Last Mile Delivery Market To Generate $121.2 Billion Revenue by 2030
- Published: December 2022
The global last mile delivery market size is expected to advance at a CAGR of 20.6% during 2022–2030, to reach $121.2 billion by 2030. This can be ascribed to the surging investments from venture capitalists. Within a few years of its emergence, the industry has witnessed a monumental increase in the number of start-ups, which are receiving funding from several venture capitalists, in order to expand their business.
Moreover, the increasing use of omnichannel retailing, the surging internet penetration in developing economies, and the growing e-commerce industry are driving the market growth.
Rising Popularity of E-Commerce Propelling the Market
The e-commerce industry is growing at a tremendous rate across the globe, and it is occupying a high share of the retail sector. In 2021, global e-commerce sales accounted for around $871 billion, growing at a rate of 16% annually since 2011, but it grew by 32% in 2020. As international demand grows for products and services, logistic service providers will need to keep up with rapidly changing supporting technologies, while simultaneously improving customer services.
Furthermore, e-commerce allows extensive research and comparison on prices, features, compatibility requirements, specifications, delivery time, offers, etc., which make it easier for customers to compare products from multiple online sources as compared to brick-and-mortar stores. These additional advantages 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. Thus, the growing e-commerce sector, majorly in developing countries, such as China, India, Brazil, and Mexico, is expected to drive the last mile delivery market during the forecast period.
LAMEA Offering Lucrative Growth Potential to Industry Players
Geographically, the LAMEA market is expected to grow at the highest CAGR, around 25%, during the forecast period. This can be primarily due to the increasing disposable income of people in emerging economies such as Brazil and Mexico, the surging e-commerce sales, and the rising number of omnichannel retailing and food and grocery delivery start-ups. In the region, Brazil is expected to witness the most significant adoption of last-mile delivery services, owing to an inclination toward technological innovation and a highly adaptive consumer base.
In 2022, APAC held around 35% share in the last-mile delivery market. This is because the region comprises the largest automotive industry in the world, the surging disposable income, the growing e-commerce industry, and the shifting consumer buying behavior toward online shopping. In the region, China is the largest market, due to the increasing urbanization, along with a lustrous technologically driven consumer base who are enthusiastically adopting e-commerce services.
The most significant last mile delivery market players are United Parcel Service Inc., FedEx Corporation, LogiNext Solutions Inc., Deutsche Post AG, J.B. Hunt Transport Services Inc., ArcBest Corporation, DSV A/S, Flexe Inc., Onfleet Inc., and Postmates Inc.