Last Mile Delivery Market size to increase by USD 51.1 Billion between 2024 to 2029, Market Segmentation by Service, Application, Geography, Technology , Technavio
NEW YORK, Jan. 17, 2025 /PRNewswire/ -- The global last mile delivery market size is estimated to grow by USD 51.1 billion from 2025 to 2029, according to Technavio. The market is estimated to grow at a CAGR of 4.2% during the forecast period. The report provides a comprehensive forecast of key segments below-
Segmentation Overview
- 1.1 B2C
- 1.2 B2B
- 2.1 FMCG
- 2.2 E-commerce
- 2.3 Retails
- 2.4 Others
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 Middle East and Africa
- 3.5 South America
US, Germany, China, Canada, India, UK, Japan, South Korea, France, and Italy
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1.1 Fastest growing segment:
The last mile delivery market refers to the transportation of parcels and goods from transportation hubs to consumers' homes in a B2C context. This segment primarily deals with small and lightweight products, distinguishing it from B2B last mile delivery. Within e-commerce sales, the significance of last mile delivery has escalated. For instance, US e-commerce sales as a percentage of total retail sales grew by 10% year-over-year from 2012 to 2021. However, the B2C last mile delivery sector poses challenges for operators due to the lack of large-volume deliveries and low-priced products, resulting in potentially low margins per delivery. Additionally, returns of goods may incur extra transportation costs. Despite these challenges, the global last mile delivery market has experienced growth in recent years, with the B2C segment leading the way. To cater to residential customers, last mile delivery services have introduced next-day, same-day delivery, and parcel return options. Real-time shipment tracking and package delivery status updates are also available to consumers. Major players in the market focus on improving the consumer experience through faster deliveries, easy returns, and data-driven strategies. DHL, for example, utilizes big data and real-time traffic information to optimize delivery routes for quicker deliveries, while others leverage historical consumer purchase data to dispatch forward inventory. These strategies enable lower fuel consumption and more efficient delivery routes, driving the growth of the B2C segment and the global last mile delivery market.
Analyst Review
Last Mile Delivery Market: Bridging the Gap between Retailers and Customers Last Mile Delivery (LMD) refers to the final leg of the supply chain, delivering goods from a transportation hub or distribution center to the customer's doorstep. This critical phase of the logistics process faces unique challenges, including urban congestion, consumer expectations, and sustainability considerations. Consumer expectations for real-time tracking, on-demand services, and seamless experiences are shaping the LMD landscape. E-commerce and on-demand services are driving growth, with companies exploring various technologies such as autonomous vehicles, drones, and mobile applications to optimize routes and reduce costs. Urban congestion poses a significant challenge, with companies implementing route optimization and transportation hub strategies to mitigate delays. Sustainability considerations are also crucial, with companies focusing on reducing carbon emissions and adopting green logistics practices. Brick-and-mortar retailers and omnichannel retailers are leveraging cloud kitchens and food delivery platforms to streamline operations and meet customer demands. Peer-to-peer marketplaces and technology insights are disrupting traditional LMD models, while non-autonomous and autonomous technologies coexist to address various market needs. Company costs and shipping costs are critical factors influencing the LMD market, with companies constantly seeking innovative solutions to improve efficiency and reduce expenses. The LMD landscape is evolving rapidly, with a focus on enhancing the customer experience and ensuring timely, cost-effective, and sustainable delivery solutions.
Market Overview
The Last Mile Delivery Market refers to the final leg of the supply chain, where products are transported from a distribution center or transportation hub to the customer's doorstep or retail store. Consumers expect fast, reliable, and cost-effective delivery, leading to the growth of on-demand services and real-time tracking. Urban congestion and sustainability considerations are driving the adoption of autonomous vehicles, drones, and non-autonomous technology like Scout delivery robots. The logistics process involves distribution centers, warehouses, and delivery vehicles, with route optimization and mobile applications streamlining the last mile delivery experience. E-commerce, food delivery platforms, and brick-and-mortar retailers are leveraging omnichannel retailing and cloud kitchens to meet customer demands. Technology insights, such as autonomous technology and IT standard system integration, are crucial for efficient last mile logistics. Company costs, shipping costs, and transport infrastructure are key factors influencing the market, with poor infrastructure and logistics costs posing challenges. The e-commerce industry's growth, expected delivery times, and shipping options are shaping consumer behavior and trading activities, both domestically and overseas. Freight transportation companies and supply chain activities play a vital role in the last mile delivery market, with fulfillment services and skilled workers ensuring seamless product delivery services.
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Key Topics Covered: 1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
- Accenture PLC
- CMA CGM SA Group
- Deutsche Bahn AG
- DHL Express Ltd.
- DSV AS
- FarEye Technologies Inc.
- FedEx Corp.
- FM Logistic
- Honeywell International Inc.
- Infosys Ltd.
12 Appendix
About Technavio
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