The last mile delivery transportation market size is projected to touch over US$ 424.3 billion by 2030, growing at a CAGR of 10% every year, according to a 2022 study by Precedence Research, the Canada-based market Insight Company.
The base year for the study has been considered 2021, the historic year 2017 and 2020, the forecast period considered is from 2022 to 2030. The last mile delivery transportation market is analyzed on the basis of value (US$ Million), volume (Unit), and price (US$/Unit).
The last mile delivery primary service comprise of the deliver goods & services within the instructed time at affordable rate and in proper condition. The business of last mile delivery is meliorated and is anticipated to reach heights in coming times. Numerous shoppers and retailers are now growing on last mile logistics, which is likely make them to have a better market position.
In addition, Amazon florescence has shifted into online distribution of retail where, the goods & services are delivered in the fixed time period with proper condition. In case of pastoral area, delivery points are at distance and rate of parcels is also low, then, the last mile delivery request is impacted.
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Last Mile Delivery Transportation Market Scope
|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|
Last Mile Delivery Transportation Market – Report Highlights
- On the basis of vehicle type, the segment named light duty vehicles had the majority of the last mile delivery transportation global market share in the year 2020. Furthermore, more cargo space, low cost, high speed & flexibility and other similar advantages are major factors are contributing to the high share which is held by the light duty vehicles segment.
- On the basis of cargo type, the segment named dry goods had the major share of the global market in the year 2020. Chemicals, liquor, oil, and other goods in liquid state have limitation on transportation and delivery in numerous countries.
Last Mile Delivery Transportation Market – Regional Snapshot
Asia Pacific garnered a market share of over 60% and dominated the global last mile delivery transportation market in 2020. The presence of around 60% of the global population in the region has presented lucrative growth opportunities for the market players. Moreover, the rising government investments in the infrastructural developments, urbanization, electrification, and development of IT and telecommunications infrastructure has prominently contributed towards the growth of the Asia Pacific last mile delivery transportation market.
The rising disposable income, increased popularity of last mile delivery transportation among the youth, improved access to the internet, independent last mile delivery transportation, and rising penetration of the online delivery platforms like flipkart, amazon, and ubuy are some of the major factors that drives the market growth.
Moreover, the increased adoption of the online payment platforms and the various promotional offers and discounts offered by the online payment apps like Phonepe, Pay tm, Amazon Pay, and Google Pay has significantly fostered the growth of the last mile delivery transportation market in this region. The rising employment levels and busy and hectic schedules of the consumers are driving the sale of the last mile delivery transportation owing to the conveniences associated with it. All these factors has made the Asia Pacific region, the fastest-growing last mile delivery transportation market too.
North America was the second-largest market in 2020. This is attributed to the increased adoption of the smartphones and the internet coupled with the increased demand for the convenient procut delivery services across North America. The busy and hectic life schedules along with the increased disposable income of the consumers have fostered the growth of the last mile delivery transportation market in this region.
Last Mile Delivery Transportation Market Dynamics
There was significant instigation before the COVID-19 epidemic; still the key players were successful in providing required products to the door steps in the year 2020. The epidemic have provided an immense opportunities to the force chain on its head as further people began shopping online due to lockdown orders, quarantines, and many other concerns regarding health over in-person shopping. To gain a benefit in last- mile delivery, the key players requires understanding of the top trends in of the market and acclimatize to the ever changing geography and ameliorate the customer experience.
Consumer’s rising demand towards greater quantities of services and products. Also, high frequency fulfilment and super-fast delivery services have come the custom, without assuming on numerous occasions the factual cost associated with the service handed. In certain sectors, the consumers themselves have propagated a free delivery culture that oppressively hampers sustainability and balance in a sector of activity undergoing a complete transformation. Paradoxically, however, it’s this same consumer who, from the perspective of the citizen, is decreasingly concerned about the terrain and sustainability.
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Automated systems and smart technology
The implementation of smart technology and automated systems, similar as IoT, has enabled companies to use real- time information in order to manage their line & make order changes during the last- minutes. In addition, the available data volume is likely rise exponentially, as telematics come commonplace and gain IoT operations. Furthermore, data analytics aids the key players to map out energy-effective routes in order to manage numerous stops. These advancements in technology are likely to provide significant openings for the last afar delivery transportation request during the forecast period.
Last Mile logistical efficacy clearly represents a challenge for key players engaging in freight delivery and distribution in view of its significant, direct impact on operating margins, in which the Last Mile can represent up to 40% of the total parcel delivery cost. As a significance of the issues specific to each sector and the difficulties of last mile logistics, the average profitability of couriers has been significantly wind-swept while the volume managed has grown annually at double digit rates.
Similarly, in the HORECA sector, benchmark distributors’ profitability is double or triple times lower than that of the large global competitors and, in the retail food and general freight sector, a substantial portion of the retailers are finding if very difficult to generate revenue from their e-commerce channels.
Some of the prominent players in the global last mile delivery transportation market include:
- 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
Last Mile Delivery Transportation Market Segments
By Vehicle Type
- Cargo Bike
- Two Wheeler Vehicle
- Light Duty Vehicles
- Medium & Heavy Duty Vehicles
By Cargo Type
- Dry Goods
- Liquid Goods
By End Use
- Food Delivery
- FMCG Products
- Health Products
- Automotive Products
- Electronic Products
- Real Time Tracking
- Automated Planning and Optimization
- Electronic Proof of Delivery
- Dynamic Re-routing
- Hardware Agnostic Platform
- Real Time ETA Calculation
- Interactive Planning Dashboard
- Delivery Route Planning Visualization
- Third Party Logistics (3PL)
- North America
- South Korea
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- North Africa
- South Africa
- Rest of the Middle East & Africa
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