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Last Mile Delivery Market - By Vehicle Type (Drones, Vans & Trucks, Robots, Two-wheelers), By Type (Autonomous, Non-autonomous), By Delivery mode (B2C, B2B, C2C), By Application & Forecast, 2024 – 2032

  • Report ID: GMI9338
  • Published Date: May 2024
  • Report Format: PDF

Last Mile Delivery Market Size

Last Mile Delivery Market was valued at USD 175.3 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. Utilizing advanced analytics and Artificial Intelligence (AI), last mile delivery providers are optimizing routes, predicting demand patterns, and enhancing delivery efficiency. This growth leverages data-driven insights to streamline operations, reduce costs, and meet the increasing demands for faster and more reliable delivery services.

Last Mile Delivery Market

For instance, in April 2024, PIESHIP, a logistics firm based in Saudi Arabia, integrated AI and crowdsourcing techniques to streamline last mile delivery routes and schedules, aiming to lower expenses and elevate customer satisfaction. Operating within Saudi Arabia's dynamic logistics sector, PIESHIP prioritizes efficient and dependable last-mile delivery solutions, particularly benefiting e-commerce enterprises and their clientele through enhanced delivery processes.


Consumers' growing demand for sustainability is driving innovations in the last mile delivery market. Companies are adopting eco-friendly practices such as electric vehicles (EVs), bike couriers, and packaging materials that are recyclable or biodegradable. Additionally, innovations including route optimization software are being used to reduce fuel consumption and emissions. This focus on sustainability aligns with consumer values, offers cost-saving benefits, and enhances brand reputation. By integrating eco-friendly solutions into their operations, last mile delivery providers can attract environmentally conscious consumers and stay competitive in a rapidly evolving market.

The higher upfront costs of environment-friendly vehicles present a significant barrier for last mile delivery providers. While EVs and other sustainable options offer long-term savings in fuel and maintenance, their initial purchase price is often higher than that of traditional vehicles. This upfront investment can strain the budgets of smaller businesses or startups entering into the market, limiting their ability to adopt eco-friendly practices and remain competitive. Without access to affordable sustainable vehicles, companies may struggle to meet consumer demands for sustainable delivery options and risk falling behind their competitors.

Last Mile Delivery Market Trends

The integration of on-demand delivery platforms with existing transportation networks is reshaping the last mile delivery landscape. By partnering with ride-sharing services or leveraging underutilized transportation capacity, companies can offer flexible, efficient, and cost-effective delivery solutions that adapt to fluctuating demand and optimize resource utilization. For instance, in March 2024, ClickPost and Porter introduced a transformative logistics alliance geared toward modernizing last-mile delivery services. This strategic partnership merges ClickPost's shipment tracking and issue resolution workflow with Porter's technology-driven logistics offerings, benefiting e-commerce enterprises, corporations, and individual shippers alike. Prioritizing swifter deliveries, enhanced post-purchase experiences, and streamlined omnichannel operations, the collaboration aims to optimize hyperlocal delivery services.

The emergence of alternative delivery methods, such as drone and autonomous vehicle delivery, is transforming the last mile delivery industry. These technologies speed up delivery times and reduce labor costs, particularly in areas with dense urban populations. While regulatory hurdles and infrastructure challenges remain, continued advancements in automation and Unmanned Aerial Vehicles (UAVs) promise to revolutionize the last mile delivery process, providing more efficient and innovative solutions to meet the evolving demands of consumers and businesses alike.

Last Mile Delivery Market Analysis

Last Mile Delivery Market Size, By Vehicle Type, 2022-2032 (USD Billion)

Based on vehicle type, the market is divided into drones, vans & trucks, robots, and two-wheelers. In 2023, the vans & trucks segment accounted for a market share of around 50%. With a focus on reducing carbon emissions and operating costs, logistics companies are investing in EVs, such as trucks and vans, for urban deliveries. This shift toward sustainable transportation solutions reflects growing environmental awareness and regulatory pressures to curb pollution in urban areas. For instance, in July 2023, Amazon significantly broadened its fleet of Rivian-manufactured electric delivery vans across the U.S. Surpassing 10,000 units, these vans operate in over 1,800 U.S. cities. Equipped with advanced safety and driver assistance features such as 360-degree visibility, automatic emergency braking, and highway/traffic assist, these electric vans offer a remarkable range of up to 150 miles.

Last Mile Delivery Market Revenue Share, By Application, 2023

Based on application, the market is categorized into e-commerce, food & grocery, parcel & courier services, pharmaceutical, and furniture & appliances. In 2023, the e-commerce segment accounted for a market share of around 42% and is projected to grow by 2032. The expanding e-commerce sector is reshaping last mile delivery dynamics. With the surge in online shopping, delivery services are adapting to handle higher volumes and meet evolving customer expectations for fast and convenient shipping. This shift toward digital retailing is driving innovations in delivery logistics, technology, and customer service to ensure seamless last mile delivery experiences.

