The global last mile delivery transportation market size was valued at USD 155.7 billion in 2023 and is expected to hit around USD 402 billion by 2033, poised to grow at a CAGR of 10% during the forecast period 2024 to 2033.
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The U.S. last mile delivery transportation market size was valued at USD 29.9 billion in 2023 and is anticipated to reach around USD 77.1 billion by 2033, poised to grow at a CAGR of 10% from 2024 to 2033.
North America dominated the last mile delivery transportation market in 2023. North America has well-developed transportation infrastructure, including road networks, highways, airports, and distribution centers, which support efficient last mile delivery operations. The presence of modern logistics facilities and fulfillment centers enables logistics providers to streamline delivery processes and meet customer expectations for timely and cost-effective deliveries. The rapid growth of e-commerce and online retailing has fueled the demand for last mile delivery services in North America. With the increasing popularity of online shopping platforms such as Amazon, Walmart, and Target, consumers expect fast and efficient delivery of their purchases, driving the need for reliable last mile logistics solutions.
Asia Pacific is observed to expand at the fastest rate during the forecast period. The region is experiencing rapid urbanization, leading to dense populations and increased demand for goods and services in urban areas. With a large and growing urban population, there is a high volume of last mile deliveries required to meet the needs of consumers, businesses, and e-commerce platforms. The rising disposable income and expanding middle class in Asia Pacific have led to increased consumer spending on retail goods, groceries, and other products. As more people gain access to online shopping and digital payment methods, the demand for home delivery services has surged, particularly in urban areas where convenience is valued.
Last mile delivery is also called as logistic of last mile which comprise of transportation of services and goods to final doorstep of customer from the distribution hub. The main goal of this delivery system is to provide the demanded goods & services to the customer’s demanded location within the time frame with a predefined rate and in proper condition. Also, the last mile delivery business is refined and is likely to reach heights in forthcoming time period. Many shoppers and retailers are now focusing more towards the last mile logistics, which will help them stand different in the market. Furthermore, Amazon prime has transformed itself into an online retail distribution channel where, the goods & services demanded are delivered to the customer in decided time line with proper condition. In addition, coming to the rural area, the delivery points are at a certain distance and the parcel rates are low comparatively, where the market of last mile delivery is impacted. Moreover, the inefficiencies and costs of market has further been impacted by continuous growth in the online distribution channels in the retail sales of U.S., which will gradually increase the number of parcels, and this will lead to rise in expectations of customer for faster and free delivery system & services.
Along with the rise in global shipment via digitally advanced supply chains and Omni channel modes, last mile strategies which are ultramodern in nature are getting more pivotal to shippers and customers. In addition, various service providers are observing integration and process standardization changes, buying preferences of guests, and preferred mode of delivery which is impacting new priorities of investment.
The developments which are technological and are under the last mile delivery scope is redefining the delivery transportation of last mile. Also, few of the progressions that are estimated to make inroads in the market comprise of uptake of electric vehicles among mounting environmental concerns, autonomous delivery vehicles and entry of semiautonomous vehicles. Therefore, such innovations are likely to be fulfilled with stringent guidelines related to emission and thus diminish delivery costs owing to which, the entry of these technologies within the current market landscape could be earlier than expected.
The impact of the COVID-19 pandemic on the growth of the global last mile delivery transportation market was quite negative during 2020. This had impacted each and every vertical of industry. The supply chain disruptions and trade restrictions had adverse effects on the growth of the global last mile delivery transportation market.
The factors such as growing middle class population in developed and developing regions are driving the growth of the global last mile delivery transportation market. The rapid industrialization and urbanization and expansion of the logistics industry is supporting the growth of the global last mile delivery transportation market.
One of the prominent factors driving the growth of the global last mile delivery transportation market is the rising penetration of the internet and usage of mobile phones. The growing e-commerce sector is also boosting the growth of the global last mile delivery transportation market.
On the other hand, the regulations imposed by government authorities for control of carbon emissions and greenhouse gases emissions is a major challenge for the expansion of the global last mile delivery transportation market. Moreover, the well-established charging infrastructure for electric vehicles is supporting the development of last mile delivery transportation market.
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 10% |
| Market Size in 2023 | USD 155.7 Billion |
| Market Size by 2033 | USD 402 Billion |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | Vehicle, Cargo, End User, Ownership, Solution, Region |
| Companies Mentioned | Cargo Carriers Limited, CEVA Logistics, CJ Logistics Corporation, Concargo Private Limited, DB SCHENKER, DHL Global Forwarding, FedEx Corporation, Interlogix Pty. Ltd., J&J Global Limited, Kerry Logistics Network Limited |
The two wheelers segment dominated the last mile delivery transportation market in 2023. Two-wheelers, such as motorcycles, scooters, and bicycles, offer superior agility and maneuverability compared to larger vehicles like cars or trucks. This enables delivery personnel to navigate through congested urban areas, narrow streets, and tight spaces more efficiently, reducing delivery times and improving overall productivity.
Two-wheelers are generally more affordable to purchase, operate, and maintain than four-wheeled vehicles. They have lower upfront costs, fuel consumption, and maintenance expenses, making them a cost-effective option for last-mile delivery operations, especially for small and medium-sized businesses with limited budgets.
The dry goods segment held the largest share of the last mile delivery transportation market in 2023. Dry goods, including consumer products such as electronics, clothing, household goods, and non-perishable food items, constitute a significant portion of e-commerce orders. The growing popularity of online shopping and direct-to-consumer delivery services has led to a surge in demand for last mile transportation services for dry goods. Dry goods encompass a wide range of products that do not require refrigeration or special handling during transportation. This makes them well-suited for various modes of last mile delivery, including traditional delivery vans, trucks, bicycles, and even drones. The versatility of dry goods allows for efficient and cost-effective transportation solutions in urban, suburban, and rural areas.
Global Last Mile Delivery Transportation Market, By Cargo Type, 2020-2023 (USD Billion)
| By Cargo Type | 2020 | 2021 | 2022 | 2023 |
| Dry Goods | 71.1 | 86.3 | 93.8 | 102.1 |
| Liquid Goods | 37.0 | 45.1 | 49.2 | 53.7 |
Segments Covered in the Report
By Vehicle Type
By Cargo Type
By Delivery Speed
By End Use
By Ownership
By Geography
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