| Study Period | 2017 - 2030 |
| 2023 Market Size | USD 32.2 Billion |
| 2024 Market Size | USD 38.6 Billion |
| 2030 Forecast | USD 117.5 Billion |
| Growth Rate (CAGR) | 20.4% |
| Largest Region | Asia-Pacific |
| Fastest-Growing Region | North America |
| Nature of the Market | Fragmented |
| Largest Application Category | E-Commerce |
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The global last mile delivery market size stood at USD 32.2 billion in 2023, and it is expected to advance at a compound annual growth rate of 20.4% during 2024–2030, to reach USD 117.5 billion by 2030. The growth can be primarily ascribed to the increasing use of omnichannel retailing, coupled with a significant rise in internet penetration in developing economies, such as India, Thailand, and Indonesia.
Moreover, the e-commerce industry is growing at a tremendous rate across the globe, and it is occupying a large share of the retail market. In 2023, the e-commerce sector accounted for around 22% of all retail sales. As international demand grows for products and services, all service providers in transportation, particularly in the shipping industry, will need to keep up with rapidly changing supporting technologies, while simultaneously improving their customer services.
Furthermore, it allows extensive research and comparison on prices, features, compatibility requirements, specifications, delivery time, offers, etc., which makes it easier for customers to compare products from multiple online sources as compared to brick-and-mortar stores. These additional advantages over brick-and-mortar stores are driving e-commerce sales.
Moreover, with an increase in trust among online buyers, improved website experience coupled with the level of comfort that is provided to online shoppers, e-commerce has gained significant popularity in the last 10 years. This e-commerce boom, majorly in developing countries like China, India, Brazil, and Mexico, is expected to drive the demand for last-mile delivery services during the forecast period.
The transportation and logistics industry is confronting significant changes, and the integration of real-time technology is one of them. The internet of things (IoT) is becoming prevalent within several industries, with the transportation and logistics industry being considered as a major sector. In order to help companies maintain the growing demands, technology is transforming the last mile, by providing real-time tracking solutions during the delivery process.
Last-mile tracking for customers provides with customers real-time insights into their delivery and last-mile tracking for delivery partners gives businesses a holistic view of delivery logistics and inspires them to be more customer-centric. Real-time visibility enables companies to identify potential problems and resolve them before escalation.
The e-commerce industry has thrived on this technology and it has become important for e-commerce players as well as logistics service providers to have a robust IT infrastructure in place, which allows efficient tracking of each transaction and movement of shipment at any time.
The industry has witnessed various new start-ups entering the market, which provide last-mile management and solutions. For instance, LogiNext Solutions offers logistics and field service management solutions. Through its LOGINEXT MILE, the company provides real-time tracking, real-time estimated time of arrival (ETA) calculation, automated planning & route optimization, and electronic proof of delivery, among others.
This provides customers the feeling of control and makes them aware of order status, but mostly it helps ensure the safety of products and reduces the chances of theft and losses. Thus, with the integration of real-time tracking technology coupled with the introduction of AI and IoT, the market for last-mile delivery is expected to witness a significant boost during the forecast period.
One of the major factors restraining the market growth is the threat to cybersecurity as connectivity among service providers and fleet operators exposes related information to hackers.
The automotive industry is facing an inflection point, as internet connectivity becomes commonplace. This increases the risk of privacy and even safety. The common communication standard among last-mile logistics vehicles and smartphone applications can lead to cyberattacks on fleet services.
Furthermore, protecting proprietary and customer information is critical for shippers, and avoiding cybersecurity threats in last-mile logistics presents complex problems. Therefore, maintaining adequate safety and security remains a major challenge for the industry.
Services covered in the report include:
The following applications are included in the report:
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Further, regions and countries analyzed for this report include:
Key players in the global last mile delivery market are taking strategic measures to gain a competitive edge over their competitors. The strategic moves range from mergers & acquisitions to business expansions and partnerships. To gain a competitive edge over other players, the companies are focusing on improving their existing offerings and working in collaboration with other market leaders to expand their reach.
Competitiveness is also significantly impacted by regional and national policy frameworks, consequently promoting directly or indirectly various choices of last-mile delivery and logistics solutions. Even though last-mile logistics represent a small portion of the overall transportation and logistics industry, its outlook is positive with the increasing offerings of on-demand solutions and hyperlocal solutions in the market.
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