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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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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.

Last Mile Delivery Vehicle Market

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.
 

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

Last Mile Delivery Vehicle Market Size, By Vehicle, 2022 - 2034 (USD Billion)

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.
 

  • Two-wheeler segment dominates the last mile delivery vehicle market due to its advantages like low cost, high speed, and better traffic navigation. E-commerce firms, grocery chains, and food apps trust scooters and bikes for quick drops. Asia Pacific region makes biggest use, keeping dominance firm.
     
  • The reason behind their predominance is low pricing and less fuel consumption. Companies select the scooters for small parcel runs or if they are in a hurry. Gig workers rely heavily on the scooters. Now, electric scooters are coming to the forefront; they cut running costs, adhere to emission regulations and scale many fleets.
     
  • For example, in April 2023, Zypp Electric in India, has partnered with Zomato to deploy 100,000 e-scooters for last-mile delivery by 2024. The initiative expands Zypp’s current 13,000 EV fleet and supports Zomato’s goal of going fully electric by 2030, aiming to cut 35 million kg of carbon emissions.
     
  • Micro mobility vehicles like e-bike, cargo cycles, and small scooters are the fastest growing two-wheeler types. Eco benefits and city rules make them popular. They fit good in short trips where car or vans cannot enter. Pedestrian zone deliveries are also better suited for this type than normal vehicles.
     
  • Sustainability objectives, congestion problems, and more money from logistics companies are all driving this growth. Cities are setting up bike lanes and/or otherwise supporting green deliveries. Online retailers in particular are partnering with a micro-mobility player, increasing adoption and usage.

 

Last Mile Delivery Vehicle Market Share, By  Propulsion, 2024

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.
 

  • Internal combustion engine vehicles continue to lead the last-mile delivery vehicle market due to their established infrastructure, lower upfront costs, and availability worldwide. Many logistics companies, small businesses, and gig workers prefer ICE vehicles because they offer longer driving ranges, quick refueling, and the ability to carry heavy loads. These features make them suitable for demanding delivery schedules, especially in areas with limited EV charging options.
     
  • ICE vehicles also benefit from mature supply chains, strong resale markets, and widespread service networks, which help reduce operational risks for fleet operators. While electric vehicles (EVs) are gaining popularity, ICE vehicles remain dominant in developing countries and rural areas where EV adoption is slower, maintaining their leading position in the market for now.
     
  • For instance, in June 2025, Honda introduced a new business division called Fastport, with the Fastport eQuad, an electric quadricycle to make last-mile urban deliveries in North America and Europe. The eQuad has interchangeable batteries, can be used in bike lanes, and has a fleet-as-a-service pay model, which includes hardware, software and maintenance. It will start producing later in the year in Ohio and pilot programs will focus on parcel and food delivery industries.
     
  • The electric vehicle segment is expected to grow at a CAGR of around 8.7% through 2034, due to rising environmental awareness, stringent emission regulations, and increasing government incentives. Adoption is further fueled by advancements in battery technology, declining costs, and expanding charging infrastructure, making EVs more accessible for last-mile delivery fleets globally.
     

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.
 

  • The last-mile delivery vehicle market is dominated by the less than 50 kg segment due to its versatility, cost-effectiveness, and efficiency in urban logistics. Vehicles within this weight range, including electric scooters, small cargo bikes, and compact vans, are ideal for navigating congested city streets, reducing delivery times, and minimizing fuel consumption.
     
  • E-commerce companies, food delivery services, and grocery chains prefer these vehicles for quick, frequent deliveries of small to medium-sized parcels. Their lower operating and maintenance costs make them economically attractive to fleet operators. Additionally, growing adoption of electric powertrains in this segment supports sustainability goals by reducing emissions, making it the preferred choice for modern urban last-mile delivery operations.
     
