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Last Mile Delivery Vehicle Market Size - By Vehicle, By Payload Capacity, By End Use, By Delivery Mode, By Propulsion Growth Forecast, 2025 - 2034
Report ID: GMI14837
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Published Date: October 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Aishvarya Ambekar
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Base Year: 2024
Companies covered: 28
Tables & Figures: 162
Countries covered: 22
Pages: 209
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Last Mile Delivery Vehicle Market
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Last Mile Delivery Vehicle Market Size
The global last mile delivery vehicle market was estimated at USD 164.1 billion in 2024. The market is expected to grow from USD 173 billion in 2025 to USD 333.4 billion in 2034, at a CAGR of 7.6%, according to latest report published by Global Market Insights Inc.
The growing e-commerce surge, rapid urbanization, and increasing consumer expectations for faster deliveries are reshaping the last-mile delivery vehicle market. Light commercial vans, cargo motorcycles, three-wheelers, and small trucks assist operators to optimize delivery efficiency and minimize fuel and maintenance expenses as well as being able to navigate congested urban environments and still deliver services on time.
For example, In June 2025, DHL entered into an agreement with the Daimler Truck and the rental company hylane to lease 30 Mercedes-Benz eActros 600 trucks on a Transport-as-a-Service model. This will allow DHL to implement clean-transport adoption without the initial investment in purchasing the equipment. OEMs are also partnering with logistics companies to tailor vehicles to maximize payload, life cycle, and fuel efficiency. Telematics, route optimization, and driver-assist technologies are already being incorporated to increase the availability of fleet, advance safety, and adherence to regulatory requirements.
Fleet operators are pressured to enhance operational efficiency, motivating them to contemplate using real-time route optimization, predictive maintenance, and vehicle monitoring based on telematics. The strategic depot hubs and advanced refueling facilities enable multi-shift operation and minimize downtime and enhance service reliability.
The COVID-19 pandemic has interfered with vehicle manufacturing and fleet growth. Nevertheless, the boom of e-commerce after the pandemic increased the investments in the last-mile vehicles. There is the growing use of subscription-based leasing, fleet-sharing models, and remote diagnostics as a way of ensuring a high degree of operational flexibility and at the same time delivery reliability.
The use of light commercial vans, motorcycles, and three-wheelers is in high demand as a result of urban jams, food and grocery delivery, healthcare logistics and booming e-commerce. Fleet monitoring using Telematics, IoT-based operations intelligence, and advanced micro-mobility are becoming important areas of investment by the OEMs and logistical operators.
The market of the last-mile delivery vehicles in North America and Europe is quite consolidated, and major logistics companies invest in high-capacity vans, optimized routing, and urban delivery packages. Key competitors fight based on the reliability of fleets, efficiency, and systems of vehicle management.
Asia-Pacific offers the fastest growth opportunities because of the rapid urbanization, the percentage of motorcycles and three-wheelers and the backing of the government with smart city and transport infrastructure programs. Advanced fleet management systems, telematics, and AI-based route optimization are the ones that companies in China, India, and Southeast Asia are using to address the increased demands of deliveries.
11% market share
Collective market share in 2024 is 36%
Last Mile Delivery Vehicle Market Trends
Hybrid and electric-assisted vehicles are becoming a popular part of last-mile fleets maintained by logistics operators to lower the costs of fuel, minimize emissions, and meet environmental control standards. These vehicles will enhance efficiencies of operations in the urban centers and provide a sustainable solution without a total transition to fully electrics fleet.
For example, in February 2025, Rivian stated that it opened its delivery van sales to all sizes of fleets in the United States, opening its prior exclusive partnership with Amazon. The shift will enable more companies to purchase the electric delivery vans developed by Rivian to aid in the expansion of electric fleets in the last-mile delivery industry.
Fleet management is changing with the Telematics and IoT technologies that have provided the ability to track vehicles in real-time, predictive maintenance, and driver behavior. These mechanisms assist the operators to streamline routes, minimize downtimes, increase safety and efficiency in overall operations and deliveries are always on time and save fuel and maintenance costs in the urban delivery systems.
Fleet-sharing models and subscription enable logistics businesses to gain access to vehicles without huge capital investments. With such a solution, operators are allowed to scale up and down as demand fluctuates, reduce idle assets and have flexibility in delivery operations. This strategy will minimize the expenses, lessen financial risks, and help the provision of efficient last-mile service in unstable urban markets.
Last Mile Delivery Vehicle Market Analysis
Based on vehicle, the market is divided into two-wheeler, three-wheelers, four-wheeler, and micro mobility. The two-wheeler segment dominated around 37% share in 2024 and is expected to grow at a CAGR of over 6.8% through 2034.
Based on propulsion, the last mile delivery vehicle market is segmented into ICE, electric, and hybrid. The ICE segment dominated around 65% share in 2024 and is expected to grow at a CAGR of over 7.1% between 2025 and 2034.
Based on payload, the market is segmented into Less than 50 Kg, 50-500 Kg, 500- 1500 Kg, and More than 1500 Kg. The less than 50 Kg segment is expected to dominate the market with around 41% share in 2024, driven by the rapid growth of online shopping, rising consumer demand for fast delivery, and fleet electrification initiatives by major e-commerce and logistics companies.
Based on delivery mode, the market is divided into regular delivery, same-day delivery, express delivery. The regular delivery segment dominated the last mile delivery vehicle market, accounting for around 42% share in 2024.
U.S. dominated the last mile delivery vehicle market in North America with around 85% share and generated USD 53.5 billion revenue in 2024.
The last mile delivery vehicle market in Germany is expected to experience robust growth between 2025 and 2034.
The last mile delivery vehicle market in China is expected to experience strong growth between 2025 and 2034.
The last mile delivery vehicle market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
The last mile delivery vehicle market in UAE is expected to experience significant and promising growth from 2025 to 2034.
Last Mile Delivery Vehicle Market Share
Last Mile Delivery Vehicle Market Companies
Major players operating in the last mile delivery vehicle industry are:
Last Mile Delivery Vehicle Industry News
The last mile delivery vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) and shipment (Units) from 2021 to 2034, for the following segments:
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Market, By Vehicle
Market, By Payload Capacity
Market, By End Use
Market, By Delivery Mode
Market, By Propulsion
The above information is provided for the following regions and countries: