The global last mile delivery transportation market size was valued at US$179.96 billion in 2021 and is expected to hit around US$ 424.3 billion by 2030, poised to grow at a CAGR of 10% during the forecast period 2022 to 2030.
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 Scope of the Last Mile Delivery Transportation Market
|Market Size by 2030||USD 424.3 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 10%
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2022 to 2030|
|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|
On the basis of vehicle, the light duty vehicle segment accounted the dominant market share owing the factor of ease of transport, affordability and it has good load capacity. Furthermore, this segmentation is likely to be the fastest growing segment in the last mile delivery market during forth coming time period owing to rise in demand for export/import of raw material in huge quantity for the purpose of manufacturing tends in order to grow the market segment.
On the basis cargo type, the segment named dry goods had the dominating market share of the global market of last mile delivery in the year 2020. Chemicals, liquor, oil, and other goods in liquid form have transportation and delivery limitations in various countries, and such materials types require a vessel which is leakage-proof for the purpose of transportation, which further upsurge the cost.
Asia Pacific was the leading last mile delivery transportation market that garnered a market share of more than 60% in 2020. Asia Pacific is the home to more than half of the global population which provides a huge consumer base. The rapid urbanization, rising disposable income, busy and hectic lifestyle, rising penetration of the internet, and the increasing adoption of the smartphones are some of the significant macroeconomic factors that drives the growth of the last mile delivery transportation market in Asia Pacific. The countries like China and India are showing promising growth opportunities for the market players owing to the strong economic growth in the region.
North America is estimated to grow at a considerable pace during the forecast period. Increasing buying power, improved access to the digital technologies, higher penetration of internet, and increased adoption of the smart devices are some of the major factors that has propelled the growth of the North America last mile delivery transportation market. The high demand for the products coupled with the busy and hectic schedules of the consumers is boosting the demand for the last mile delivery transportation services owing to the conveniences associated with it.
Key Market Developments
Some of the prominent players in the global last mile delivery transportation market include:
Segments Covered in the Report
By Vehicle Type
By Cargo Type
By End Use
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