For instance, in October 2023, iThink Logistics, a prominent logistics technology firm, joined forces with India Post, the country’s primary postal network, to enhance e-commerce deliveries throughout India, with a focus on rural and remote regions. This collaboration aims to leverage India Post's extensive nationwide coverage and merge it with iThink Logistics' cutting-edge technology and swift delivery services. By combining tradition with innovation, this partnership is poised to revolutionize last-mile logistics operations, enabling Direct-to-Consumer (D2C) startups and Small & Medium Businesses (SMBs) to extend their presence beyond urban centers.

North America Last Mile Delivery Market Size, 2022-2032 (USD Billion)

North America dominated the global last mile delivery market with a major share of over 37% in 2023. The rapid market growth is fueled by the increasing dominance of e-commerce, particularly post-pandemic. As consumers continue to embrace online shopping, there is a heightened demand for efficient and flexible delivery options. This trend is driving investments in technology, infrastructure, and sustainable transportation solutions to meet evolving customer expectations and optimize the last mile delivery process. For instance, in December 2023, Bolloré Logistics and Sarcona announced a collaboration to introduce an electric truck for last-mile delivery connecting New Jersey and New York. Manufactured domestically, the electric truck has a 200-mile range and will be in operation for 359 days annually, traveling approximately 60 km each day.

Asia Pacific last mile delivery market is experiencing exponential growth driven, by the burgeoning e-commerce sector and urbanization. With a massive population and rising number of middle-class consumers, there is a surge in online shopping, leading to increased demand for efficient last mile delivery services. To address this demand, companies are leveraging advanced technology, such as AI-powered route optimization and drone delivery, while investing in infrastructure and logistics networks to ensure timely and cost-effective deliveries across diverse and densely populated regions.

In European countries, such as France, Germany, Italy, and the UK, the last mile delivery industry is evolving rapidly alongside the growth of e-commerce. With consumers increasingly turning to online shopping, there is a heightened emphasis on efficient and sustainable delivery solutions. Companies are investing in EVs, bike couriers, and innovative logistics technologies to meet environmental regulations and consumer expectations for eco-friendly options. Additionally, urbanization trends are propelling the need for optimized delivery networks to navigate congested city streets and deliver goods swiftly to customers' doorsteps.

Last Mile Delivery Market Share

FedEx, UPS and DHL holds a significant market share of over 53% in last mile delivery industry. These companies boast extensive delivery networks encompassing warehouses, distribution centers, and fleets of vehicles strategically positioned to ensure efficient last mile deliveries. Leveraging cutting-edge routing algorithms, GPS tracking, and real-time analytics, they optimize delivery routes, enhance accuracy, and prioritize customer satisfaction.

Additionally, offering a diverse range of delivery services, including express options and international deliveries, caters to various customer requirements. With global reach and economies of scale, they efficiently handle complex logistics, enabling seamless cross-border deliveries and maintaining competitive pricing.

Last Mile Delivery Market Company

Major players operating in the market are:

  • Amazon Logistics
  • Aramex
  • DHL
  • DoorDash
  • DPD
  • FedEx
  • GrubHub
  • Postmates
  • UPS
  • USPS

Last Mile Delivery Industry News

  • In March 2024, Blueflite and DroneUp unveiled a collaborative effort to elevate last-mile delivery services through the integration of advanced drone technology and autonomous systems. Their partnership seeks to redefine the sector by guaranteeing swift, secure, and dependable deliveries within a 15-mile radius of affiliated merchants.
  • In November 2023, Amazon rolled out a worldwide last-mile fleet initiative in India, introducing a fleet composed entirely of EVs. The program is designed to support more than 300 Delivery Service Partners (DSPs) in fulfilling customer deliveries while eliminating tailpipe emissions.

The last mile delivery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and shipment (units) from 2021 to 2032, for the following segments:

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Market, By Vehicle Type

  • Drones
  • Vans & trucks
  • Robots
  • Two-wheelers

Market, By Type

  • Autonomous
  • Non-autonomous

Market, By Delivery mode

  • B2C
  • B2B
  • C2C

Market, By Application

  • E-commerce
  • Food and grocery
  • Parcel & courier services
  • Pharmaceutical
  • Furniture & appliance

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia
    • Rest of MEA


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size for last mile delivery was valued at USD 175.3 billion in 2023 and will grow at over 6% CAGR between 2024 and 2032, driven by the utilization of advanced analytics and AI.

The E-commerce application segment accounted for 42% of the last mile delivery market share and is projected to grow rapidly by 2032, driven by the surge in online shopping.

North America last mile delivery market held a share of over 37% in 2023 and will expand rapidly till 2032, fueled by the increasing dominance of e-commerce.

Amazon Logistics , Aramex, DHL, DoorDash, DPD, FedEx, and GrubHub among others.

Last Mile Delivery Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 18
  • Tables & Figures: 330
  • Countries covered: 24
  • Pages: 280
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