Delivery-as-a-Service Market Size & Share 2024 - 2032
Market Size by Delivery Type (On-Demand Delivery, Point-To-Point Delivery, Multi-Stop Delivery), by Service Type, by Delivery Model, by End User, by Industry Vertical, Growth Prospects, Regional Outlook & Forecast.
Report ID: GMI8371
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Published Date: March 2024
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Report Format: PDF
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Authors:
Suraj Gujar, Sandeep Ugale
Delivery-as-a-Service Market Size
Delivery-as-a-Service (DaaS) Market size was valued at USD 500 billion in 2023 and is estimated to register a CAGR of over 18.5% between 2024 and 2032. The rising e-commerce demand is significantly propelling the growth of the market. As consumer preferences continue to shift toward online shopping, fueled by factors, such as convenience, variety, and competitive pricing, businesses are increasingly relying on effective delivery solutions to meet customer expectations.
Delivery-as-a-Service Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The unprecedented surge in online retail activities, particularly during the COVID-19 pandemic, has underscored the importance of efficient & reliable delivery services. Businesses across various industries, from retail giants to small businesses, are compelled to adapt and expand their delivery capabilities to cater to the growing demand for e-commerce. This trend is further intensified by changing consumer behaviors including the preference for same-day or next-day delivery options. Consequently, there is a pressing need for DaaS providers to offer scalable, flexible, and technologically advanced delivery solutions to support the burgeoning e-commerce landscape.
The rising e-commerce demand fuels the growth of the DaaS market while fostering innovation and competition among delivery service providers, ultimately benefiting consumers with improved delivery experiences and services. In February 2021, DHL Express made two additions to its roster of contract carriers offering extra aircraft to help the parcel carrier meet escalating growth in e-commerce shipments. The express delivery arm of postal and logistics giant, Deutsche Post DHL Group, arranged for Condor, a German leisure airline, and SmartLynx, a start-up cargo division of Latvian Carrier, to fly packages in its European air network.
Maintaining high-quality customer service and experience presents a significant challenge for Delivery-as-a-Service (DaaS) providers. Issues, such as delivery delays, damaged goods, and poor communication, can result in customer dissatisfaction and damage brand reputation. Meeting rising customer expectations for fast, reliable, and personalized delivery experiences requires these providers to invest in efficient logistics operations, real-time tracking systems, and responsive customer support services. Failure to address these challenges can lead to customer churn and loss of market share in the competitive Delivery-as-a-Service (DaaS) landscape.
Delivery-as-a-Service Market Trends
The integration of advanced technologies is a prominent trend boosting the evolution of the Delivery-as-a-Service (DaaS) industry. Delivery-as-a-Service (DaaS) providers are increasingly leveraging technologies, such as Artificial Intelligence (AI), Machine Learning (ML), the Internet of Things (IoT), and robotics, to optimize delivery operations and enhance customer experiences. AI and ML algorithms are utilized for route optimization, demand forecasting, and dynamic pricing, enabling these providers to streamline transportation routes, reduce delivery times, and optimize resource utilization. IoT-enabled sensors and devices facilitate real-time tracking of deliveries, providing customers with visibility into the status and location of their orders.
Robotics and automation technologies are employed in sorting centers and warehouses to automate order picking, packing, and loading processes, improving efficiency and accuracy while reducing labor costs. These advanced technologies enhance operational efficiency and enable DaaS providers to offer innovative delivery solutions, such as drone delivery, autonomous vehicles, and contactless delivery options, catering to evolving customer preferences and market demands. In September 2023, FedEx announced plans to open its first Advanced Capability Community (ACC) in Hyderabad, India, in 2023, to strengthen the recruitment and development of the company’s workforce and improve delivery services to customers.
Another significant trend shaping the delivery-as-a-service market is the increasing focus on sustainability and environmental responsibility. With growing concerns about climate change and environmental degradation, delivery-as-a-service (DaaS) providers are under pressure to minimize their carbon footprint and adopt eco-friendly delivery practices. One notable aspect of this trend is the transition toward vehicles powered by electricity and alternative fuel for delivery fleets, reducing Greenhouse Gas (GHG) emissions and air pollution associated with traditional fossil fuel-powered vehicles.
Additionally, Delivery-as-a-Service (DaaS) providers are exploring other sustainable delivery solutions, such as bicycle couriers, electric cargo bikes, and low-emission delivery zones, in urban areas to reduce congestion and pollution. Furthermore, there is a growing emphasis on eco-friendly packaging materials and packaging optimization techniques to minimize waste and reduce environmental impact. By embracing sustainability and environmental responsibility, Delivery-as-a-Service (DaaS) providers contribute to environmental conservation while enhancing their brand image and appealing to environmentally conscious consumers.
Delivery-as-a-Service Market Analysis
Based on service type, the market is divided into temperature-controlled, real-time tracking, signature confirmation, contactless delivery, express delivery, insurance, and returns & exchanges. The express delivery segment is expected to grow at 21% CAGR during the forecast period.
Based on industry vertical, the market is divided into e-commerce & retail, healthcare, automotive, consumer goods, food & beverage, manufacturing, pharmaceuticals, and others. The e-commerce & retail segment accounted for 19.5% of the delivery-as-a-service market share in 2023.
North America delivery-as-a-service market held over 33% of the revenue share in 2023. The region houses one of the largest and most mature e-commerce markets globally. The increasing consumer preference for online shopping, coupled with the convenience of doorstep delivery, is fueling the demand for Delivery-as-a-Service (DaaS) solutions. As e-commerce continues to thrive, Delivery-as-a-Service (DaaS) providers are leveraging this growth by offering efficient and reliable delivery services to meet the evolving needs of online retailers and consumers.
North America is at the forefront of technological innovation, with advancements in areas, such as AI, ML, and automation, transforming the delivery landscape. Delivery-as-a-Service (DaaS) providers in the region are utilizing these technologies to optimize delivery routes, enhance tracking capabilities, and improve overall efficiency in last-mile delivery.
Delivery-as-a-Service Market Share
Amazon Inc. and Uber Technologies Inc. hold a significant market share in the Delivery-as-a-Service (DaaS) industry. Amazon, Inc. offers various delivery services such as Amazon Prime, Amazon Fresh, Amazon Flex, and Amazon Logistics.
Uber Eats has emerged as a major player in the food delivery segment, offering on-demand food delivery services from a wide range of restaurants to customers in various cities worldwide. Uber Technologies Inc., through its Uber Eats platform, holds a significant position in the DaaS market.
Delivery-as-a-Service Market Companies
Major companies operating in the delivery-as-a-service (DaaS) industry are:
Delivery-as-a-Service Industry News
The delivery-as-a-service (DaaS) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:
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Market, By Delivery Type
Market, By Service Type
Market, By Delivery Model
Market, By End User
Market, By Industry Vertical
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
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Regulatory filings
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Academic research
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GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
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Parameters studied & evaluated
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