fuel prices, labor wages, and vehicle maintenance. These costs can account for 50-60% of total delivery expenses, impacting profitability.
• Shortage of Delivery Drivers: A persistent shortage of qualified delivery drivers leads to increased labor costs and creates operational bottlenecks, affecting delivery times and service reliability.
• Urban Congestion and Parking Limitations: Delivering in urban areas presents challenges like traffic congestion and limited parking, leading to delays and increased operational time.
• Inefficient Load Planning: Many companies face issues with poor load planning, resulting in underutilized truck capacity and higher per-package delivery costs.

Download the full report now to discover market trends, opportunities, and strategies for success.
https://evolvebi.com/report/global-first-and-last-mile-delivery-market-analysis/

Proposed Solutions
To overcome these challenges and capitalize on market opportunities, several solutions and strategic adaptations can be implemented:
• Technological Integration: Widespread adoption of advanced technologies like AI-driven route optimization, real-time tracking, and predictive analytics can significantly reduce costs and enhance service quality.
• Fleet Optimization and Diversification: Investing in electric vehicles and optimizing existing fleets can help offset rising operational expenses. Businesses can also diversify their supplier networks, including domestic manufacturers, to reduce reliance on tariff-affected imports and improve supply chain resilience.
• Automation and Innovative Delivery Methods: Exploring and implementing automation in warehouses and considering innovative delivery methods such as drones and delivery bots for specific routes can boost efficiency and address labor shortages.
• Strategic Warehousing: Investing in smarter warehousing solutions near major delivery hubs and improving inventory visibility can streamline operations and reduce delays.
US Tariff Implications on First and Last-mile Delivery Market
US tariffs have introduced significant complexities and cost pressures across the global supply chain, directly impacting the First and Last-mile Delivery Market. Recent measures, such as new "Liberation Tariffs" and adjustments to existing Section 301 and Section 232 tariffs, aim to reshape trade relationships and influence the flow of goods.
Key implications include:
• Increased Cost of Goods: Higher tariffs on imported goods translate to increased prices for consumers, potentially leading to reduced demand and lower shipment volumes. For logistics providers, this can result in less efficient delivery routes and higher per-package delivery costs.
• Strained Carrier Networks: Tariffs on essential items like vehicles, equipment, and even fuel components can slow fleet expansion and maintenance for last-mile providers, affecting delivery reliability and speed.
• Supply Chain Disruptions: The reintroduction of aggressive tariffs and the associated uncertainty prompt businesses to re-evaluate sourcing and manufacturing strategies. This can lead to shifts in trade routes and increased demand for customs management and compliance services, adding complexity and cost to operations.
• Impact on Low-Value Shipments: The revocation of the "de minimis" rule for small packages from certain countries, which previously allowed goods under $800 to enter the US duty-free, now subjects these shipments to tariffs. This directly affects e-commerce retailers and logistics firms handling direct-to-consumer international shipments, increasing costs for both sellers and consumers.
• Operational Adjustments: Companies are forced to adopt cautious stances, prioritize agility, invest in real-time data, and explore flexible solutions like using customs bonded warehouses or foreign trade zones to mitigate tariff impacts and manage inventory effectively.

Download the full report now to discover market trends, opportunities, and strategies for success.
https://evolvebi.com/report/global-first-and-last-mile-delivery-market-analysis/

The tariff landscape remains dynamic, with ongoing legal battles and negotiations shaping future trade policies. This continuous state of flux underscores the critical need for businesses in the First and Last-mile Delivery Market to remain adaptable, efficient, and proactive in their supply chain strategies.
Further Information
To understand further and explore opportunities in the First and Last-mile Delivery Market or any related industry, please share your queries/concerns at info@evolvebi.com.

Evolve Business Intelligence
C-218, 2nd floor, M-Cube
Gujarat 396191
India
Email: sales@evolvebi.com
Website: https://evolvebi.com/

Evolve Business Intelligence is a market research, business intelligence, and advisory firm providing
innovative solutions to challenging pain points of a business. Our market research reports include data
useful to micro, small, medium, and large-scale enterprises. We provide solutions ranging from mere
data collection to business advisory.

Evolve Business Intelligence is built on account of technology advancement providing highly accurate
data through our in-house AI-modelled data analysis and forecast tool - EvolveBI. This tool tracks real-
time data including, quarter performance, annual performance, and recent developments from
fortune's global 2000 companies.

This release was published on openPR.