  • For example, in May 2025, Amazon tested 12 GM BrightDrop electric delivery vans as it continues to build an EV fleet. The experiment supplements its current Rivian collaboration, which assists in testing BrightDrop vans in terms of logistics. Amazon seeks to implement 100,000 electric delivery vans in 2030.
     
  • The 500- 1500 Kg segment will have the highest CAGR of 9.9% through 2034, due to the increasing adoption of electric and hybrid light commercial vehicles in urban logistics, last-mile delivery, and e-commerce operations. Vehicles in this payload range offer the optimal balance between load capacity and maneuverability, making them ideal for dense city environments.
     

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.
 

  • The regular delivery segment is the largest in the last-mile delivery vehicle market because it handles most e-commerce and logistics operations globally. This segment includes daily shipments like groceries, parcels, and retail goods, which are essential for urban and suburban logistics. Most businesses prefer standard delivery schedules over express or specialized services, making this segment the key driver of demand for last-mile vehicles. High repeat usage in this segment ensures steady deployment of vehicles and regular replacement cycles, further strengthening its market leadership.
     
  • Moreover, the rapid rise of e-commerce, increasing urbanization, and growing consumer demand for faster deliveries. Companies are investing more in energy-efficient and electric vehicles to lower operating costs and meet stricter environmental rules, especially in cities. The flexibility of vehicles used in regular delivery, from two-wheelers to light commercial vans, makes this segment highly appealing and keeps it the largest in the last-mile delivery vehicle market.
     
  • For example, in November 2024, Flipkart announced the deployment of over 10,000 electric vehicles (EVs) in its delivery fleet, resulting in a 20% improvement in delivery speed and reduced costs per order at the hub level. The company utilizes 75% of its EV fleet in Tier-I cities, including Bengaluru, Chennai, Delhi, and Hyderabad. This initiative aligns with Flipkart's goal of achieving a fully electric fleet by 2030.
     
  • In addition, the same-day delivery market segment will experience the fastest growth because the number of consumers who want fast and convenient deliveries increases. In addition, logistics providers can make short, efficient trips with minimal emissions and lower operating expenses, responding to strict delivery schedules with the help of e-commerce development, urbanization, and the use of electric vehicles.

 

U.S. Last Mile Delivery Vehicle Market Size, 2022- 2034 (USD Billion)

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 U.S. dominates the North American last-mile delivery vehicle industry due to existing e-commerce environment, urbanization level, and the emphasis on sustainable logistics. Large logistics companies like UPS, FedEx, and Amazon are also investing in the development of electrified delivery truck fleets to satisfy the increasing consumer demands of faster, reliable, and environmentally friendly deliveries. Government incentives such as tax credits and grants, as well as subsidies on the adoption of electric vehicles, also stimulate companies to incorporate electric vans, cargo bikes, and e-trikes into the business.
     
  • In addition, stricter emission laws in cities and corporate sustainability pledges are the reasons for switching to electric delivery vehicles. The U.S. is the most competitive market in North America, as technological innovations such as AI-solutions and fleet management, telematics, and battery-swapping infrastructure can become more efficient, with less downtime and lower total cost of ownership.
     
  • For example, in February 2025, Rivian declared that it would sell its electric company vans to every business in the U.S., terminating its exclusivity deal with Amazon. The decision will enable more companies to move towards electrifying their delivery fleets, and the US market is going to expand with the electric last-mile delivery vehicle.
     
  • Canada is the emerging fastest-growing market in last-mile delivery vehicles because of growing suburban and remote urban networks, increased demand for same-day delivery, and investment in modern logistics infrastructure. Firms are also embracing the use of versatile delivery vans, light trucks and multi-purpose vehicles that can cover long distances effectively and at minimum costs to maximize the delivery time.
     
  • For example, in April 2025, GLS Canada started its initial fully electric last-mile deliveries with the objective of zero emissions by 2045. This action demonstrates the interest of the company in being sustainable and the development of the Canadian market in the electric delivery vehicles.
     

The last mile delivery vehicle market in Germany is expected to experience robust growth between 2025 and 2034.
 

  • Europe accounts for around 18% of the market share in 2025 and is expected to grow at a CAGR of over 5.9% driven by strict emission regulations, rising e-commerce demand, and investments in urban logistics infrastructure. Adoption of light commercial vans, cargo bikes, and three-wheelers is accelerating sustainable, efficient deliveries.
     
  • Germany leads the European last-mile delivery vehicle market due to its advanced logistics infrastructure, high e-commerce penetration, and stringent environmental regulations. The country’s dense urban centers and well-developed road networks create a strong demand for efficient delivery vehicles, including light commercial vans, cargo motorcycles, and three-wheelers, to optimize urban logistics operations.
     
  • Major logistics players such as DHL, Hermes, and DPD are investing heavily in modernizing their fleets with hybrid and low-emission vehicles to comply with Germany’s strict urban emission zones. Government incentives, including subsidies for low-emission vehicles and tax benefits, further encourage fleet electrification and adoption of innovative delivery solutions.
     
  • For instance, in July 2025, DHL Group announced the addition of 2,400 Ford Pro electric vans to its Post & Parcel Germany business unit, bringing the total number of electric vehicles in the fleet to approximately 35,000. This expansion underscores Germany's leadership in electric last-mile delivery logistics.
     
  • Additionally, technological advancements in telematics, route optimization software, and predictive maintenance are enhancing operational efficiency and reducing downtime. These factors, combined with Germany’s leadership in vehicle manufacturing and innovation, solidify its dominance in the European last-mile delivery market.
     
  • The UK emerges as the fast-growing region for the last-mile delivery vehicle market. This growth is driven by new logistics models like crowd-sourced delivery networks, micro-distribution hubs, and modular electric vans. Investments in smart depots and AI-based route planning are also improving efficiency.
     

The last mile delivery vehicle market in China is expected to experience strong growth between 2025 and 2034.
 

  • Asia-Pacific accounts for more than 36% of the market share in 2025 and is the fastest-growing region with a CAGR of around 9.2% driven by investments in smart logistics networks, the spread of urban micro-hubs, and the implementation of new delivery vehicles, such as e-vans and cargo bikes, as well as three-wheelers to operate in the most efficient way.
     
  • China dominated the last-mile delivery cars market in the APAC because of its widespread logistics infrastructure and improved production platform and emphasis on novel delivery technologies. Mass trials of electric cargo three-wheels, autonomous delivery robots, and light commercial vans developed to operate in close city streets and densely populated areas are underway in the country. The rapid growth of smart city projects and the digitization of supply chains have further empowered the efficiency of the last-mile logistics allowing operators to streamline their delivery schedules and minimize their operational expenses.
     
  • Chinese e-commerce platforms such as JD.com, Alibaba, and SF Express are working with local OEMs to deploy autonomous delivery pods, AI-enhanced fleet management, and IoT-enhanced route optimization. Secondly, shared mobility platforms and modular delivery vehicles are also privately invested to help scale up the operations, which underlines the dominance of China in the APAC market of last-mile delivery vehicles.
     
  • For example, in July 2025, JD Logistics launched a 24 cubic meter all-electric van with a full range of 400 kilometers on a full load. This Level 4 AV will allow improving the efficiency of urban logistics.
     
  • Additionally, India exhibits the highest growth rate of last-mile delivery vehicles in APAC because of the increasing use of micro-distribution centers, novel electric three-wheeler delivery fleets, and the state-supported policies that facilitate the adoption of green logistics. The efficiency is being speeded up in investments made in modular delivery vans and smart fleet management.
     

The last mile delivery vehicle market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
 

  • Latin America holds approximately 6% share in the Last mile delivery vehicles market in 2025 and is growing at a CAGR of approximately 8% through 2034, driven by growing investments in logistics infrastructure, expansion of urban delivery networks, adoption of versatile light commercial vehicles, and increasing demand for faster, cost-efficient last-mile solutions.
     
  • Brazil leads the Latin American last-mile delivery vehicle market due to rapidly evolving logistics ecosystem, large metropolitan areas, and increasing reliance on modern delivery networks. Companies are adopting multi-purpose delivery vans, lightweight cargo trucks, and modular three-wheelers capable of navigating Brazil’s diverse urban and suburban environments efficiently. The expansion of dark stores, micro-fulfillment centers, and neighborhood distribution hubs is enabling faster deliveries, reducing operational costs, and improving service reliability.
     
  • Moreover, global OEM investments and technology transfers are strengthening local EV assembly and component production, making electric vans, bikes, and trikes more accessible. Growing public awareness of air quality in major cities like São Paulo and Rio de Janeiro is further encouraging adoption, as consumers increasingly prefer eco-friendly delivery services.
     
  • Furthermore, Brazil is advancing in sustainability initiatives by incorporating electric and hybrid vehicles into delivery fleets. These green logistics efforts are growing in response to new regulations and consumer preferences for environmentally conscious supply chains
     
  • In February 2023, Brazilian firm Arrow Mobility has released the Arrow ONE, an all-electric delivery van tailored to urban logistics. The Arrow ONE will support the last mile delivery vehicle in Brazilian cities with 2,000 kg of capacity and 270 km range, thus offering a sustainable and efficient solution.
     
  • Mexico is the fastest-growing market for last-mile delivery vehicles in Latin America due to increasing investment in logistics infrastructure, the rise of regional micro-fulfillment centers, and adoption of versatile light commercial vehicles. Companies are leveraging technology-driven fleet management and modular delivery solutions to enhance efficiency and service reliability.
     

The last mile delivery vehicle market in UAE is expected to experience significant and promising growth from 2025 to 2034.
 

  • Middle East and Africa constitute approximately 1% share of last mile delivery vehicles industry in 2024 and is growing steadily driven by rising urban logistics projects, government-backed smart city initiatives, and adoption of fuel-efficient and electric delivery vehicles for efficient regional distribution.
     
  • The UAE is the market leader in the MEA region because of its developed infrastructure, well-developed logistic market and sustainability. The adoption of electric vehicles is supported by the efforts of the government, including introducing battery-swapping stations to deliver e-bikes in Dubai.
     
  • Furthermore, the pilot project of driverless delivery vehicles in Masdar City of Abu Dhabi underscores the innovation-focused and sustainable urban logistics in the UAE. This program helps to facilitate efficient, low-emission delivery, incorporates innovative technology in urban movement, and strengthens the leadership of the country in terms of implementing next-generation electric last mile delivery vehicle systems.
     
  • In March 2024, Aramex launched a range of fully electric motorcycles to complete last-mile deliveries in the UAE. This move is under the broader scope of Aramex having a 98% electric vehicles fleet by 2030. Electric bikes are made to travel in urban environments in the most efficient way by minimizing the emission and the costs of running them.
     
  • The market in last-mile delivery vehicles in Saudi Arabia is experiencing tremendous growth because of government efforts to promote smart logistics, investments in e-commerce infrastructure, uptake of electric and hybrid delivery fleets, and increased urban micro-fulfillment centers in major cities to deliver goods quicker.
     

Last Mile Delivery Vehicle Market Share

  • The top 7 companies in the last mile delivery vehicle industry are Mahindra Electric, General Motors, Ford, BYD, Rivian, Mercedes-Benz, and Stellantis, contributed around 41% of the market in 2024.
     
  • BYD provides high-capacity delivery vehicles with ICE, hybrid, and electric powertrains. Their strategy targets long-range performance, reliability, and cost-effective fleet solutions, focusing on urban logistics and emerging markets while supporting fleet electrification programs.
     
  • Mahindra Electric focuses on small and medium commercial vehicles, including ICE, hybrid, and electric models, for urban delivery. Their strategy emphasizes affordability, maneuverability in congested areas, and partnerships with local logistics firms to expand adoption across Indian and emerging markets.
     
  • General Motors, leverages its global fleet expertise to offer a mix of ICE, hybrid, and electric delivery vans. The strategy centers on scalable fleet solutions, integrated telematics, and collaborations with major e-commerce companies to optimize last-mile logistics worldwide.
     
  • Ford prioritizes efficiency across ICE, hybrid, and electric commercial vans, including the E-Transit range. Focused on urban route optimization, fleet management software, and global manufacturing capabilities, the strategy aims to meet growing delivery demand efficiently.
     
  • Rivian specializes in modular delivery vans adaptable for electric, hybrid, or ICE configurations. They emphasize durability, fleet telematics, and route optimization, partnering with large logistics operators to enhance sustainable and reliable last-mile delivery.
     
  • Mercedes-Benz offers premium ICE, hybrid, and electric vans like the Sprinter and Vito. Their strategy combines customizable payloads, smart fleet management systems, and regional expansions across Europe and North America for urban and commercial delivery.
     
  • Stellantis focuses on versatile light commercial vehicles with ICE, hybrid, and electric options. Strategies include modular vehicle platforms, collaboration with logistics providers, and leveraging EU incentives to improve fleet efficiency and support urban last-mile operations.
     

Last Mile Delivery Vehicle Market Companies

Major players operating in the last mile delivery vehicle industry are:

  • BYD
  • Ford
  • General Motors
  • GreenPower Motor
  • Mahindra Electric
  • Mercedes-Benz
  • Rivian
  • Stellantis
  • Tata Motors
  • Xos

 

  • The companies are working on development of multi-functional and versatile equipment with the help of new technologies such as telematics, artificial intelligence, automation, and electric/hybrid powertrains. Latest advances in attachments, operator assistance systems are used to assist the contractor to work more effectively, less downtime and conform to sustainability and emission requirements.
     
  • Business growth is being pushed to emerging markets and urban construction regions. They employ dealer networks, Rental partnerships and service centers to enhance ease of access, minimize maintenance problems and expand market coverage. A powerful distribution and support system ensures customer confidence, and it promotes the use of compact equipment in the long run.
     
  • Companies are also focusing on after sales services, flexible payment schemes and leasing to make equipment more affordable and easier to operate. They specialize in cost saving, efficiency and safety promotion and provide solutions to urban, industrial and small-scale construction projects in response to changing customer demands.
     

Last Mile Delivery Vehicle Industry News

  • In September 2025, Rivian announced plans to enter the UK market with its R2 SUV, a right-hand-drive electric vehicle boasting a range of over 300 miles, aiming to expand its global presence.
     
  • In June 2025, Mercedes-Benz Vans delivered nearly 5,000 electric vehicles to Amazon's delivery partners, supporting the company's commitment to sustainable urban logistics.
     
  • In April 2025, Mahindra announced that it has sold over 200,000 electric vehicles in India's commercial segment, reinforcing its leadership in the L5 small commercial EV market.
     
  • In February 2025, Mahindra Last Mile Mobility partnered with Vidyut to launch a Battery-as-a-Service (BaaS) initiative for its 4W and 3W commercial electric vehicles. The BaaS program offers a pay-as-you-go rental option, reducing the upfront cost of purchasing these EVs by up to 40%.
     
  • In February 2025, DHL 2-Mann-Handling deploying 21 electric vans across Germany to enhance low-emission delivery of large and bulky goods. This initiative supports DHL Group's sustainability goals and aligns with its broader strategy to electrify over 66% of last-mile delivery vehicles by 2030.
     
  • In March 2024, Renault announced plans to invest USD 324.68 million in its Sandouville plant in northern France to produce new-generation electric vans starting in 2026. The initiative will add 550 jobs to the current workforce of 1,850. The project focuses on a light van designed for last-mile parcel delivery and is part of Renault's electric vehicle unit Flexis, a joint venture with Volvo and CMA CGM.
     

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:

Market, By Vehicle

  • Two-Wheeler
    • Bicycle/Bikes
    • Scooters
    • Motorcycles 
  • Three-Wheeler
    • Auto Rickshaws
    • Tricycles
    • Light Commercial Three-Wheelers
  • Four-Wheeler
    • Micro Commercial Vehicles
    • Light Commercial Vehicles (LCV)
    • Medium Commercial Vehicles
    • Specialized Four-Wheelers
  • Micro Mobility
    • Personal Mobility
    • Cargo Micro Mobility

Market, By Payload Capacity

  • Less than 50 Kg
  • 50-500 Kg
  • 500- 1500 Kg
  • More than 1500 Kg

Market, By End Use

  • Logistics & Transportation Services
  • Retail & E-commerce Companies
  • Food Service & Restaurant Industry
  • Healthcare & Pharmaceutical Industry
  • Government & Public Services
  • Utilities & Field Services
  • Others

Market, By Delivery Mode

  • Regular Delivery
  • Same-Day Delivery
  • Express Delivery

Market, By Propulsion

  • ICE
  • Electric
  • Hybrid

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

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Philippines
    • Indonesia
  • Latin America
    • Brazil
    • Mexico
    • Argentina 
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE

 

Authors: Preeti Wadhwani, Aishvarya Ambekar
Frequently Asked Question(FAQ) :
Which region leads the last mile delivery vehicle market?
U.S. last mile delivery vehicle market generating USD 53.5 billion with 85% revenue share in 2024. Strong e-commerce infrastructure and fleet electrification initiatives fuel the region's dominance.
Who are the key players in the last mile delivery vehicle market?
Key players include BYD, Ford, General Motors, GreenPower Motor, Mahindra Electric, Mercedes-Benz, Rivian, Stellantis, Tata Motors, and Xos.
What are the upcoming trends in the last mile delivery vehicle market?
Key trends include adoption of hybrid and electric-assisted vehicles, telematics and IoT-based fleet management, fleet-sharing and subscription models, and expansion of micro-mobility solutions like e-bikes and cargo cycles.
What is the growth outlook for electric vehicles from 2025 to 2034?
Electric vehicles are projected to grow at a CAGR of around 8.7% through 2034, due to environmental regulations, government incentives, and declining battery costs.
What was the valuation of the ICE propulsion segment in 2024?
The ICE segment dominated around 65% share in 2024, due to established infrastructure, lower upfront costs, and longer driving ranges.
How much revenue did the two-wheeler segment generate in 2024?
Two-wheelers dominated with approximately 37% market share in 2024, supported by low costs, high maneuverability, and strong adoption across e-commerce and food delivery services.
What is the market size of the last mile delivery vehicle in 2024?
The market size was USD 164.1 billion in 2024, with a CAGR of 7.6% expected through 2034 driven by e-commerce growth, urbanization, and rising demand for faster deliveries.
What is the current last mile delivery vehicle market size in 2025?
The market size is projected to reach USD 173 billion in 2025.
What is the projected value of the last mile delivery vehicle market by 2034?
The last mile delivery vehicle market is expected to reach USD 333.4 billion by 2034, propelled by fleet electrification, connected fleet management solutions, and increasing adoption in emerging markets.
Last Mile Delivery Vehicle Market Scope
  • Last Mile Delivery Vehicle Market Size
  • Last Mile Delivery Vehicle Market Trends
  • Last Mile Delivery Vehicle Market Analysis
  • Last Mile Delivery Vehicle Market Share
Authors: Preeti Wadhwani, Aishvarya Ambekar
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Premium Report Details

Base Year: 2024

Companies covered: 28

Tables & Figures: 162

Countries covered: 22

Pages: 209

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